Air Peace has returned an Airbus A320 aircraft to Latvia-based leasing firm SmartLynx Airlines following an out-of-court resolution between both parties, ending a months-long dispute over the aircraft’s grounding in Lagos.
The development comes about six months after the aircraft was initially impounded at the Murtala Muhammed International Airport, Lagos, amid allegations of contract breach involving the lessor. The matter, which had been heading toward litigation, was eventually settled privately, according to sources familiar with the agreement.
The dispute stemmed from Air Peace’s claim that SmartLynx Airlines abruptly withdrew two aircraft from its fleet while a third was grounded, a situation the Nigerian carrier said disrupted operations and caused financial and operational losses estimated at over $15 million.
Air Peace further argued that the withdrawal violated agreed industry standards and contractual terms between both companies, with Chief Commercial Officer, Nowel Ngala, previously noting that the airline had depended on the aircraft for scheduled operations, leading to delays and cancellations when they were removed.
Ngala also disclosed that Air Peace had committed over $5 million in payments, including more than $1 million in security deposits for the three leased aircraft, prior to the escalation of the disagreement.
Although the exact date of the aircraft’s release was not officially confirmed, insiders indicated that the handover took place during the week, with the aircraft reportedly already ferried to Spain as of Tuesday.
A source within Air Peace confirmed that the release followed a mutual settlement reached outside court, adding that the airline remains committed to honouring agreements with its partners going forward.
When contacted, spokesperson for Air Peace, Efe Osifo-Whiskey, declined immediate comment but promised a response later. However, no further update had been provided at the time of filing this report.
Similarly, the Nigeria Civil Aviation Authority (NCAA) Director of Public Affairs and Consumer Protection, Michael Achimugu, said he was not yet briefed on the development but promised to provide clarification once fully informed.