A dispute between Ghana Airports Company Limited (GACL) and McDan Aviation Limited has escalated after the airport operator terminated the company’s licence to provide Fixed Base Operation (FBO) services at Terminal 1 of Kotoka International Airport over alleged persistent non-payment of contractual fees.
GACL says the agreement with McDan Aviation Handling Services Limited, signed in August 2022, has been “duly and finally terminated” and that there is no legal basis for the company to continue operating or to be re-engaged to provide FBO services at the terminal.
In a statement issued on March 12, the airport authority explained that the licence allowed the company to provide private aviation services at designated sections of Terminal 1 on the basis that it paid licence fees, royalties and rent to the airport operator.
According to GACL, McDan Aviation began defaulting on its payment obligations shortly after the agreement took effect in 2022.
The airport operator said that after several attempts to recover the outstanding payments, access to the terminal was restricted in late 2024. The company later cleared arrears covering the period between 2022 and 2024, leading to the reopening of the facility for its operations.
However, GACL said the company subsequently accumulated fresh debt after failing to make payments for rent and royalties throughout 2025, while the operating licence fee dating back to 2022 also remained outstanding.
In line with the provisions of the contract, the airport authority said it issued a 90-day termination notice on January 10, 2025, demanding settlement of the outstanding obligations. The notice was followed by three reminders during the course of the year.
During that period, McDan Aviation proposed a payment plan and submitted three post-dated cheques but later requested that the airport operator refrain from depositing them, citing financial constraints.
GACL said the continued default led to the formal termination of the agreement on January 16, 2026, after the notice period expired without resolution.
Following the termination, the authority secured and locked up Terminal 1 on February 9, 2026, and directed the company to remove its equipment and other belongings from the facility within seven days.
Despite the termination, the airport operator said McDan Aviation made a payment in Ghana cedis equivalent to about $265,000 on February 27, after the facility had already been locked. GACL said the amount represented roughly half of the outstanding debt and would be treated only as partial settlement.
The airport authority also indicated that it would continue efforts to recover the remaining debt from the broader McDan Group, adding that the group is currently involved in a separate legal dispute with GACL over a 16-acre parcel of land at the airport where commercial properties have reportedly been developed.
However, in a response issued the same day, McDan Aviation rejected the characterisation of events and accused the airport operator of breaching contractual provisions and disregarding judicial processes.
In the statement, the company described itself as Ghana’s first indigenous provider of Fixed Base Operation services and said it had invested millions of dollars to develop a private FBO facility at Terminal 1.
“McDan Aviation invested millions of dollars to develop Ghana’s first private FBO terminal at the Accra International Airport’s Terminal 1, operating under a landmark license agreement signed in August 2022,” the statement said.
The company acknowledged falling behind on some payments but insisted the delays were temporary and had been resolved.
“McDan Aviation experienced a brief payment delay triggered by operational challenges amid current global business crisis. This temporary delay was fully rectified, with all outstanding amounts settled in good faith.”
The company further argued that the termination process violated the terms of its agreement with the airport operator.
“The contract governing our operations at Terminal 1 clearly stipulates that GACL is required to provide McDan Aviation with a 90 day notice of eviction before taking any action to remove the from the premises.”
McDan Aviation also alleged that despite an injunction application served on the airport operator, officials forcibly entered the facility in the early hours of March 11 and removed equipment belonging to the company.
“This sequence of events reveals a troubling pattern: GACL has not only breached its contractual obligations by ignoring the 90 day notice requirement but has also demonstrated contempt for the rule of law by acting contrary to a court injunction.”
The company said it was pursuing legal remedies to challenge what it described as an unlawful termination and to protect its investment.
“McDan Aviation is pursuing all available legal remedies to address this unlawful termination, the breach of our contractual rights, and the contempt of court.”
Graphic