McDan Aviation Accuses Ghana Airports Company of Breach After Licence Termination

On March 12, GACL announced that it had terminated the contract, citing what it described as prolonged defaults by McDan Aviation in meeting its financial obligations. The airport operator said the company began falling behind on payments shortly after the agreement took effect

EBENEZER DE-GAULLE
2 Min Read

McDan Aviation Limited has accused the Ghana Airports Company Limited (GACL) of breaching its contractual obligations and defying a court injunction after the termination of its Fixed Base Operation (FBO) licence at Kotoka International Airport.

The dispute centers on an agreement signed in August 2022 that granted McDan Aviation the right to provide FBO services at Terminal 1. Under the terms, the company was required to pay licence fees, rent, and royalties to GACL.

On March 12, GACL announced that it had terminated the contract, citing what it described as prolonged defaults by McDan Aviation in meeting its financial obligations. The airport operator said the company began falling behind on payments shortly after the agreement took effect.

McDan Aviation rejected the termination, saying the contract required GACL to provide 90 days’ notice before eviction. In a statement issued March 12, the company said the failure to give notice amounted to a “willful violation” of the agreement and undermined the significant investments it had made at the facility.

The company further alleged that GACL ignored a court injunction. According to McDan Aviation, the airport operator was formally served with a motion for interlocutory injunction on March 10 but proceeded the following day to forcibly enter Terminal 1 around 1 a.m. and remove equipment and property belonging to the company.

“This sequence of events reveals a troubling pattern,” McDan Aviation said, accusing GACL of breaching the agreement and showing “contempt for the rule of law.” The company described the development as unlawful and said it would pursue all available legal remedies to protect its interests.

GACL has not publicly responded to McDan Aviation’s latest claims. The dispute adds to ongoing tensions between the two companies over the management of Terminal 1, a facility that has been at the center of Ghana’s efforts to expand private aviation services.

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