McDan Aviation Handling Services Limited has taken legal action against Ghana Airports Company Limited (GACL), challenging the termination of its Fixed Base Operations (FBO) licence at Terminal 1 of Accra International Airport.

The lawsuit, filed at the Commercial Division of the High Court in Accra, marks the latest escalation in a dispute between the aviation services firm and the state-owned airport operator over financial obligations, contractual compliance and operational rights at the airport.

At the centre of the dispute is a 10-year licence agreement signed on August 1, 2022, granting McDan Aviation the right to operate Fixed Base Operations at Terminal 1 - services typically provided to private and charter aircraft, including ground handling, passenger services and aircraft support.

According to the statement of claim, McDan Aviation Handling Services Limited invested heavily to establish the facility. The company argues that the investment was made with the expectation that the concession would run its full contractual term.

“The Plaintiff [McDan Aviation Handling Services Limited], after the execution of the Licence Agreement, spent over Three Million United States Dollars ($3,000,000.00) to set up the Terminal to provide aviation services under the Licence Agreement.”

The central argument in McDan Aviation’s lawsuit focuses on the process used by GACL to terminate the agreement, which the company claims did not comply with the contractual provisions governing default and termination.

Under the terms of the licence agreement, the company argues that any breach must be followed by a formal notice period allowing time to remedy the default.

“The Licence Agreement provided that the Agreement may be terminated… upon the occurrence of an event of default… which is not remedied within 3 (three) months of notice given in writing.”

However, McDan Aviation contends that the notices it received from GACL did not meet this threshold.

“The first demand notice… gave the Plaintiff three (3) days’ notice… the second… five (5) days… [and] the third… fifteen (15) days.”

The company argues that such timelines fell short of the contractual requirement and therefore cannot justify termination of the licence.

McDan Aviation further maintains that the financial dispute cited by GACL has already been resolved.

“The Plaintiff states that as of now it has paid in full all sums due and owing to the Defendant and is in no way indebted to the Defendant.”

This claim contrasts with GACL’s earlier position that the company had repeatedly defaulted on licence fees, rent and royalties tied to its operations at Terminal 1.

Beyond contesting the termination itself, McDan Aviation is also challenging the airport operator’s decision to shut down its facility.

The company is asking the court to declare that the closure of its operations was unlawful and is seeking damages.

“A declaration that the forcible closure of the Plaintiff’s operations at Terminal 1… is unlawful,” the suit states.

The case raises broader questions about concession management, contractual enforcement and private investment protection within Ghana’s aviation infrastructure.

Fixed Base Operations are a critical component of the business aviation ecosystem, serving private jet operators, charter services and corporate aviation clients.

The dispute therefore carries implications not only for the two parties involved but also for the structure and regulation of private aviation services at Ghana’s main international gateway.

With both sides presenting sharply different accounts of the financial and contractual obligations under the agreement, the outcome of the case could set an important precedent for public–private partnerships and concession agreements in Ghana’s transport sector.

The High Court is expected to determine whether GACL’s termination of the licence complied with the contractual framework governing the agreement - and whether the closure of the facility was legally justified.