Cendant hires former HP exec as CEO of Travelport

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NEW YORK -- Venturing outside the travel industry, Cendant named former Hewlett-Packard executive Jeff Clarke as CEO of Travelport, the new name for its Travel Distribution Services unit, soon to be a stand-alone company.

Clarke begins May 1 as president and CEO of Travelport, which includes Orbitz, Galileo, CheapTickets, Gullivers Travel Associates, OctopusTravel.com, AsiaHotels.com, eBookers and numerous other entities.

The Travelport job will be Clarke's first as a CEO. He will work closely with Travelport Chairman Gordon Bethune, especially in preparation for the October spin-off, officials said.

Although he has no travel industry experience, Clarke is well schooled in carrying out company integrations.

He led one of the largest technology integrations in history, the merger of Hewlett-Packard and Compaq, while serving as Hewlett-Packard's executive vice president of merger operations.

His final post at Hewlett-Packard, which he left in 2003, was executive vice president of global operations for supply chain management. 

Most recently, Clarke was chief operating officer of Computer Associates, a position he took in May 2004, a month after joining that software company as its chief financial officer.

Computer Associates, headquartered in Islandia, N.Y., acquired and integrated almost a dozen companies when Clarke was on board. He is credited with stabilizing Computer Associates, which was in the midst of an accounting restatement when he was hired.

Gordon Haff, an IT analyst at Illuminata, a research firm in Nashua, N.H., said the integration of Hewlett-Packard and Compaq went "more smoothly than people anticipated" and that it is "generally regarded that Clarke did a pretty effective job there."

Charles King, the principal analyst at Pundit Research in Hayward, Calif., said Cendant's selection of Clarke "is probably a very good choice."

King said Clarke did an "admirable" job in straightening out the finances at Computer Associates.

At Cendant, Clarke replaces Sam Katz, who was chairman and CEO of TDS until December, when he left the company amid criticism that TDS was struggling to overcome operational challenges.

Meanwhile, Cendant's Flo Lugli, in an interview at the Travel Industry Association's TravelCom conference in New York last week, said the TDS name change to Travelport, which had been the name of one of Cendant's corporate travel offerings, doesn't mean there is a change in strategic direction.

"We wanted a name that represents who we are," Lugli said. "We are in travel, and we are a portal for travel and services."

Travelport For Business and Orbitz For Business, Cendant's two business travel offerings, will continue under the Travelport Corporate Solutions umbrella.

To contact reporter Dennis Schaal, send e-mail to [email protected].

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