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
Advertisement
Latest News

Rolls-Royce Trent 1000 Ten receives certification

The Rolls-Royce Trent 1000 TEN, which will power all variants of the Boeing 787 Dreamliner, has been granted full flight certification from the European Aviation Safety Agency (EASA). This important milestone comes as the first set of

UAE Space Agency discusses cooperation with Ministry of Climate Change and Environment

The UAE Space Agency has discussed means of joint cooperation with the Ministry of Climate Change and Environment during a meeting between high-level Space Agency delegates and the Minister of Climate Change and Environment.

EgyptAir increases flights from Cairo to several cities around the world

EgyptAir is to add new flights between Cairo and a number of cities and capitals around the world, starting from October 29th, 2017 in the beginning of winter schedule this year.

RJ launches sales promotion campaign in Jordan

Royal Jordanian (RJ) has launched a new sales promotion campaign in Jordan on its destinations in Saudi Arabia; Riyadh, Jeddah, Medina and Dammam, in addition to Abu Dhabi and Dubai, in the United Arab Emirates.

DAE completes acquisition of AWAS

Dubai Aerospace Enterprise (DAE) has completed the previously announced acquisition of the AWAS group of companies.

Foreign operators cautiously resume Benghazi operations

Foreign airlines have slowly begun operating commercial flights to/from Benghazi, just weeks after local Libyan carriers resumed their own scheduled passenger services to/from the eastern Libyan city, reports ch-aviation.

TAA SK 12MTHS16
See us at
Global Aerospace BT28218Commercial Aircraft Financing BT2017DAS BT1105161117DASAS BT3006161117AIME BT1204240118RMIT BT1631817Aviation Africa BT18418DIAC BT1105121117Aviation Show 267291117