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

VistaJet to move HQ to Dubai with new technology division

Dubai is to be the headquarters of a new business aircraft leasing and flight-booking technology company headed by the founder of VistaJet, Thomas Flohr.

On Air Dining recruits top executive chef

On Air Dining, the luxury executive in-flight concierge, has announced the appointment of Mark Brega as it’s executive chef.

Solvochem becomes a supplier of aviation gasoline in the Middle East

Solvochem, a supplier of chemicals, petrochemicals, solvents and plastics worldwide, has invested in state-of-the-art facilities for drumming aviation gas (AvGas) at its Jebel Ali location.

Riyadh is named as the headquarter for the Regional Safety Oversight Organisation for MENA

The General Authority of Civil Aviation (GACA) has announced the selection of the city of Riyadh as the headquarter for the Regional Safety Oversight Organisation for the Middle East and North Africa (RSOO – MENA).

Dammam full of Eastern promise

Saudi Arabia’s Eastern Province is being fired into life by ambitious plans for Dammam’s international airport, as Alan Peaford reports.

Jet Aviation to provide ground handling services in Yanbu, Saudi Arabia

Jet Aviation has received authorisation from the General Authority of Civil Aviation (GACA) in Saudi Arabia to provide handling services at Prince Abdul Mohsin Bin Abdulaziz Regional Airport in Yanbu, Saudi Arabia.

MNGJetSK2908121018
See us at
BIAS BT271017161118GATM BT1004061118Istanbul Airshow BT22018ASDubai BT1004091018Aviation Africa BT0607280219MEBAA BT1004121218MAPS18_BT1207131118AIME19BTA3005120219Cargo BT1004091018MarrakechAirshow BT2507241018