Meanwhile, the Australian Government has joined European governments in guaranteeing the third-party liabilities of its remaining major airline as the global insurers cancel war and terrorism risks for airlines. Without the cover Qantas would have had to join financially crippled Ansett in being grounded – an impossible position for the nation.

Australia’s airlines have already introduced a passenger liability surcharge of $1.25 per passenger.

In Europe, aviation insurance experts said the low rates enjoyed by commercial aircraft operators will not return to their old levels, which “have been too low for too long”. Steep insurance rises and tough new restrictions are predicted to hit airlines globally over the next six months.

Although premiums are reported to rise 500% from 0.1% to 0.5% of the cost of the plane, there is evidence suggesting that war risk rates had already risen and were expected to rise sharply this year.

US trade newspaper Business Insurance reported in August that aviation war risk rates had already increased before the string of terrorist attacks in Sri Lanka and Spain earlier this year.