BAGHDAD, May 21 (UPI) -- Iraqi officials say the purchase of 50 new aircraft for the state-owned airline and infrastructure upgrades point to a positive economic future for the sector.

The Iraqi government last week signed a $5 billion deal with Canadian manufacturer Bombardier and the U.S. firm Boeing for 50 new aircraft for its Iraqi Airways.

"We are looking at this as a chance to restructure the whole aviation business in Iraq," said Iraqi transport official Ahmed al-Saadawi. "The deal is a sign that the new Iraq is finally finding its feet."

Saadawi said the state-run service may consider privatization as an option to become more competitive in a region saturated with well-funded airlines, The Guardian reported Wednesday.

The first shipment of 10 Bombardier CRJ900 planes arrives in Iraq later this summer, with shipments expected to continue through 2009. Boeing officials said they would offer assistance to Iraqi officials when 40 of its new 737s arrive in 2012.

Gulf airline states have seen an 18 percent growth in 2007, while other services in Europe and North America struggle because of the ongoing fuel crisis.

Kuwait officials, however, stepped in on word of the deal, saying Iraq needs to settle a $1 billion settlement from 10 of its planes seized by Saddam Hussein following the 1990 invasion of Kuwait.