Air Peace Loses $15m as SmartLynx Withdraws Aircraft Without Notice

November 15, 2025 at 12:00 AM•2 min read•nigerianbulletin.com

Air Peace reports a $15 million loss after SmartLynx Airlines abruptly withdrew three wet-leased aircraft without prior notice, leading to operational disruptions.

Key Points

1SmartLynx Airlines withdrew three wet-leased aircraft from Air Peace without notice.
2Air Peace claims the withdrawal caused $15 million in damages.
3Air Peace alleges breach of contract and potential fraud.
4Air Peace paid over $5 million upfront, including security deposits.
5Air Peace is working to restore services and reimburse affected passengers.
6This is the second such incident after Syphax Airlines of Tunisia defaulted in the past.

Air Peace, a Nigerian airline, faces significant operational setbacks and financial losses after SmartLynx Airlines, a Latvian charter airline, withdrew three aircraft that were wet-leased to Air Peace. The unexpected removal of the aircraft, allegedly without notice, has caused Air Peace to claim over $15 million in damages. Air Peace characterizes SmartLynx's actions as a serious breach of contract and potentially fraudulent, stating that over $5 million had been paid upfront, including security deposits. This incident follows a similar default by Syphax Airlines of Tunisia, further compounding Air Peace's challenges.

Air Peace is working to stabilize its operations by expediting the return of its own aircraft from maintenance. The airline aims to fully restore its services and has promised to reimburse affected passengers for the disruptions caused by the sudden aircraft withdrawal. The airline is likely exploring legal options to recover the financial losses incurred due to SmartLynx's actions. The situation highlights the risks associated with wet-lease agreements and the importance of robust contractual safeguards for airlines.

The incident could impact Air Peace's expansion plans and its ability to serve its existing routes effectively. The airline's reputation may also suffer if it fails to adequately compensate passengers affected by flight cancellations and delays. The financial impact of the $15 million loss could strain Air Peace's profitability and potentially affect its future investment decisions.

SmartLynx's motivations for withdrawing the aircraft remain unclear, but the incident raises questions about its business practices and its commitment to honoring contractual obligations. The long-term consequences for SmartLynx could include reputational damage and difficulty securing future wet-lease agreements with other airlines. The aviation industry will be watching closely to see how this dispute is resolved and what measures are taken to prevent similar incidents from occurring in the future.