U
upscorpis
Guest
I remember some discussion about this topic back when it first came out about how much FDX received. It appears the final figure is yet to be decided.
WASHINGTON -- FedEx Corp. (FDX) is lobbying Congress to scuttle the nomination of President Bush's choice for the No. 2 job at the Transportation Department, amid an escalating legal battle over how much money the company is entitled to for losses associated with the Sept. 11, 2001, terrorist attacks, Friday's Wall Street Journal reported.
In recent weeks, the Memphis, Tenn., cargo shipper has approached home-state senator and Senate Majority Leader Bill Frist to help defeat the nomination of Kirk Van Tine, formerly the agency's general counsel, who was picked last month by the president to be deputy secretary of transportation. A spokesman for Mr. Frist said the senator plans to "examine the nomination process and listen to the testimony as [Mr. Van Tine's candidacy] moves forward."
By openly contesting Mr. Van Tine's nomination, FedEx officials are risking the possibility of antagonizing a powerful figure at an agency that regulates their business.
The department Mr. Van Tine would help lead is fighting with FedEx over how much money the company deserves under the Air Transportation Safety and System Stabilization Act, a measure passed by Congress shortly after the Sept. 11 terrorist attacks. The law set aside $5 billion to compensate air carriers for their "direct and incremental" losses stemming from the attacks.
The Transportation Department, which compared carriers' projected losses with their actual losses, demanded in March that FedEx return $31.6 million of the $ 101 million payment it got from the government as compensation. Mr. Van Tine, who at the time was the Transportation Department's general counsel, played a key role in the agency's administration of the money.
The Transportation Department claims FedEx was paid more than it should have been under the formula used to dole out the $5 billion bailout package to U.S. carriers.
FedEx says it is entitled to recover $119 million and already has put the entire amount on its books.
WASHINGTON -- FedEx Corp. (FDX) is lobbying Congress to scuttle the nomination of President Bush's choice for the No. 2 job at the Transportation Department, amid an escalating legal battle over how much money the company is entitled to for losses associated with the Sept. 11, 2001, terrorist attacks, Friday's Wall Street Journal reported.
In recent weeks, the Memphis, Tenn., cargo shipper has approached home-state senator and Senate Majority Leader Bill Frist to help defeat the nomination of Kirk Van Tine, formerly the agency's general counsel, who was picked last month by the president to be deputy secretary of transportation. A spokesman for Mr. Frist said the senator plans to "examine the nomination process and listen to the testimony as [Mr. Van Tine's candidacy] moves forward."
By openly contesting Mr. Van Tine's nomination, FedEx officials are risking the possibility of antagonizing a powerful figure at an agency that regulates their business.
The department Mr. Van Tine would help lead is fighting with FedEx over how much money the company deserves under the Air Transportation Safety and System Stabilization Act, a measure passed by Congress shortly after the Sept. 11 terrorist attacks. The law set aside $5 billion to compensate air carriers for their "direct and incremental" losses stemming from the attacks.
The Transportation Department, which compared carriers' projected losses with their actual losses, demanded in March that FedEx return $31.6 million of the $ 101 million payment it got from the government as compensation. Mr. Van Tine, who at the time was the Transportation Department's general counsel, played a key role in the agency's administration of the money.
The Transportation Department claims FedEx was paid more than it should have been under the formula used to dole out the $5 billion bailout package to U.S. carriers.
FedEx says it is entitled to recover $119 million and already has put the entire amount on its books.
