Iraq has launched its first privately owned budget airline, Fly Baghdad, as the government allows greater competition.

With Abdulla Al Jubouri as its executive director, the company was formed by a group of Iraqi businessmen with big plans for their new airline launched with a fleet of one.

 "Previously Iraq was a Socialist regime which didn't allow privatisation, all sectors were owned by the government, and if there were companies, they were small and limited,” said Al Jubouri.

The airline offers domestic flights only - for now. It runs two to three flights a day between Baghdad and Erbil, while plans are afoot to add Basrah and Najaf later.

It's early days for the low-cost airline. But if things go well, Fly Baghdad could one day be jetting to international destinations as well. – Reuters