Iraqi Airways to be closed following bankruptcy

[SENIOR]

Iraqi Airways to be closed following bankruptcy

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

Iraq's transportation ministry told reporters the airline would be closed following 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 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.

Flights still scheduled

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

Lawyers acting for Kuwaiti authorities are unable to seize planes, however, because they are chartered from other airlines, rather than owned by Iraqi Airways itself.

Chris Gooding, a lawyer representing Kuwait Airways, said the winding up of Iraqi Airways would not stop his clients from pursuing compensation.

"The transport minister [Amer Abduljabbar Ismail] last week stated: 'This action will not protect a government company because when a government company is declared bankrupt its assets are transferred to the ministry of finance and therefore the ministry will be prosecuted'," he said.

"I'm sure he won't be surprised to hear that Kuwait Airways' legal team entirely supports that conclusion."

The transport minister told the Reuters news agency that the winding up of the airline could take three years, meaning that Iraqi Airways flights would continue operating as normal in the short term.

"Its employees will continue working," Mr Abduljabbar said.

Iraqi Airways operates services to several destinations including Istanbul, Tehran, and Dubai, as well as flights to London and other European cities.

The next flight between London and Baghdad is still scheduled to fly on Friday, and agents are still taking bookings.

In the UK, about 30 jobs are dependent on the airline.

http://news.bbc.co.uk/1/hi/business/10162501.stm

[Nasir]

Well, should'nt Iraqi turn around and file a lawsuit against the American government for destroying it's fleet and operations?! As a matter of fact why stop there, why not have the Iraqi government file a lawsuit against the US for unlawful invasion?!

[ConnieMan]

I don't get this, how can an airline file law suit against another countries airline when both countries were at war at government level and not airline to airline. I might be missing something here but i can't understand why Kuwaiti airlines is suing Iraqi airlines when both countries were engaged at war.

It was a war and in war lots get destroyed between involved countries. But can years later after war ends, airline could sue same countries airline that was at war with them???, Shouldn't each just pick there own loses and move on while to rebuild them selves....

[Adnan Anwar]

Kuwaiti's have huge mistrust of Iraqi and logically i don't blame them because it was Saddam from Iraq who almost took their country away. I know Kuwaiti's are being greedy even after 20 years have passed.

The best Iraqi's can do is just create another airline like Air Iraq or Air Baghdad hence get its assets protected from any further claims from anyone. That is my my take on it.

[behramjee]

no chance of that happening...KWI Govt has already forgiven a debt of US$ 5 billion approximately owed to it by Iraq so the Iraqi Govt instead of trying to play a 'cat and mouse' game should pay the specified amount owed to Kuwait Airways for Saddam's misdeeds and say sorry and build a new relationship with both KU and KWI Govt.

By engaging in such tactics only creates further mistrust and bitterness rather than cooperation and friendship.

Plus KU could badly use the cash i.e. $ 1.2 billion dollars to buy a totally new fleet of airplanes which it so badly needs to replace its aging AB6, A 343 and A 310 fleet in particular.

[Moin]

The Kuwaiti Govt has absolutely no interest in their airline do they? Absolutely no interest. Ordering a new fleet of planes would be a drop in the ocean for them but they won't do it. Bizarre.

[PK777]

The Kuwaiti Govt has absolutely no interest in their airline do they? Absolutely no interest. Ordering a new fleet of planes would be a drop in the ocean for them but they won't do it. Bizarre.

That I def agree with. Kuwaits some reason dont spend alot of money - even on their own city. Its really weird.

[ConnieMan]

The Kuwaiti Govt has absolutely no interest in their airline do they? Absolutely no interest. Ordering a new fleet of planes would be a drop in the ocean for them but they won't do it. Bizarre.

That I def agree with. Kuwaits some reason dont spend alot of money - even on their own city. Its really weird.

Well no wonder Kuwaitis went after Iraqi Airways well over a decade later for the losses they suffered while at war!....Something is not right in this picture that i for sure, aren't there any International laws prohibiting one country to sue another country in timely manner specially when they were at war with each other years ago?....I mean there has to be time limit as to when sue's can take place legally and after that ur on your own to recover ur loses....