The Ghana Airports Company Limited (GACL) has released a detailed report on the substantial $4 million debt owed by McDan Aviation, leading to the shutdown of its private jet terminal at Kotoka International Airport (KIA) on December 30, 2024.

Debt Details

The total debt of $3,995,622.66, along with GHS 13,523.37, stems from various unpaid charges, including terminal fees, rental costs, and land leases. McDan Aviation, despite multiple notices and a final settlement deadline of December 25, has failed to clear these arrears.

A breakdown of the debts includes:

• Terminal 1 Rent and Fees: $640,232.48
• Block Factory, Spintex Road (5.66 acres): $1,160,827.23
• Airport Logistics Building, Spintex Road (10.63 acres): $2,168,266.75
• Courier Enclave (0.59 acres): $8,140
• Cargo Village Offices: $18,156.20 (GHS 13,523.37)

Additionally, McDan is yet to remit 15% of its gross revenue from September 1, 2022, to November 30, 2024, as part of its monthly revenue obligations to GACL.

Disputes and Developments.

McDan Aviation has contested a portion of the debt, claiming that $2 million relates to disputed land acquisitions under litigation.

However, GACL pointed out that McDan has developed the contested properties and continues to generate revenue from commercial buildings constructed on these lands without paying ground rent.

Efforts to resolve the issue have been ongoing since 2020, with McDan defaulting on previously proposed payment plans. A partial payment of GHS 2 million was made on December 24, but the majority of the debt remains unpaid.

GACL’s Position

In a statement, GACL reiterated its commitment to recovering the full amount owed, citing McDan’s continued development and use of the properties as justification for immediate settlement.

“The lands under litigation have been commercially developed by McDan Aviation, and the company benefits from rental income while avoiding payment obligations,” the statement read.

As the dispute continues, the closure of McDan’s jet terminal at KIA serves as a stark reminder of the financial obligations tied to commercial operations within Ghana’s aviation sector.