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McDan, GACL locked in legal dispute over terminal concession at Accra International Airport

A dispute between McDan Aviation Handling Services Limited and Ghana Airports Company Limited has escalated into a legal and operational standoff over the management of a private aviation facility at Accra International Airport (formally Kotoka International Airport) in Accra.

The disagreement centres on a licence agreement signed in August 2022 that granted McDan Aviation the right to operate a Fixed Base Operation (FBO) facility at Terminal 1 of the airport. The facility provides specialised services for private jets and business aviation clients.

Ghana Airports Company Limited (GACL) says it terminated the agreement after the company allegedly failed to meet its financial obligations under the contract. According to GACL, the agreement required McDan Aviation to pay licence fees, rent and royalties in exchange for access to and use of airport infrastructure.

The airport operator states that McDan Aviation began defaulting on payments shortly after the agreement came into effect. GACL says the company later settled arrears covering the period between 2022 and 2024 after access to Terminal 1 was restricted in late 2024.

However, the airport authority maintains that the financial challenges continued, with unpaid rent and royalties for 2025 and an operating licence fee that it says remained outstanding since 2022.

GACL says it issued a 90-day termination notice on January 10, 2025, followed by several reminders requesting the company to settle its debts. After the notice period expired and the payments remained unresolved, the airport authority formally terminated the licence on January 16, 2026.

On February 9, 2026, GACL secured and locked Terminal 1 and asked the company to remove its equipment from the premises within seven days.

The airport operator says McDan Aviation later made a payment of about US$265,000 in Ghana cedis on February 27, 2026. GACL maintains that the amount represents only part of the outstanding debt and would be treated as a partial settlement rather than a reinstatement of the terminated licence.

McDan Aviation has rejected the claims, insisting that it has honoured its financial commitments throughout its operations. The company acknowledged a delay in rent payments but described the delay as temporary and linked to operational challenges associated with broader global economic conditions.

The company also disputes the termination process, stating that the agreement required the airport authority to provide a 90-day notice before eviction actions could be taken. McDan Aviation argues that this requirement was not properly followed.

The dispute intensified after the matter moved to court. McDan Aviation says it served GACL with a motion for an interlocutory injunction on March 10, 2026, seeking to restrain the airport authority from interfering with its operations pending the outcome of the case.

According to the company, officials from GACL entered the terminal facility around 1:00 a.m. on March 11 and removed equipment belonging to the company despite the court process. McDan Aviation describes the action as unlawful and says it will pursue legal remedies.

GACL has maintained that the licence agreement has been fully terminated and that there is no legal basis for further engagement regarding FBO operations at Terminal 1.

The dispute comes as the two parties are also involved in another legal disagreement concerning a 16-acre parcel of land within the airport enclave where commercial properties have reportedly been developed.

The case is expected to proceed through the courts, where issues relating to contractual compliance, outstanding financial obligations and alleged violations of judicial orders will be examined.

 

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