Iraq said yesterday it had signed a contract worth $5.5 billion with Boeing to buy 40 new aircraft, with an option to purchase 15 more.

Baghdad had also signed a $400 million contract with Canadian aircraft manufacturer Bombardier to purchase 10 passenger planes, government spokesman Ali Al Dabbagh said.

He said delivery of the aircraft would start this year, with final delivery expected by the end of 2019. The Boeing contract was for the 737 and 787 "Dreamliner" planes.

Al Dabbagh said the deals "will strengthen the Iraqi civil aviation capacity and enable it to respond to the increasing demand for air transportation to and from Iraq."

The Iraqi Airways website said the airline is "hoping to start flying European routes in the coming months."

Iraqi Airways, one of the oldest airlines in the Middle East, currently owns just two aircraft and leases others.

The national carrier resumed international flights in September 2004 with a Baghdad-Amman service.