The Ghana Airports Company Limited (GACL) has cancelled its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited, citing the company’s continued failure to meet its financial obligations at Kotoka International Airport.
In a statement issued on March 12, GACL said the agreement, signed in August 2022, permitted McDan Aviation to provide FBO services within designated sections of Terminal 1.
Under the contract, the company was required to pay licence fees, rent and royalties to the airport operator.
However, GACL said the company began defaulting on these payments shortly after the agreement took effect.
The airport operator noted that it made several attempts to recover the outstanding funds, including restricting the company’s access to Terminal 1 in late 2024. McDan Aviation later cleared arrears covering the 2022 to 2024 period, which allowed the facility to reopen for its operations.
Despite settling the earlier debt, GACL said the company again accumulated new arrears, with rent and royalty payments for 2025 remaining unpaid. The licence fee due since 2022 also remained outstanding.
“In line with the contract, GACL issued a 90-day termination notice on January 10, 2025, requesting the company to settle the outstanding debt,” the statement said.
The airport operator said three reminders were subsequently issued during 2025, while McDan Aviation proposed a payment plan and submitted post-dated cheques. The company later asked GACL not to deposit the cheques due to financial constraints.
GACL said the agreement was formally terminated on January 16, 2026, after the notice period expired without payment.
The company added that any payments made after the termination would be treated solely as settlement of outstanding debt and would not restore the contract.
On February 9, 2026, GACL locked up Terminal 1 and asked the firm to remove its equipment within seven days, but the request received no response.
The airport operator said a payment equivalent to about $265,000 was later made on February 27, 2026, representing roughly half of the total debt and treated only as partial settlement.
GACL said it will continue efforts to recover the remaining amount while stressing that the agreement has been fully terminated.
