Ghana Airports terminates McDan Aviation FBO contract over debt default at Kotoka
A dispute over unpaid fees has led Ghana’s airport operator to terminate a Fixed Base Operation (FBO) agreement at Accra’s main gateway. The case highlights growing pressure on concession compliance and financial discipline across African airport ecosystems.
Contract termination following prolonged payment defaults
Ghana Airports Company Limited (GACL) has formally terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited, citing persistent non-payment of contractual obligations.
The agreement, signed in August 2022, granted McDan Aviation the right to provide FBO services at designated areas within Terminal 1 of Kotoka International Airport.
Under the terms, the operator was required to pay licence fees, royalties, and rent. However, according to GACL, payment defaults began shortly after the contract came into force.
Escalation despite recovery attempts and payment plans
GACL reports that multiple measures were taken to recover outstanding debts, including restricting access to Terminal 1 in late 2024. This led to a temporary settlement of arrears covering the 2022–2024 period and the reopening of the facility.
However, the situation deteriorated again in 2025, with no payments made toward rent and royalties, while licence fees due since 2022 remained outstanding.
In line with contractual provisions, GACL issued a 90-day termination notice in January 2025, followed by several reminders throughout the year.
McDan Aviation proposed a repayment plan and submitted post-dated cheques, but later requested that they not be deposited, citing financial constraints—further complicating resolution efforts.
Formal termination and operational shutdown
After the expiry of the notice period and continued non-compliance, GACL officially terminated the agreement on January 16, 2026.
The airport operator subsequently:
- clarified that any further payments would be treated strictly as debt recovery, not contract reinstatement,
- secured and locked Terminal 1 on February 9, 2026,
- requested the removal of McDan Aviation’s equipment within seven days.
According to GACL, repeated notices to vacate the premises did not receive any response.
Partial repayment and ongoing recovery process
Despite the termination, McDan Aviation made a payment on February 27, 2026, equivalent to approximately $265,000, representing about half of the outstanding debt.
GACL confirmed that the amount will be treated solely as a partial settlement, with efforts ongoing to recover the remaining balance from the broader McDan Group.
Broader legal and commercial tensions
The dispute extends beyond the FBO agreement. GACL indicated that the McDan Group is also involved in a separate legal dispute concerning a 16-acre land parcel at Kotoka International Airport.
According to the airport operator, commercial properties have been developed and leased on the site while significant financial obligations remain unsettled.
