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Ghana Airports Company Limited (GACL) has terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited over prolonged disputes regarding unpaid licence fees, rent, and royalties at Kotoka International Airport in Accra.
The agreement, signed in August 2022, granted McDan Aviation the licence to provide Fixed Base Operation services at designated areas within Terminal 1 of the airport. Under the terms of the deal, the company was required to pay licence fees, royalties, and rent to GACL.
According to the airport operator, McDan Aviation began defaulting on its financial obligations shortly after the agreement took effect in 2022.
GACL stated that after several unsuccessful attempts to recover the debt, access to Terminal 1 was restricted in late 2024. McDan Aviation later settled arrears covering the period between 2022 and 2024, which allowed the company to resume operations.
However, the airport authority said the company again accumulated significant debt due to continued non-payment. GACL indicated that no payments were received for rent and royalties throughout 2025, while the operating licence fee due since 2022 also remained outstanding.
In line with the contract’s requirement of a 90-day notice before termination, GACL said it formally notified McDan Aviation on January 10, 2025, to settle the outstanding debt. Three additional reminders were issued throughout the year.
During this period, McDan Aviation reportedly proposed a payment plan and issued three post-dated cheques but later requested that the cheques not be deposited due to financial constraints.
GACL said another notice was issued in November 2025 reminding the company of its continued default.
After the notice period expired and the debts remained unpaid, GACL formally terminated the FBO agreement on January 16, 2026.
Following the termination, the airport authority clarified to the company that any subsequent payments would only be treated as settlement of outstanding debts and would not lead to reinstatement of the agreement.
On February 9, 2026, GACL secured and locked Terminal 1 and directed McDan Aviation to remove its belongings within seven days, in line with the termination clauses of the contract.
Despite the termination, the company later made a payment to GACL on February 27, 2026, in the Ghana cedi equivalent of US$265,000. GACL said the amount represents roughly half of the total outstanding debt.
The airport operator added that it will continue efforts to recover the remaining balance from the McDan Group.
GACL also disclosed that the McDan Group is currently in court with the airport authority over a separate dispute involving 16 acres of land, where it claims the company owes millions of dollars despite developing and renting out commercial properties on the land.
The airport operator emphasised that the FBO agreement has been fully terminated and that there is no legal basis for reinstating McDan Aviation’s operations at Terminal 1.
