Iraqi Airline Fly Baghdad Surmounts Sanctions And Prepares To Restart

Fly Baghdad's Boeing 737s are preparing to restart work aft shutdown.

FlyBaghdad

The hose business is simply a reliable business. It’s moreover tougher if you are trying to restart an hose successful Iraq aft being sanctioned by the U.S. government.

That hasn’t stopped Alaulddin Abdalrahman, CEO of Fly Baghdad, from trying. The sanctions were lifted 2 weeks agone and he now expects to restart flying Baghdad-Istanbul pinch a Boeing 737 this month.

“I person to beryllium a dreamer,” Abdalrahman said successful a telephone question and reply from Baghdad connected Monday. “I person to beryllium a man pinch a dream. Without a dream, we cannot grow.

“My imagination for the hose is to person this hose astatine the apical of the Iraqi airlines,” he said. “We person to beryllium stronger, much disciplined and much sustainable, to compete pinch others successful the region. We judge we person the opportunity to do it.”

Baghdad International Airport serves astir 8 cardinal passengers annually, pinch flights to 3 twelve destinations by astir 3 twelve airlines, according to Wikipedia. It is not served by immoderate U.S. hose aliases immoderate awesome European airline, but astir of the awesome Mideast carriers – Emirates, Qatar and Turkish – connection flights to their hubs. State-owned Iraqi Airways besides has a awesome presence, serving astir 2 twelve destinations including Frankfurt, Guangzhou, Istanbul and Tehran, according to the carrier’s website.

Baghdad-Istanbul is simply a bully way to restart, Abdalrahman said, noting “It’s a aureate way for us. Iraqis emotion to spell to Turkey, particularly to Istanbul” for a big of reasons, including vacations, study, and aesculapian treatment. Looking ahead, Abdalrahman said the bearer will besides service Erbil, the superior of Iraqi Kurdistan

“We will compete pinch others successful the region,” Abdalrahman said. “We judge we person the opportunity to do it, but first we person to turn responsibly, alteration the narration pinch our partners and create opportunities and heighten our reputation.”

An advantage, he said, is that for galore carriers, Baghdad is simply a spoke, pinch flights clip to accommodate work banks astatine their hubs. Fly Baghdad’s departures from Baghdad would beryllium astatine convenient time, not astatine 3:30 a.m., he said, noting “The Iraqi rider is suffering from the timing.”

A disadvantage is that Fly Baghdad presently has conscionable 4 craft – 3 Boeing 737s and 1 CRJ 200 --and is still lining up immoderate of the attraction work. The scheme is to commencement pinch 1 737. “We are doing preparing attraction for the fleet,” Abdalrahman said. Work is being done successful Baghdad and Istanbul. With the removal of sanctions, it will go easier to statement for attraction work.

Fly Baghdad’s uneven history is portion of the challenge.

The bearer started flying successful 2015. It suspended operations successful 2017, restructured the fleet, past restarted the aforesaid year. In 2024 it concisely suspended operations aft it was sanctioned by the U.S. Office of Foreign Assets Control for allegedly supporting Iranian-backed militias operating successful Iraq, said Eric Blinderman, lawyer for the airline. Then-CEO Basheer Abdulkadhim Alwan was besides sanctioned because he controlled the airline.

Blinderman said Alwan was removed successful 2024 and has had nary engagement aliases affiliation pinch the hose since then. In addition, Blinderman said, the hose implemented a revised compliance and screening infrastructure astir its operations. “Sanctions are designed to compel a affirmative alteration successful behavior,” he said. “The hose completed those affirmative changes and earned the alleviation which OFAC granted.”

Between 2024 and early 2026, the bearer operated, but owed to sanctions it could not do business pinch U.S. entities. Then it suspended flights successful February 2026 owed to geopolitical instability successful the region.

Two weeks ago, connected Aug. 5, the sanctions against the hose were lifted. In a property release,

Fly Baghdad said it has “been removed from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals and Blocked Persons (the "SDN List"), marking the successful conclusion of a broad two-year compliance transformation.”

Specifically, 2 Boeing 737s manufactured successful 2002 and 2008 were removed from sanctions, while Basheer Abdulkadhim Alwan was listed connected the OFAC tract arsenic “Linked To: ISLAMIC REVOLUTIONARY GUARD CORPS (IRGC)-QODS FORCE).”

Fly Baghdad’s proprietor is Ahmad Asad, an Iraqi businessman who is president of the airline, the bearer said.

According to Aviation Week, information shows Fly Baghdad offered 224,048 two-way seats crossed 1,207 flights connected 35 airdrome pairs successful August 2023, 5 months earlier sanctions hit. Its August 2026 schedule totals conscionable 8,602 seats connected 46 flights crossed 3 routes—a 96.2% simplification successful some capacity and frequency, Aviation Week said. Annual capacity fell from 1.92 cardinal seats crossed 60 airdrome pairs successful 2023 to a azygous Baghdad-Istanbul way by 2025.

Today, however, “Fly Baghdad is nary longer taxable to U.S. blocking sanctions, and persons successful the United States and worldwide whitethorn transact pinch the hose successful the mean people of business,” the bearer said successful its property release. “The delisting besides extends to each craft antecedently identified arsenic blocked property, which are likewise unblocked effective the aforesaid date,” it said.

Fly Baghdad said it “welcomes the resumption of normal commercialized relationships pinch banks, costs providers, insurers and reinsurers, craft lessors, attraction providers, substance suppliers, distribution systems, recreation agencies, and each different commercialized partners.”

In the release, Abdulrahman said, “This is the consequence of 2 years of disciplined activity by our group to rebuild spot successful really we operate. We did not inquire for trust—we group retired to gain it done governance, controls, and transparency that meet the highest world standards. Today’s action recognizes that work, and we intend to support earning it each day.”