By Enoch 
The Ghana Airports Company Limited (GACL) has shut down the McDan Aviation Private Jet Terminal at Kotoka International Airport (KIA) due to an outstanding debt of over $3 million. The debt, which includes land leases, rentals, and terminal charges accumulated over time, was not cleared despite being given until Christmas to settle the amount. This marks the second time McDan Aviation has faced such a shutdown, raising concerns about the company’s financial management.
Background and Previous Issues
In February 2022, GACL indefinitely barred McDan Aviation from operating its private jet services at Terminal 1 of KIA due to operational breaches. The company launched its private jet terminal and services on January 28, 2022, but key figures in the aviation sector, including the Minister of Transport, boycotted the event due to concerns about the company’s operations. Despite the previous shutdown and ongoing issues with McDan Aviation’s operations, the company’s failure to settle its debts has led to the latest closure of the private jet terminal.
McDan Aviation’s Response
McDan Aviation has denied owing $3 million to GACL, stating that the reported debt is inaccurate. The company insists it has made significant payments and is actively engaging GACL to resolve the matter. McDan Aviation also mentioned that a third-party litigation over a parcel of land acquired from GACL has delayed payments tied to that transaction. “We have been in constant communication with GACL and have made substantial payments. The figure being reported is not accurate, and we are working diligently to resolve this issue,” said a spokesperson for McDan Aviation.
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Impact on Operations and Future Plans
The closure of the private jet terminal has significant implications for McDan Aviation’s operations. The company plans to resume further payments in January 2025 and is committed to resolving the issue through constructive dialogue. McDan Aviation’s CEO, Kwaku Ampronfi, expressed disappointment over the closure and emphasized the company’s willingness to address its financial obligations. “This closure is a setback, but we are determined to address our obligations and resume operations as soon as possible,” Ampronfi stated.
GACL’s Stance and Union Support
The Managing Director of GACL, Yaw Kwakwa, issued a directive to lock the terminal due to McDan Aviation’s failure to repay the substantial debt. The Public Services Workers Union of GACL fully supports the MD’s decision, considering it necessary. The union has also warned other companies with pending payments to settle their arrears promptly to avoid similar consequences. “This action serves as a reminder that all companies operating within GACL’s facilities must adhere to their financial commitments,” the union stated in a press release.
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Economic and Industry Implications
The closure of McDan Aviation’s private jet terminal also has broader economic and industry implications. The private aviation sector in Ghana has been growing, with increasing demand for luxury travel and corporate jet services. However, the financial instability of operators like McDan Aviation raises concerns about the sustainability and reliability of the sector. Industry experts have called for stricter regulatory oversight and financial audits to ensure that aviation companies meet their obligations and maintain operational standards.
Final Thoughts
The shutdown of the private jet terminal highlights the importance of timely debt repayment and adherence to operational guidelines. As McDan Aviation works to resolve its financial issues, the aviation sector in Ghana will be closely watching the developments. The resolution of this matter will be crucial for the company’s future operations and its relationship with GACL. The incident also underscores the need for robust financial management and compliance within the aviation industry to ensure sustainable growth and reliability.
