U.S. Extends Iraq Contract with Blackwater Firm

State Department officials said Wednesday they have extended a contract with a subsidiary of the firm formerly known as Blackwater USA, which was banned from working in Iraq in 2007. Presidential Airways, the air wing of what is now called Xe Services, will continue providing air support for U.S. diplomats in Iraq. The government's contract with Xe was set to expire Sept. 3, but the replacement firm is not yet ready to take over. The State Department said the transition was "complex" and that moving more slowly would benefit all parties involved.

Blackwater's license to operate in Iraq was revoked after a 2007 firefight involving U.S. military contractors left 17 civilians dead in Baghdad. The State Department informed Iraq in January that it would not renew contracts with the company, but said the Iraqi government understood the necessity involved in the current situation. "They understand the need for additional time to get this right," one official said. The contract with Presidential Airways was the last original Blackwater contract still in effect.

For details: U.S. Extends Contract for Blackwater Firm [Associated Press]