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McDan Aviation Accuses GACL of Breaching Contract in License Dispute

McDan Aviation accuses Ghana Airports Company Limited of breaching contractual terms and ignoring a court injunction in a dispute over its Terminal 1 FBO operations at Kotoka International Airport.

Prince Agyapong
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Friday, 13 March 2026
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McDan Aviation Accuses GACL of Breaching Contract in License Dispute

McDan Aviation Limited has accused the Ghana Airports Company Limited (GACL) of breaching contractual obligations and disregarding judicial processes in an escalating dispute over the company’s license to operate a private aviation facility at Kotoka International Airport’s Terminal 1.

In a statement issued by its management, McDan Aviation said recent actions by GACL appear to be an attempt to collapse its operations despite what it describes as a longstanding partnership between the two entities.

The company explained that it invested millions of dollars to develop Ghana’s first private Fixed Base Operation (FBO) terminal, following a landmark license agreement signed in August 2022.

According to the firm, the facility has helped elevate Ghana’s position as a premium aviation hub while supporting private business aviation, tourism, and investment.

McDan Aviation acknowledged that there was a delay in rent payments but stressed that the issue had been resolved and did not constitute a breach of the agreement.

The company said the delay resulted from operational challenges linked to the current global business climate but was quickly corrected.

“McDan Aviation experienced a brief payment delay triggered by operational challenges amid the current global business crisis.

“This temporary delay was fully rectified, with all outstanding amounts settled in good faith.” - McDan Aviation

Management argued that portraying the delay as a fundamental contract violation does not reflect the company’s track record, adding that it had consistently met its financial obligations over the years, including periods when the facility was not operational.

Alleged violation of contractual notice period

Central to the dispute is a clause in the agreement requiring GACL to provide a 90-day eviction notice before taking steps to remove McDan Aviation from the premises.

According to the company, this condition was designed to ensure due process and safeguard the substantial investments made at the terminal.

“By failing to give the required period of notice, GACL has willfully violated this fundamental contractual requirement,” the statement said.

The company further indicated that several attempts to engage GACL to resolve the issue were unsuccessful.

McDan Aviation also accused GACL of ignoring a court injunction related to the dispute.

The company said GACL was formally served with a motion for interlocutory injunction on March 10, 2026, but officials allegedly entered the terminal in the early hours of the following day.

“On March 11, 2026, at approximately 1:00 a.m., GACL officials proceeded to forcibly enter the terminal and remove valuable equipment and property belonging to McDan Aviation.” - McDan Aviation

According to management, the action represented “clear and deliberate defiance of the injunctive process” and raised serious concerns about adherence to the rule of law.

Company vows legal action

McDan Aviation said it is pursuing all available legal remedies to challenge what it describes as the unlawful termination of its license and breach of its contractual rights.

The company emphasised that it remains committed to contributing to Ghana’s aviation sector as a wholly Ghanaian enterprise under the McDan Group.

Management called on stakeholders to support local businesses and uphold legal processes, stating that protecting homegrown initiatives is critical to strengthening Ghana’s competitiveness in the global aviation industry.

READ ALSO: Ghana LPG Storage Capacity to Reach 40,000 Metric Tons – NPA Boss

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