The Ghana Airports Company Limited (GACL) has terminated its Fixed Base Operation (FBO) licence agreement with McDan Aviation Handling Services Limited after the company allegedly failed to meet key financial obligations tied to its operations at Accra International Airport, formerly Kotoka International Airport.
According to a statement issued by GACL on March 12, the agreement – signed in August 2022 – allowed McDan Aviation to provide FBO services within designated areas at Terminal 1 of the airport. Under the contract, the company was required to pay licence fees, royalties and rent to the state-owned airport operator.
However, GACL says the aviation services firm began defaulting on its payment obligations shortly after the agreement took effect.
The airport operator noted that after several unsuccessful attempts to recover outstanding debts, access to Terminal 1 was restricted in late 2024. McDan Aviation subsequently settled arrears covering the 2022–2024 period, leading to the reopening of the facility.
Despite clearing the earlier debt, GACL said the company again accumulated significant arrears after failing to make payments for rent and royalties throughout 2025, while the operating licence fee due since 2022 also remained unpaid.
In line with the agreement’s termination provisions, GACL served a 90-day notice to the company on January 10, 2025, demanding settlement of the outstanding obligations. The notice was followed by three additional reminders during the year urging the company to fulfil its financial commitments.
During the engagement period, McDan Aviation proposed a payment plan and issued three post-dated cheques. However, the company later asked GACL not to present the cheques for payment, citing financial constraints.
After what it described as repeated defaults and the expiration of the notice period, GACL formally terminated the FBO agreement on January 16, 2026.
Following the termination, the airport operator clarified that any payments made by McDan Aviation would only be treated as settlement of outstanding debts and would not reinstate the contract.
GACL subsequently locked up Terminal 1 on February 9, 2026, and instructed the company to remove all its equipment and belongings from the premises within seven days in accordance with the termination clause. The airport operator said several follow-up notices were issued but did not receive a response from the company.
The statement disclosed that on February 27, 2026 – after the lock-up – McDan Aviation made a payment equivalent to US$265,000 in Ghana cedis, representing roughly half of the total outstanding debt owed to GACL.
GACL says it will continue to pursue the recovery of the remaining debt from the McDan Group.
The airport operator also revealed that it is currently engaged in a separate court dispute with the McDan Group over a 16-acre land parcel, where the company allegedly owes millions of dollars in unpaid obligations despite developing and renting out commercial properties on the land.
GACL reiterated that the FBO agreement has been “duly and finally terminated”, adding that there is no legal basis for re-engagement with McDan Aviation regarding FBO services at Terminal 1.
The company further warned that businesses operating within the airport enclave must honour their contractual financial obligations or face full debt recovery processes under existing agreements.
