69 AirportImprovement.com May | June 2026 FUELING RDG To improve control over economic development and increase revenue at Reading Regional Airport (RDG), the local airport authority took the unusual step of buying out two longtime fixed base operators (FBOs), then creating its own at the Pennsylvania airfield. After the amicable buy-outs of Reading Jet Center and Millennium Aviation for a combined $13.8 million in January 2024, the Reading Regional Airport Authority established its own FBO called Reading Aviation. The move reflects an operational mindset that could be dubbed FOB: Focus on Business. “Our strategic plan, which was completed in 2022, laid out our vision for the airport, which included running the airport like a business,” says Zackary Tempesco, director of the general aviation airport. “By owning the FBO, we can keep improving the airport by attracting new businesses or working on expanding existing services.” Previously, that wasn’t easy because projects the airport favored weren’t always in the best business interests of the former FBOs. Since development proposals required buy-in from the FBOs, reaching a consensus was difficult, Tempesco explains. “The airport authority would get stuck in the middle without a lot of leverage to complete developments,” he relates. “Development proposals then would stall, which eventually drove away customers.” Running the sole FBO also allows the airport to provide more consistent levels of service and pricing, compared to multiple FBOs charging different prices for various levels of service. The airport once had five FBOs; later, there were just three and then only two after one closed in 2020 during the COVID-19 pandemic. Moreover, the recent acquisitions enabled the 660-acre airport to consolidate all primary FBO services onto one ramp instead of three. This spurred operational efficiencies and reduced costs. The move also produced another important revenue stream from fuel sales, not to mention improved control over the airport’s image and future, Tempesco says. The previous FBO leases signed long ago included monthly rates well below the current market, and both leases had 20 years remaining, he adds. Enhanced Infrastructure The airport authority paid $9.3 million for Reading Jet and $4.5 million for Millennium. Per the purchase agreements, the authority bought out the FBOs’ remaining leases and acquired their physical assets. The authority also paid JLL Valuation & Advisory Services $30,000 to help establish fair market value for the two businesses. The purchase was funded with a $15.8 million bond issue backed by Berks County. The additional $2 million borrowed above the purchase price is primarily funding infrastructure improvements for hangars and fuel facilities, Tempesco notes. For instance, from January 2024 to March 2025, crews turned a primary 14,400-square-foot box hangar on the airport’s east apron into the home of Reading Aviation. Improvements included a fresh floor coating, new sprinkler system, recoated steel and updates to the attached lobby. Elsewhere, a new roof was installed on a 10,000-square-foot box hangar, and minor improvements were made at another 10,000-square- foot box hangar. Each of the three ramps where FBOs used to operate included a fuel farm. The condition of these facilities and their associated seven fuel tanks were evaluated. Pumps were upgraded or replaced as needed, and two underground tanks were removed from the west apron to eliminate the risk of contamination liabilities. They will be replaced with two 12,000-gallon above- ground tanks installed on the east apron by early 2027, giving that ramp four 12,000-gallon tanks. In addition, the interiors and/or exteriors of various fuel tanks will be recoated as needed for enhanced integrity, Tempesco says. The airport also plans to build three new box hangars on the west apron. One will have 20,000 square feet of hangar space and 4,000 square feet of office space; the other two will include 12,000 square feet of hangar space and 3,000 square feet of office space. All are expected to be completed in 2027. Reading Regional Goes Into the Fueling and FBO Business BY KEN WYSOCKY ZACKARY TEMPESCO FACTS&FIGURES Project: Purchasing 2 FBOs, Establishing Airport- Owned FBO Location: Reading Regional Airport in PA Cost: $13.8 million, plus $2 million for subsequent infrastructure upgrades Funding: $15.8 million bond issue backed by Berks County Key Benefits: New revenue streams from fuel sales & related services; control over quality & consistency of services, infrastructure & pricing; enhanced control of development efforts; lease extension from largest tenant & additional ground lease from new tenant Avg. Daily Operations: 125 Analysis Consultant: BBP Solutions Price-Evaluation Consultant: JLL Valuation & Advisory Services Planning/Evaluation Period: Feb. 2023- Aug. 2023 Acquisition Date: Jan. 2024 Subsequent FBO Revenue: $5 million/year Infrastructure Improvements: Consolidating fuel tanks; upgrading or replacing fuel facilities & equipment; upgrading 3 hangars Future Plans: Building 3 box hangars in 2027 (one 20,000 sq. ft.; two 12,000 sq. ft.)
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