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Hermes birkinIraq still relies to a large extent on the U.S. military to protect its skies, and selling F-16s would help the county shore up its air defenses. It would also bolster a program of close military cooperation between the two countries.

Mulberry saleIraq could also use ground-attack planes in its fight against domestic insurgents.

A total of 60 F-16s are currently in the production pipeline at Lockheed's Fort Worth, Texas, manufacturing facility. The final aircraft on order is scheduled for delivery in late 2013. Additional orders from Iraq or Oman might extend the production line's longevity.

A cadre of well-trained Iraqi pilots will need time to learn the planes' tactics and weapons, and ground crews will need to maintain them to high standards to avoid performance or safety problems.

In addition to the F-16s, Iraq is requesting ground-based air defense systems including ground-to-air missiles and large guns that would be tied to a radar and integrated command-and-control system.

A senior U.S. defense official said Iraq's goal is to create a system that provides the country with "comprehensive air sovereignty." Such a system could be designed to allow the Iraqis to shoot down incoming enemy aircraft from the ground or to engage in dog fights with the enemy in the air, the official said.

Murdoch, 80, folded News of the World on Sunday in what trade journals such as Advertising Age said was an effort to placate British regulators and advertisers upset by the hacking incidents. The incidents include accessing phone messages of 13-year-old kipnap and murder victim Milly Dowler, and those of families of 9/11 victims and British soldiers killed in Afghanistan. Prime Minister David Cameron's former communications chief, Andy Coulson, was arrested last week in connection with alleged payoffs to police when he was editor of News of the World.

Fresh allegations of attempted phone hacking against Britain's royal family (including Prince Charles), paying British police for tips and illegally accessing medical and financial records of former prime minister Gordon Brown and family members by Murdoch's The Sun and The Sunday Times newspapers have caused more damage. That includes the possible unraveling of News Corp.'s planned $12.4 billion acquisition of a 61% stake in British Sky Broadcasting, the United Kingdom's largest pay-TV broadcaster.