Ethiopian Airlines says its bank account has been blocked by Eritrea’s aviation authority, making transactions impossible
Ethiopian Airlines (EA) has suspended flights to and from Eritrea due to its bank account being frozen in the country, which it claims is making operations difficult.
Just weeks ago, the Eritrean Civil Aviation Authority said it would ban Africa’s biggest flight operator at the end of September.
Mesfin Tasew, EA’s CEO, told reporters on Tuesday that the aviation regulator had blocked money transfers from the airline’s bank account in the Eritrean capital, Asmara.
“This has made it impossible for us to access our funds,” Mesfin said, adding that the airline had “no choice but to suspend all flights to Asmara.”
Earlier on Monday, the state-owned carrier wrote on X that it “regrets” the decision to halt flying to the neighboring country because of “very difficult operating conditions it has encountered in Eritrea that are beyond its control.”
The company stated that it would rebook affected passengers on other airlines at no additional cost or offer refunds.
Flights from Ethiopia to Eritrea only resumed six years ago after a two-decade hiatus. The two East African nations fought a border war from 1998 to 2018. Tensions eased in 2018 when Abiy Ahmed became Ethiopia’s prime minister and signed a peace agreement with Eritrean President Isaias Afwerki. The Ethiopian leader was awarded the Nobel Peace Prize in 2019 for his reconciliation with Eritrea, whose troops later fought alongside Addis Ababa’s forces in a brutal two-year conflict in Ethiopia’s northern Tigray region.
However, relations deteriorated once again following the exclusion of Eritrean officials from peace talks that ended the Tigray war. Asmara, whose secession in 1991 left Ethiopia landlocked, is also reportedly concerned by an agreement Addis Ababa signed with Somaliland in January to gain access to the coastline. The deal has heightened tensions between Ethiopia and Somalia, whose President Hassan Sheikh Mohamud has sought Eritrea’s support against the pact, which Mogadishu considers a land grab and a violation of Somali territorial integrity.
In July, the Eritrean Civil Aviation Authority accused Ethiopian Airlines of “malicious trading practices,” which it claimed the airline failed to resolve despite “relentless calls.”
The airline reported at the time that it had received a notice of suspension from the Eritrean Civil Aviation Authority via a letter dated July 21, but the specific reasons for the action were not disclosed.
On Tuesday, EA’s CEO said the carrier would pursue diplomatic efforts to retrieve the blocked funds and resolve issues.
Ethiopian Airlines, ranked the largest airline in Africa by revenue and profit by the International Air Transport Association, has also faced suspension threats from Somalia’s Civil Aviation Authority (SCAA). Last month, SCAA threatened to ban the carrier if it did not address “sovereignty issues” by August 23.
