Jun. 5--After more than a year of controversy and anticipation, Internet travel site Orbitz finally got off the ground Monday, entering competition against seasoned rivals Travelocity.com and Expedia. 

First announced in November 1999 and owned by five top U.S. airlines, Orbitz books air, car and hotel reservations, along with cruise and vacation packages. 

The site was the target of a U.S. Department of Transportation investigation as well as criticism from travel agents, who say it could enable airlines to collude on pricing. 

The investigation of Orbitz -- owned by American, Continental, Delta, Northwest and United airlines -- found no evidence of monopolistic behavior, but the agency said it would monitor the company in the months ahead. 

A bigger challenge for Orbitz, perhaps, is that cyberspace already teems with travel sites run by consolidators, discounters, traditional travel agents and the airlines themselves. But the success of leaders Travelocity and Expedia signals the market has room for another site, even as other dot-com firms suffer, said Jeff Katz, Orbitz chief executive. 

The site, expected to spend more than half of its marketing budget on Web advertising, should be profitable by 2003, he said. 

"The Internet still holds a lot of promise," Katz said. "We're happy to see that our two biggest competitors have become profitable, and profitable early. This marketplace is not only big enough to sustain profits but ready to sustain it." 

The Justice Department is conducting a separate probe, but Katz said the site "is not concerned," about the investigation. "(The DOT) said in black and white that we provided much-needed competition and consumer choice," he said. 

Orbitz, based in Chicago, touts its "point of differentiation" as is its ability to list every available fare offered, including sales and promotions shown on airline sites. 

But some discount airlines say Orbitz doesn't always show travelers the best deals. Southwest Airlines, a Dallas discount airline, sued the site for claiming it always has the lowest fares. Southwest says it often has less expensive prices on its Web site. 

AirTran Airways, the Orlando airline with an Atlanta hub, doesn't list its own promotional Web fares on Orbitz, said Kevin Healy, AirTran vice president of planning and sales. AirTran sells about one-third of its tickets through its Web site, far more than most airlines. The company believes one reason for its success is special Web promotions found only at its site. 

Also, booking fees charged by Orbitz are disproportionately higher for low-fare airlines than they are for bigger airlines, Healy said. 

"If you are a low-fare carrier with an average fare below $150, the fee ends up being a much larger percentage than if your average fare is $2,000," he said. 

The big airlines that started Orbitz have two motivations. For one thing, the site creates yet another avenue to reach consumers. It helps Delta reach the customer who travels between three and five times a year for pleasure and isn't particularly loyal to the airline, said Steve Tipsword, general manager, online agency. 

"Delta.com is not a one-size-fits-all site," he said. "We want to have a host of products that help us address each customer." 

Delta and the other airlines underwriting Orbitz stand to profit That figure is expected to more than double by 2004, according to Forrester Research of Cambridge, Mass. 

Travelocity and Expedia aren't taking Orbitz's arrival lying down. Both launched new advertising campaigns earlier this month. 

"They have a strong first mover advantage, but this is their first shoulder-to-shoulder competition," said Henry Harteveldt, senior analyst for online travel at Forrester. 

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