Expedia hits out at 'naïve' airline venture

Online travel site Expedia has hit out at the latest arrival in the marketplace, Opodo.co.uk.

Opodo, which launches today, is a consortium of nine airlines including Aer Lingus, Air France and British Airways.

However, James Vaile, managing director of Expedia.co.uk, criticised its site, saying consumers will be faced with the complex task of wading through various operators' offerings in search of the best deal.

Vaile also claimed the airlines are "clutching at straws" and forming Opodo out of desperation to cover all outlets in the online marketplace.

Many airlines face an uncertain future following the events of 11 September and as such Vaile believes Opodo has just one chance to make a success of its operation - as cash-strapped airlines will be unwilling to invest further in the venture.

He said: "Opodo will have a one-time opportunity to get it right. They have said they'll be profitable by 2004 but there is a certain naivety in saying this before the launch of the UK site."

Giovanni Bisignani, CEO of Opodo, hit back, saying: "The airlines are committed to funding until 2004."

However, when asked whether they would actually cough-up more cash, he said: "It's difficult to say and it depends on how things are going."