The Ghana Airports Company Limited says it has terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited over persistent non-payment of contractual fees related to the latter’s operations at Kotoka International Airport.

In a statement issued on March 12, GACL said the licence agreement, signed in August 2022, allowed McDan Aviation to provide FBO 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 the airport operator.

However, GACL said McDan Aviation began defaulting on its financial obligations shortly after the agreement took effect in 2022.

According to the airport operator, several attempts were made to recover the outstanding payments, including restricting access to Terminal 1 in late 2024. The company subsequently settled arrears covering the period from 2022 to 2024, allowing the facility to be reopened for its operations.

GACL said the company again accumulated significant debt after clearing the arrears, with no payments received for rent and royalties in 2025. The operating licence fee due since 2022 also remained unpaid.

In line with the contract, GACL says it issued a 90-day termination notice on January 10, 2025, requesting the company to settle the outstanding debt.

The notice was followed by three reminders during 2025 urging the firm to meet its financial obligations.

During this period, McDan Aviation proposed a payment plan and submitted three post-dated cheques. However, the company later asked GACL not to deposit the cheques, citing financial constraints.

A further notice was issued in November 2025 reminding the company of its continuing default.

Following the expiration of the required notice period and several reminders, GACL formally terminated the FBO agreement on January 16, 2026.

The airport operator subsequently informed McDan Aviation that any payments made after the termination would be treated strictly as settlement of outstanding debts and would not reinstate the agreement.

On February 9, 2026, GACL secured and locked up Terminal 1 and requested the company to remove its equipment and belongings from the premises within seven days, in accordance with the termination clauses of the agreement.

The airport operator said several reminders were sent to the company to remove its items from the facility, but the correspondence did not receive any response.

Despite the termination, McDan Aviation later made a payment to GACL on February 27, 2026, equivalent to about US$265,000 in Ghana cedis. GACL said the amount represents roughly half of the outstanding debt owed and will be treated solely as partial settlement.

The airport operator indicated that it will continue efforts to recover the remaining debt from the broader McDan Group.

GACL also noted that the McDan Group is currently engaged in a legal dispute with the airport operator over a 16-acre parcel of land at the airport, where the group has constructed commercial properties that have been rented out while allegedly owing millions of dollars in unpaid obligations.

The company stressed that the agreement with McDan Aviation Handling Services has been fully terminated and that there is no legal basis for further engagement regarding FBO services at Terminal 1.

GACL further advised companies doing business with the airport operator to honour their contractual financial obligations, warning that entities that fail to do so will face the full debt recovery processes stipulated in their agreements.

McDan Aviation is yet to respond publicly to the latest development.