U.S. government extends airline cover (August 19, 2002)

The U.S. government has yet again extended its offering of third party war-risk liability insurance to the country’s aviation industry. The program, put in place following the withdrawal of private insurers from the market after the September 11, 2001 terrorist attacks, will now last until October 16, another 60 days beyond the last deadline of August 17.
The program, offered through the Department of Transportation’s Federal Aviation Association (FAA) gives coverage to airlines for losses in excess of US$50 million.
The Canadian government recently extended the deadline for its coverage offering, now set to run out on September 17. And the European Commission is allowing its members to extend coverage until October 31.
Airlines have put forward an international proposal for self-insurance, but have yet to finalize the coverage.