Air Peace Quantifies SmartLynx Dispute Losses at USD 38 Million, Raising Industry Concerns
The ongoing dispute between Air Peace Limited and its former ACMI partner, SmartLynx Airlines Ltd, has taken a dramatic turn, with Nigeria’s largest carrier now placing its total losses at a staggering USD 38 million. This figure, recently confirmed by Air Peace, reflects not only the direct financial damages from the abrupt withdrawal of four leased Airbus A320s but also the extensive operational and reputational impact suffered during a critical travel period. The dispute has quickly become a focal point for aviation professionals across Africa, highlighting the risks and complexities inherent in cross-border leasing arrangements and the urgent need for robust due diligence in fleet management strategies [[1]](https://independent.ng/air-peace-hits-smartlynx-with-legal-action-over-usd-38m-loss-dispels-aircraft-seizure-claims/).
According to Air Peace, the conflict with SmartLynx originated from what the Nigerian airline describes as a “serious breach of contract.” The Latvian lessor, which had entered into a multi-year agreement to provide four A320 aircraft until 2026, allegedly withdrew the planes without warning as it entered judicial restructuring. This sudden move left Air Peace scrambling to cover scheduled flights, resulting in widespread disruptions and significant financial fallout. The airline asserts that SmartLynx not only failed to meet its ACMI obligations but also concealed its deteriorating financial position while continuing to collect advance payments from Air Peace. Such actions, Air Peace claims, amounted to obtaining funds under false pretences and have now led to legal proceedings in Nigerian courts [[2]](https://www.thisdaylive.com/2025/12/01/air-peace-no-intention-of-detaining-lessors-aircraftdespite-38m-loss/).
The operational consequences were immediate and severe. With the withdrawal of the four A320s, Air Peace was forced to cancel or reschedule numerous flights, particularly during a peak travel window. This disruption not only affected the airline’s bottom line but also eroded customer confidence and strained relationships with key partners in the region. The carrier has described the episode as causing “monumental reputational and operational damage,” a sentiment echoed by many in the African aviation community who view the incident as a cautionary tale for airlines engaging in international leasing deals [[1]](https://independent.ng/air-peace-hits-smartlynx-with-legal-action-over-usd-38m-loss-dispels-aircraft-seizure-claims/).
While initial reports placed Air Peace’s losses at around USD 15 million—a figure cited by several industry observers and media outlets—the airline has since clarified that the true cost is much higher. The updated loss estimate of USD 38,042,843.84 encompasses not only direct financial damages linked to the lease agreements but also the broader operational impact, including lost revenue, additional costs incurred to secure replacement capacity, and the intangible effects on brand reputation [[1]](https://independent.ng/air-peace-hits-smartlynx-with-legal-action-over-usd-38m-loss-dispels-aircraft-seizure-claims/).
Air Peace’s leadership has been vocal in its criticism of SmartLynx’s conduct, alleging that the lessor continued to demand and receive advance payments even after it became clear that it would not be able to fulfil its contractual obligations. The airline contends that this behaviour was part of a premeditated scheme to extract funds while concealing the true state of SmartLynx’s finances. As a result, Air Peace has initiated legal action, with a Nigerian court issuing an order against SmartLynx in November 2025. The case is expected to set important precedents for the enforcement of cross-border leasing contracts and the protection of African carriers’ interests in global aviation markets [[1]](https://independent.ng/air-peace-hits-smartlynx-with-legal-action-over-usd-38m-loss-dispels-aircraft-seizure-claims/).
For Africa’s aviation sector, the Air Peace–SmartLynx dispute underscores the critical importance of risk assessment, transparency, and legal safeguards in ACMI and wet-lease agreements. As more African airlines look to expand their fleets and route networks through partnerships with international lessors, the need for comprehensive due diligence and robust contractual protections has never been greater. The incident also highlights the vulnerability of airlines to external shocks—whether from partner insolvency, regulatory changes, or unforeseen operational disruptions—and the cascading effects such events can have on the broader travel ecosystem.
Industry observers note that the fallout from the SmartLynx episode is likely to influence future leasing negotiations across the continent. Airlines may now demand greater financial disclosure from lessors, seek enhanced legal recourse in the event of contract breaches, and invest in more diversified fleet strategies to mitigate the risk of sudden capacity losses. For African aviation professionals, the lessons from Air Peace’s experience are clear: vigilance, adaptability, and proactive risk management are essential to safeguarding operational continuity and maintaining customer trust in an increasingly interconnected industry.
As the legal battle unfolds, Air Peace remains focused on restoring its network and rebuilding confidence among its passengers and partners. The airline’s swift response to the crisis—including transparent communication, pursuit of legal remedies, and efforts to secure alternative aircraft—demonstrates the resilience and determination that have become hallmarks of Africa’s leading carriers. For the continent’s travel sector, the case serves as both a warning and a call to action: in a rapidly evolving global aviation landscape, only those who anticipate and prepare for disruption will thrive in the years ahead.
