Subscribe Free
in Business & Finance

Iraqi Airways set to disburse $500mn to Kuwait

Posted 11 July 2017 · Add Comment

The Kuwaiti Ministry of Finance and Kuwait Airways are coordinating efforts among themselves ahead for the anticipated disbursement of USD500 million by the Iraqi government-owned Iraqi Airways, reports ch-aviation.

The Iraqi carrier and state were ordered to pay the Kuwaitis a total of USD1.3 billion as restitution for damages incurred during the invasion of Kuwait in 1990. 

Kuwait Airways' claim extends to ten aircraft - two B767-200(ER)s, three A300C4s, and five A310-200s - seized by Iraqi forces in August 1990. In September of that year, the Revolutionary Command Council of Iraq adopted a resolution dissolving Kuwait Airways Corporation and transferring all its property worldwide, including the ten aircraft, to Iraqi Airways. In its claim filed against the Iraqi state and the airline in January 1991, Kuwait Airways valued the aircraft at USD630 million. The damages claimed at the trial exceeded USD800 million.

Following repeat attempts by Kuwait to secure payment including asset seizures, the two sides reached an out-of-court settlement in 2012 wherein the Kuwaitis agreed to drop other pending cases against Iraqi Airways in return for the USD500 million disbursement. Under that initial agreement, Iraqi Airways was to pay Kuwait Airways USD300 million in cash with the remaining USD200 million to be converted to equity in Kuwait-Iraq Airways, a joint-venture carrier that has now been called off. As the proposed venture will no longer proceed, the parties have agreed to settle the entire debt in cash.

* required field

Post a comment

Other Stories
Latest News

Living in the city...on Mars

The United Arab Emirates has aspirations that are literally out of this world when it comes to its space industry. In fact, as Steve Nichols reports, it has its eyes firmly fixed on Earth’s nearest neighbour – Mars.

RJ to resume flights to Erbil and Sulaymaniyah

As of April 1, 2018, Royal Jordanian (RJ) will resume its scheduled flights between Amman and each of Erbil and Sulaymaniyah, in northern Iraq.

Pilot schemes to do away with the pilot…

‘Autonomous’ is one of the buzzwords around the industry, as scientific and technical advances come together to convert the science fiction staple of unmanned, passenger-carrying aircraft into science fact. Alan Dron has been

Emirates SkyCargo awarded Cargo iQ certification through external audit

Emirates SkyCargo was presented with its Cargo iQ certification at the World Cargo Symposium in Dallas, Texas, USA.

GE9X engine that will power Boeing’s 777X goes airborne

The GE9XTM engine lifted off on March 13 under wing of GE Aviation's 747 flying testbed in Victorville, California, for its first flight test.

Qatar Airways wins four awards at APEX Passenger Choice Awards Ceremony

Qatar Airways has been awarded the APEX Passenger Choice award for ‘Best Overall Airline: Middle East’; ‘Best Food and Beverage: Middle East'; 'Best Cabin Service: Middle East’; and ‘Best Seat Comfort: Middle East’ by the Airline

Aviation Africa SK18418
See us at
MEBAA BT2018SOFEX BT2018AirportShow BT1502090518Aviation Africa BT18418Global Aerospace BT2018Istanbul Airshow BT22018ArabianTravelMkBT250418BIAS BT271017161118