The Eritrean government has formally requested payment from the Ethiopian government for outstanding dues dating back to 1997/1998, as relations between the two nations have continued to worsen in recent months.
In July, Eritrea prohibited Ethiopian Airlines from operating in its territory, signaling further strain.
A letter from the Eritrean Civil Aviation Authority was addressed to Ethiopian Airlines, requesting payment of long-standing dues, which reportedly total around $3.7 million.
The letter also referenced a lawsuit filed by the Eritrean government in an Asmara court, seeking damages for Eritrean passengers who experienced issues with missing and damaged luggage in the late 1990s.
However, Ethiopian Airlines has countered by stating that it is the Eritrean government that owes the airline money.
Last month, the airline suspended its flights to Asmara, claiming that Eritrea had unresolved debts and that the dispute would need to be resolved by both governments.