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Business & Economy

Air Peace in trouble, loses $15 million as company that leased aircraft to it withdraws 3 planes

Desire Emmanuel
Last updated: November 14, 2025 6:05 pm
Desire Emmanuel
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By Desire Emmanuel

Trouble seems to be on course for Air Peace Ltd. as it confirmed on Friday, November 14, that the sudden disruptions in  its domestic operations led to withdrawal of three aircraft  by  Smartlynx Airlines, the company that leased them to it..

The airline said that the disruptions which it said was due to what it described as “illegal withdrawal” has cost it $15 million.

The Chief Commercial Officer at Air Peace, Mr Nowel Ngala, disclosed this at a news conference in Lagos State on Friday..

According to Ngala, Air Peace has experienced a number of operational disruptions resulting in flight delays and cancellations.

He said that Air Peace entered a wet-lease agreement with Smartlynx because 13 of its aircraft were undergoing scheduled maintenance abroad.

According to him, to avoid service gaps and ensure Nigerians would continue to travel conveniently, the airline leased aircraft from Smartlynx.

He said that the sudden withdrawal of the three aircraft was illegal and a breach of contract.

Ngala said that the withdrawal inflicted financial loss and reputational damage to Air Peace and the Nigerian travelling public.

“This withdrawal was done without prior notice. It is a clear violation of industry standards and of an agreement between both parties.

“What makes this even more concerning is that Smartlynx had collected money upfront from Air Peace,” he stated.

He said that the lessor claimed that the owners of the aircraft wanted them withdrawn.

“Over five million dollars of our money including over a million dollars paid as security deposits for those aircraft are with them (Smartlynx).

“This situation has caused over $15 million in damages to Air Peace. These aircraft had already been rostered for scheduled flights, and their sudden removal created significant gaps in our operations,” he said.

Ngala confirmed that Air Peace had returned the three aircraft to the company in good faith.

He said that was not the first time Air Peace was placed in a difficult situation by a lessor.

According to him, a lessor had  ‘vanished’ with over two million dollars from Air Peace in the guise that it was taking  leased aircraft for maintenance.

He said that the aircraft was never returned and the fund unaccounted for.

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