Court Denies FedEx Claim on DOT Reimbursement

U.S. Says It Overpaid Firm After 9/11 Attacks

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edEx Corp. lost a round in its attempt to limit the amount of money it must pay back after the Transportation Department decided it had given the package carrier too much money to make up for business it temporarily lost immediately after the 9/11 terrorist attacks.

However, while FedEx lost a court challenge to DOT procedures, company spokeswoman Kristen Krause said the decision would actually help FedEx because it included a footnote that supported FedEx’s view that evidence was excluded in the department’s initial decision.

Air carriers received federal aid based on estimated losses from the three-day shutdown of U.S. air traffic after the attacks. The companies were told they were overpaid if their financial results were better than they expected.

For the full story, see the July 12 print edition of Transport Topics. Subscribe today.