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

This memorandum extends the federal government's authority to provide aviation insurance or reinsurance to U.S. air carriers for domestic and international operations through September 30, 2011, when commercial insurance cannot be obtained on reasonable terms. The President determines this coverage is necessary for air commerce, national security, and foreign policy, and directs the Secretary of Transportation to notify all air carriers and publish the determination in the Federal Register.

Federal Register Open PDF 75 FR 61033

Impact dates

Sep 30, 2011
Insurance/reinsurance authority expires
Sep 29, 2010
Secretary must notify air carriers and arrange Federal Register publication

Key directives

Determine continuation of U.S. commercial air transportation necessary for air commerce, national security, and foreign policy
Approve provision of insurance/reinsurance to U.S. air carriers through September 30, 2011
Direct Secretary of Transportation to notify all air carriers immediately
Arrange for Federal Register publication

Who is ordered

Secretary of Transportation · Department of Transportation

Timeline

Immediate

Secretary of Transportation must notify all air carriers and arrange Federal Register publication

Near term (90d)

Insurance/reinsurance coverage continues under existing framework

Long term

Coverage authorized through September 30, 2011; potential renewal decision required if program extension needed beyond that date

Risks & tensions

Program continuation without congressional reauthorization debate may limit oversight
Vague standard of 'reasonable terms and conditions' gives Secretary discretion without clear criteria
Post-9/11 emergency program becoming normalized; no explicit sunset or reform requirements