A high-stakes commercial dispute has erupted between the Ghana Airports Company Limited (GACL) and McDan Aviation Limited, following GACL’s termination of the company’s licence to operate at Terminal 1 of the Kotoka International Airport.
GACL announced on March 12 that it had “duly and finally terminated” the agreement with McDan Aviation Handling Services Limited, signed in August 2022. The airport authority stated that there is no legal basis for the company to continue operations or to be re-engaged for Fixed Base Operation (FBO) services at the terminal.
According to a statement from GACL, the licence permitted McDan Aviation to provide private aviation services at designated sections of Terminal 1, with the condition that it pays licence fees, royalties, and rent to the airport operator. However, GACL alleges that the company began defaulting on these payment obligations shortly after the agreement commenced in 2022.
GACL detailed that after multiple attempts to recover outstanding payments, access to the terminal was restricted in late 2024. The company subsequently cleared the arrears covering the period between 2022 and 2024, leading to the temporary reopening of the facility.
The relief was short-lived, as GACL claims McDan Aviation accumulated fresh debt throughout 2025 by failing to make payments for rent and royalties. The operating licence fee from 2022 also reportedly remained unpaid.
In accordance with the contract, GACL issued a 90-day termination notice on January 10, 2025, demanding settlement of the outstanding obligations. This notice was followed by three reminders during the year. GACL stated that while McDan Aviation proposed a payment plan and submitted three post-dated cheques, they later requested that the cheques not be deposited, citing financial difficulties.
The airport authority said the persistent default led to the formal termination of the agreement on January 16, 2026, after the notice period expired without a resolution. Following the termination, GACL secured and locked Terminal 1 on February 9, 2026, instructing the company to remove its equipment and belongings within seven days.
Despite the lockout, GACL noted that McDan Aviation made a payment in Ghana cedis equivalent to about US$265,000 on February 27. GACL described this amount as roughly half of the outstanding debt and stated it would be treated only as a partial settlement. The authority indicated it would continue efforts to recover the remaining debt from the broader McDan Group, which is also involved in a separate legal dispute with GACL over a 16-acre parcel of airport land.
McDan’s Response: Accuses GACL of Breach of Contract
In a swift and firm response issued the same day, McDan Aviation rejected GACL’s account of events and accused the airport operator of breaching contractual provisions and disregarding judicial processes.
The company, describing itself as Ghana’s first indigenous provider of FBO services, stated it had invested millions of dollars to develop a private 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 company’s statement read.
While acknowledging a delay in some payments, McDan Aviation insisted it was 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 argues that the termination process violated the terms of the agreement. “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 them from the premises.”
In a dramatic escalation, McDan Aviation also alleged that despite serving an injunction application on the airport operator, GACL officials forcibly entered the facility in the early hours of March 11 and removed the company’s equipment.
“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 confirmed it is pursuing all available legal remedies to challenge what it describes as an unlawful termination and to protect its multimillion-dollar investment.
