Ghana Airports Company Limited (GACL) has announced the final termination of its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited. GACL emphasised that there is no legal basis for McDan Aviation to continue operating or to be re-engaged for FBO services at Terminal 1 of Kotoka International Airport.
In a statement, GACL explained that the termination was the result of prolonged payment defaults by McDan Aviation under the license agreement that was signed in August 2022. This agreement permitted McDan Aviation to provide Fixed Base Operation services in designated areas within Terminal 1.
“GACL wishes to reiterate that the agreement between GACL and McDan Aviation Handling Services Limited has been duly and finally terminated, and there is no legal basis for re-engagement with McDan Aviation Handling Services Limited regarding Fixed Base Operation services at Terminal 1,” the statement said.
Under the terms of the agreement, McDan Aviation was required to pay licence fees, royalties and rent to GACL. However, the airport operator said the company began defaulting on its financial obligations shortly after the agreement took effect in 2022.
GACL explained that after several attempts to recover the outstanding debts, access to Terminal 1 was restricted in late 2024 when the company failed to settle its arrears. McDan Aviation subsequently paid the outstanding amounts covering the period from 2022 to 2024, leading to the reopening of the terminal for its operations.
Despite clearing those earlier arrears, the airport authority said the company again accumulated substantial debt due to continued non-payment. According to GACL, no payments were made for rent and royalties throughout 2025, while the operating licence fee due since 2022 also remained outstanding.
In line with the provisions of the agreement, which required a 90-day notice period before termination, GACL said it formally served notice on McDan Aviation on January 10, 2025, directing the company to settle its outstanding obligations. Three additional reminders were issued throughout 2025 urging the company to comply.
During that period, McDan Aviation proposed a payment plan and issued three post-dated cheques, but later requested that GACL refrain from depositing them, citing financial constraints.
GACL said a further notice was issued in November 2025 over the continuing default, and the FBO agreement was subsequently terminated on January 16, 2026, after the notice period elapsed without resolution.
Following the termination, the airport operator said it had notified McDan Aviation that any payments made thereafter would be treated strictly as settlement of outstanding debts and would not lead to reinstatement of the agreement.
GACL later secured and locked up Terminal 1 on February 9, 2026, and instructed McDan Aviation to remove its belongings from the premises within seven days, in accordance with the termination clauses of the agreement. However, the company said several reminders issued to facilitate the removal of the items did not receive any response.
The airport authority disclosed that on February 27, 2026, McDan Aviation made a payment in Ghana cedis equivalent to US$265,000 after the facility had already been locked up. According to GACL, the amount represents about half of the total outstanding debt owed by the company.
GACL said it will continue to pursue the recovery of the remaining debt from the McDan Group. The airport operator also noted that the McDan Group is currently involved in a separate court case with GACL over a 16-acre parcel of land on which the company has reportedly developed commercial properties despite owing millions of dollars to the airport authority.
GACL advised organisations doing business with it to honour their financial obligations, warning that entities that fail to do so will face the full debt recovery measures outlined in their contractual agreements.
Source: Leticia Osei
