Nigeria carrier, Air Peace, has released the third aircraft, an Airbus A320 aircraft, in its fleet, to Latvia-linked leasing company SmartLynx Airlines, barely six months after a dispute between both parties escalated into a legal battle.

Insider information indicates that the aircraft was released following an out-of-court settlement reached between the airline and the lessor after months of tension over allegations of contract breaches and operational disruptions.

The aircraft, which had remained grounded at the Murtala Muhammed Airport, Lagos, was reportedly released earlier this week and had already departed Nigeria for Spain as of Tuesday.

The development marks another chapter in the lingering disagreement between the two aviation companies, which began in November last year after Air Peace accused SmartLynx Airlines of abruptly withdrawing two aircraft from its operations while grounding the third aircraft in Lagos.

The airline had described the action as a breach of agreement that inflicted operational and financial losses on its network, especially during a period of intense passenger traffic and aircraft shortages across domestic routes.

Chief Commercial Officer of Air Peace, Nowel Ngala, had earlier lamented the impact of the aircraft withdrawals on flight schedules, noting that the disruption triggered delays, cancellations, and inconveniences for passengers.

According to him, the sudden withdrawal of the aircraft violated existing agreements between both parties and disrupted carefully planned operations. Ngala explained that Air Peace and SmartLynx Airlines had maintained a business relationship spanning about four years before the dispute erupted.

He further disclosed that Air Peace had committed over $5m to the leasing arrangement, including more than $1m paid as security deposits for the three aircraft involved.

“The removal of the aircraft affected our operations significantly because those aircraft had already been scheduled for flights,” Ngala stated at the peak of the dispute.

A source with good knowledge of the dispute, however, told our correspondent that both parties had now resolved their differences outside the courtroom, paving the way for the aircraft’s release.

The source, who declined to be named because he was not authorised to speak publicly on the matter, said the airline remained committed to honouring agreements reached with its business partners.

According to the insider, the settlement was considered the most practical solution to prevent prolonged litigation and further operational uncertainty.

Efforts to get the spokesperson of Air Peace, Efe Osifo-Whiskey, to react to the development were unsuccessful at the time of filing this report, as he neither picked up his call nor responded to text messages of enquiry on the matter.

Similarly, the Director of Public Affairs and Consumer Protection at the Nigeria Civil Aviation Authority, Michael Achimugu, said he was not immediately aware of the details surrounding the matter when contacted. He promised to provide further clarification after making inquiries on the matter.