Air Peace, SmartLynx settle dispute over leased aircraft

Nigerian airline Air Peace has released its third leased aircraft, an Airbus A320, to the Latvia-linked leasing company SmartLynx Airlines, six months after a dispute between the two entities escalated into legal action. The aircraft's return follows an out-of-court settlement that resolved months of tension stemming from allegations of contract breaches and operational disruptions.

The aircraft, which had been grounded at Murtala Muhammed Airport in Lagos, was reportedly released earlier this week and has since departed Nigeria for Spain. This development signifies a resolution to the lingering disagreement that began last November. At that time, Air Peace accused SmartLynx Airlines of abruptly withdrawing two aircraft and grounding a third, actions the Nigerian carrier deemed a breach of agreement that inflicted significant operational and financial losses, particularly during a period of high passenger demand and aircraft scarcity.

Air Peace's Chief Commercial Officer, Nowel Ngala, had previously highlighted the severe impact of the aircraft withdrawals on flight schedules, leading to delays, cancellations, and passenger inconvenience. He stated that the sudden removal of the aircraft violated existing agreements and disrupted meticulously planned operations. Ngala also noted that Air Peace had invested over $5 million in the leasing arrangement, including more than $1 million in security deposits for the three aircraft involved.

A source familiar with the dispute indicated that both parties opted for an out-of-court settlement as the most practical solution to avoid prolonged litigation and further operational uncertainty. This resolution allows the aircraft to be returned and marks a new chapter in the business relationship between Air Peace and SmartLynx Airlines, which had reportedly spanned about four years before the dispute erupted. Efforts to obtain a comment from Air Peace's spokesperson were unsuccessful at the time of reporting.

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The removal of the aircraft affected our operations significantly because those aircraft had already been scheduled for flights.