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Controlling Iraq’s Skies: The Secret Sell-Off of Iraq’s Air Industry

  • Date
  • February 9, 2004

In this report the Open Society Iraq Revenue Watch (IRW) looks at Iraq’s national air transport sector, which is presently controlled by the American-led Coalition Provisional Authority (CPA). Despite CPA claims that it intends to return control of the country’s air industry to the Iraqi people, a document obtained by the Open Society Foundations shows that a backroom deal has already sold off 75 percent of the country’s air sector to a single family.

The IRW argues that the secret deal is one among a number of suspect agreements that have occurred under the radar in a chaotic post-war Iraq. The report’s authors caution that Iraq risks following a similar path as Russia, where a class of oligarchs emerged after the fall of communism by buying up state assets at below market prices.

Controlling Iraq’s Skies recommends that this contract be frozen and an investigation be launched by the International Advisory and Monitoring Board, as well as by the CPA Inspector General. The report also calls on the CPA to compensate Iraqi Airways for damage to its facilities committed by occupying forces, and fees for the use of its facilities.

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