The Government was under growing pressure last night to step in or face the prospect of all Cathay Pacific flights being grounded as talks over 'war insurance' come to a head.
Cathay Pacific and the Economic Services Bureau have until Tuesday morning to reach a deal in the wake of the terrorist attacks in America.
The news comes amid mounting disquiet among passengers worried they will be stranded abroad if a deal is not brokered in time.
Insurers decided to pull the plug on third-party premiums last week in the wake of the attacks.
Airlines in turn warned they would be unable to continue to fly unless governments stepped in and effectively underwrote them until they gained full insurance cover again.
Tony Tyler, Cathay's director of corporate development, said: 'These negotiations could go right to the 11th hour. But the message to our customers is: assume that it is business as usual and you will be able to get back afterwards. Obviously, if the situation changes, we will let you know.'
All airlines have been told they must sign new policies by Tuesday limiting insurer liability to US$50 million (HK$390 million). This would effectively ground all commercial passenger planes because the cover would be a fraction of that required for flights.