The Federal Aviation Administration says it will not renew AIG’s $20 billion travel insurance contract until the insurer meets a deadline of September 7.
The FAA announced Friday that it has not received a request from AIG to renew the $20.3 billion contract, which expires at the end of the month.
The delay in approving AIGs request for a renewal was prompted by an Aug. 2 federal judge’s order that the insurer submit a new, more competitive contract.
AIG said in a filing Friday that a decision on its request would be made next week.AIG said the delay in revoking the travel insurance agreement comes in response to concerns raised by regulators that the company was not adequately preparing its pilots for the anticipated disruptions to the travel industry.
The FAA has not issued a notice to the airline.
Aig, the largest U.S. travel insurance provider, has been under scrutiny since the financial crisis.
The insurer, which has been the subject of congressional scrutiny since its 2009 bankruptcy, has repeatedly denied wrongdoing.