Grounded by sanctions and war, things looking up for Iraqi Airways

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Grounded by sanctions and war, things looking up for Iraqi Airways

DOHA, Qatar (AP) ? For the last decade, the uniformed counter clerks at
Iraqi Airways reported to work and just drank tea. Most of the country's
passenger fleet was grounded overseas and barred from regular flights by
United Nations sanctions. Now remnants of its meager domestic fleet lie
bombed to bits. But things may be looking up for its hundreds of flight
attendants, pilots and mechanics. Iraqi Airways could get off the ground
again in a new Iraq flush with international reconstruction traffic and
reborn as a member of the international community. Obstacles remain,
including continued U.N. sanctions and a jetliner fleet scattered around
the Middle East. But increased travel demand, an airport infrastructure and
an experienced staff could speed the revival of a national carrier.
Underlining resurgent interest in air travel to Iraq, British Airways and
Virgin Atlantic both announced plans this month to resume regular flights
to Baghdad once the airport is ready for civilian traffic.

"I think the traffic is there, especially during rebuilding," said Joshua
Marks, associate director of George Washington University's Aviation
Institute. "The focal point ... will be bringing expats to Baghdad for
reconstruction." Building on its strengths, Iraqi Airways could be flying
again in two to three years and have 10 planes operable within five, he
predicted. The airline could become a regional or domestic partner to a
bigger international airline that flies into Baghdad from overseas hubs
such as London. Then it could connect passengers to Basra, Mosul or other
Middle Eastern points. But first, it needs some planes. Iraq's aging fleet
of 15 Boeing airliners was flown out to Jordan, Iran and Tunisia to escape
bombing during the 1991 Gulf War. It has not been able to retrieve them;
Baghdad claimed Iran's national carrier co-opted some into its own fleet.

The airline eventually resumed limited domestic flights in 2000 using, in
part, old Russian-made military cargo planes. One of those jets was
destroyed during the battle for the Baghdad International Airport earlier
this month, its burned-out fuselage lying on the tarmac like a gutted fish
with only its tail intact. Building a new 10-plane fleet that serves four
domestic cities, Marks said, could cost between $10 million to $30 million
? a small figure compared to reconstruction costs that could reach $600
billion over the next decade. And Iraqi Airways could make an attractive
customer to aerospace companies interested in leasing planes or selling new
and used ones. Iraq last bought a new Boeing plane in 1982, a jumbo 747.
Company spokesman Mark Baughman said it was too early to speculate about
new sales.

Before the Gulf War, Iraq had signed a $500-million contract with the
European consortium Airbus Industrie for five aircraft, for which it had
paid a deposit of $10.5 million. Delivery was suspended by sanctions. Those
sanctions, imposed as punishment for Iraq's 1990 invasion of Kuwait, also
bar flights into the country. Discussions have begun on whether and when to
lift them. Scott Hamilton, an independent airline consultant in the Seattle
area, questioned the wisdom of pursuing an Iraqi airline when so much of
the country still lies in shambles. "Countries like to have their own flag
carriers and there's a certain amount of prestige to that," he said. "But
you have to have your government, your safety agency, your personnel, you
have to train them, you have to acquire airplanes." During the sanction
years, Iraqi Airways tried to retain talent by turning its Baghdad offices
into stores and communication centers. It earned revenue by selling food
and soft drinks, loaning pilots to foreign countries and setting up
workshops to repair equipment and machinery. It kept many of its 2,300
workers, but how many remain after the war is unclear.

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