Air Peace has released the Airbus A320 aircraft previously grounded at the Murtala Muhammed Airport, Lagos, to Latvia-linked leasing company SmartLynx Airlines following an out-of-court settlement reached by both parties after months of legal and operational disputes.
The aircraft, which had remained in Nigeria for about six months amid the disagreement, was reportedly released earlier this week and has since departed for Spain.
The development brings to a close a dispute that began in November 2025 after Air Peace accused SmartLynx Airlines of breaching their lease agreement through the sudden withdrawal of two aircraft from the airline’s operations while grounding a third aircraft in Lagos.
Air Peace had claimed that the action caused severe operational disruptions, flight delays and cancellations across its network, resulting in financial losses estimated at over $15 million.
Speaking at the height of the dispute, the airline’s Chief Commercial Officer, Nowel Ngala, described the withdrawal of the aircraft as a violation of established industry standards and contractual agreements between both parties.
According to him, the affected aircraft had already been scheduled for operations, making their sudden removal particularly damaging to the airline’s operations and passenger service delivery.
Ngala also disclosed that Air Peace had maintained a business relationship with SmartLynx Airlines for about four years prior to the disagreement and had committed over $5 million to the lease arrangement, including more than $1 million paid as security deposits for the three aircraft involved.
Sources familiar with the matter confirmed that both parties eventually resolved their differences outside the courtroom, paving the way for the release of the aircraft and the discontinuation of legal hostilities.
The source noted that the airline remained committed to honouring agreements reached with its international partners and viewed the settlement as a practical step toward avoiding prolonged litigation and further operational uncertainty.
Efforts to obtain an official response from Air Peace spokesperson, Efe Osifo-Whiskey, were unsuccessful as of the time of filing this report.
Similarly, the Director of Public Affairs and Consumer Protection at the Nigeria Civil Aviation Authority, Michael Achimugu, said he was not immediately aware of the details surrounding the settlement but promised to make further enquiries on the matter.
The dispute had attracted significant attention within Nigeria’s aviation industry, particularly at a time when domestic airlines continue to face fleet shortages, rising operational costs and increasing demand for aircraft capacity across regional and domestic routes.
