GACL terminates McDan Aviation FBO deal over unpaid debt

Ghana Airports Company Limited (GACL) has terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited following prolonged disputes over unpaid licence fees, rent, and royalties at Accra 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 arrangement, the company was required to pay licence fees, royalties, and rent to GACL.

However, according to GACL, McDan Aviation began defaulting on its payment obligations shortly after the agreement took effect in 2022.

The airport operator said that after several unsuccessful attempts to recover the outstanding debt, access to Terminal 1 was restricted in late 2024. McDan Aviation subsequently settled arrears covering the period from 2022 to 2024, which led to the reopening of the terminal for its operations.

Despite clearing those arrears, GACL said the company again accumulated significant debt due to continued non-payment. The airport authority 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 agreement, which requires a 90-day notice period before termination, GACL said it formally notified McDan Aviation on January 10, 2025, to settle the outstanding debt. The company said three additional reminders were issued throughout 2025 urging the firm to meet its financial obligations.

During the period, McDan Aviation reportedly proposed a payment plan and issued three post-dated cheques. However, before the cheques were due to be presented, the company asked GACL not to deposit them, citing financial constraints.

GACL said it issued another notice in November 2025 reminding the company of its continuing default.

Following the lapse of the required notice period and several reminders, the airport operator formally terminated the FBO agreement with McDan Aviation on January 16, 2026.

After the termination, GACL wrote to the company clarifying that any payments made afterwards would be treated strictly as settlement of outstanding debts and would not amount to reinstatement of the agreement.

On February 9, 2026, GACL secured and locked up Terminal 1 and subsequently directed McDan Aviation to remove its belongings from the premises within seven days, in accordance with the termination clauses of the contract. The airport authority said several reminders were sent for the removal of the items but no response was received.

Despite the termination notice, McDan Aviation later made a payment to GACL on February 27, 2026, in the Ghana cedi equivalent of US$265,000. According to GACL, the amount represents roughly half of the total outstanding debt owed by the company.

The airport operator said it will continue to pursue the recovery of the remaining debt 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, for which it says the group owes millions of dollars in unpaid obligations despite developing commercial properties on the land and renting them out.

The company emphasised that the FBO agreement with McDan Aviation has been “duly and finally terminated,” adding that there is no legal basis for re-engagement with the firm regarding Fixed Base Operation services at Terminal 1.

GACL further urged organisations doing business with it to honour their financial obligations, warning that entities that fail to do so will face full debt recovery processes as stipulated in their contractual agreements.