The German government recently announced it would not give state aid to Deutsche Lufthansa AG in the event of a terrorist attack, according to Dow Jones Newswires.
The Finance Ministry cited insurers’ present willingness to cover damages as the basis for their decision.
A spokesperson for Lufthansa said that before the war with Iraq began, the most the airline could secure in coverage was $2 billion from various insurers in the private market.
Lufthansa asked the government for compensation to cover damage above $2 billion in the event of a terrorist attack.
The airline will continue to search for a global solution providing airlines with adequate insurance coverage.
Topics Catastrophe Natural Disasters
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