THE GOVERNMENT has extended war and terrorism
insurance cover for UK airlines until November 24 to ensure carriers can keep
flying.
However, the temporary scheme which took effect after
the insurance industry cancelled terrorism cover in the wake of the US attacks
has been changed. Airlines must now find and fund their own commercial cover
for the first £69 million, instead of £34 million.
Chief Secretary to the Treasury Andrew Smith said:
“The Government has decided to renew the insurance scheme to enable airlines to
keep flying. There is still a gap in the commercial insurance market that the
Government is filling to ensure the aviation industry has the cover it needs.
“We are consulting the
industry about the best basis for charging in the future.”