Kuwait could rebuff $500m Iraqi Airways offer

  • Share via facebook
  • Tweet this
  • Bookmark and Share
A Kuwait Airways airplane (AFP/Getty Images).

A Kuwait Airways airplane (AFP/Getty Images).

Kuwait could reject a US$500m compensation offer from Iraq in the latest twist in a debt dispute that has continued since the first Gulf War.

Government-owned Kuwait Airways had originally sought US$1.2bn from Iraq for the ten jets that were taken by Iraqi forces during the Gulf War of 1990-1991. Two-and-a-half years ago, the airline won a court order in the UK that led to the freezing of Iraqi Airways’ global assets.

Towards the end of last year, Iraqi Airways said it would offer Kuwait Airways US$500m.

However, according to Al Rai, as reported by the Kuwait Times, “parliamentary insiders” believe that a majority of legislators will not accept the deal.

According to the newspaper, members indicated that the US$500m sum was “too little” and “not comparable with the value of the loss the KAC [Kuwait Airways Corporation] suffered as a result of destruction to its fleet”.

Iraq’s offer involves a US$300m settlement in cash, with the remaining US$200m to be invested in joint projects.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
The inside story of the new Airbus A350 jet

The inside story of the new Airbus A350 jet

Customers, suppliers and industry sources share their insights...

Is business aviation on the rise?

Is business aviation on the rise?

The Middle East's business aviation industry is forecast to be...

Dubai Tram essential guide

Dubai Tram essential guide

Prepare to explore the city in a whole new way from Wednesday...

Most Discussed