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Fri, Jun 08, 2007

TSA Tells Airlines To Pay Up

Says 22 Carriers Owe Security Fees

Following an 18-month dispute over security fees payable by domestic airlines to the Transportation Security Administration, on Thursday the TSA ruled the carriers have to cough up some scratch -- to the tune of $219 million.

Of the 22 carriers called out by the TSA, Southwest Airliness owes the most at $54 million -- followed by American Airlines at $40 million and Delta Air Lines at $32 million. The list goes down from there; all the airlines must make arrangements to pay within the next 30 days, or face additional penalties.

As Aero-News reported earlier this year, the Department of Homeland Security told the airlines to expect a bill in the mail before year's end. The airlines also appealed an increase in security screening fees in January 2006, calling the almost-doubling of annual payments due "unfair and excessive."

The airlines believe it's the government's responsibility to provide security at airports, and not the individual carriers.

"Our members intend to challenge TSA's action," Air Transport Association spokesman David Castelveter told Bloomberg. "We will pursue all appropriate actions including review by the courts."

The TSA is hoping to reduce its dependence on US Treasury revenue by imposing the fees. Several carriers are now reviewing the TSA's demands.

"We believe it is time for the TSA to develop a new system for allocating these costs, which is based on 2000 market shares," said American Airlines spokesman Tim Wagner. "This old system is fundamentally unfair."

FMI: www.tsa.gov

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