GACL ends FBO agreement with McDan Aviation over unpaid debts

The Ghana Airports Company Limited (GACL) has officially terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited, citing repeated defaults on financial obligations.

The agreement, signed in August 2022, allowed McDan Aviation to provide FBO services in designated areas of Terminal 1 at Kotoka International Airport. Under the contract, the company was required to pay licence fees, royalties, and rent to GACL.

According to GACL, McDan Aviation first defaulted on payments in 2022. While some arrears covering 2022–2024 were later cleared, the company continued to accumulate significant debt for 2025, including unpaid rent, royalties, and operating licence fees dating back to 2022.

GACL explained that the agreement mandates a 90-day notice period for termination. Accordingly, on January 10, 2025, GACL formally served notice to McDan Aviation to settle its outstanding debt. This was followed by three additional reminders throughout 2025.

The company proposed a payment plan and submitted three post-dated cheques but requested that GACL refrain from depositing them due to financial constraints.

“Subsequently, on January 16, 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 statement said.

Following the termination, GACL secured Terminal 1 on February 9, 2026, and instructed McDan Aviation to remove its belongings from the premises within seven days, in line with the termination clauses. Despite repeated reminders, the company did not comply.

GACL further noted that, notwithstanding the termination, McDan Aviation made a partial payment on February 27, 2026, amounting to roughly half of the total outstanding debt. The company said it will continue efforts to recover the remaining balance.

The statement also highlighted ongoing legal disputes between GACL and the McDan Group over 16 acres of land, where millions of dollars remain unpaid despite the development and rental of commercial properties.

GACL concluded by emphasizing that the FBO agreement has been fully and finally terminated, and there is no legal basis for McDan Aviation to resume FBO services at Terminal 1.