Aviation War Erupts: McDan Accuses GACL of Collapsing Indigenous Venture Amidst Contract Termination Fury!

Published 2 days ago5 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Aviation War Erupts: McDan Accuses GACL of Collapsing Indigenous Venture Amidst Contract Termination Fury!

A significant dispute has erupted between McDan Aviation Limited and the Ghana Airports Company Limited (GACL) regarding the termination of McDan Aviation’s Fixed Base Operation (FBO) licence at Terminal 1 of the Accra International Airport. McDan Aviation accuses the state-owned airport operator of breaching contractual terms and defying a court injunction, leading to what it describes as a midnight operation aimed at collapsing its business. GACL, in turn, asserts that the termination stems from persistent non-payment of contractual fees.

McDan Aviation, Ghana’s first indigenous FBO services provider, claims to have invested millions of dollars to develop the country’s first private FBO terminal at Terminal 1, operating under a landmark licence agreement signed in August 2022. This facility, it argues, has significantly elevated Ghana’s standing as a premium aviation hub, attracting private business aviation, tourism, and investment inflows. The company maintains it has consistently met its financial obligations throughout its partnership with GACL.

While acknowledging a brief payment delay, McDan Aviation attributes it to operational challenges amidst a global business crisis, stating that the situation was temporary and fully rectified with all outstanding amounts settled in good faith. It argues that characterising this administrative matter as a fundamental breach of contract misrepresents the reality of its longstanding partnership with GACL and its commitment to financial responsibilities. The company also claims its attempts to engage GACL on the matter were declined.

A central point of contention for McDan Aviation is GACL’s alleged failure to adhere to a key contractual clause. The licence agreement, according to McDan, stipulates a 90-day notice of eviction before any action can be taken to remove them from the premises, a provision intended to ensure due process and protect significant investments. However, McDan contends that the demand notices it received from GACL provided significantly shorter timelines—three, five, and fifteen days—which it argues fall short of the contractual requirement and thus cannot justify termination.

The dispute escalated dramatically when McDan Aviation alleged that GACL was formally served with a court injunction (a motion for interlocutory injunction) on March 10, 2026. Despite this judicial order, McDan claims that in the early hours of March 11, 2026, at approximately 1:00 a.m., GACL officials forcibly entered the terminal and removed valuable equipment and property belonging to McDan Aviation. This action, McDan states, constitutes a clear and deliberate defiance of the injunctive process and demonstrates contempt for the rule of law.

McDan Aviation views this sequence of events as a troubling pattern where GACL has not only breached its contractual obligations by ignoring the 90-day notice requirement but has also shown contempt for judicial processes. The company is currently pursuing all available legal remedies to address what it terms unlawful termination, breach of contractual rights, and contempt of court, including filing a lawsuit at the Commercial Division of the High Court in Accra. It seeks a declaration that the forcible closure of its operations at Terminal 1 is unlawful and is seeking damages, reiterating its commitment to national development and Ghana’s aviation sector.

Conversely, GACL states that it terminated the FBO agreement with McDan Aviation Handling Services Limited due to persistent non-payment of contractual fees related to its operations at Kotoka International Airport. The agreement, signed in August 2022, required McDan Aviation to pay licence fees, royalties, and rent. GACL claims that McDan Aviation began defaulting on its financial obligations shortly after the agreement took effect in 2022.

According to GACL, several attempts were made to recover outstanding payments, including restricting access to Terminal 1 in late 2024, after which McDan settled arrears covering the period from 2022 to 2024. However, GACL asserts that McDan again accumulated significant debt, with no payments for rent and royalties received in 2025, and the operating licence fee due since 2022 remaining unpaid. In response, GACL claims it issued a 90-day termination notice on January 10, 2025, followed by three reminders during 2025, and a further notice in November 2025, urging McDan to meet its financial obligations.

GACL also noted that McDan Aviation proposed a payment plan and submitted three post-dated cheques, but subsequently asked GACL not to deposit them due to financial constraints. Following the expiration of the required notice period and numerous reminders, GACL formally terminated the FBO agreement on January 16, 2026. On February 9, 2026, GACL secured and locked up Terminal 1, requesting McDan Aviation to remove its equipment and belongings within seven days, a request that allegedly did not receive a response.

A payment equivalent to about US$265,000 in Ghana cedis was made by McDan Aviation on February 27, 2026, which GACL confirmed represents roughly half of the outstanding debt owed and would be treated solely as partial settlement, not a reinstatement of the agreement. GACL indicated it would continue efforts to recover the remaining debt from the broader McDan Group and also noted that the McDan Group is involved in a separate legal dispute with the airport operator over a 16-acre parcel of land, where it has constructed commercial properties while allegedly owing millions in unpaid obligations.

The airport operator stressed that the agreement with McDan Aviation Handling Services has been fully terminated, asserting there is no legal basis for further engagement regarding FBO services at Terminal 1. GACL further advised all companies doing business with it to honour their contractual financial obligations, warning that failures to do so would lead to full debt recovery processes as stipulated in their agreements.

This ongoing dispute, with both parties presenting sharply contrasting accounts of financial and contractual compliance, raises broader questions about concession management, contractual enforcement, and the protection of private investment within Ghana’s vital aviation infrastructure. The outcome of the case, currently before the High Court, could set a significant precedent for public-private partnerships and concession agreements across Ghana's transport sector, as the court is set to determine whether GACL’s termination of the licence complied with the contractual framework and if the closure of the facility was legally justified.

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