FedEx Appeals 9/11 Refund Order

Memphis-based FedEx is appealing a Department of Transportation (DOT) order to repay $29 million of the $101 million it received in aid from the federal government following the economic aftershocks of the terrorist attacks on September 11, 2001. FedEx originally expected $119 million in aid, which it included in its 2002 earnings. DOT determined that FedEx was only entitled to $72 million of compensation

Memphis-based FedEx is appealing a Department of Transportation (DOT) order to repay $29 million of the $101 million it received in “stabilization” aid from the federal government following the economic aftershocks of the terrorist attacks on September 11, 2001.

FedEx originally expected $119 million in aid, which it included in its 2002 earnings. DOT determined that FedEx was only entitled to $72 million of compensation under the Air Transportation Safety and System Stabilization Act.

Though FedEx is appealing that decision, the company is taking a $48 million charge in the second quarter of its fiscal 2005 in case its appeal fails, said FedEx.

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