Opodo won't act as a low-budget travel cartel says CEO.

EUROPEMEDIA-(C)2002 Van Dusseldorp & Partners - http://www.vandusseldorp.com/

New UK travel portal Opodo wont operate as a cartel to force out other budget travel agents, company CEO Giovanni Bisignani said.

Even though nine of the airline industrys biggest names came together to offer low-cost holiday packages and airline tickets through the portal, it wont look to block other discount travel agencies from operating online, Bisignani said.

Opodo had to go before the European Commission, who issued an open letter ruling that the company was working for the benefit of consumers, he said.

"Opodo will help bring down the distribution costs for airlines and the benefits of that will be passed along to the consumer," he said.

The service aims to compete with online travel services like eBookers and Travelocity, who have made a big impact with consumers looking for cheap deals. Opodo follows in the footsteps of similar, airline-backed ventures in the US and in Australasia.

So far the venture has cost E128m, but the airlines are committed to more spending. The company expects to turn a profit by the end of 2004.

The site went live in the UK in January 2002 with a major online ad campaign, after the launch of its German counterpart last November. It will which launch its French site in April and Italian site in September.

British Airways, Lufthansa and Air France are the major partners in the service, with Iberia, KLM, Alitalia, Aer Lingus, Finnair and Austrian Airlines each holding a minority stake in the company. ((Distributed via M2 Communications Ltd - http://www.m2.com))