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Banking disruptions have led the Ethiopian Airlines Group to discontinue its service to Asmara well ahead of a deadline imposed by Eritrean aviation authorities, says CEO Mesfin Tassew.

ET executives revealed in July that the Eritrean government had issued a “shocking” notice banning Ethiopian Airlines flights to Asmara for allegedly mishandling passenger baggage and enacting “unjustified and unwarranted price hikes,” among other things.

The Eritrean Civil Aviation Authority had told the Group it would have to scrap its 10-times-a-week service to Asmara by September 30, but the move has come more than three weeks earlier.

ET’s executives have written no less than three letters appealing to Eritrean authorities since the announcement was first made in September.

“All while we kept flying to Asmara,” said Mesfin.

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However, the efforts bore no fruit and last week, ET personnel in the Eritrean capital were barred from remitting the Group’s revenues to Addis Ababa, according to Mesfin.

The CEO says his staff in Asmara were told they could no longer withdraw any money as per the instructions of Eritrean aviation authorities.

“We can’t operate without the proper funds we need for salaries and other expenses. This is why we are suspending all services,” said Mesfin.

He says the Group has been unable to identify the reasoning behind the Eritrean government’s decision.

“Their move doesn’t line up with ICAO and ITTA regulations. We have appealed to ITTA, they told us they’ll do what they can,” said the CEO.

Ethiopian Airlines will, however, continue flying through Eritrean airspace, according to Mesfin.

He told the media that a recent dispute with Somali civil aviation authorities over has been resolved.

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