The European Commission today gave the Government authorisation to grant Aer Lingus emergency aid to cover insurance risk for war and terrorism.
The Commission said the plans to cover airline insurance risk for one month meets all EU criteria for emergency aid.
The approval follows a similar move authorising Britain, Luxembourg, Portugal, Belgium, Sweden, Austria, Germany, Denmark, France and Spain to grant their airlines emergency aid for insurance coverage.
Many companies have seen terrorism insurance cancelled after the September 11th attacks on the US, or had new restrictions and higher premiums imposed.
Insurers say the attack, which caused damage estimated at up to €100 billion, showed the potential losses from terrorism were so high and unpredictable they could not be insured against.
Airlines have been particularly hard hit and EU governments have temporarily taken over terrorism cover for them.
PA