Transportation Secretary Norman Mineta is standing behind the nomination of Kirk Van Tine as DOT Deputy Secretary, despite attempts by the FedEx Corporation to thwart it.

Van Tine, who previosuly served as DOT General Counsel, was involved in the distribution of compensation funds to transportation carriers totalling $5 billion in the aftermath of September 11th. To help expedite the financial recovery of carriers, the department asked such carriers to provide an estimate of their losses relating to the events of September 11th. Fifty percent of those estimated costs were bequathed to carriers very quickly with the presumption that the department would re-examine actual losses at a later date. The FedEx Corporation estimated their losses to be $200 million after September 11th. When DOT more closely examined the actual losses of FedEx and other carriers, the department determined that FedEx could not document losses beyond $70 million. DOT apparently gave FedEx the opportunity to contest the department's approximation of their September 11th related losses, but according to a department spokesperson, they opted not to dispute the charges or negotiate a settlement with the department.

FedEx claimed it was owed $119 billion by the department and they took their case to the U.S. Court of Appeals in the District of Columbia. Oral arguments were heard the week of October 13th. Of the 63 carriers that over-estimated their post-September 11th costs, 53 have repaid the difference and 15 have negotiated settlements. To demonstrate their malcontent with Van Tine's estimation of atcual losses, FedEx has enlisted the support of a number of lobbyists to help block the nomination.

The Senate Commerce, Science and Transportation Committee has not yet scheduled a nomination hearing for Van Tine. However, Norm Mineta's chief of staff, John Flaherty, has maintained that the Secretary stands firmly behind the nomination of Van Tine. "This is a solid guy, a consummate professional who is hand and glove with the Secretary, which is why he want's him as his deputy," said Flaherty.