The Iraqi government may dissolve its national carrier Iraqi Airways after a long-running dispute with Kuwait over war reparations.
Kuwait says Iraq owes it billions of dollars including $1.2bn related to aircraft and aircraft parts seized during Saddam Hussein’s 1990 invasion of Kuwait.
Iraqi Airways has now stopped flights to the UK and Sweden and is expected to make a decision on whether to dissolve the airline in early June.
Kifah Hassan Jabbar chief executive of Iraqi Airways had his passport confiscated as he landed at London’s Gatwick Airport on 25 April on the carrier’s first commercial flight from Baghdad to London in 20 years.
A lawyer for Kuwait Airways also tried to seize his plane when it landed having obtained an order from the High Court in London that included freezing the worldwide assets of Iraqi Airways.
Jabbar was able to return to Iraq on 6 May after he complied with the court order and provided a statement on the airline’s assets.
No flights between Baghdad and London have taken place since.
Iraqi Airways has 65 new aircraft on order at a total cost of $5.5bn (MEED 18:5:10).
The carrier currently has a fleet of about 15 aircraft and is scheduled to take delivery of all the new aircraft by the end of 2017.