Air Peace has released the Airbus A320 aircraft to SmartLynx Airlines, a Latvia-linked aircraft leasing company, six months after impounding the plane at Lagos airport. The Guardian learned that the airline released the aircraft after both parties reached an out-of-court settlement, following accusations of breach of contract leveled against the lessor last November.
Background of the Dispute
The airline had accused SmartLynx of causing severe operational and financial losses exceeding $15 million in damages. This stemmed from the sudden disappearance of two aircraft from Air Peace's fleet, while the third was grounded in Lagos. Although the exact release date remains unclear, sources indicate the aircraft was released this week and was already in Spain as of Tuesday.
Impact on Operations
Nowel Ngala, Chief Commercial Officer of Air Peace, had lamented that the withdrawal violated industry standards and their agreement. He noted that the aircraft were scheduled for operations, and their removal led to delays and cancellations. Ngala stated that Air Peace and SmartLynx had maintained a four-year business relationship before this incident. Despite the setbacks, Air Peace had paid over $5 million, including more than $1 million in security deposits for the three aircraft.
Out-of-Court Settlement
A source close to Air Peace confirmed to The Guardian that the airline released the aircraft after an out-of-court settlement. The source, who requested anonymity, said Air Peace would continue to honor its contractual obligations with partners.
Reactions and Further Inquiries
When contacted, Air Peace spokesman Efe Osifo-Whiskey declined to comment immediately, promising to provide information later but had not done so by the time of reporting. Similarly, Michael Achimugu, Director of Public Affairs and Consumer Protection at the Nigeria Civil Aviation Authority (NCAA), stated he was unaware of the matter and promised updates, which were not provided by filing time.
