November 14, (THEWILL) — Leading West Africa carrier, Air Peace, has lost over $15 million in a wet-lease agreement with SmartLynx Airlines, which until recently was part of the Avia Solution Group Holding.
The airline had taken the lease decision following the fact that 13 of their aircraft are currently undergoing scheduled maintenance abroad.
The Chief Operating Officer of Air Peace, Mr Nowel Ngala, who disclosed the new development in a press conference at their corporate headquarters in Ikeja, Lagos, on Friday, said that the efforts to lease the 4 aircraft were made solely to support their passengers during peak travel periods
Mr Ngala explained that over the past week, Air Peace has experienced several operational disruptions, resulting in flight delays and cancellations,adding that the airline clearly understands the inconvenience this has caused their valued customers.
“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.
“The disruptions were caused by the abrupt and unjustified withdrawal of four aircraft we wet-leased from SmartLynx Airlines. This withdrawal was done without prior notice, a clear violation of industry standards and the agreement between both parties.”
Ngala pointed out 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.”
According to the COO, these aircraft had already been rostered for scheduled flights, and their sudden removal created significant gaps in our operations.
He emphasised that “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.”
Ngala maintained that the airline considers 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.
Despite SmartLynx’s actions, Ngala informed that Air Peace has released three of the aircraft in question to their rightful owners in good faith, adding that one more aircraft remains.
He however, insisted that “all we are requesting is a refund of our funds” .
Meanwhile, this is not the first time Air Peace has been placed in a difficult situation by a fraudulent lessor.
In the past 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 added.
Despite these setbacks, Ngala disclosed that some of Air Peace’s 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.
“We regret the difficulties our passengers have experienced, and we appreciate their patience and understanding throughout this period. Air Peace remains firmly committed 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”, Ngala assured.
As it is, there are about 781 companies listed as creditors of SmartLynx Airlines, amounting to more than €238 million.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
