Zagrosjet - a joint venture between Iraq-based Zagros Group and Turkey's Atlasjet - is to start operations next month.
The Erbil-based airline is to open seven to eight routes by year-end.
Istanbul-based Atlasjet has wet-leased a single Airbus A321 narrowbody to the new outfit, which intends to serve Adana, Ankara, Diyarbakır and Gaziantep in Turkey, plus the capitals of Georgia, Jordan, the Lebanon and Sweden: respectively, Tbilisi, Amman, Beirut and Stockholm.
Zagrosjet's fleet expansion will focus on the A321.
"Northern Iraq has huge capacity, and is expanding with high rates," says Altasjet managing director Sami Alan. "Zagrosjet will open new destinations in northern Iraq."