McDan Aviation kicked out over unpaid debt at Kotoka Airport
Ghana Airports Company Limited (GACL) has terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited after a prolonged dispute over unpaid licence fees, rent and royalties at Kotoka International Airport in Accra.
The agreement, signed in August 2022, granted McDan Aviation the right to provide Fixed Base Operation services within designated areas at Terminal 1 of the airport. Under the arrangement, the company was required to pay licence fees, rent and royalties to the airport authority.
GACL said McDan Aviation began defaulting on its payment obligations shortly after the agreement came into force in 2022.
According to the airport operator, repeated attempts to recover the outstanding payments were unsuccessful, prompting authorities to restrict access to Terminal 1 in late 2024. McDan Aviation later settled arrears covering the period from 2022 to 2024, which led to the restoration of access to the terminal for its operations.
However, GACL stated that the company subsequently accumulated fresh debt after failing to honour its payment obligations again. The airport authority indicated that throughout 2025 no payments were made for rent and royalties, while the operating licence fee due since 2022 also remained unpaid.
In line with the terms of the agreement, which requires a 90-day notice before termination, GACL said it formally notified McDan Aviation on January 10, 2025 to clear the outstanding debt. Three additional reminders were reportedly issued during the year, urging the company to fulfil its financial commitments.
During this period, McDan Aviation is said to have proposed a payment arrangement and issued three post-dated cheques. However, before the cheques were due to be presented, the company reportedly asked GACL not to deposit them, citing financial difficulties.
GACL said it issued another notice in November 2025 drawing attention to the continued default.
After the expiration of the required notice period and several reminders, the airport authority formally terminated the FBO agreement with McDan Aviation on January 16, 2026.
Following the termination, GACL wrote to the company explaining that any payments made after that date would only be treated as settlement of outstanding debts and would not amount to a reinstatement of the agreement.
On February 9, 2026, the airport authority secured and locked Terminal 1 and instructed McDan Aviation to remove its equipment and other belongings from the premises within seven days in accordance with the termination provisions of the contract. GACL said several reminders were sent to the company to clear its 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 $265,000. The airport authority said the amount represents about half of the total debt owed by the company.
GACL indicated that it will continue efforts to recover the remaining outstanding amount from the McDan Group.
The airport operator also disclosed that the McDan Group is currently engaged in a separate legal dispute with GACL over a 16 acre parcel of land. According to the authority, the group allegedly owes millions of dollars in unpaid obligations relating to the land despite developing commercial properties on it and leasing them out.
GACL emphasised that the FBO agreement with McDan Aviation has been duly and finally terminated and stressed that there is no legal basis for any renewed engagement with the company regarding Fixed Base Operation services at Terminal 1.
The authority further urged companies that do business with it to honour their contractual financial obligations, warning that entities that default will be subjected to full debt recovery measures as provided for under their agreements.