Iraq will seek $2 billion in financing for some of the 40 jetliners it has on order from Boeing Co. as the Middle Eastern country recovering from years of warfare taps U.S. export credit for the first time.
Iraq is transforming from a battleground into a focus for civil aviation as the collapse of its national airline and a decline in violent attacks attract international carriers and business-jet operators.
Iraq will pay Kuwait Airways Co. $500 million compensation in a few days to settle a debt dispute, allowing Iraqi Airways to start flights to Europe for the first time since 1990, an Iraqi airline official said.
Iraq plans to construct a new central airport and is continuing a fleet expansion with the possible addition of Bombardier Inc.’s CSeries as the war-torn country seeks to revive its travel industry and lure tourists.
Iraqi Airways plans to halt an order to buy regional jets from Canada’s Bombardier Inc. in favor of larger planes most likely from Boeing Co. or Airbus SAS after the government granted it a $300 million interest-free loan.
The expiration today of United Nations protection of Iraq’s oil revenue from creditors seeking damages stemming from Saddam Hussein’s 1990 invasion of Kuwait may make the assets vulnerable to seizure, exacerbating tensions between the two countries.