Correspondence

The Inspector General issued a letter to Carol Hallett, president and CEO of the Air Transport Association, regarding certified cost submissions the airlines provided to TSA for defraying security costs. Regulations issued pursuant to the Air and Transportation Security Act require the airlines to pay TSA an amount equal to their calendar year 2000 security expenses now that TSA has assumed responsibility for security from the airlines. The CY 2000 costs represent the basis for the air carrier security fee.