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Arlington, Va. – Legislation passed by Congress last week to insure American commercial space launch companies against third-party catastrophic losses will help the United States compete in an increasingly sophisticated worldwide orbital transportation market, Aerospace Industries Association officials said today.

Congress approved the five-year extension (HR 5245) during its recent lame-duck legislative session, providing U.S. government indemnification for certain losses over and above “maximum probable loss’’ up to the limit of $1.5 billion (in 1988 dollars). The extension also covers damage to U.S. government property from a catastrophic accident more than $100 million.

“The extension of indemnification levels the playing field for U.S. launch providers, providing vital support to an important sector of the aerospace industry,’’ AIA President and CEO John Douglass said.

It was the fourth extension of commercial space launch indemnification since 1988, showing consistent support through different congresses. The current extension was set to expire on Dec. 31.

Visit AIA’s homepage at www.aia-aerospace.org
P.A. Rel. 2004-38
11.23.04

Contact: Matt Grimison, AIA
703-358-1076
grimison@aia-aerospace.org