GACL Terminates McDan Aviation Agreement Over Persistent Debt Amid Broader Airport Infrastructure Upgrades

The Ghana Airports Company Limited (GACL) has officially terminated its Fixed Base Operation (FBO) agreement with McDan Aviation Handling Services Limited, citing persistent financial defaults and unpaid contractual obligations. The agreement, which was signed in August 2022 to allow McDan to provide specialized aviation services at Kotoka International Airport, was formally revoked on January 16, 2026. Despite a 90-day termination notice issued as far back as January 2025 and several subsequent reminders, the aviation firm failed to settle its outstanding debts, which include license fees, royalties, and rent. GACL has since secured Terminal 1 and instructed McDan Aviation to vacate the premises, emphasizing that the termination is irrevocable.

The conflict between the two entities intensified following reports that McDan Aviation made a partial payment of approximately $265,000 on February 27, 2026, in an attempt to salvage the partnership. However, GACL maintains that this payment does not provide a legal basis for re-engagement, as significant arrears remain. Beyond the FBO dispute, the McDan Group is also embroiled in a separate legal battle with GACL over unpaid obligations regarding a 16-acre land parcel at the airport. GACL has issued a stern warning to other businesses operating within Ghana's airports, stressing that strict adherence to financial commitments is non-negotiable for maintaining operational licenses.

While GACL manages these contractual disputes, the government is moving forward with significant infrastructure improvements at Kotoka International Airport. Transport Minister Joseph Nikpe Bukari recently inspected the ongoing $15 million face-lift of Terminal 2, which is targeted for completion by July 2026. The redevelopment aims to alleviate pressure on existing facilities by enabling the terminal to handle both domestic and international flights. Plans are also underway for a new airport concourse, with construction expected to begin in April and last approximately 14 months, reflecting Ghana's ambition to solidify its status as a regional aviation hub.

However, the domestic aviation sector continues to face operational hurdles. PassionAir recently issued a public apology for significant disruptions on its Kumasi route and other delays across its network, citing operational challenges. While the airline assured passengers that safety remains a top priority, these service interruptions highlight the ongoing pressures within the industry. As the government invests in physical infrastructure, the focus remains on whether private operators can maintain the financial and operational standards required to support Ghana's expanding aviation landscape.