Lessor Breaches Wet-lease Contract With Air Peace, Disrupts Operations With Aircraft Withdrawal
Air Peace says SmartLynx Airlines has disrupted its operations with an “abrupt and unjustified withdrawal” of four of its wet-leased A320 aircraft from SmartLynx Airlines “without prior notice in a clear violation of industry standards and the agreement between both parties.”
The Chief Commercial Officer of Air Peace Airlines, Mr. Nowel Ngala said in a press conference yesterday that “over the past week, Air Peace has experienced several operational disruptions, resulting in flight delays and cancellations” as a result of this sudden withdrawal of aircraft.
“Air Peace entered a wet-lease agreement with SmartLynx because 13 of our aircraft are currently undergoing scheduled maintenance abroad. To avoid service gaps and ensure Nigerians could continue to travel conveniently, we leased aircraft from SmartLynx. These efforts were made solely to support our passengers during peak travel periods,” he said, adding that “what makes this even more concerning is that SmartLynx had collected money upfront from Air Peace, fully aware that the rightful owners of those aircraft would be withdrawing them because SmartLynx had been in default of payments to the said owners.
Over $5 million of our money, including over $1 million paid as security deposits for those aircraft is with them, while they are attempting to leave Nigeria. 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. It is important to note that other airlines that leased aircraft from SmartLynx in other parts of the world were similarly affected, confirming a broad pattern of unprofessional conduct.
We consider this action by SmartLynx to be a serious breach of contract, fraudulent, and a premeditated scheme that has inflicted financial loss and reputational damage not just on Air Peace, but indirectly on the Nigerian travelling public, whom we serve with pride.”
Ngala said “despite SmartLynx’s actions, Air Peace has released three of the aircraft in question to their rightful owners in good faith. One more aircraft remains, and all we are requesting is a refund of our funds.”
He noted that “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 from Air Peace and never returned, claiming they were taking their aircraft for maintenance. The aircraft was never returned, and the funds remain unaccounted for till date as the airline went into bankruptcy. These actions, unfortunately, reflect the challenges Nigerian carriers often face in international leasing arrangements. We cannot allow that to happen again.”
Ngala however announced that despite the setback, “some of our aircraft have completed maintenance and are returning to service. Two aircraft have already arrived, and starting next week, we expect to resume full operations across all our routes as more of our aircraft return.” He reaffirmed the airline’s commitment to providing safe, reliable, and world-class flight services.
“We assure the Nigerian public that we are taking every necessary step to prevent such disruptions in the future and to hold all defaulting partners accountable,” he said.
SmartLynx Airlines headquartered in Riga, Latvia, with additional offices in Estonia, Lithuania, and Malta.
