Tuesday 12 March 2013

Interview: Saad Al-Khafaji, Iraqi Airways DG


Iraqi Airways route expansion to focus on Europe, China

Iraqi Airways director general Saad Al-Khafaji has outlined details of the flag carrier's upcoming network expansion, which has been made possible by its reconciliation with Kuwait Airways.

Flights to Frankfurt will get underway in about a fortnight, he says, while Copenhagen and Amsterdam are being targeted shortly after. In Asia, the airline has its sights set on Kuala Lumpur, Beijing, Shanghai, Guangzhou and Bangkok.

Washington and New York could also be added soon, says Al-Khafaji. He credits the US embassy in Baghdad with "helping to speed up the process" of launching flights to America.

Iraqi Airways director general Saad Al-Khafaji has outlined details of the flag carrier's upcoming network expansion, which has been made possible by its reconciliation with Kuwait Airways.

Flights to Frankfurt will get underway in about a fortnight, he says, while Copenhagen and Amsterdam are being targeted shortly after. In Asia, the airline has its sights set on Kuala Lumpur, Beijing, Shanghai, Guangzhou and Bangkok.

Washington and New York could also be added soon, says Al-Khafaji. He credits the US embassy in Baghdad with "helping to speed up the process" of launching flights to America.

Iraqi Airways had been blocked from adding new destinations and renewing its fleet in recent years due to legal action by Kuwait's flag carrier, which was seeking compensation for Saddam Hussein's alleged theft of 10 aircraft in 1990.

The long-running dispute was settled late last year, paving the way for Iraq's flag carrier to resume flying to Kuwait and London after a 23-year absence. Its outbound Baghdad-London service includes a stopover in Malmo, Sweden for extra security checks.

Al-Khafaji says that while Iraqi Airways wants to fly to "all the major capitals in Europe", its new destinations will be added "one at a time". Once Frankfurt, Copenhagen and Amsterdam are operational, the airline will look at Paris and either Madrid or Rome.

Efforts to remove Iraq from Chapter Seven UN sanctions - which complicate visa applications for Iraqi citizens - will be critical to growing the European network. "If this issue is resolved, our visas will be very easy to get," Al-Khafaji says.

Growth of the Asian network will initially centre on Kuala Lumpur in Malaysia, following the dissolution of a joint venture between Iraqi Airways and AirAsia.

"We are trying to go to the East, to Kuala Lumpur. We started a joint venture with AirAsia a few months ago, and now we want to do it on our own," he confirms. "We'd like to start our route to Beijing, as we used to fly there before. We'll also start flying to Guangzhou in China. And we're aiming for Bangkok and Shanghai in the near future."

Alongside its new London Gatwick services, Iraqi Airways currently serves 12 destinations spread across the Middle East, North Africa, central Asia and India. It has bases in Baghdad, Najaf, Basra, Erbil and Sulaymaniyah.





Iraqi Airways poised to order two 777s, firm 787 options

Iraqi Airways expects to place an order for two additional Boeing 777-200LRs as well as firming up its five options for the 787-8, director general Saad Al-Khafaji tells Flightglobal.

The Iraqi flag carrier has begun rapidly expanding its fleet following the resolution of its two-decade-long dispute with Kuwait Airways, which was obstructing delivery of Iraq's 30 737-800s and 10 787-8s.

One 777-200LR arrived in Baghdad on 15 December 2012, and Al-Khafaji says he is negotiating an order for two additional units with Boeing.

"We have talks about more 777s," he says, adding that the airline will use them to restore long-haul routes ahead of receiving its 787-8s. "We are talking about two [777-200LRs]...In the near future you will see Iraqi Airways flying to Washington or New York with 777s."

Al-Khafaji declined to specify when the flag carrier will start taking delivery of the 10 787-8s in its orderbook, saying only that Boeing "promised that they will give us the Dreamliners in a short time...not a very short time".

He adds that Iraqi Airways is likely to firm up its five 787-8 options, bringing its total commitment to 15. "I think we'll take them all," he confirms.

Downplaying concerns about the grounding of the global 787 fleet, Al-Khafaji says that problems with the aircraft's lithium-ion batteries are "minor issues". He speculates that the manufacturer may take advantage of the situation to upgrade to superior battery technology.

The director general confirms that the airline's 30 ordered 737-800s will begin arriving in July 2013, with an unspecified number being upgraded to 737-900ERs.

"We ordered the best money can buy," he says of the on-board 737 product. "The Boeing Sky Interior is beautiful...We have touch-screens everywhere, business class and economy class."





Iraqi Airways receives third A320, hints at Airbus order

Iraqi Airways took delivery of its third Airbus A320 (MSN 5464) at Baghdad International Airport on 7 March, with director general Saad Al-Khafaji telling Flightglobal that a more substantial commitment may be in the pipeline.

"It is not the last one. I can promise you it's not the last one," Al-Khafaji says, adding that negotiations are underway about a "good number" of further Airbus aircraft.

The flag carrier has begun renewing its fleet after ending a 23-year-old legal dispute with Kuwait Airways, though its current Airbus deliveries are arriving as "selective" individual units.

Since reaching the settlement with Kuwait late last year, Iraqi Airways has taken delivery of three A320s, two A321s, one A330 and one Boeing 777-200LR. Talks are underway with the US manufacturer about another two 777-200LRs, Al-Khafaji confirms.

The airline cancelled an order for five A310s in 2008, when Kuwait Airways was actively pursuing asset seizure enforcement around the globe.

It still has commitments with Boeing for 30 737-800s or -900ERs, plus up to 15 787-8s. The first 737-800 is due to arrive in July 2013, while no delivery date has been given for the Dreamliners.

Al-Khafaji tells Flightglobal that any prospective Airbus order could involve commercial financing from European entities.

"I want the fleet to be back in business, so we will not delay our payment [for pre-existing orders]," he says. But in reference to a future Airbus order, he adds: "Now there are some European investors looking to do some business...There are hidden conversations."





Iraqi Airways considers exchanging CRJ900s for CSeries

Iraqi Airways is negotiating the exchange of some of its six Bombardier CRJ900s for newer CSeries models, the airline's director general Saad Al-Khafaji tells Flightglobal.

The Iraqi flag carrier has six CRJ900s in its fleet, after an original order for 10 units was disrupted by court-sanctioned asset seizures by Kuwait Airways in 2008.

The neighbouring countries had been at loggerheads over a Saddam Hussein-era dispute that was finally laid to rest in late 2012, paving the way for Iraqi Airways' fleet renewal to resume.

"The four [outstanding CRJ900s] are under discussion with our government," Al-Khafaji said when asked if the Bombardier order will now be completed.

"My opinion is I want to change them to CSeries," he continues. "The CSeries is a reasonable aircraft for the region. This is under discussion. We have an agreement, but it is not settled."

Al-Khafaji says the deal entails Bombardier "giving me the first four CSeries, and [in return] I give them the CRJ900 I received...so I'll exchange it". But he reiterates that the proposal is "only talk" at this stage.

Bombardier has secured firm orders for 180 CSeries to date, including two commitments from undisclosed buyers for three and 10 units respectively.





Proposed joint airline between Iraq and Kuwait scrapped

A proposed joint airline venture between the governments of Iraq and Kuwait is no longer being pursued, Iraqi Airways director general Saad Al-Khafaji confirms.

The operation had been announced in the original draft of a settlement reached by the two countries in March 2012, when Iraq agreed to pay Kuwait $500 million in compensation to end a Saddam Hussein-era dispute over stolen aircraft.

Some $200 million of that sum was due to be invested by Kuwait towards the establishment of a joint airline operating between the two countries, government officials said at the time.

But Al-Khafaji now tells Flightglobal: "Our minister did not approve it [the establishment of the joint venture]. We paid the $200 million in cash."

The Iraqi Airways director general reiterates that the 23-year-old dispute between the two countries has now been comprehensively laid to rest. He insists that the flag carrier is instead focussed on "building bridges" with its Arab neighbours.