According to a report from The National, lawyers for Kuwait Airways have vowed to seize international assets owned by the Iraqi government following a recent court ruling in its long-running dispute with Iraqi Airways.

A UK court ruling has granted Kuwait Airways the right to file proceedings against the Iraqi government and ministries of transport and finance as it seeks to recoup assets to satisfy judgments worth almost US$1.3 billion for the theft of planes and engines during the Iraqi invasion of Kuwait in 1990.

“We will very soon be hunting for state of Iraq assets as well as Iraqi Airways assets,” said Christopher Gooding, a lawyer representing Kuwait Airways, who added the judgment “expands the range of assets available for enforcement”.

Until recently, a UN mandate has covered Iraq’s financial assets to shield its oil and other revenues from billions of dollars in international claims stemming from the era of Saddam Hussein. The report says that from July 1, the country will no longer be immune from financial claims, including those made by Kuwait Airways.

The Kuwaiti airline has also been pursuing the case in Canada, where court judgments cleared the way to seize buildings owned by Iraq as well as an aircraft order for regional jets from Bombardier, which is based in Montreal.

Iraq’s international assets are “substantial”, Mr Gooding said. This includes property and assets related to its oil and gas business, including tankers. “We are actively considering immediate options,” he said.

The long-running case forced the Iraqi government to announce last year it would dissolve Iraqi Airways to side-step its legal obligations, although the Iraqi carrier continues to operate.

Last week, Hoshiar Zibary [Zebari], Iraq’s foreign minister, and ministers of transport and finance went to Kuwait to discuss the airline dispute and other pending issues related to the First Gulf War, hoping to find a resolution, or at least to “lay a road map to settle them”, according to the Kuwait daily Al Watan.

Kuwait Airways, which has made a loss for several years, is in the process of converting into a private-sector shareholding company, depending on how fast the country’s sovereign wealth fund organises an auction to offer 26 per cent of the carrier’s shares to a strategic investor, Al Watan reported. The Kuwait Investment Authority will hold a 24 per cent stake in the new company, while the remaining 50 per cent will be offered for public subscription.
(Source: The National)

Iraq’s Transport Ministry revealed on Thursday that it has signed a contract with a German company to buy 15 civilian aircraft to be delivered by 2013. According to the report from AKnews, this indicates that the ministry plans to contract with international airlines to operate flights to the country, on the condition that about 45% of the profits are allocated to Iraqi Airways.

The press secretary for Iraqi Airways, Akram Lahibi, said Iraq has signed a contract with the German company ‘Bionk’ to import 15 aircraft which would arrive in Iraq by 2013 after the solution has been reached between Iraq and Kuwait on the compensation of the airlines.

According to Lahibi, discussions with the Kuwaiti side have reached an advanced stage and many of legal obstacles confronting Iraqi Airways have been fully resolved, which will contribute to the establishment of air routes between Iraq and the rest of the world.

The Ministry of Transport declared on January 17 the opening of three major air lines.

Iraqi has to pay Kuwait $1.2 billion as compensation for damaging 10 Kuwaiti airplanes during the invasion in 1990. Kuwait is reportedly demanding $1.3 billion, to include accrued interest.

In 2008, the Iraqi government contracted with Boeing to buy 40 new 737 and 787 Dreamliners, with purchase rights for an additional 15 aircraft to be delivered during 2013 — the total value of the contract amounted to $ 5.5 billion. The Iraqi government also signed a contract with the Canadian company Bombardier to buy 10 aircraft CRJ900 medium-sized planes with the right to buy 10 other aircraft in the future.

(Source: AKnews)

An appeal by the Iraqi government against Kuwait Airways‘ (KAC) claim over the theft of its aircraft during the Iraqi invasion of Kuwait has been summarily dismissed by a Canadian court of appeal, Arabian Aerospace has reported.

Last year, KAC seized Iraqi Airways and the State of Iraq interests in an order of new aircraft from Bombardier in Montreal, claiming the contract was a sham and that the real contract is between IAC and Bombardier.

According to Aswat al-iraq, the fight continues in the Quebec courts but even the total value of the contract is nowhere near the full amount of the judgments held by KAC.

(Source: Aswat al-Iraq)

Iraq’s Transportation Ministry said on Tuesday that Iraq has decided to sell all its aircraft parked at airports in Jordan, Tunisia and Iran by the former Ba’athist regime.

“The Transportation Ministry has got the approval of the Council of Ministers to sell all its aircrafts, parked in Jordan, Tunisia and Iran, possessed by the Iraqi Airways and covered by exception from the law on sellilng state property, because they have become scrap and can’t return to service”, Nasser al-Shibly told Aswat al-Iraq news agency.

Shibly said that his Ministry had sold 5 of the planes to Jordan and it is expected to rehabilitate one of them only, and there is the impending sale of two other aircrafts to Tunisia.

Iran had refused to return the planes parked at its airports, as talks with it in this regard had reached to a dead-end.

Iraq had flown the aircraft to other countries to prevent their destruction by the U.S.-led attacks during the Gulf War following Iraq’s occupation of Kuwait in 1990.

(Source: Aswat al-Iraq)

The Supreme Court of Canada has allowed Kuwait to pursue the seizure of Iraqi government assets in Canada, according to CTV News.

The high court has granted an appeal by Kuwait Airways against Iraq and Bombardier Aerospace of Montreal, follows a British judgment that could allow Kuwait to seize Iraqi passenger planes now in Canada.

At issue was Iraq’s ability to claim jurisdictional immunity involving a foreign judgment, and at stake is Bombardier’s ability to complete a $398-million aircraft deal with Iraq.

Kuwait has been trying since 1990 to extract reparations from Iraq over damages arising from the first Gulf War, when Saddam Hussein’s Iraqi army invaded Kuwait and occupied the small oil-producing country.

The Supreme Court ruling means that the case now goes back to the Superior Court in Quebec, which will ultimately decide whether the British judgment can be enforced in Canada.

(Source: CTV News)

The Iraqi transport ministry said it approved a proposal by a private firm to re-open the Baghdad-London air route after a 20-year hiatus, according to a ministry press release on Sunday.

“The ministry has given the green light to al-Nasser, a private sector company, to re-operate the airline linking Baghdad to London,” read the release as received by Aswat al-Iraq news agency.

“Members of the large Iraqi community in London received the news with joy as the line had stopped for more than 20 years,” the statement noted, adding Iraqis in London had to take more than one flight in order to reach Baghdad.

An attempt earlier this year by Iraqi Airways to fly this route was abandoned after the plane was temporarily impounded by authorities in London, as a result of a legal claim by Kuwait.

(Source: Aswat al-Iraq)

Iraqi Airways is planning to initiate its new service between Basra and Mash’had [Mashhad] in eastern Iran, according to a Transportation Ministry statement on Tuesday, quoted by Aswat al Iraq.

“The Transport Minister, Amer Abdul-Jabbar, has instructed Iraqi Airways to initiate a route between southern Iraq’s Basra and Iran’s Mash’had from September 9, 2010, with two flights per week, according to a request by Basra’s Governor, Shiltagh Aboud Al-Mayah.”

The statement also said that the minister will appoint 20 workers to carry luggage and clean Basra International Airport, and will set up a committee to improve service at the airport.

(Source: Aswat al-Iraq)

The general manager of Najaf International Airport said on Monday that automatic booking machines are being installed at the airport to allow bookings through the internet.

Sadiq al-Laban told AKnews, “The automatic booking system is modern and sophisticated. It would facilitate and confirm bookings through the Iraqi Airways website, and through the official website of Najaf International Airport.”

Laban said the airport authorities will train staff on the maintenance of the automatic booking machines.

“The airport gives visas directly to foreign passengers on Iraqi Airways. An agreement has been made with Gulf Airlines to facilitate the arrival of visitors to Iraq, particularly pilgrims, and to give them visas immediately upon arrival,” said Laban.

(Source: AKnews)