To extend the aviation war risk insurance program for 3 years.

Amends federal transportation law to extend through December 31, 2008, the Secretary of Transportation's authority to: (1) issue war risk insurance policies to air carriers; and (2) certify that an air carrier is a victim of an act of terrorism and not liable for losses suffered by third parties that exceed $100 million, as well as immunity from punitive damages (with the federal government responsible for any liability above $100 million).