Air Peace Ltd. has reported $15 million in losses after SmartLynx Airlines withdrew three leased aircraft, which the airline called illegal.
The airline said the move disrupted domestic flights, causing delays and cancellations across its network.
Lessor Breach Hits Airline Finances and Operations
At a press conference in Lagos, Air Peace’s Chief Commercial Officer, Nowel Ngala, explained that the airline had leased aircraft from SmartLynx to cover 13 planes undergoing scheduled maintenance abroad.
Ngala said the lessor breached the contract by removing the planes without warning, inflicting financial and reputational damage.
“This withdrawal was done without prior notice. It clearly violated industry standards and our agreement,” Ngala said.
He added that SmartLynx had collected money upfront, including over $1 million in security deposits, and claimed that the aircraft owners requested the withdrawal.
Past Lessor Challenges Highlight Risk
Ngala noted that this was not the first challenge with international lessors. In a previous case, a lessor reportedly vanished with over $2 million while taking aircraft for maintenance, leaving Air Peace without the planes or the funds.
“These incidents show the risks Nigerian airlines face with international leases. We cannot allow that to happen again,” he said.
Air Peace Prepares to Resume Full Operations
Despite the setbacks, Air Peace has completed its aircraft maintenance program, and two planes have returned to service.
Ngala said the airline plans to resume full domestic operations next week, while London flights remained unaffected.
“Air Peace remains committed to providing safe, reliable, and world-class flights. We are taking all steps to prevent future disruptions and hold defaulting partners accountable,” he added.
Conclusion: Airline Acts to Protect Operations
The Air Peace-SmartLynx dispute underscores the risks of international wet-lease agreements. The airline is actively protecting operations, ensuring financial accountability, and minimizing disruption to passengers.
