71 AirportImprovement.com May | June 2026 FUELING RDG “This is very unique because there aren’t many situations where an airport can exercise that level of control,” Heath comments. “Operating its own FBO allows the airport to implement its priorities for economic development and offer the best services it can provide. “If a new business opportunity arises, the airport no longer has to rely on a third-party FBO to agree to it.” Clearing All Hurdles The due diligence process also included consulting with officials at Lancaster Airport (LNS), located about 30 miles southwest of RDG. “A big part of our analysis came from how Lancaster operates,” Heath says. “Seeing that success reinforced the idea that airport ownership of an FBO was a proven model worthy of serious evaluation.” Ultimately, about 13 of the 20 people employed by the two former FBOs ended up working at Reading Aviation. The airport also hired nine more employees to ensure adequate staffing at the new FBO, which is open three hours a day longer than the two prior facilities and primarily focuses on fueling, hangar rentals and ground services. “It’s always challenging to merge businesses, but we worked through a lot of concerns the employees had,” Tempesco says. “We kept presenting them with the strategic plan and explaining what we need from them to make the FBO successful.” Some customers also were apprehensive about the change, but Tempesco says the airport alleviated their concerns by following through on its stated goals, particularly regarding services as well as consistent and transparent pricing for those services. Positive Results Tempesco reports that the airport’s move to operate its own FBO has been a success. After about two years, Reading Aviation is generating around $5 million of annual revenue, compared to about $470,000 per year from the previous two FBOs combined, primarily from lease payments. Plus, there’s been enough profit to pay the debt service—about $1.2 million a year—while still continuing to grow airport operations, as demonstrated by the plans to build more hangars. Furthermore, the airport’s biggest tenant—Quest Diagnostics, a medical testing business that operates a fleet of 24 aircraft to transport medical specimens—signed a 15-year extension of its Innovative engineering for a better planet. With planning, engineering, construction support, consulting services and beyond, we are there for you every step of the way — now and in the future. Advanced Air Mobility Remote Digital Towers Control Room Camera Array LEARN MORE
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