McDan Aviation Limited has accused Ghana Airports Company Limited (GACL) of breaching their contractual agreement and disregarding a court injunction after the state-owned airport operator terminated the firm’s Fixed Base Operation (FBO) licence at Accra’s main international airport.

GACL announced Thursday that it had ended its FBO agreement with McDan Aviation Handling Services Limited following a prolonged dispute over unpaid licence fees, rent and royalties at Terminal 1 of Accra International Airport.

The agreement, signed in August 2022, authorized McDan Aviation to provide Fixed Base Operation services within designated areas of Terminal 1. Under the contract, the company was required to pay licence fees, rent and royalties to the airport operator.

According to GACL, McDan Aviation began defaulting on its payment obligations shortly after the agreement took effect in 2022, prompting the decision to terminate the arrangement.
McDan Aviation, however, disputed the move, saying the contract required GACL to provide a 90-day notice before taking steps to remove the company from the premises.

“The contract governing our operations at Terminal 1 clearly stipulates that GACL is required to provide McDan Aviation with a 90-day notice of eviction before taking any action to remove us from the premises,” the company said in a statement issued March 12.

McDan Aviation also alleged that GACL acted despite being served with a court injunction related to the dispute.

The company said GACL received a motion for an interlocutory injunction on March 10. Nonetheless, officials of the airport operator allegedly entered the terminal around 1 a.m. on March 11 and removed equipment and property belonging to McDan Aviation.

McDan Aviation described the actions as both a breach of contract and a disregard for the rule of law, adding that it intends to pursue legal remedies to challenge the termination of its licence and protect its investments.

Source:TheDotNews