The Ghana Airports Company Limited (GACL) has officially terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited due to persistent failure to pay contractual fees and accumulated debts at Kotoka International Airport.
In a statement issued on Thursday, March 12, 2026, GACL explained that the licence agreement, signed in August 2022, permitted McDan Aviation to provide FBO services at designated areas within Terminal 1 of the airport.
Under the terms, the company was obligated to remit licence fees, royalties and rent to the airport operator.
However, GACL said McDan Aviation began defaulting on these financial obligations almost immediately after operations commenced in 2022.
The airport authority made multiple efforts to recover the arrears, including temporarily restricting the company’s access to Terminal 1 in late 2024. Following that action, McDan Aviation cleared the outstanding payments covering the period from 2022 to 2024, which allowed the facility to be reopened.
Despite settling the earlier debts, the company again accumulated significant unpaid amounts in 2025, with no payments received for rent, royalties or the operating licence fee due since 2022.
In accordance with the contract, GACL issued a formal 90-day termination notice on January 10, 2025, demanding full settlement of the outstanding debt.
The notice was followed by three separate reminders throughout 2025 urging compliance.
During this period, McDan Aviation proposed a payment plan and submitted three post-dated cheques, but later instructed GACL not to present them for payment, citing financial difficulties.
A further reminder was issued in November 2025 highlighting the continued default.
After the 90-day notice period expired without resolution, GACL formally terminated the FBO agreement on January 16, 2026.
The airport operator subsequently informed McDan Aviation that any future payments would be accepted only as settlement of existing debts and would not revive or reinstate the terminated agreement.
On February 9, 2026, GACL secured and locked Terminal 1, directing the company to remove its equipment and belongings from the premises within seven days, as stipulated in the termination clauses.
Several reminders were sent to McDan Aviation to comply with the removal directive, but the company did not respond.
On February 27, 2026, McDan Aviation made a payment to GACL equivalent to approximately US$265,000 in Ghana cedis. GACL stated that this amount represents roughly half of the total outstanding debt and will be applied strictly as partial settlement.
The airport operator indicated that it will pursue recovery of the remaining balance from the broader McDan Group.
GACL also referenced an ongoing legal dispute between the McDan Group and the airport authority concerning a 16-acre parcel of land at the airport. The group has reportedly constructed and rented out commercial properties on the land while allegedly owing millions of dollars in related obligations.
The company emphasised that the FBO agreement with McDan Aviation Handling Services Limited has been fully and irrevocably terminated, and there is no legal basis for any further engagement regarding FBO services at Terminal 1.
GACL advised all companies conducting business with the airport operator to strictly honour their contractual financial commitments, warning that persistent defaulters will face comprehensive debt recovery measures as provided under their agreements.