CSI Aviation Revives Claim Feds Owe $40 Million Cancellation Fee

CSI Aviation Inc. will get another chance to seek $40 million in flight cancellation charges from the Department of Homeland Security, after the Federal Circuit ruled Thursday that the company’s terms and conditions were expressly incorporated into its government contract.

The relevant contract incorporates the offer CSI submitted to the General Services Administration to perform air charter services for the government, the U.S. Court of Appeals for the Federal Circuit said. This offer “unambiguously identifies” CSI’s terms and conditions—including a provision imposing fees on certain flights canceled on short notice—and says they apply to all operations, the court said.

The ...