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Iraq has said it will dissolve state-owned Iraqi Airways over the next three years and pursue private options to avoid asset claims made by Kuwait over their 1990-91 war. Wednesday’s move came a day after the airline halted Iraq flights to Britain and Sweden under threat that its planes would be seized by Kuwait in a row over war reparations. Amer Abdul-Jabbar, Iraq’s transport minister, 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 news agency. We have the idea of establishing other private companies — there are three being established," Abdul-Jabbar said.
Iraq and Kuwait have been locked in a long-running dispute over billions of dollars in reparations from Iraq, including some $1.2bn related to aircraft and parts seized during the invasion of Kuwait by Saddam Hussein, the former Iraqi ruler in 1990.
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