AviationBanter - View Single Post - flight school installing an autofuel tank

**Newps** · October 26th 06, 03:28 AM posted to rec.aviation.piloting,rec.aviation.owning

wrote:

: So why don't you buy and install a tank and pump and sell the fuel
: yourself. Iowa still allows competition don't they? I have a friend
: who installed a 12,000 gallon tank at an airport near here and directly
: competes against the full service FBO on the field. Because your field
: takes FAA funds you are guaranteed to get it approved although the
: process can be discouraging.

What exactly are the rules on this? The airport authority here has a rather draconian set of rules WRT "taxes" they
impose on other potential FBO's who might want to sell fuel. I suspect the rules are contrary to what the feds say is
allowable (but then again, so are a lot of other rules they've imposed as well).

You will have to do some research and get yourself educated. That
little airport near here tried to protect the FBO too because he and the
airport board president were buddies. It took about two years to get
the thing approved. They can't make you pay anything that the FBO
doesn't pay. Here the only fee is the flow tax, which is the same for
everybody. I believe it's a nickel a gallon. My buddy got the contract
for the college flight school on the field and as such he buys gas often
and at full tanker loads so he gets the best price. They probably have
$75K invested and the whole deal was paid for in about three years.
They are always priced well below the FBO, about 40-50 cents a gallon.