The government-backed Troika aviation insurance scheme has been extended by a month to the end of September.

The scheme gives a government backstop for third party war and terrorism risks.

Fees for airlines have been increased.

From 30 August, there will be a tiered charging system for passenger airlines. Cargo airlines, airports and others will be unaffected.

Cover from $50m to $500m will continue to be available at a rate of 50 cents a passenger.

Airlines wanting cover from $500m to $1bn will be charged an extra 20 cents a passenger.

The government reiterated its intention to withdraw from the insurance market.

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