The Iraqi government has said it will close the state-owned Iraqi Airways after declaring it bankrupt. Iraq's Transportation Ministry told reporters, the airline would be closed following a damaging dispute with Kuwait over war reparations. <br/><br/>Kuwait Airways says the Iraqi flag carrier owes it about 1.2 billion dollars for aircraft and plane parts taken during the Iraqi invasion of Kuwait in 1990. The ministry blamed harassment from Kuwait for the airline's failure. <br/><br/>Last month, lawyers acting for Kuwaiti authorities tried to have an Iraqi Airlines plane confiscated while at London's Gatwick Airport. It had just arrived following the first direct flight between Baghdad and London for 20 years. <br/><br/>The airline's chief executive also had his passport confiscated and was held in London, but has since returned to Iraq.