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Intelligence agencies are warning that a number of commercial passenger jets seized by Islamic militants could be used in new terrorist attacks, according to new reports.

“There are a number of commercial airliners in Libya that are missing,” an official told The Washington Free Beacon on Wednesday.

“We found out on September 11 what can happen with hijacked planes.”

According to the report, Intelligence documents circulated within the US government over the past weeks include a warning that one or more of the stolen aircraft may be used in an attack on the date marking the anniversary of the September 11, 2011, terrorist attacks.

A senior counter-terrorism official has since declined to comment on reports of the stolen jetliners.

Plumes of black smoke are seen after war planes struck Misrata positions in Tripoli in an attack claimed by renegade general Khalifa Haftar. Photo: Reuters

Tripoli under militia control as Libya chaos deepens

Libya's toothless outgoing government admitted from its safe refuge in the country's east this week, that it has in effect lost control of Tripoli to armed militias.

The interim government led by prime minister Abdullah al-Thani, which resigned last week, said armed groups, mostly Islamist militias, were in control of ministries and blocking access to government workers.

"Ministry and state offices in Tripoli have been occupied by armed militias who are preventing government workers from entering and are threatening their superiors," the government said in a statement.

It said the interim government was in contact with officials and "trying to ensure the continuity of services from afar".

Libya has been sliding into chaos since Moamer Kadhafi was overthrown and killed three years ago, with interim authorities confronting powerful militias which fought to oust the veteran dictator.

The government announced last week it had tendered its resignation to parliament, days after a rival Islamist administration was created.

The parliament, which was elected in June, and the government are operating out of eastern Libya for security reasons.

A rival body, the General National Congress, has named pro-Islamist figure Omar al-Hassi to form a "salvation government".

The elected parliament voted this week to task Thani with forming a streamlined new government, the official news agency Lana reported.

Supporters of Operation Dawn demonstrate in Tripoli. Picture: Reuters

He was named to form an 18-member team, down from the outgoing lineup's number of around 30, it said, adding that seven of the new ministers would put together a crisis cabinet.

Interim authorities have been steadily losing ground to the militias and the Fajr Libya (Libya Dawn) mainly Islamist alliance, which seized Tripoli airport on August 22 after weeks of fierce fighting with nationalist rivals.

On the weekend, Islamist militiamen moved into the US embassy compound in Tripoli that was evacuated in late July, with videos showing cheering men diving from an upstairs balcony into a swimming pool.

Fajr Libya members said they had gone in to secure the complex of several villas in southern Tripoli, not far from the airport, to prevent it from being looted.

US Ambassador Deborah Jones, now posted in Malta, said on Twitter that there was no indication the complex had been damaged.

Several foreign missions have fled in the face of growing security problems in Tripoli.

Relatives of captured Lebanese soldiers react during a protest demanding their release in al-Mhmara town. Picture: Reuters

On August 25, Thani accused Fajr Libya militiamen, who hail mostly from the city of Misrata east of the capital, of having ransacked and set ablaze his residence in southern Tripoli where the airport is also located.

A political transition has been stymied by the deadlock pitting Fajr Libya against the internally exiled authorities, which are operating from Tobruk, 1500 kilometres from the capital.

Fajr Libya rejects the legitimacy of the elected parliament because it allegedly supported air raids last month, which US officials said were carried out by the United Arab Emirates, against its fighters in the airport area before they defeated nationalist militia rivals.

Parliament has in turned branded Fajr Libya as "terrorists", putting them in the same boat as the Ansar al-Sharia jihadists who control most of second city Benghazi.

Members of the Fajr Libya (Libya Dawn) Islamist militia gather at the US diplomatic compound in Tripoli. Picture: Reuters

In the eastern city, 10 soldiers were killed this week, when jihadist gunmen tried to advance on Benina dual civilian-military airport but were repelled with air force help, an army spokesman said.

Pro-Islamist Libyan media, meanwhile, reported that some 30 Libyans were arrested in the United Arab Emirates following the Tripoli air raids.

Media, including television channel An-Nabaa, said among those arrested were businessmen with long-standing ties to the UAE, including some from Misrata.

It was unclear why they were being held, the reports said, but the oil-rich Gulf monarchy looks upon Islamist militants in the region as a serious threat and last month toughened its anti-terrorism laws.

Morning news break – September 03

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