Historic airline takes the long road to recovery step by step

Since the first invasion of Iraq by American and British forces in 1990,  the country’s national carrier has been in a virtual state of suspension.

As the battles died down then, the US banned its nationals from flying on the airline and Kuwait Airways mounted a legal challenge for compensation over what it called the theft and destruction of its fleet during Iraq’s invasion of Kuwait which led to the first Gulf War.

With sanctions and the legal case halting the development of the airline in the 1990s, the more recent Iraq War hammered another nail into what many believed would be the coffin of Iraq Airways.

But with the American withdrawal from Iraq, there is a mood of optimism in Baghdad that support will be given to help the airline get firmly back on its feet.

Analyst Saj Ahmad shares that optimism.

"Of the Arab countries in and around the GCC, the potential that lies within Iraq is arguably second only to that of the potential possible in Saudi Arabia. While the Saudi Government has opened up the possibility of non-Saudi carriers operating domestically, Iraq is still struggling to develop both its aviation infrastructure and its own home grown national icon airline,” he said.

At the Arab Air Carrier’s Organisation (AACO) AGM in November,  Iraq Airlines took its place back at the table, although Kuwait Airways were absent.

Iraq’s CEO Capt. Saad Mahdi Saeed Al-Khafaji was keen to talk to manufacturers, insurers and other airlines and expand on the potential for the airline.

“Iraqi Airways has a great history. We started in 1946 and were the best airline in the region at that time.  Because of the sanction and the old regime, we deteriorated. But we are in healing in these days.  We will be better every day.

We will take our place again in the area step by step. We wish and hope we will be healthy again in short time.”

The gorilla in the room as far as the airline’s long-term health is concerned is Kuwait Airways and what has turned out to be the longest running court case in legal history.

Ahmad sees that remaining a stumbling block.  “ Given the political fallout of the first Gulf War and Kuwait's entrenched intransigence in demanding damages and seeking punitive punishment on Iraq for the afflictions on Kuwait Airways, the Iraqi aviation scene is being dominated by other foreign airlines. With carriers like Gulf Air, Royal Jordanian, Etihad Airways, Qatar Airways, Emirates and most recently the expansion at Najaf and Baghdad by flydubai, the lack of a home grown entity is being felt and Iraq cannot afford to sit by and do nothing.
 “While its hands may be somewhat tied by the legal clouds thanks to Kuwaiti posturing, the Government of Iraq has two big orders waiting to be delivered. It has 30 Boeing 737s (variants not yet confirmed) and ten Boeing 787-8 Dreamliners on order. Demand to travel to and from Iraq is probably stronger now than at any time prior to the first Gulf war yet without a resolution between the Iraqi and Kuwaiti Governments over compensation, its highly likely that these orders will be deferred for some time and with it, the access for other non-Iraqi airlines will continue to grow.
Al-Khafaji sees resolution on the horizon.

“I really hope we will solve our problem with our brothers, the Kuwaitis. I have hope on this situation. I think it will happen within the next year,” he said.

Al-Khafaji believes Iraq’s oil strength will also help both the airline and the airports develop a successful hub in Baghdad along the same lines the Emirates and Etihad have done in the UAE and Qatar has done in Doha.

“Baghdad is at the heart of the region, he said. “We will reduce fuel prices by 10 or 15%. We have Lufthansa Systems providing ground handling and will offer the best service in the region.”

Khafaji said: “This in turn, will improve Iraqi Airways. When we see other companies and airlines coming in. This will give us the courage and the strength to build Iraq Airways again.”