The Penn State board of trustees unanimously voted on Thursday to approve a measure that would transfer “most” of the operational assets of the State College Regional Airport from the university to the Centre County Airport Authority.
The item on the meeting agenda specifies that almost all assets the university utilizes for airport operations will be handed over to the authority, including property, equipment, and current leases. A separate section of the agreement states that the university will offer the authority certain temporary support services connected to the airport’s operation following the completion of the transaction.
Besides the Centre County Airport Authority, the deal must also receive approval from the Federal Aviation Administration, the Transportation Security Administration, and the Pennsylvania Department of Transportation, along with other necessary clearances, according to the resolution. A university press release mentions these procedures might take several months, while airport authority executive director Ralph Stewart noted he cannot guarantee the agreement will be finalized by year-end.
“All I can express is that we’re both eager to get it done as soon as feasible,” Stewart said to the CDT.
Sara Thorndike, Penn State’s senior vice president for finance and business/treasurer and chief financial officer, mentioned during the trustees meeting that the CCAA has the interest and ability to manage and own the entire airport. It already possesses the building and land used for the airport’s commercial activities and parking, she added.
It’s quite rare for a university to have an airport, particularly if the institution doesn’t offer any academic programs related to aviation,” Thorndike stated. “In order to concentrate on our primary academic and research goals, the university feels that the airport would be better managed by a single owner. Now is the right time for CCAA to take over ownership, operating the entire airport in line with CCAA’s objectives and mission.
Information regarding the planned sale
CCAA will not provide a cash payment for acquiring the airport’s operating assets, according to Thorndike, in accordance with Federal Aviation Administration rules and regulations. Rather, as part of the transaction, CCAA will settle Penn State’s debt by repaying an amount “equal to all outstanding obligations from the University’s internal loans related to the airport and all other funds the university has previously provided in connection with the airport,” Thorndike stated.
Twenty full-time and twelve part-time university staff members are employed at the airport. Their jobs will end once the deal is finalized, according to Thorndike.
“Before concluding, CCAA will offer a chance for employees who show interest in remaining at the airport to apply and undergo interviews for roles within CCAA,” she stated.
Similarly, Stewart mentioned that discussions with those employees will begin soon—and Stewart believes they are all necessary.
Everyone over there is valuable and essential,” he added. “We just need to reach an understanding. So we’re going to go over soon and begin discussions, and hopefully, I would say almost everyone will come over—unless everyone. That’s our objective.
Following an executive meeting, the board and the finance and investment committee both unanimously supported the resolution, without any debate.
The airport serves as a crucial resource for our community and the surrounding area. The airport’s success is essential to CCAA and the university,” Thorndike stated. “We are suggesting the approval of the sale of the airport’s operational assets to ensure its continued growth and prosperity.
In the university’s official statement, Chris Groshel, head of the CCAA, mentioned that the organization is grateful for the long-term collaboration with Penn State to support and expand the airport.
“Having a single entity manage and run the entire airport, we think it can operate more effectively, enhance services for the public, and maintain its development going forward,” Groshel stated.
The Centre County Airport Authority convened on Thursday night and unanimously accepted the conditions of a proposed deal. A statement from CCAA indicates the approval allows the authority to collaborate with Penn State to “finalize agreements for transferring ownership.” At this moment, there are no immediate alterations to airport operations, services, or management, according to the release.
Under the existing arrangement, Penn State has ownership of the airport and is in charge of its administration, planning, development, operation, maintenance, and security in accordance with guidelines from the Federal Aviation Administration and Transportation Security Administration, as stated in a prior university press release. The Centre County Airport Authority manages commercial airline activities and parking at the facility.
The airfield was formerly called the University Park Airport; itsname changedto the State College Regional Airport in 2023. At that time, the university stated it was intended to reduce confusion and clearly indicate the location. Penn State established the airport in the 1950s to enhance transportation within the Centre Region, as well as offer faculty, staff, and students a convenient means of traveling to and from the university, according to Penn State’s statement. It has been operating commercially since 1978.
American Airlines and United Airlines provide regular flights to and from Chicago O’Hare, Philadelphia International, and Washington Dulles airports, according to the statement.
Leaders in Centre County respond to the proposal
Local business and tourism officials endorsed the suggested transfer in the statement, including Greg Scott, president and CEO of the Chamber of Business and Industry of Centre County.
The impact of Penn State on the development and achievements of the State College Regional Airport is immeasurable,” Scott stated. “As our community and organizations adapt to current needs, it’s evident that consolidating operations into a single location will provide a cohesive approach when engaging with airlines, the FAA, local officials, and financial supporters. As we and our collaborators—such as the University, the Airport Authority, and The Happy Valley Adventure Bureau—strive to enhance air travel in our area, this unified effort will be crucial.
Fritz Smith, the president and CEO of The Happy Valley Adventure Bureau, stated that the airport plays a crucial role in the community, particularly in supporting tourism and attracting visitors.
“Due to the increase in recreational, business, and entertainment events happening over the next few years, we are excited about the possibilities this integration brings to improve the experience for visitors and travelers, and eventually increase access to Happy Valley from various regions across the country,” Smith stated.
A report by CDT’s Josh Moyer was involved in this coverage.
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