Iraqi Airways to be closed after financial dispute
By IANSWednesday, May 26, 2010
BAGHDAD - The state-owned Iraqi Airways Company will be closed after a financial dispute with the Kuwaiti government, media reports said Wednesday.
“The Council of Ministers decided to dissolve the Iraqi Airways Company,” Iraq’s al-Sabah newspaper quoted a government source as saying.
Kuwait has demanded $1.2 billion in reparations from Iraqi Airways for damage caused by Saddam Hussein’s invasion of the country in 1990, Xinhua reported, quoting the newspaper.
Last month, a lawyer of the state-owned Kuwaiti Airways managed to obtain an order from the High Court in London that includes freezing the assets of Iraqi Airways worldwide.
The Iraqi Airways announced that it has stopped its flights to London and Stockholm after the escalation of the legal battle with Kuwait.
The Iraqi government plans to sell the assets of the airline to private companies.
