27 May 2010

Iraqi Airways folds in dispute with neighbour

The Iraqi government will close the state-owned Iraqi Airways after declaring it bankrupt.

The BBC reports that Iraq's transportation ministry blamed the closure on a damaging dispute with Kuwait over war reparations.

Kuwait Airways says the Iraqi flag carrier owes it about $1.2bn for aircraft and plane parts taken during the Iraqi invasion of Kuwait in 1990.

The Iraqi ministry blamed "harassment" from Kuwait for the airline's failure.

Last month, lawyers acting for Kuwaiti authorities tried to have an Iraqi Airlines plane confiscated while at London's Gatwick Airport.

It had just arrived following the first direct flight between Baghdad and London for 20 years.

The airline's chief executive also had his passport confiscated and was held in London, but has since returned to Iraq.

Earlier this week, Iraqi Airways said it would end flights to Europe and Sweden because of the efforts of Kuwait to retrieve compensation.
 

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