ExecutiveOrdersEO
MemoMemorandumG.W. Bush · R

Presidential Memorandum

Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations

This memorandum directs the Secretary of Transportation to provide federal aviation insurance or reinsurance to U.S.-flag air carriers for domestic and international operations through December 31, 2007, when commercial insurance cannot be obtained on reasonable terms. It delegates authority to the Secretary to extend coverage beyond August 31, 2007, based on determinations of necessity for air commerce, national security, or foreign policy.

Federal Register Open PDF 71 FR 77243

Impact dates

  1. Final expiration of coverage and extension authority

  2. Initial insurance/reinsurance coverage period ends

  3. Secretary determination that commercial insurance unavailable on reasonable terms for post-August coverage

  4. Secretary notification to all air carriers and Federal Register publication

Key directives

  • Determine continuation of U.S.-flag commercial air service necessary for air commerce, national security, and foreign policy
  • Approve provision of insurance/reinsurance to U.S.-flag air carriers until August 31, 2007
  • Approve conditional provision August 31-December 31, 2007 when commercial insurance unavailable on reasonable terms
  • Delegate authority to Secretary to extend determination beyond August 31, 2007 (no later than December 31, 2007)
  • Direct Secretary to notify all air carriers under 49 U.S.C. 40102(2)
  • Arrange for Federal Register publication

Who is ordered

Timeline

Immediate

  • Memorandum takes effect; Secretary directed to notify all air carriers and arrange Federal Register publication

Near term (90d)

  • Insurance/reinsurance coverage continues through August 31, 2007

Long term

  • Potential extension period August 31-December 31, 2007 if commercial insurance unavailable; program authority expires December 31, 2007 unless further action

Risks & tensions

  • Conditional post-August 2007 coverage creates uncertainty for airlines planning operations
  • Delegation to Secretary of extension authority may raise inter-branch questions about presidential authority delegation
  • Program relies on Secretary's subjective determination of 'reasonable terms and conditions' for commercial insurance
Presidential Memorandum: Provision of Aviation Insurance Coverage for Commercial Air Carrier Service in Domestic and International Operations · Executive Orders