Iraqi Airways Declared Bankrupt by Government

The Iraqi government has opted to shut down the state-owned Iraqi Airways after declaring the airline bankrupt, a move that is being seen as an attempt to avoid paying compensation to Kuwait Airways for actions taken during Iraq’s invasion of Kuwait in 1990.

Kuwait Airways has been pressuring Iraqi Airways to pay nearly $1.2 billion in compensation for taking aircrafts and plane parts during the invasion.

With the pressure to pay restitution Iraq’s transportation ministry announced it would simply shutdown the airline. Kuwait Airways is unable to have the planes seized because they are not owned by Iraqi Airways but rather they are chartered from other airlines.

Despite the move to shut down the airline lawyers representing Kuwait Airways have said they will not stop their pursuit for compensation.

While the move to shut down Iraqi Airways has been announced it could still be up to three years before the airline is no longer operational. In the meantime it will continue operating as normal.

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