Global Arab Network | Kuwait Airways to take legal measures against Iraqi Airways

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Kuwait Airways to take legal measures against Iraqi Airways

Global Arab Network - - George Haddad

Thursday, 27 May 2010 22:01

Kuwait Airways Corporation will take the necessary legal measures to protect its rights, said National Assembly Speaker Jassem Al-Kharafi.

Speaking to reporters, Al-Kharafi hoped that "wisdom prevails" and that the Kuwaiti and Iraqis sides would "reach an understanding that is acceptable for both sides." He added, "If it is the right of the Iraqi side to take the measures it finds suitable, then it is our duty on the Kuwaiti side on take the necessary legal measures to protect our rights."

Iraq's transportation ministry said it will close Iraqi Airways, a state-owned airline, after the carrier fell into bankruptcy following a dispute with Kuwait over war reparations.

The ministry told reporters it will dissolve the carrier and liquidate its assets. All scheduled Iraqi Airways flights have been canceled.

The dispute dates back to 1990 when Iraqi troops invaded Kuwait, resulting in the Persian Gulf War, and, according to Kuwait, stole approximately $1.2 billion in aircraft and parts – 10 airplanes were stolen (WSJ). British courts awarded the $1.2 billion to state-run Kuwait Airways, but Iraqi Airways did not pay the award. Kuwait Airways asked the British courts to freeze Iraqi Airways's global assets.

In addition, British authorities held Iraqi Airways's chief executive officer, Captain Kifah Hassan Jabbar, in England after seizing his passport.

"We were pleased to return Capt. Kifah's passport and wish him Godspeed on his way back home," said Fasken Martineau, from the law firm representing Kuwait Airways Corporation (CNN). "We trust that he will be able to fully comply with the order for disclosure of worldwide assets when back at his desk with all his files to hand and will be fully briefed for his return to England for cross-examination."

In April, Kuwait Airways's lawyers asked that Iraqi Airways jets be confiscated at London's Gatwick Airport. However, the airplanes were not seized, since they were leased and not owned by Iraqi Airways (BBC).

"The decision to dissolve it has nothing to do with the row with Kuwait Airways," Capt. Kifah said in a phone interview (Wall Street Journal). Yet, according to BBC: "The ministry blamed "harassment" from Kuwait for the airline's failure."

Dissolving the airline may not end the conflict. According to BBC, Chris Gooding, a lawyer representing Kuwait Airways, said the airline will likely continue pursuing compensation. He also quoted Iraq's transport minister, who said (last week): "This action will not protect a government company because when a government company is declared bankrupt its assets are transferred to the ministry of finance and therefore the ministry will be prosecuted."

Global Arab Network

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