On the heels of the decision made by the U.S. government to extend its coverage of airline terrorism exposures by another 30 days, the European Union has granted approval to its members to do the same. As such, the airlines now have until the end of June to implement an alternative insurance mechanism against terrorism and war risks. U.S. airliners recently filed for a license to create a Vermont-based alternative risk funding vehicle to be known as “Equitime’. The purpose of this “mutual captive” insurance fund would be to enable the airline industry to eventually underwrite its own terrorism and war risks as the federal government eases out from its current role of backing these exposures. The European airliners have also proposed the creation of a similar fund to be known as “Eurotime”.