The European Commission has said that, since receiving notification of the airlines’ plans in February, it has been seeking opinions from within the industry. The Commission will release a report in the coming months, assessing whether the venture is likely to create a monopoly which would undermine competition in the market.
Opodo says it will not stifle competition because the venture is a wholly separate company from its airline shareholders. British Airways, Lufthansa, and Air France each own 22% of the new company, with KLM, Iberia and Aliltalia owning 9.1% each. Finnair, Austrian Airlines and Aer Lingus share the remaining 6.7%.
The nine owners expect Opodo to become the market leader in European on-line travel - a market currently worth EUR 6.1 billion and estimated to grow to EUR 40.9 billion by 2005, according to research firm Forrester.
The company will initially be based in London with services for the UK, France and Germany. Plans are for an expansion into the rest of Europe between 2002 and 2003. Each country will have its own web site allowing customers to navigate and book services in their own language.
Opodo.com, the name being derived from the phrase “opportunity to do”, follows the lead of Orbitz, a similar US venture. Orbitz, which is jointly owned by United, Continental, Delta, Northwest and American Airlines, has the capacity to command 85% of US on-line sales. It sparked monopoly concerns from other on-line travel firms and has been closely monitored by the US Justice Department.