European Union (EU) transport ministers have approved plans to let european governments carry on providing third party war and terrorism cover to airlines until the end of May. They have also said they back the creation of a mutual insurance scheme as a long-term solution.
The majority of the temporary cover schemes are due to expire at the end of this month. The schemes have been in place since shortly after 11 September when commercial insurers could not offer cover.
There has been much discussion in recent months over what should replace the temporary schemes.
The US government extended its temporary cover for another 60 days on 14 March. It is expected that when it expires in May it will be replaced by a mutual insurance company set up by US airlines to cover these risks in future.
European governments, insurers and airlines are looking at similar possible solutions.
