Orbitz' Heavy Baggage

When Orbitz Inc., the Web travel agency owned by five of the nation's biggest airlines, filed financial documents with the Securities & Exchange Commission to go public in May, investor reaction ranged from respectful to giddy. After all, Net travel site Expedia Inc. and discount hotel-room player Hotels.com have shown that the business can be solidly profitable. "Expedia has been a really hot company and a good investment," says William Smith, president of IPO Plus Fund in Greenwich, Conn. "Orbitz is a nameplate IPO, and it will be a hot deal."

Maybe not. An examination of Orbitz' newly disclosed financial information raises questions about the company's prospects...

...If the interests of the airlines and Orbitz' other shareholders diverge, which group will Orbitz try to satisfy?

http://www.businessweek.com/magazine...7/b3790091.htm