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

Sources familiar with the matter said the aircraft was returned following an out-of-court settlement reached between Air Peace and the lessor after months of disagreements over alleged contract breaches and operational disruptions, according to The Punch.

The aircraft, which had been grounded at the Murtala Muhammed International Airport in Lagos, was reportedly handed over earlier this week and had departed Nigeria for Spain by Tuesday.

The development marks a fresh turn in the protracted dispute between the two aviation companies, which dates back to November last year when Air Peace accused SmartLynx Airlines of abruptly withdrawing two leased aircraft from its operations and grounding a third aircraft in Lagos.

Air Peace had described the move as a breach of contract that caused significant operational and financial setbacks, particularly at a time of high passenger demand and limited aircraft availability across its domestic network.

The airline’s Chief Commercial Officer, Nowel Ngala, had previously expressed concern over the impact of the aircraft withdrawals on operations, saying the disruptions led to flight delays, cancellations, and considerable inconvenience for passengers.

According to Ngala, the abrupt withdrawal of the aircraft breached existing agreements between the two parties and undermined carefully coordinated operational plans.

He noted that Air Peace and SmartLynx Airlines had maintained a business relationship for approximately four years before the dispute emerged.

“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 familiar with the dispute told our correspondent that both parties have now settled their differences out of court, clearing the way for the release of the aircraft.

The source, who requested anonymity because he was not authorised to comment publicly on the matter, said the resolution reflected the airline’s commitment to maintaining constructive relationships and honouring agreements with its business partners.