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Government guarantee for airlines not extended

Switzerland's airlines will have to renogotiate new contracts with the insurers Keystone Archive

Switzerland's airlines will no longer benefit from a state guarantee against acts of war and terrorism for airlines as of December 25.

The carriers will have to come to an agreement with their insurers by that date after the authorities decided on Wednesday the guarantee was no longer necessary. It was introduced in October after insurance companies cancelled all their contracts with the airlines following the September 11 attacks in the United States.

The guarantee had been granted until December 24. To justify its latest decision, the government says that the situation has changed since September.

Insurers are now prepared to cover risks up to $1 billion (SFr1.64 billion), and while premiums are high, the authorities believe the cost is not crippling for the airlines.

The government’s decision comes after most European Union members chose to extend their guarantee to their national carriers. The Swiss position is that the state’s role is not to take over airlines’ insurance cover for a long period.

swissinfo with agencies

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