Nigeria’s flagship carrier, Air Peace, has escalated its dispute with Latvian ACMI and charter operator SmartLynx Airlines into a full-blown lawsuit, accusing the European firm of deliberate fraud and breach of contract in a wet-lease agreement. The legal action comes amid widespread disruptions to Air Peace’s operations and coincides with SmartLynx’s abrupt announcement of ceasing all operations.

The controversy erupted just weeks ago when Air Peace publicly accused SmartLynx of unilaterally withdrawing three wet-leased Airbus A320 aircraft without prior notice. This sudden move, the airline claims, triggered a cascade of flight delays and cancellations, stranding thousands of passengers and severely impacting its domestic and regional network.

In a strongly worded statement released by its management, Air Peace detailed the financial toll, pegging its total losses at a staggering $38,042,843.84 as of the filing date. The airline alleges that SmartLynx engaged in systematic deception by securing multiple advance payments for block hours prepaid flying time while having no intention of fulfilling the contract.

“During the operation of the lease, SmartLynx deliberately defrauded Air Peace and fraudulently obtained several advance payments under the pretext that it would operate the agreed block hours,” the statement read. “SmartLynx fully knew, months before receiving these payments, that it had no intention of operating the prepaid block hours, yet it continued to demand and receive payments from Air Peace under false pretences.”

Air Peace emphasized that these actions not only violated the terms of their agreement but also undermined the airline’s efforts to bolster capacity amid Nigeria’s booming aviation sector. To mitigate service gaps and ensure continued connectivity for Nigerian travelers, Air Peace had turned to SmartLynx for the leased aircraft, a common practice in the industry for seasonal or surge demands.

The lawsuit, filed in a yet-to-be-specified jurisdiction, seeks full restitution for the losses incurred, including operational disruptions and reputational damage. On November 12, 2025, the court reportedly issued an initial order against SmartLynx, though details of the ruling remain under wraps pending further proceedings.

Compounding the saga, SmartLynx Airlines announced on Monday that it has suspended all operations effective immediately. The decision, attributed to new management, stems from an assessment deeming the company’s financial outlook and long-term viability “untenable.” The Latvia-based operator, which specialized in ACMI (Aircraft, Crew, Maintenance, and Insurance) services, wet-leasing, charters, and cargo flights, cited broader market pressures and internal restructuring challenges as key factors.

Founded in the post-Soviet era, SmartLynx had grown into a notable player in Europe’s ACMI market over three decades, serving clients across the continent and beyond. However, its collapse has rippled through the industry, with partners like Air Peace left holding the bag. Earlier reports estimated Air Peace’s immediate hit at around $15 million, though the airline’s latest figure balloons that to over $38 million when factoring in ancillary costs.

Air Peace, which operates a fleet of over 20 aircraft and dominates Nigeria’s skies, has vowed to pursue the case vigorously while reassuring customers of its commitment to reliable service. “We remain dedicated to connecting Nigerians safely and efficiently,” the statement concluded.

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