A plan by low cost carrier Air Tran Airways to exit the belly cargo business on December 1 because of high fuel and security costs provides a glimpse of the tough choices airlines face regarding the continued carriage of belly cargo.

"We've decided to get out of the cargo business because of record high fuel prices," said Judy Graham-Weaver, spokeswoman for Air Tran Airways.

Weaver said the decision to exit the cargo business was also due to the high priced investments needed toward increased security. She did not elaborate, but some observers believe high fuel costs had little to do with Air Tran's decision to exit the cargo business. To remain in the cargo business, the airline would have had to pay $1.4 million for a cargo tracking system as well as invest in other security related technology, according to airline sources.

Several U.S. airlines complain about the high costs they must bear to become compliant with air cargo security law, which becomes effective in less than three years. Some airlines say privately they are reevaluating their cargo carrying business.

"The members have recognized that the introduction of security measures will be an expensive proposition," said a representative of the Air Transport Association. "But, we have not heard from any of our members that they are contemplating withdrawing cargo service." Air Tran Airways is not a member of ATA.

It isn't just the security related investments that concern the smaller airlines, particularly. The Transportation Security Administration indicates it would levy stiff fines on those airlines not in compliance with the cargo security rules.

"You can't be a marginal player anymore," said Brandon Fried, executive director for the Airforwarders Association. "If you don't take the compliance mandate seriously, you will pay the price." Air Tran derives around $3 million in revenue from cargo, according to the airline's finance department.

Robert W. Moorman