Government to wind up Iraqi Airways amid Kuwait row

Baghdad has decided to close down Iraqi Airways in the face of a financial dispute with Kuwait.

Baghdad: Baghdad has decided to close down
state-owned Iraqi Airways in the face of a decades-old
financial dispute with neighbouring Kuwait that prompted the
seizure of one of its aircraft last month, the transport
ministry said Wednesday.

"The cabinet decided yesterday to wind up the Iraqi
company," ministry spokesman Aqil Kawthar told a news agency.

"The decision was taken because of the numerous acts of
harassment that the company has faced from Kuwait that have
prevented its planes from taking on fuel and food at various
airports.

"The transport ministry will carry out the decision by
the council of ministers, even though we disagree with it," he
said, without giving details on whether a new company would be
formed.

An aide to Prime Minister Nuri al-Maliki who was present
at the cabinet meeting where the decision was taken confirmed
the dissolution of the airline.

The decision to dissolve Iraqi Airways comes a day after
the airline announced it was dropping its services to Sweden
and Britain because of the "escalation" of the legal battle
with Kuwait.

Kuwait Airways says Iraqi Airways owes it USD 1.2
billion, a dispute dating back to Saddam Hussein`s invasion of
Kuwait in 1990. According to the emirate, 10 of its planes as
well as aircraft parts were plundered after its airport was
seized during the invasion.

PTI

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