Wednesday, March 30, 2011

Orbitz (OWW) Loses Enterprise Holdings as Customer

Orbitz Worldwide (NYSE:OWW) has lost Enterprise Holdings - which operates Alamo Rent A Car, National Car Rental, and Enterprise Rent-A-Car brands - as a customer, with Enterprise saying the commission rates now being asked for are "unacceptably high."

Pam Nicholson, chief operating officer of Enterprise, said in a statement, "Their position greatly limits consumer choice and makes renting a car less affordable. It is also punitive towards rental car brands that have contributed to Orbitz's success for many years."

Orbitz, an online travel company that competes with Expedia Inc (NASDAQ:EXPE) and Priceline.com (NASDAQ:PCLN), said it was unable to reach a new deal with Enterprise after the previous contract expired.

It said, "Orbitz has replaced Enterprise Holdings with other suppliers that better serve the needs of our customers. Moving forward, we will continue to give customers choice among a robust selection of car rental options - including Hertz, Avis, Budget, Dollar, Thrifty, Advantage and other leading suppliers - that will fully meet travelers' needs."

Orbitz was trading at $3.595, up $0.005, or 0.14 percent, as of 1:36 PM EDT.




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