@variance:
UK attacks Iraq but fails to take it. It is an activated axis territory. Axis planes can land there correct?
This is correct. When a pro-Axis neutral is attacked by an Allied power and the attack fails, the pro-Axis neutral joins the Axis. Axis powers can now land planes in the formerly pro-Axis neutral territory.
At this point the formerly-neutral Axis power is not controlled by any other Axis power. When one of the big three Axis powers moves a land unit into the territory, control of the territory goes to that Axis power and any remaining troops of the formerly neutral Axis power become troops of the occupying power.
This is typically seen in the Middle East, when the UK does a preparatory strafe of Iraq to weaken it so that Russia can easily take it without significant losses. In the interim though, Italy and/or Germany could land planes there if the planes were within range and the Axis chose to do so.
Marsh