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Nov 28 2012
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Iraq to settle airline dispute with Kuwait with a single USD500m payment
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By Haider Ibrahim
The Iraqi government is likely to pay in a single tranche a USD 500 million settlement to end a conflict between Iraqi Airways and Kuwait Airways to pave the way for the development of a joint Iraqi-Kuwaiti airline venture, a senior official told Zawya.
Iraq and Kuwait reached to an agreement in March 2012 to resolve the airline dispute arising from the destruction and seizure of Kuwait Airways assets during the 1990-1991 Gulf War. The reparation was to be made in two tranches - USD 300 million by the end of 2012 and USD 200 million in the first quarter of 2013 as investment in a joint airline venture between the two nations.
"The Iraqi transport ministry will officially recommend the government pay off the total amount at one go, to finally resolve the airline dispute, when Kuwait would abandon all lawsuits against Iraqi Airways," Bankeen Rakane, technical deputy at the transport ministry, told Zawya.
The ministry has drawn up plans to expand the operations of Iraqi Airways after the lawsuit is dropped, Rakane said. Over the past 15 years, Iraq has bought a number of aircraft, including six Canadian-made planes, but registered them as owned by the Iraqi finance ministry to prevent sequestration at airports, he said.
"Once the Iraqi transport ministry closes the case, Iraqi Airways will get the chance to restructure and to be one of the biggest airlines in the region," Karim al-Nuri, an adviser at the ministry, told Zawya.
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Nov 28 2012
more articles from Zawya
Iraq to settle airline dispute with Kuwait with a single USD500m payment
Google Plus
Email A Friend
Print This Page
Save as PDF Add to Reading List
By Haider Ibrahim
The Iraqi government is likely to pay in a single tranche a USD 500 million settlement to end a conflict between Iraqi Airways and Kuwait Airways to pave the way for the development of a joint Iraqi-Kuwaiti airline venture, a senior official told Zawya.
Iraq and Kuwait reached to an agreement in March 2012 to resolve the airline dispute arising from the destruction and seizure of Kuwait Airways assets during the 1990-1991 Gulf War. The reparation was to be made in two tranches - USD 300 million by the end of 2012 and USD 200 million in the first quarter of 2013 as investment in a joint airline venture between the two nations.
"The Iraqi transport ministry will officially recommend the government pay off the total amount at one go, to finally resolve the airline dispute, when Kuwait would abandon all lawsuits against Iraqi Airways," Bankeen Rakane, technical deputy at the transport ministry, told Zawya.
The ministry has drawn up plans to expand the operations of Iraqi Airways after the lawsuit is dropped, Rakane said. Over the past 15 years, Iraq has bought a number of aircraft, including six Canadian-made planes, but registered them as owned by the Iraqi finance ministry to prevent sequestration at airports, he said.
"Once the Iraqi transport ministry closes the case, Iraqi Airways will get the chance to restructure and to be one of the biggest airlines in the region," Karim al-Nuri, an adviser at the ministry, told Zawya.
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