News

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.”