El Al Israel Airlines received $5 million compensation from Iraq for damage sustained during the Gulf War of 1991,
El Al demanded $40 million in damages for loss of income and costs incurred. Not only were its schedules disrupted and tourism discouraged, the airline complained. It also had to hide its jets in foreign countries to protect them from Iraqi Scud-C missiles,
The Israeli carrier sued the Iraqi government through the United Nations. The UN said it did not accept all El Al's claims, mainly because it could not verify the figures El Al cited. But it ruled in El Al's favor, granting it damages of $7.5 million.
In 1997 the UN transferred a first payment to El Al, but it was only for $25,000. The paucity of the amount aroused pessimism at El Al regarding the chances of collecting all the amount from Iraq, which did not cooperate with the UN. But then the UN froze Iraq's assets and oil revenues and decided to allocate some of the money to compensate the national carrier of Israel, defined as one of the main countries harmed by the war,
A few weeks ago the Israeli Justice Ministry advised El Al that the UN had transferred another $5 million in damages. A source at El Al said the airline was optimistic about receiving the remainder too.