The Iraqi cabinet has dissolved the state-owned Iraqi Airways, amid a row with neighbouring Kuwait over war reparations, the transportation ministry has stated. Kuwait's national airliner has demanded $1.2 bn in reparations from the airline for the alleged theft of 10 airplanes and millions of dollars worth of spare parts. However a lawyer for Kuwaiti Airways has said the Iraqi government is still accountable for the debt and the dispute will continue. Iraqi Airlines will continue to operate until it is fully dismantled, a ministry spokesman revealed.