Legal Battle Erupts as GACL Terminates McDan Aviation's License at Kotoka Terminal 1

Ghana Airports Company Limited (GACL) has officially terminated the Fixed Base Operation (FBO) license of McDan Aviation Limited at Terminal 1 of the Kotoka International Airport (KIA), sparking a high-stakes legal and commercial dispute. The state-owned airport operator cites persistent non-payment of contractual fees, including license fees, rent, and royalties, as the primary reason for the revocation. GACL maintains that the termination follows a series of overdue notices and a final 90-day termination notice issued in January 2025, after the company allegedly failed to meet financial obligations that date back to the start of the 10-year agreement signed in August 2022.

McDan Aviation has reacted by filing a lawsuit against GACL in the Commercial Division of the High Court of Accra, contesting the termination as unlawful and a breach of contract. The company, which invested over $3 million to establish Ghana’s first private FBO terminal, admits to temporary payment delays due to operational challenges but insists that all outstanding debts have since been fully settled. Furthermore, McDan alleges that GACL violated the agreement by failing to provide the mandatory 90-day eviction notice and by forcibly removing equipment from the terminal despite being served with a court injunction on March 10, 2026.

The conflict centers on conflicting accounts of the termination process and the current status of financial arrears. While GACL asserts that the termination was a necessary measure to protect state assets and recover debts, McDan Aviation characterizes the move as an attempt to collapse a pioneering indigenous venture. The aviation firm argues that GACL’s actions disregard ongoing judicial processes and undermine the investments made to position Ghana as a hub for private aviation in West Africa. The company is now seeking legal remedies to protect its interests and uphold the validity of its long-term concession.

This dispute has broader implications for the climate of private investment and public-private partnerships (PPPs) in Ghana’s transport sector. The outcome of the High Court case will likely establish a significant precedent regarding the enforcement of concession agreements and the protection of private capital in state-regulated industries. As legal proceedings commence, the operations at Terminal 1 remain at the center of a debate over contractual compliance, financial accountability, and the strategic growth of Ghana’s aviation infrastructure.