Cites Fuel Costs, But Upgrades Also A Concern

Faced with the combination of increasing fuel prices and higher security costs, low-cost carrier AirTran has opted to forgo transporting air cargo in the bellies of its aircraft, effective December 1.

"We've decided to get out of the cargo business because of record high fuel prices," AirTran spokeswoman Judy Graham-Weaver said this week.

That's probably not the whole story, however, according to Air Cargo World. AirTran reportedly faced a $1.4 million bill for a new cargo tracking system, as well as other related technologies to comply with tightening security regulations. According to the airline, AirTran reaps around $3 million in annual revenue from cargo operations.

Other carriers have complained about the increased costs, as well.

The new law goes into effect in less than three years... and AirTran isn't the only airline said to be reconsidering cargo transportation, although a spokesperson for the Air Transport Association -- which does not include AirTran -- said its airlines plan to continue their cargo operations.

"The members have recognized that the introduction of security measures will be an expensive proposition," said the unnamed representative. "But, we have not heard from any of our members that they are contemplating withdrawing cargo service."

In addition to the cost of adding the required equipment, the TSA has also indicated it plans to fine carriers which don't comply with new regulations -- which could cost smaller airlines, like AirTran, some big bucks.

"You can't be a marginal player anymore," said Airforwarders Association executive director Brandon Fried. "If you don't take the compliance mandate seriously, you will pay the price."

FMI: www.airtran.com, www.tsa.gov