ExecutiveOrdersEO
MemoMemorandumObama · D Quiet signal

Presidential Memorandum

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 when commercial coverage is unavailable on reasonable terms. It approves such coverage until January 15, 2014, and delegates authority to the Secretary of Transportation to extend through December 31, 2014 if Congress extends the underlying statutory deadline.

Federal Register Open PDF 79 FR 527

Impact dates

  1. Maximum extension date delegated to Secretary of Transportation

  2. Insurance/reinsurance approval expires unless extended

Key directives

  • Determine continuation of U.S. air transportation necessary for air commerce, national security, and foreign policy
  • Approve provision of insurance/reinsurance to U.S.-certificated air carriers until January 15, 2014
  • Delegate authority to Secretary of Transportation to extend through December 31, 2014 subject to congressional extension of section 44310
  • Direct Secretary to notify all air carriers and arrange Federal Register publication immediately

Who is ordered

Timeline

Immediate

  • Secretary of Transportation directed to notify all air carriers and arrange Federal Register publication
  • Insurance/reinsurance coverage approved through January 15, 2014

Near term (90d)

  • Potential extension of coverage beyond January 15, 2014 pending congressional action on 49 U.S.C. 44310

Long term

  • Delegated authority may allow extension through December 31, 2014 if Congress acts
  • Continued federal backstop for aviation insurance market

Risks & tensions

  • Conditional delegation creates uncertainty—Secretary cannot extend beyond January 15, 2014 without further congressional action on 49 U.S.C. 44310
  • Tight 19-day initial window suggests urgency or near-lapse risk in federal aviation insurance program
  • Coverage limitation to 'reasonable terms' commercial unavailability creates subjective determination burden on Secretary
Presidential Memorandum: Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations · Executive Orders