ExecutiveOrdersEO
DetDeterminationG.W. Bush · R

Presidential Determination

Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations

This determination extends federal aviation insurance coverage for U.S.-flag commercial air carriers through August 31, 2005, with conditional extension authority to December 31, 2005, when commercial insurance is unavailable on reasonable terms. It delegates authority to the Secretary of Transportation to make findings and extend coverage based on national security, air commerce, and foreign policy interests.

Federal Register Open PDF 69 FR 77607

Impact dates

  1. Maximum extension date for coverage

  2. Initial insurance coverage period expires

  3. Secretary determination required for extension period (post-August 31) that commercial insurance unavailable on reasonable terms

Key directives

  • Determine continuation of U.S.-flag commercial air service necessary for air commerce, national security, and foreign policy
  • Approve provision of insurance/reinsurance to U.S.-flag air carriers until August 31, 2005
  • Authorize conditional coverage August 31-December 31, 2005 when commercial insurance unavailable on reasonable terms
  • Delegate authority to Secretary of Transportation to extend determination through December 31, 2005
  • Direct Secretary to notify all air carriers under 49 U.S.C. 40102(2) and arrange Federal Register publication

Who is ordered

Timeline

Immediate

  • Determination takes effect immediately upon signing
  • Secretary directed to notify all air carriers and arrange Federal Register publication

Near term (90d)

  • Insurance coverage continues through August 31, 2005

Long term

  • Conditional extension possible to December 31, 2005 if commercial insurance unavailable on reasonable terms
  • Potential for repeated annual determinations under statutory framework

Risks & tensions

  • Post-9/11 aviation insurance market instability may require continued federal backstop beyond statutory cycle
  • Conditional extension creates uncertainty for carriers planning beyond August 2005
  • Delegation to Secretary of 'reasonable terms and conditions' standard provides discretionary flexibility but limited transparency
Presidential Determination: Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations · Executive Orders