AIG Completes Package for Airlines

October 5, 2001

American International Group Inc. has finalized a package to provide $1 billion of coverage per airline for war risk and hijacking liability.

Airlines and insurers have been stunned by the Sept. 11 attacks on the United States, which killed thousands and will cost billions of dollars.

The federal government has offered $15 billion in federal aid to bail out airlines after all flights were grounded for two days after the attacks.

Many airlines have reported that many people are still hesitant to fly, as security concerns abound after hijacked airliners crashed into the World Trade Center and the Pentagon last month, along with a fourth plane going down in Pennsylvania as a result of a hijacking.

According to AIG Chairman Maurice Greenberg, airlines around the world play a critical role in facilitating world trade and helping nations participate in the global economy.

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