Eritrean authorities have suspended all flights by Ethiopian Airlines to its airspace effective.
In a statement, the Eritrean Civil Aviation Authority accused the Ethiopian Airlines of pursuing "consistent and persistent malicious trading practices".
It also said the airline was operating a "systematic and organised passengers' luggage theft, pilferage, damage, prolonged delays and loss with no compensation in particular, coupled with unjustified and unwarranted price hikes and other irregularities witnessed".
The authorities said the suspension came after "repeated and relentless calls" made on Ethiopia Airlines to rectify the pitfalls and other irregularities imposed on the travelling public, failed to yield anything.
In a notice published on its social media accounts, Ethiopian Airlines said it had received a notice from the Eritrean Civil Aviation Authority indicating the suspension of all its flights to Eritrea, effective September 30.
"The specific reasons for this suspension have not been disclosed to us," the airline said, adding that it was seeking clarification from the Eritrean authorities on the matter.
Hanna Atnafu, a spokesperson for the airline, told Reuters the flight suspension came as a surprise.
"What is shocking and saddening to our airlines was just 15 days ago, on July 8, there was a letter sent to (us) requesting, to increase our weekly flight frequency from 10 flights to 15," Atnafu said.
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However, this publication understands that in citing "unjustified and unwarranted price hikes", the Eritrean authorities are alluding to recent complaints about ticket prices.
Travellers have recently complained that sometimes the airline tickets exceeded $800 for just a one-hour return flight, which has been deemed exorbitant and unfair.
Additionally, a recent policy change by the airline requiring all ticket sales outside Ethiopia to be conducted exclusively in US Dollars may have been the final straw.
Eritrean travellers in Asmara had previously been able to purchase tickets using the local currency.
The Eritrean authorities asked all Ethiopian Airlines travellers destined to the State of Entrea to adjust their flights and subsequently, look for other options.
Turkish, Egypt and Saudi airlines have regular flights to Eritrea.
State-owned Ethiopian Airlines is ranked the largest in Africa by revenue and profit by the global industry body International Air Transport Association.
