Brent Kendall
Posted July 5, 2011

WASHINGTON -(Dow Jones – JULY 1)- A divided federal appeals court on Friday rejected the airline industry’s challenge to the Transportation Security Administration’s calculation of fees it charges air carriers for passenger and baggage screening.

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The TSA took over security at the nation’s airports after the Sept. 11, 2001, terrorist attacks and Congress authorized the agency to impose fees to fund its security services.

A group of 20 airlines, however, argued that the TSA’s method for determining the fees was incorrect and exceeded the agency’s administrative authority.

The U.S. Court of Appeals for the District of Columbia Circuit disagreed in a 2-1 ruling. The court’s majority deferred to the agency’s calculations, which it said were reasonable.

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