Iraq's government has declared the state-owned Iraqi Airways bankrupt. All of its scheduled flights ceased on May 25. The authorities now hope to replace it with two or three new airlines to serve Iraq's domestic and international routes. The move was prompted by a long-rnstanding dispute with Kuwait Airways over war reparations. The carrier claims Iraq owes it $1.2 billion (£829 million) for seizing and destroying most of its assets, including ten airliners, after the 1990 invasion.
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