Direct flights between Bahrain and Iraq could start as early as next month, according to a report in the Gulf Daily News.

Discussions are also ongoing about re-opening a ferry service between Bahrain and Iraq as part of efforts to re-open trade and tourism links with the Gulf, it said.

Iraqi Ambassador Ghassan Hussain confirmed that high-level talks were continuing to finalise the air transport agreement, which would help thousands of pilgrims who make annual trips to Najaf and Karbala.

"We are looking forward to signing an air transport agreement proposed by Bahrain, the draft of which is in the hands of the Iraqi authorities," he said.

"We are waiting for our new Minister of Transport to be appointed and to follow up the matter.

"The new Najaf Airport will be opened on July 20. Iraqi Airways has purchased more than 50 new aircraft from Boeing and Canadian firms, the first of which will be operating next month or September.

"This will open avenues for Iraqi Airways to fly to neighbouring countries, including Bahrain."

Hussain said a direct air link would make it easier for Bahrain's pilgrims, now forced to travel via Amman or Dubai.

"Earlier this year, we granted more than 4,000 visas for Bahrainis and some of them went via different countries and were granted visas on arrival," he said.

"If an agreement is reached, direct flights from Bahrain to Iraq would ease the travel of thousands of Bahraini pilgrims to Najaf and Karbala.

"It would be a very short flight, of around one hour and 15 minutes."

Iraqi Airways is one of the oldest airlines in the Middle East and was launched in the 1940s.

It was grounded by UN sanctions after Iraq's 1990 invasion of Kuwait, but announced plans to resume international flights after the toppling of Saddam Hussein, launching its first flight to Jordan in 2004.

The airline also operates flights to Cairo, Beirut, Dubai and Damascus.

Meanwhile, Hussain said discussions were also ongoing about re-opening a ferry service between Bahrain and Iraq, as part of efforts to boost tourism.

The envoy said many private sector companies in Bahrain had already begun trading with Iraq as security has improved.

"I believe Iraq is capable of waking up in a very short time and with the potential of Iraq's human and natural resources, the country will come out of its economic hibernation," said Hussain during an interview at the Iraqi Embassy, Zinj.

"When it comes to confidence building, it takes time. But certainly we encourage people, especially businessmen, to go and look for themselves.

"I know many Iraqis who have taken their summer vacation in Iraq. Previously, they used to go to Jordan and elsewhere, but this year they have gone back home."

Hussain declined to comment on increasing tension between the US and Iran, but said any military action could lead to catastrophic consequences globally. - TradeArabia News Service