CHICAGO, Aug. 22 (UPI) -- The way finally has been cleared for Orbitz, the online travel company owned by five airlines, to take off.
A Justice Department antitrust ruling apparently has opened the door to expanding the Orbitz client base and perhaps a public stock offering. Justice said, after a three-year-investigation, "the Orbitz joint venture has not reduced competition or harmed airline consumers."
"We feel battle-hardened," says Orbitz Chief Executive Jeff Katz, an engineer with graduate degrees from Stanford and MIT who spent 17 years at American Airlines before becoming CEO of Swissair for three years. When he jumped to Orbitz, the plan was to take the company public.
Last year, Orbitz filed for a $125 million initial public offering but it was shelved because of the antitrust inquiry.
A successful offering would be a boon to its airline owners -- fierce but financially struggling rivals United Airlines, American Airlines, Continental Airlines, Delta Air Lines and Northwest Airlines.
