STATEMENT: Airport authority terminates McDan Aviation operations deal
Local News
2 months ago
<p>In August 2022, a licence agreement was executed between Ghana Airports Company Limited (GACL) and McDan Aviation Handling Services Limited for the provision of Fixed Base Operation (FBO) services at designated areas within Terminal 1 of Kotoka International Airport.</p><p>Under the terms of the agreement, McDan Aviation Handling Services Limited was required to make payments to GACL in the form of licence fees, royalties, and rent. However, beginning in 2022, the company defaulted on its payment obligations.</p><p>In late 2024, following several unsuccessful attempts by GACL to recover the outstanding indebtedness, access to Terminal 1 was restricted. McDan Aviation subsequently settled the outstanding arrears covering the period from 2022 to 2024, after which the terminal was reopened for their use.</p><p>Despite clearing these arrears, the company again accumulated significant debt due to continued non-payment. No payments were received for rent and royalties for 2025, and the operating licence fee due since 2022 also remained unpaid.</p><p>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. This notice was followed by three additional reminders throughout 2025 urging the company to fulfil its financial obligations.</p><p>During this period, McDan Aviation proposed a payment plan and submitted three post-dated cheques. However, prior to the scheduled presentation of the cheques, the company requested that GACL refrain from depositing them, citing financial constraints.</p><p>In November 2025, GACL issued a further notice reminding McDan Aviation Handling Services Limited of its continuing default.</p><p>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.</p><p>Following the termination, GACL wrote to McDan Aviation to clarify that any payments made after the termination would be treated strictly as settlement of outstanding debts and would not constitute reinstatement of the terminated agreement.</p><p>On 9 February 2026, GACL secured and locked up Terminal 1. Following the lock-up, GACL formally wrote to McDan Aviation Handling Services Limited requesting that the company remove all its belongings from the premises within seven (7) days of the letter, in accordance with the termination clauses of the agreement duly executed by both parties. Several reminders were sent for the removal of their belongings.</p><p>All correspondence sent to McDan Aviation and acknowledged as received did not elicit any response.</p><p>It is also worth noting that, 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 after the lock-up, in the Ghana cedi equivalent of US$265,000. This amount represents approximately half of the total outstanding debt owed to GACL.</p><p>GACL will continue to pursue the recovery of the remaining outstanding amounts from the McDan Group.</p><p>It should also be noted that the McDan Group is currently in court with GACL over 16 acres of land, of which McDan Group owes millions of dollars unpaid to GACL, yet has built commercial properties on the land and has rented them out.</p><p>GACL wishes to reiterate 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.</p><p>GACL further advises all organisations doing business with the company to honour their financial obligations. Entities that fail to do so will be subject to the full debt recovery processes as stipulated in their contractual agreements with GACL.</p>
source: Ghana Airports Company Limited
