Kuwait Airways claims that the Iraqi flag carrier owes it $1.2bn for aircraft and plane parts seized during the first Gulf War. Last month, lawyers acting for Kuwaiti authorities tried to have an Iraqi Airlines plane confiscated while at London's Gatwick Airport.
The airline's chief executive also had his passport confiscated and was held in London, but has since returned to Iraq.
Iraq's transport ministry told reporters the state-owned airline would now be closed having earlier declared it bankrupt.
All flights have been cancelled with immediate effect, and refunds are already being offered to affected customers.
http://www.breakingtravelnews.com/news/article/iraq-winds-up-flag-carrier-iraqi-airways/
