To amend title 49, United States Code, to extend the aviation war risk insurance program.

This bill would extend the federal government’s authority to provide "war risk" insurance to commercial airlines through December 31, 2011. This specialized insurance covers losses resulting from acts of war, terrorism, or hijacking—risks that are often too expensive or unavailable through private insurance markets.

For the average citizen, this legislation is designed to ensure that airlines can continue operating during times of international conflict or heightened security threats without facing financial collapse from uninsured losses. Additionally, the bill limits an airline's liability for third-party damages caused by a terrorist act to $100 million, with the federal government assuming responsibility for claims above that amount. This measure aims to maintain the stability of the national aviation system and keep air travel accessible to the public during periods of global instability.