Iraqi Airways, originally uploaded by Abed Dodokh.

The Associated Press reports that the government of Iraq has decided to dissolve Iraqi Airways. The main cause for the dissolution is a dispute that Iraqi Airways has with Kuwait Airlines.

The dispute with Kuwait Airlines started way back in 1991, when Saddam Hussein invaded neighboring Kuwait. Kuwait Airlines alleges that Iraqi Airways stole 10 airplanes and spare parts valued at $1.2 billion.

The Iraqi government says that they will disband the company into two or three smaller companies and will continue to operate flight services with leased/ chartered planes as usual. The Kuwaiti government calls the move “cynical.”

In April, the government of Kuwait attempted to confiscate the plane the flew the route Baghdad-London for the first time in 20 years. Kuwait wasn’t able to confiscate the plane because it actually belongs to a Swedish company and was being leased to Iraqi Airways.

I think it’s really cynical of the Iraqi government to do this. I feel that they should do the right thing and pay up their debts, if they actually owe it. If they don’t owe it, then they need to take steps to make things right.

Looks like the Phoenix rising out of the ashes just had a bunch of cold water dumped on it, and is now just a wet bird.

(AP)