Baghdad, May 26: Baghdad said Wednesday it is to close state-owned Iraqi Airways in the face of a decades-old financial dispute with Kuwait that prompted the seizure of one of its aircraft last month.
The sudden move comes a day after the airline announced it was dropping its services to Sweden and Britain over the legal row with Kuwait, but it was not immediately clear if a new company would be formed to take its place.
“The cabinet decided yesterday (Tuesday) to wind up the Iraqi company,” transport ministry spokesman Aqeel Kawthar said.
“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,” Kawthar said.
“The transport ministry will carry out the decision by the council of ministers, even though we disagree with it,” he added, 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, speaking on condition of anonymity.
Kuwait Airways says Iraqi Airways owes it 1.2 billion dollars, a dispute dating back to Saddam Hussein’s 1990 invasion of the neighbouring emirate. Kuwait says 10 of its planes as well as aircraft parts were plundered after its airport was seized during the invasion.
On Tuesday, Iraqi Airways announced it was ceasing its services to Britain and Sweden, with chief executive Kifah Hassan Jabbar blaming the decision on the legal battle with Kuwait.
“We are sorry to announce to our fellow citizens, especially the communities living in Britain and Sweden, that Iraqi Airways will stop flying to these two countries because of difficult circumstances as a result of Kuwaiti escalation,” Kifah Hassan Jabbar said.
Jabbar had his passport seized and the plane he arrived on impounded at London’s Gatwick Airport on April 25 as a dispute with Kuwait Airways marred Iraqi Airways’s first commercial flight from Baghdad to London in 20 years.
His passport was eventually returned and he was allowed to return home on May 6 after he complied with the court order to provide Kuwait Airways with an affidavit of Iraqi Airways’s assets in Britain.
The initial 10-hour flight had arrived in London after stopping in Malmoe in Sweden carrying 30 foreign and Iraqi passengers on board, including Jabbar and Iraqi Transport Minister Amer Abduljabbar Ismail.
There have been no further flights.
Iraqi Airways had planned two flights a week, with the Baghdad-London leg stopping off in Malmoe, and the return trip going directly from the British capital to Baghdad.
“We hope that our fellow citizens understand this decision,” Jabbar said of the decision to cease the London and Malmoe flights.
“Politicians have kept their mouths shut and decision makers have not stood up to face the consequences of the ex-regime, which has put us in this situation.”
The dispute with Kuwait Airways is part of a wider row between the two countries resulting from Saddam’s invasion of the emirate.
Iraq has said it cannot sustain its reparations payments to Kuwait for the invasion, which it claims are the highest paid by any country in history.
—Agencies