Kuwait Airways to get $300m compensation from Iraq
Iraq and its national carrier Iraq Airways will pay $300million to Kuwait Airways in compensation for Saddam Hussein's invasion of Kuwait almost two decades ago, an Iraqi government spokesman said yesterday.
The payment is the final settlement to try and dampen an argument that has sparked since the seven-month occupation of Kuwait was brought to an end in 1991.
“The Council of Ministers decided on Sunday to pay $300mn to Kuwait Airways and the two parties agreed to put an end to the legal process,” government spokesman Ali Al Dabbagh said.
Following discussions between the Amir of Kuwait and the Iraqi President during an Arab economic summit the terms have now been agreed.
Kuwait Airways demanded some $1.2billion in reparations from Iraqi Airways for aircraft and equipment stolen during the 1990 invasion.
While in August last year Kuwait Airways used a Montreal court to prevent ten Bombardier CRJ900s ordered by Iraqi Airways from being transferred. A decision that has helped prompt a settlement.