Regulatory and fuel costs prompt AirTran to dump bellyhold cargo

FACED with rising fuel prices and unfunded government mandates to buy high-security gear, American budget carrier AirTran plans to drop its reported US$3 million annual bellyhold cargo business from December 1, reports US-based Aero-News.Net.

AirTran faces a US$1.4 million bill for a new cargo tracking system, as well as other related technologies to comply with tightening security regulations.

The new law goes into effect in less than three years, and AirTran isn't the only airline said to be reconsidering cargo operations. Also adding risk is the fear of US Transportation Safety Agency fines for non-compliance.

"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."