Obama extends govt insurance for four carriers

[WASHINGTON] US government insurance that guarantees airlines are covered against terrorism and war was extended for four carriers, including Virgin America Inc, that otherwise would have lost coverage at the end of the year.

President Barack Obama extended the insurance for as long as one year while on vacation in Hawaii, according to the order distributed by e-mail. Congress must also approve the extension, according to the order. The companies covered also include Oracle Corp founder Larry Ellison's Island Air, an intra-Hawaii carrier based in Honolulu.

The US stepped in to guarantee that airlines could receive insurance after the Sept 11, 2001, terrorist hijackings. Most carriers remain covered under a law passed in 2002 and extended by Congress in a measure funding the Federal Aviation Administration (FAA) into 2014.