The European Union (EU) has confirmed today that countries will be allowed to extend their emergency airline cover until the end of June.
The war and terrorism insurance for airlines, which has been in place since shortly after 11 September and is backed by a number of governments, was due to run out at the end of May.
Various insurers are proposing their own schemes, following the United States' example of planning mutual insurance scheme Equitime. Equitime is expected to be operational within a few months.
Despite these proposals, the EU has said that the insurance industry still requires public help for the time being.
The commission's transport spokesman, Gilles Gantelet, said: "It will give the airline industry time to set up its own mutual insurance fund, we won't leave EU airlines undefended against the US."
Transport ministers will discuss this issue on 17 June in Luxembourg.
