GACL Rejects McDan Aviation’s Allegations, Defends Termination of FBO Licence at Kotoka Airport

GACL Rejects McDan Aviation’s Allegations, Defends Termination of FBO Licence at Kotoka Airport

The Ghana Airports Company Limited (GACL) has firmly rejected allegations of unfair treatment and contempt of court levelled against it by McDan Aviation Handling Services Limited following the termination of the company’s Fixed Base Operation (FBO) licence at Terminal 1 of Kotoka International Airport.

In a response to the claims, GACL stated that its agreement with McDan Aviation was formally terminated on January 16, 2026, after the company allegedly failed to meet its financial obligations under the contract, including licence fees, rent and royalties.

According to the airport operator, several demands for payment were issued between January 2025 and January 2026, but the company failed to settle the outstanding debts, leading to the decision to terminate the agreement.

“GACL has suffered exploitation and use of State assets by McDan Aviation Handling Services without payments for years, which results in loss of revenue to the state,” the company said.

GACL further indicated that it had warned McDan Aviation that any payments made after the termination would only be treated as a partial settlement of the debt and would not reinstate the contract.

“We specifically informed McDan Aviation on the 27th of January 2026 and the 12th of February 2026 that any payment made post-termination would be treated as settlement of the substantial debt owed GACL and would not revive the terminated contract,” the company said in a statement.

The airport operator also revealed that the payment made by McDan Aviation in February 2026 covered only half of the debt owed, adding that the McDan Group still owes substantial sums.

GACL further alleged that McDan occupies 16 acres of land without a valid right of entry and has not paid the principal amount of about $4 million for the subleased land, despite benefiting from the property.

“Yet McDan Group has built on portions of these lands and has rented them out, profiting at the expense of GACL,” the statement added.

Addressing accusations that it defied a court injunction, GACL explained that it was only formally notified of legal processes on the morning of March 11, 2026, by which time the removal of items from the designated areas at Terminal 1 had already been completed on March 10, 2026.

According to the company, the court documents served on it included a writ and a motion on notice, but did not contain a sealed injunction order restraining it from removing the items.

“The removal of the items occurred one clear day before management became aware of any court processes,” GACL said, adding that the filing primarily sought an order for the reopening of the terminal, rather than an injunction to halt the action.

However, McDan Aviation has disputed the termination, arguing that the contract governing its operations at Terminal 1 required GACL to provide a 90-day notice before eviction.

The company also alleged that despite being served with a motion for an interlocutory injunction, officials of GACL forcibly entered the terminal in the early hours of March 11, 2026, and removed equipment belonging to the company.

McDan Aviation described the move as a breach of contractual obligations and a disregard for ongoing judicial proceedings, stating that it would pursue legal remedies to challenge the termination of its licence.

GACL, however, insists it acted within its contractual rights and remains committed to protecting state assets as the dispute continues in court.

“We remain committed to upholding the rule of law and ensuring the orderly management of national assets. GACL has officially responded to the suit filed in court by McDan Aviation,” the statement concluded.

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