I found this interesting article in the weekly FrequentFlier Crier newsletter.
Just thought of sharing it with everyone.

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The Orbitz debate heated up this week with the release of a study by MIT Professor of Economics Jerry Hausman. Orbitz is the online travel agency owned jointly by the 5 largest U.S. carriers, scheduled to open for business this June.

The study was funded by Interactive Travel Services Association, Southwest Airlines and the American Society of Travel Agents, all
of which are squarely in the anti-Orbitz camp.

Key points from the study's predictably negative findings:

* Orbitz is "likely to chill price competition and reduce innovation, and harm low-fare airlines like Southwest, Frontier,
Spirit, American Trans Air, Vanguard, AirTran, Sun Country, and Jet Blue, which are producing enormous consumer benefits through low fares and price discipline."

* As a result of the Orbitz launch, "the Internet travel distribution channel rapidly could become concentrated and be characterized by significant barriers to entry." The estimated loss to consumers from decreased airline competition and higher airfares as a result of Orbitz is $3.2 billion on a discounted present value basis, and $183 million annually.

The report is online: http://web.mit.edu/jhausman/www/papers.html