Ethiopian Airlines announced on Tuesday that due to a frozen bank account, it had halted flights to neighbouring Eritrea.
Mesfin Tasew, the CEO of the airline, announced at a press conference that money transfers from Ethiopian Airlines’ bank account in Asmara, the capital of Eritrea, had been banned by the Eritrean Civil Aviation Authority.
At the end of this month, Eritrea had already declared that it would stop all Ethiopian Airlines flights.
Following a peace agreement and the restoration of diplomatic ties between the two neighbours, which earned Ethiopia’s Prime Minister Abiy Ahmed the Nobel Peace Prize the following year, flights from Ethiopia to Eritrea were restored in 2018 after a 20-year hiatus.
“We couldn’t continue in such a situation and we have decided to suspend the flight as of today,” Mesfin said.
Ethiopian carriers had stated in a statement late on Monday that they would attempt to provide refunds or rebook impacted passengers on other carriers at no additional cost.
According to the International Air Transport Association (IATA), Ethiopia is the biggest airline in Africa in terms of both revenue and profit.
Sources quoted by Reuters claimed the flight suspension indicated that Asmara and Addis’s relations had seriously deteriorated, but that a war was unlikely at this time.
When a two-year conflict broke out over their disputed boundary, the two nations cut their diplomatic ties in 1998.
In the battle that broke out in November 2020, Eritrea fought alongside Ethiopia against forces from Ethiopia’s Tigray area. However, the relationship deteriorated again when Asmara was left out of the peace negotiations that put an end to the conflict two years later, and because some of Eritrea’s troops stayed in Tigray.
A request for the response was not immediately answered by Yemane Gebremeskel, the Eritrean Minister of Information.