The details of a plan for the Reading Regional Airport Authority to purchase the assets of two fixed base operations at the airfield are still being worked out.
The authority approved a proposed agreement of sale for Reading Jet Center and Millennium Aviation at a meeting in April. The proposed purchase price for Reading Jet Center is $9.2 million, and the cost of Millennium would be $4.7 million.
Authority members have said the decision to take over as the sole fuel provider is aimed at improving operations at the airfield and enhancing revenue to the airport.
Authority Solicitor Edwin Stock said Tuesday that since then the authority and the two operators have been engaged in negotiations. He said final terms of the agreements have yet to be settled.
Stock said there is no timeline for finalizing the agreements.
If the sale goes through, the authority would not buy the companies, meaning it would not assume any liabilities they hold. Instead, it would be purchasing each company’s assets.
The sale proposals are the latest step in the authority’s bid to take over as the sole provider of fuel and other services at the airfield, a move it is allowed to make based on Federal Aviation Administration regulations.
Authority members said final approval — and the final sale prices — will be contingent on securing financing and the results of a valuation study they commissioned about the potential sale.
Stock said Tuesday that the authority has received that study, which will be presented at a future authority meeting.
The board hired Houston-based JLL Valuation & Advisory Services for $30,000 to conduct the study in the hope that it would help the board decide if it makes financial sense to exercise its proprietary exclusive right to be the sole FBO at the airfield.
Source: Berkshire mont