Frozen Bank Account Forces Ethiopian Airlines to Halt Eritrean Flights

ADDIS ABABA – Ethiopian Airlines has officially announced the suspension of its flights to Eritrea due to the freezing of its bank account. This announcement came just hours prior to Eritrea’s declaration of a curfew for foreign aircraft, which they described as a response to alleged ‘harassment and lost luggage’ incidents.

Initially, Ethiopian Airlines attributed the flight suspension to “challenging operating conditions” in Eritrea, which they insisted were “beyond their jurisdiction.” However, the narrative shifted dramatically with the revelation of the frozen bank account.

“On August 31, 2024, we received notice that our Eritrean bank account had been inaccessible,” said Chief Executive Officer Mesfin Tasew, elaborating that this unexpected situation forced the airline to cease all flights to its neighboring country to the north.

“We are unable to access our funds,” Mesfin lamented. In light of these circumstances, he stated that there was “no alternative but to halt all services to Asmara.”

This incident illustrates the latest chapter in a protracted dispute between the airline and the Eritrean Civil Aviation Authority, as reported by Addis Standard. The conflict traces back to March 26 of this year when Eritrean authorities sought compensation for lost luggage. “We requested details regarding the missing bags, but no information was forthcoming,” Mesfin explained.

Furthermore, Mesfin addressed the additional constraints imposed by Eritrean officials, revealing, “We faced a reduction in our flights from 14 to 10 weekly and were forced to operate smaller aircraft.”

Although the airline was eventually allowed to ramp up its flights to 15 weekly and reintroduce larger aircraft in July 2024, Eritrean authorities took a pivotal step by freezing Ethiopian Airlines’ financial transfers on July 25, 2024. “We were subsequently notified that our account was frozen,” Mesfin stated.

“Efforts to reach out to the relevant authorities were futile,” he added. Nonetheless, the airline remains committed to utilizing Eritrean airspace and attempting diplomatic measures to recover its locked funds.

Last week, Ethiopian Airlines expressed its intention to resolve the matter amicably, stating it is “seeking clarification from the Eritrean Civil Aviation Authority” following the announcement that all flights to Eritrea would be suspended effective September 30, 2024.

AXADLETM