Orbitz Debut Expected to Draw Much Scrutiny

Orbitz is probably the only Internet start-up that requires employees to attend a four-hour seminar on antitrust law, signaling just how much scrutiny the travel Web site, which officially launches today, faces from rivals, consumer advocates and federal authorities.

The watchfulness is only going to intensify, said Chief Executive Jeffrey Katz, which is why “we’ve taken a lot of steps to make sure that we live within the bounds of the law.”

Critics say Orbitz, backed by $145 million in seed money from five major airlines, will reduce, if not eliminate, competition and pave the way for higher prices.

Orbitz denies the allegations. Katz said Orbitz will enhance competition by listing fares from all airlines without bias.

A lot is at stake. Roughly $12 billion was spent online in 2000 for airline tickets, 6% of all airplane ticket sales. That figure is expected to more than double by 2004, according to Forrester Research of Cambridge, Mass.

A Department of Transportation investigation of Orbitz, which is owned by American, Continental, Delta, Northwest and United airlines, found no evidence of monopolistic behavior, but the agency said it would monitor the company in the months ahead. The Justice Department is conducting a separate probe. Associated Press