Out-Law / Your Daily Need-To-Know

On-line travel is in danger of being dominated by the “joint market power of the largest airlines” according to the American Society of Travel Agents (ASTA). An ASTA representative told a House subcommittee that Congress action for on-line travel may be necessary, unless a pending Justice Department investigation of travel site Orbitz rectifies the situation.

Orbitz, a US-based web site owned by a consortium of airlines, was also accused by Travelocity.com of “precluding selective price discounting by airlines”.

A report released last month by the US Department of Transportation did not find Orbitz responsible for anti-competitive practices. It said, however, that the site's ticket venture could have “a negative effect on airline competition.”

Orbitz claimed that its representatives could not attend the hearing on Friday, due to lack of notice and a scheduling conflict. However, Orbitz said in testimony written for the hearing that its purpose is to “bring new competition to automated distribution.” According to vice president Gary Doernhoefer, price competition has increased since the site was launched 13 months ago.

ASTA argued that “the e-commerce market place for travel services is being distorted and misused by airlines who seek collectively to dominate the internet space.”

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