Iraq dissolves Iraqi Airways over Kuwait dispute

Iraq's government has dissolved state-owned Iraqi Airways over a decades-old financial dispute dating back to Saddam Hussein's invasion of his oil-rich neighbor Kuwait, the Transportation Ministry said.

Iraq dissolves Iraqi Airways over Kuwait dispute

Iraq's government has dissolved state-owned Iraqi Airways over a decades-old financial dispute dating back to Saddam Hussein's invasion of his oil-rich neighbor Kuwait, the Transportation Ministry said Wednesday.

Kuwait's national airliner, Kuwait Airways, has long demanded $1.2 billion in reparations from the airliner for alleged theft of 10 airplanes and millions of dollars worth of spare parts during the 1990 invasion. It had sought to freeze the company's assets worldwide.

Transport Minister Amer Abdul-Jabbar said the cabinet had decided on Tuesday to dissolve the company, but that the process could take three years.

"Iraqi Airways will not stop in its work, and its employees will continue working," he told Reuters.

"We have the idea of establishing other private companies -- there are three being established," Abdul-Jabbar said.

"We are considering establishing a public-private partnership, and ... another governmental company."

Baghdad and Kuwait have been locked in a long-running dispute over billions of dollars in reparations from Iraq, including some $1.2 billion related to aircraft and parts seized during former dictator Saddam Hussein's invasion of Kuwait.

Iraqi Airways has regular flights to Beirut, Dubai, Tehran and other cities. Last month it made its first commercial flight to London in 20 years, only for a lawyer for the Kuwaiti authorities to try to seize the plane on landing.

Agencies

Last Mod: 26 Mayıs 2010, 16:27
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