Air Peace, Nigeria’s leading airline, faced sudden chaos last week when four of its aircraft were abruptly withdrawn by SmartLynx Airlines. Chief Commercial Officer Nowel Ngala described it as “a serious breach of contract, fraudulent, and a premeditated scheme,” leaving thousands of passengers stranded across Nigeria, India, South Africa, and the United Kingdom.
With the airline’s own fleet partially grounded for maintenance, this disruption exposed vulnerabilities in operations and international leasing practices. Here’s what unfolded during those tense days.
What Happened With Air Peace’s Aircraft?
Four Airbus A320s leased from SmartLynx were suddenly removed from Air Peace’s operations between 13 and 14 November 2025. ES-SAY was parked at Lagos, 9H-EDO ferried to Lourdes/Tarbes, YL-LDM had been moved in October, and 9H-IVO was already in storage abroad.
This disruption hit while 13 of Air Peace’s own planes were under maintenance in the United States. But the story goes deeper than lost aircraft.
Who Is Behind The Disruption?
SmartLynx Airlines, a Latvian ACMI provider, underwent restructuring after its parent company divested its operating units to a Dutch fund in October 2025. Air Peace states that the company knowingly withdrew aircraft from its owners while they were in default.
Global aircraft owners, including AerCap, Castlelake, and Global Principal Finance, ultimately retained control of the four aircraft. This financial tangle triggered widespread operational chaos.
Air Peace Responds To The Withdrawal
On 14 November 2025, Nowel Ngala, Air Peace Chief Commercial Officer, told journalists: “We consider this action by SmartLynx to be a serious breach of contract, fraudulent, and a premeditated scheme.”
Ngala detailed the abrupt removal of four wet-leased aircraft, calling it a violation of industry standards. The comments revealed frustration with the sudden operational and financial pressures.
Scale Of The Operational Impact
With four wet-leased planes withdrawn and 13 undergoing maintenance, roughly 76% of Air Peace’s operational fleet was unavailable. Dozens of domestic and international flights were canceled, resulting in delays for thousands of passengers.
Affected routes included Lagos, Abuja, Kano, Port Harcourt, Enugu, Mumbai, Johannesburg, Accra, and Dakar. The airline scrambled to re-accommodate passengers amid the sudden crisis.
Financial Stakes And Disputes
Air Peace claims SmartLynx collected over $5.5 million in advance payments, including $1 million in security deposits, despite being in default to aircraft owners. Total damages claimed by the airline exceed $15 million USD.
These figures highlight the high financial stakes and expose the risks in leasing arrangements for airlines that are dependent on external lessors during peak travel periods.
Tracking these events provides context for the operational disruption. But why did SmartLynx collapse in the first place?
SmartLynx’s Financial Collapse Explained
SmartLynx’s debt exceeded €238 million, including €171 million owed internally and significant amounts to external lessors, such as Lufthansa Technik and Boeing. Investigations suggest a premeditated division of profitable and debt-laden units.
Air Peace’s reliance on these leased aircraft exposed it to financial and operational risks, illustrating how systemic pressures can ripple through international aviation leasing.
Air Peace’s Structural Vulnerability
Ngala explained: “To avoid service gaps and ensure Nigerians could continue to travel conveniently, Air Peace leased aircraft from SmartLynx in a bid to support Nigerian passengers during peak travel periods.”
The airline’s dependence on wet-leasing coincided with maintenance schedules for 13 of its own aircraft, leaving it dangerously exposed.
Lessons From Past Lessors
Ngala also noted: “This is not the first time Air Peace has been placed in a difficult situation by a fraudulent lessor… SYPHAX Airlines of Tunisia vanished with over $2 million.”
The recurrence of fraudulent lessors demonstrates long-standing vulnerabilities Nigerian airlines face when leasing aircraft internationally, amplifying the operational risks.
Passenger Experiences Amid Chaos
Passengers were stranded at Lagos, Abuja, Mumbai, Johannesburg, and other hubs, facing extended waits and missed connections. Many reported no prior notice, causing frustration and disruption to personal and business travel.
International travelers experienced separation from their families and delays, while local passengers struggled with domestic rescheduling fees and limited alternatives, resulting in millions of dollars in indirect costs.
Immediate Operational Mechanics
With only 5–6 aircraft operational, Air Peace canceled dozens of flights, affecting 10,000–20,000 passengers. Re-accommodation involved voluntary refund deductions and surcharges: $100 per international segment, $30 per regional segment, and N5,000 per domestic segment.
These measures mitigated losses but were unable to offset the cascading impact on travelers, cargo, and business operations across the network.
Recovery Measures Initiated
Air Peace released three aircraft to owners, returned two of its own from maintenance, and secured a Boeing 737-800 on dry-lease from AerCap with a federal guarantee.
The airline also pursued legal action to reclaim $5.5+ million from SmartLynx, signaling a multi-pronged effort to restore operations and financial stability.
Broader Aviation Sector Shock
The crisis occurred amid a wave of regional airline collapses: Play Airlines, Braathens, Eastern Airways, and Blue Islands ceased operations between September and November 2025.
Air Peace’s disruption illustrates broader systemic stresses in 2025 aviation leasing, affecting multiple carriers and international passenger routes.
Ripple Effects On Economy And Society
Disruptions impacted employees, supply chains, tourism, and medical travel. Nigeria’s 223+ million population relied on Air Peace for connectivity, making delays costly for businesses, patients, and general travelers.
The federal government assumed financial liability for leased aircraft, shifting risk to taxpayers while highlighting the economic stakes of aviation disruptions.
Path To Resumption
By 17 November 2025, Air Peace began resuming flights as its aircraft returned from maintenance. Recovery was gradual, with the expectation of restoring full operations as more planes became available.
Although the crisis disrupted thousands, it did not lead to the airline’s closure, leaving questions about future safeguards against sudden lessor withdrawals.