The protracted dispute between Air Peace Limited, Nigeria’s largest airline, and its former ACMI (Aircraft, Crew, Maintenance, and Insurance) partner, SmartLynx Airlines Ltd, has reached a critical juncture, with Air Peace now confirming total losses of USD 38,042,843.84. This substantial figure encompasses not only direct financial damages but also the profound operational and reputational fallout experienced by the Nigerian carrier during a vital travel period. The incident has drawn significant attention from aviation professionals across Africa, serving as a stark reminder of the inherent complexities and risks associated with cross-border leasing arrangements and highlighting the urgent need for stringent due diligence in fleet management strategies.

The origin of this escalating conflict, according to Air Peace, lies in a "serious breach of contract" by SmartLynx. The Latvian lessor had entered into a multi-year agreement to provide four Airbus A320 aircraft to Air Peace, an arrangement initially slated to continue until 2026. However, SmartLynx allegedly withdrew these planes without prior warning as it entered judicial restructuring. This abrupt move left Air Peace in a precarious position, forcing it to scramble to cover scheduled flights, which led to widespread disruptions and considerable financial repercussions. Air Peace further contends that SmartLynx failed to uphold its ACMI obligations while deliberately concealing its deteriorating financial state, even as it accepted advance payments from the Nigerian airline. These actions, Air Peace asserts, amounted to obtaining funds under false pretenses, forming the basis for ongoing legal proceedings in Nigerian courts.

The operational consequences of SmartLynx’s withdrawal were immediate and severe. The sudden unavailability of four A320s compelled Air Peace to cancel or reschedule numerous flights, particularly during a peak travel window. Beyond the direct impact on profitability, this disruption significantly eroded customer confidence and strained relationships with key partners throughout the region. Air Peace has characterized the episode as inflicting "monumental reputational and operational damage," a sentiment widely echoed within the African aviation community, which views this incident as a compelling cautionary tale for airlines venturing into international leasing deals.

While initial reports had estimated Air Peace’s losses at approximately USD 15 million, the airline clarified that the actual cost is substantially higher. The updated figure of USD 38,042,843.84 accounts for direct financial damages, lost revenue, additional expenditures to secure replacement capacity, and significant brand reputation impacts.

Air Peace’s leadership has been outspoken in condemning SmartLynx’s conduct, alleging that the lessor continued to demand and receive advance payments despite being unable to fulfill contractual commitments. The airline maintains that this was part of a premeditated scheme to extract funds while deliberately obscuring the true state of SmartLynx’s finances. Consequently, Air Peace has pursued legal action, resulting in a Nigerian court issuing an order against SmartLynx in November 2025. This case is anticipated to establish crucial precedents for enforcing cross-border leasing contracts and safeguarding the interests of African carriers in the global aviation market.

For Africa’s broader aviation sector, the Air Peace–SmartLynx dispute underscores the paramount importance of robust risk assessment, transparency, and comprehensive legal safeguards within ACMI and wet-lease agreements. As more African airlines seek to expand fleets and optimize routes through international partnerships, the necessity for thorough due diligence and strong contractual protections has never been greater. The incident also highlights the vulnerability of airlines to external shocks, such as partner insolvency, evolving regulations, or unforeseen operational disruptions, and their cascading effects on the wider travel ecosystem. Industry observers predict that the fallout will influence future leasing negotiations across the continent, prompting airlines to demand enhanced financial disclosure, pursue stronger legal recourse, and strategically diversify fleets to mitigate capacity loss risks.

As the legal battle continues, Air Peace remains steadfast in restoring its network and rebuilding confidence among passengers and partners. The airline’s decisive response—including transparent communication, diligent pursuit of legal remedies, and proactive efforts to secure alternative aircraft—exemplifies the resilience and determination that define Africa’s leading carriers. For the continent’s dynamic travel sector, this case serves as both a serious warning and a compelling call to action: in a rapidly evolving global aviation landscape, only those who anticipate and rigorously prepare for disruption will thrive in the years to come.