A Sky of Troubles: The Unresolved Financial Feud Between Ethiopian Airlines and Eritrea

August 7, 2025 by
Administrator

A Sky of Troubles: The Unresolved Financial Feud Between Ethiopian Airlines and Eritrea


What began as a promising new chapter of peace between two nations has recently soured, turning a once-celebrated rapprochement into a tense standoff. At the heart of this renewed friction lies a seemingly simple financial dispute that has become a reflection of the deep-seated political tensions between Ethiopia and Eritrea. The protagonist in this saga is none other than Ethiopian Airlines, which is now entangled in a complex legal and diplomatic battle to reclaim millions of dollars from its northern neighbor.

According to statements from Ethiopian Airlines CEO Mesfin Tasew, the airline is unable to recover $3.7 million from Eritrea. This money is a combination of old debt dating back to before the 1998 war and more recent funds that have been frozen in Eritrean bank accounts. The airline’s attempts to use legal channels to recoup the money have been repeatedly thwarted, leading to the conclusion that this is no longer a simple business matter but a political issue requiring a diplomatic solution.


A Tit-for-Tat of Claims

The situation is further complicated by Eritrea's own counter-claims. In a move that highlights the deep distrust between the two nations, the Eritrean Civil Aviation Authority reportedly sued Ethiopian Airlines for compensation for "lost luggage" and unpaid services, with a total claim that also runs into millions of dollars. This tit-for-tat of financial claims has created a stalemate, with both sides refusing to budge and leveraging the issue as a point of political pressure.

The financial row has had tangible consequences. It led to the suspension of commercial flights to Asmara, a symbolic setback to the once-hopeful peace process. While flights have since resumed and Ethiopian Airlines continues to use Eritrean airspace for its international routes, the underlying financial and political issues remain dangerously unresolved.


The Backdrop of Rising Tensions

This financial feud is widely seen as a symptom of a much larger problem. The renewed push by Ethiopia for access to the Red Sea, a matter of strategic national interest, has sent ripples of concern through Eritrea. The peace agreement that once seemed to be holding is now under strain, with the financial dispute serving as a convenient flashpoint. The battle over a few million dollars underscores the fragility of the peace and the lingering historical animosities that, even after decades, continue to haunt the region.

As long as the money remains unrecovered and the political trust is absent, the skies between Addis Ababa and Asmara may be open for flights, but the path to true reconciliation remains obstructed by a sky full of troubles.


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