Will Airlines Lose their Federal Terrorism Insurance?

According to chicagobusiness.com, "The aviation war-risk insurance program, which allows U.S. airlines to buy discounted insurance against terrorism, hijackings and sabotage, is set to expire Aug. 31."

It looks like the airlines will get to renew it's war-risk insurance program from the federal government, but its long term success is unknown. In the future, if the federal government decides to discontue it's war-risk insurance program to airlines, it could affect consumers by large airfare inceases because the airlines would have to purchase the insurance elsewhere at higher rates.