9/11 insurance claim by U.S. Airways is denied
U.S. Airways filed an insurance claim with its carrier, PMA Capital Insurance, following September 11, 2001. The claim was for a loss of business related to the terrorist attacks, because Reagan National Airport was closed from September 11 to October 4.
The Supreme Court of Virginia, however, has ruled that U.S. Airways cannot collect on the insurance claim because the company already received $310 million in federal aid following the attacks. The court said this money should be deducted from any insurance claim. Since the maximum liability under the insurance policy was $2.5 million and the policy provided that losses would be reduced by all recoveries, PMA Capital owes no money.
U.S. Airways has since merged with America West Group Holdings, Inc.
