ExecutiveOrdersEO
MemoMemorandumObama · D

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. flag air carriers through August 31, 2010, 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 affected air carriers and publish the determination in the Federal Register.

Federal Register Open PDF 74 FR 43617

Impact dates

  1. Insurance/reinsurance authority expires

Key directives

  • Approve provision of insurance/reinsurance to U.S. flag air carriers through August 31, 2010
  • Determine continuation of U.S. flag commercial air service is necessary for air commerce, national security, and foreign policy
  • Direct Secretary of Transportation to notify all air carriers under 49 U.S.C. 40102(a)(2)
  • Arrange for Federal Register publication immediately

Who is ordered

Timeline

Immediate

  • Federal Register publication ordered
  • Notification to all air carriers required

Near term (90d)

  • Insurance/reinsurance coverage continues under existing framework

Long term

  • Coverage expires August 31, 2010 unless extended by subsequent action

Risks & tensions

  • Conditional trigger ('when he determine that such insurance...cannot be obtained on reasonable terms') creates discretionary uncertainty for Secretary
  • Program represents ongoing federal backstop for private market failure in aviation insurance
  • Brief extension suggests potential congressional or policy deliberation on long-term program future
Presidential Memorandum: Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations · Executive Orders