BY ANTHONY OMOH
Air Peace says the sudden withdrawal of four wet-leased aircraft by SmartLynx Airlines has triggered more than $15 million in losses and caused widespread flight disruptions across its domestic and regional network. The airline said the crisis was avoidable and blamed the Latvian carrier for breaching contractual and industry obligations without notice.
The airline explained the leases became necessary because thirteen of its aircraft were undergoing scheduled maintenance overseas. Air Peace said it opted for SmartLynx Airlines to ensure seamless travel for Nigerians during peak periods and to prevent service gaps while awaiting the return of its own aircraft.
However, the airline said the agreement collapsed abruptly. According to Air Peace, SmartLynx Airlines collected full payments upfront and still withdrew all four aircraft without warning. The airline said the move was unjustified, fraudulent and part of a wider pattern that has affected airlines in different regions.
SmartLynx Withdrawal Caused Severe Disruptions
Air Peace said the situation escalated quickly once SmartLynx Airlines withdrew the aircraft. The airline said the action “was done without prior notice,” calling it a clear violation of the lease agreement.
“SmartLynx had collected money upfront from Air Peace, including over $1 million paid as security deposits,” the airline said. “They knew the rightful owners would withdraw the aircraft because SmartLynx had failed to meet its obligations.”
According to Air Peace, the Latvian operator held more than $5 million of its funds while leaving the country. The airline said the total impact of the withdrawal has now exceeded $15 million due to operational losses, reputational damage and passenger disruptions.
Air Peace said the aircraft had already been rostered for scheduled flights. Their sudden removal left large gaps in the daily flight plan and forced cancellations and delays across multiple routes. The airline said similar incidents with SmartLynx Airlines had occurred elsewhere, showing what it described as “a broad pattern of unprofessional conduct.”
“This has inflicted financial loss and reputational damage not just on Air Peace, but indirectly on the Nigerian travelling public,” the airline added.
Despite the setback, Air Peace said it released three of the seized aircraft to their rightful owners in good faith. One aircraft remains outstanding. The airline said all it seeks is a refund of its trapped funds.
Background: BLACKLIST.AERO Exposes €238m Debt and Suspicious Transfers
The crisis at Air Peace coincides with deeper financial turmoil surrounding SmartLynx Airlines. Aviation watchdog BLACKLIST.AERO released extensive findings linking the Latvian operator to a suspected asset-stripping scheme and intentional bankruptcy.
According to its latest registry update, SmartLynx Airlines Latvia has 781 creditors and owes more than €238 million. BLACKLIST.AERO said the scale of debt is unprecedented for an operator of its size and raises serious concerns about corporate governance.
Almost €174 million of the total debt is owed to companies inside the Avia Solutions Group, the former parent company of SmartLynx Airlines. The platform listed several subsidiaries owed money, including ASG Finance DAC in Ireland-€117.1m, SmartLynx Airlines Malta-€38.8m; Smart Aviation Holdings SIA (Latvia): €2.3m and SmartLynx Airlines Estonia-€12.5m
The platform highlights a pattern seen in intentional bankruptcy cases. SmartLynx Latvia was sold on 23 October 2025 to a newly formed Dutch entity, Stichting Break Point Distressed Assets Management, created only a month earlier. Days later, on 28 October, the airline filed for creditor protection before a Riga court.
The timing, BLACKLIST.AERO says, shows “clear indicators of deliberate insolvency, debt isolation, and possible fraudulent restructuring.”
BLACKLIST.AERO said the debt structure suggests SmartLynx Latvia was financed heavily by related companies, allowing losses to be absorbed internally while external creditors were exposed.
The watchdog also highlighted suspicious timing around the company’s sale.
It revealed that Avia Solutions Group sold SmartLynx Airlines Latvia to a new Dutch fund, Stichting Break Point Distressed Assets Management, just days before the airline filed for creditor protection in Riga.
BLACKLIST.AERO said the Dutch fund was created only a month earlier.
It called the transaction an attempt to isolate a debt-ridden subsidiary from the group’s profitable operations in Malta and Estonia, which were not part of the sale.
The platform also raised concerns about management continuity.
Despite the sale, former executives kept control, including Edvins Demeņus, who stayed on as CEO. BLACKLIST.AERO said this allowed the same managers to maintain influence while distancing the parent group from liabilities.
Its conclusion was direct.
BLACKLIST.AERO said the evidence “points to intentional bankruptcy” at SmartLynx Airlines and recommends coordinated legal action by creditors in Ireland, Lithuania and Latvia.
Air Peace Recalls Previous Fraud Case with SYPHAX Airlines
Air Peace linked the SmartLynx Airlines incident to earlier experiences with foreign lessors. The airline recalled how Tunisia’s Syphax Airlines “vanished with over $2 million” after claiming its leased aircraft needed maintenance. The aircraft was never returned, and the funds remain unrecovered.
Air Peace said the pattern shows the vulnerability of African airlines in leasing deals with foreign operators. It warned that Nigerian carriers often face unfair practices abroad and urged regulatory and diplomatic support to prevent further exploitation.
Operations Recovering as Air Peace Aircraft Return
Despite the disruptions and heavy losses caused by SmartLynx Airlines, Air Peace says recovery has begun. Two of its aircraft have already returned from maintenance, and more are expected in the coming week.
The airline said full operations across all routes will resume soon as additional aircraft return to service.
“We remain firmly committed to providing safe, reliable, and world-class flight services,” Air Peace said. “We appreciate the patience and understanding of the Nigerian public.”
The airline assured passengers that it is strengthening safeguards against future contractual breaches and will pursue all necessary actions to recover its funds.
