The Nigerian aviation sector was jolted this week after Air Peace, the country’s largest airline, disclosed that it has suffered massive financial and operational setbacks due to the unexpected withdrawal of three wet-leased aircraft by SmartLynx Airlines, a Latvia-based aviation services company.
According to Air Peace, the withdrawal done without any notification whatsoever violated globally accepted aviation standards and breached the contractual agreement between both parties. The airline revealed that the fallout from this action has cost it over $15 million in direct and indirect losses, affecting schedules, operations, and thousands of passengers.
According to Air Peace, the withdrawal done without any notification whatsoever violated globally accepted aviation standards and breached the contractual agreement between both parties. The airline revealed that the fallout from this action has cost it over $15 million in direct and indirect losses, affecting schedules, operations, and thousands of passengers.
At the time of the agreement, 13 of Air Peace’s aircraft were undergoing scheduled maintenance overseas, a routine but unavoidable process that temporarily reduces active fleet capacity. To ensure uninterrupted service especially during busy travel periods the airline leased aircraft from SmartLynx to support both domestic and international routes.
Wet-leasing involves the provision of an aircraft along with crew, maintenance, and insurance by the lessor, while the lessee operates flights under the lessor’s air operator certificate (AOC). It is a globally accepted aviation practice used to stabilize operations during shortages or maintenance cycles.
However, trouble began when SmartLynx allegedly withdrew the aircraft unannounced despite having collected substantial upfront payments from Air Peace. These aircraft had already been assigned to scheduled flights, meaning their sudden disappearance caused immediate delays, diversions, and cancellations across several routes.
Ngala described the incident as “a clear violation of industry norms, contractual obligations, and professional conduct.” He added that the withdrawal affected not only Air Peace but also other airlines across different countries who were similarly leasing aircraft from SmartLynx, suggesting a broader pattern of operational instability within the leasing company.
Air Peace revealed that the financial damage inflicted by the abrupt aircraft withdrawal has exceeded $15 million, including operational losses, refunds, disruptions, and reputational harm.
More alarming, the airline claimed that over $5 million of its funds remains in the custody of SmartLynx, including more than $1 million paid as security deposits for the wet-leased aircraft. According to Air Peace, SmartLynx allegedly knew that the actual owners of those airplanes were preparing to reclaim their assets due to SmartLynx’s unpaid debts, yet still collected money from the Nigerian airline.
The carrier described the entire situation as “fraudulent, premeditated, and deeply unprofessional.”
Ngala further recalled a previous incident involving Syphax Airlines of Tunisia, which allegedly disappeared with more than $2 million belonging to Air Peace after withdrawing its aircraft under false pretenses and later going into bankruptcy. The airline said this troubling pattern of exploitation highlights the challenges Nigerian airlines face in international leasing arrangements challenges often rooted in discriminatory treatment, lack of accountability, and predatory business practices.
Despite the actions of SmartLynx, Air Peace said it has already released three of the disputed aircraft to their rightful owners in good faith, while one aircraft remains pending. The airline reiterates that it is simply demanding a refund of its funds and proper accountability from SmartLynx.
Although the situation has caused widespread delays and cancellations, Air Peace assures customers that all affected passengers will be protected and rescheduled. Ngala emphasized that the airline’s London operations remain fully intact and are not affected by the disruptions.
There is, however, some good news: several of the Air Peace aircraft undergoing maintenance abroad have now completed their processes and are returning to active service. Two aircraft have already arrived in Nigeria, and the airline expects to resume full operational capacity across all routes by next week.
Air Peace expressed regret over the inconvenience caused to its passengers and reaffirmed its commitment to offering reliable, safe, and world-class service. The airline also promised to pursue legal and contractual remedies to hold all defaulting partners accountable and prevent similar incidents in the future.
In closing, Air Peace stated that it remains dedicated to protecting Nigerian travelers and strengthening the reputation of indigenous airlines in the global aviation space despite the recurring unfair challenges posed by certain foreign leasing companies.
