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Jet Airways gets war insurance from market

India's privately owned Jet Airways said on Tuesday it had got full third-party war cover from the insurance market after it failed to get an insurance lifeline from the government.

"We have obtained the full third-party war insurance cover as required by our aircraft lease and financing agreements," the airline's executive director, Saroj Datta, said.

Jet Airways had cover of $750 million for a single incident of war or terrorism on the ground before global insurers capped coverage at $50 million following the September 11 skyjackings in the United States.

Datta did not specify to what extent the airline was now covered, but confirmed that "it's certainly not more than $750 million."

"We are satisfying all the lease and financing agreements for our aircraft," Datta said.

Unlisted Jet Airways, the country's fastest growing and number two domestic airline, has a fleet of 29 Boeing 737s and six propellor-driven planes.

The airline, which operates more than 195 flights daily to 38 destinations across India, said last week it was trying to find additional sources of private insurance through its regular insurer, Oriental Insurance.

Jet leases 15 of the Boeing 737s and six turbo-props in its fleet. It owns the rest of its fleet through financing deals.

The third-party war insurance cap left airlines without much of their former cover, prompting many governments to offer help.

A few airlines have been able to strike deals in the insurance market to stave off possible interruption of operations.

The Indian government has extended an insurance guarantee to state-run flag carrier Air-India and the largest domestic airline, Indian Airlines, until the end of this month.

Private airlines -- Jet Airways and Air Sahara -- had asked for a similar guarantee.

"Jet had asked the government for a guarantee but we did not get it," Datta said.

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