Fly Baghdad has announced that it has been removed from the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) List of Specially Designated Nationals and Blocked Persons (SDN List), following the completion of a two-year company-wide compliance transformation.
The delisting, published on August 5, 2026, took effect
immediately, ending US blocking sanctions against the Iraqi airline and
allowing individuals and businesses in the US and worldwide to conduct
transactions with Fly Baghdad in the ordinary course of business.
The action also removed restrictions on aircraft previously
identified as blocked property.
Fly Baghdad said the move reflects sustained efforts to
strengthen governance, compliance systems, transparency, and responsible
corporate practices in line with international standards.
“This is the result of two years of disciplined work by our
people to rebuild trust in how we operate,” said Alaulddin Abdulrahman, Chief
Executive Officer of Fly Baghdad. “We did not ask for trust—we set out to earn
it through governance, controls, and transparency that meet the highest
international standards. Today’s action recognises that work, and we intend to
keep earning it every day.”
Following the delisting, Fly Baghdad said it is prepared to
resume normal commercial relationships with banks, payment providers, insurers
and reinsurers, aircraft lessors, maintenance providers, fuel suppliers,
distribution systems, travel agencies, and other industry partners.
The airline said it plans to rebuild and expand long-term
relationships with financial institutions and aviation partners worldwide.
Counterparties can independently verify the airline’s
removal from the SDN List through OFAC’s official records and related
government announcements.
Fly Baghdad also clarified its ownership and management
structure, stating that the airline is owned by its Founder and Chairman Ahmad
Asad and that no person currently or previously designated on the SDN List has
held any ownership interest in the company.
The airline added that former chief executive officer
Basheer Al-Shabbani never held equity in Fly Baghdad and has no role in its
ownership, management, governance, or operations.
OFAC’s August 5 action amended Al-Shabbani’s SDN entry to
remove any reference connecting him to Fly Baghdad.
“When we began this work two years ago, we made one
commitment: Fly Baghdad would meet the highest standards of compliance and
governance, or it would not fly,” said Ahmad Asad, Chairman of Fly Baghdad.
“That commitment is now embedded in how this company is governed, staffed, and
operated. To our banking, leasing, insurance, and commercial partners: our
doors—and our books—are open.”
Asad also thanked the legal teams involved in guiding the
airline through the process, saying: “On behalf of our board and our employees,
I thank the airline’s legal team — led by Eric H. Blinderman and Raid Juhi
AlSaedi of the Law Offices of Eric H. Blinderman, together with Reid Whitten
and Scott Maberry of Sheppard Mullin — whose counsel guided every step of this
effort.”
The airline confirmed that tickets are available through its
website, sales offices, call centre, and authorised travel agents, while all
existing bookings will be honoured.
Fly Baghdad said it is working with aviation authorities,
airports, and industry partners to restore and expand its network in a phased
and orderly manner.
Updated schedules, destinations, and booking information
will be announced through the airline’s official communication channels.
“Our priority now is simple: reconnect people, support
commerce, and deliver safe, reliable, and affordable air travel to every
community we serve,” Abdulrahman added. “To the passengers, employees, and
partners who stood by us throughout this journey—thank you. We look forward to
welcoming you on board.”
The airline also praised its employees, including pilots,
cabin crew, engineers, technicians, and ground staff, for their professionalism
and resilience throughout the compliance process.
“Our focus now shifts from transformation to growth,” Abdulrahman said. “We are ready to reconnect with our passengers, partners, and the global aviation community. We look forward to strengthening existing partnerships, building new ones, and writing the next chapter of Fly Baghdad together.” -TradeArabia News Service