Manx was all but grounded on 25 September after third party insurance cover for war and acts of terrorism was withdrawn in the wake of the 11 September terrorist attacks. Commercial insurance companies cancelled the cover to all airlines effective midnight on 24 September. New policies were offered, but with coverage limited to US$50 million, rather than the previous limit of US$1 billion. The new, lower limit is below that required by regulations and by contracts with aircraft lessors. The UK Government established an indemnification scheme for British airlines, allowing them to continue flying. But Manx is not covered by the deal, as it is based on the Isle of Man, which has a distinct legal status. In the past, this status had been to the airline’s advantage, as it gave it a tax advantage. As a result of the impasse, all of Manx’s aircraft were grounded, including its BAe 146-200, G-MIMA (msn E2079). While it tries to find a solution, Manx is trying to cover as much of its schedule as possible with aircraft borrowed from sister British Regional Airlines and leased from other airlines, but many flights have been cancelled or delayed.