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Wed 1 Jun 2011 03:33 PM

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Kuwait Airways says won’t concede on Iraq debt

State carrier will not give up 'one fils' of reparations over stolen planes, says chairman

Kuwait Airways says won’t concede on Iraq debt
In May 2011, Iraq said it would dissolve Iraqi Airways over the next three years and pursue private options to dodge asset claims
Kuwait Airways says won’t concede on Iraq debt
A man walks past an Iraqi Airways logo on June 3, 2010 in Baghdad as the national airlines employees protest the states decision to close them down in the face of a decades-old financial dispute with Kuwait. AFP PHOTO/ALI AL-SAADI (Photo credit should read ALI AL-SAADI/AFP/Getty Images)

State-owned Kuwait Airways will not make any concessions or give up a single fils in a row with neighbour Iraq over war reparations, its chairman said in remarks published Wednesday.

Baghdad 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 former dictator Saddam Hussein's invasion of Kuwait.

On Saturday, Iraq's media adviser Karim al-Nuri said Kuwait authorities seized the Iraqi Airways office in Amman while also freezing $1.5m worth of assets.

"We will not compromise one fils," Kuwait Airways Chairman Hamad al-Falah told the al-Anbaa daily. “Kuwait Airways sought several times to end this crisis, yet Iraq didn't show any seriousness to pay the due amounts. What Iraq wants is to settle the debts without paying any money," he said.

In May 2011, Iraq said it would dissolve Iraqi Airways over the next three years and pursue private options to dodge asset claims made by Kuwait over their 1990-91 war.

Last year, Kuwait tried to seize one of the Iraqi carrier's planes in London after obtaining a High Court order against Iraqi Airways that including freezing its assets worldwide.

The airline has halted flights to Britain and Sweden under threat that its planes would be seized by Kuwait.

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Basel A-Shaban 8 years ago

Kuwait will sing a different song once Iraq agrees on and accepts the new proposed Kuwait / Iraq boarders. The new boarder line will increase the Kuwaiti territories enough to include a bigger portion of a major oil field in Southern Iraq. If Iraq signs on the new boarders, this problem will just disappear. This is all just pressure tactics by Kuwait to force Iraq to accept the deal, nothing else.

The aircraft that Kuwait was trying to seize in late 2010 was leased to Iraqi Airways therefore, Kuwait could not touch it.

Iraqi Airways still flying to many destinations however, all their aircrafts are leased (registered to different owners), this makes it impossible for Kuwaitis to seize any aircraft.

Ronald Ramos 8 years ago

Allow Iraqi Airways to operate longhaul first and establish first because during the Gulf War both Iraqi Airways and Kuwait Airways were making loses during the Gulf War. But Iraqi Airways suffered more than Kuwait Airways because of the international UN embargo. Please solve the Iraq and Kuwait dispute peacefully because both countries need to bring investors and tourists to their nations. When Iraqi is profittable then allow them to pay the Kuwaitis. They need the money to do that