The Ghana Airports Company Limited (GACL) has formally terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited after the company repeatedly defaulted on its financial obligations.

The agreement, executed in August 2022, allowed McDan Aviation to provide FBO services at designated areas within Terminal 1 of Kotoka International Airport. Under the terms, McDan Aviation was required to make payments to GACL in the form of licence fees, royalties, and rent.

According to GACL, the company first defaulted on payments in 2022, and despite clearing some arrears covering 2022 to 2024, it continued to accumulate significant debt for 2025, including unpaid rent, royalties, and operating licence fees dating back to 2022.

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GACL explained that “in accordance with the agreement, a notice period of ninety (90) days is required in the event of termination. Accordingly, on 10 January 2025, GACL formally served notice to McDan Aviation Handling Services Limited to settle the outstanding debt.”

The notice was followed by three additional reminders during 2025 urging McDan Aviation to fulfil its financial obligations. However, GACL said the company [McDan Aviation] proposed a payment plan and submitted three post-dated cheques, but requested that GACL refrain from depositing them, citing financial constraints.

“Subsequently, on 16 January 2026, after several reminders and the lapse of the required notice period, GACL formally terminated the Fixed Base Operation agreement with McDan Aviation Handling Services Limited,” the GACL statement said.

Following the termination, GACL said it had secured and locked up Terminal 1 on February 9, 2026 and requested that McDan Aviation remove all its belongings from the premises within seven days, in accordance with the termination clauses.

Despite several reminders, GACL noted that the company did not respond.

McDan Aviation defaulted on debt payments since 2020; paid only a fraction of $3.9 million owed - GACL

The statement further said, “notwithstanding the termination and the clear communication that any payments made thereafter would be applied solely toward outstanding debts, McDan Aviation Handling Services Limited made a payment to GACL on 27 February 2026… This amount represents approximately half of the total outstanding debt owed to GACL.”

GACL added that it would continue to pursue the recovery of the remaining outstanding amounts from the McDan Group.

The company also highlighted that the McDan Group is currently in court with GACL over 16 acres of land, on which millions of dollars remain unpaid, despite commercial properties having been constructed and rented out.

GACL concluded by reiterating 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.”

MA