UNIVERSITY PARK, Pa. — The Penn State Board of Trustees today unanimously approved the material terms of a proposed transaction to transfer the operating assets of the State College Regional Airport to the Centre County Airport Authority (CCAA), a Centre County municipal authority that is currently the owner and operator of the State College Regional Airport terminal. The proposed sale is subject to approval of the CCAA board and regulatory approval by the Federal Aviation Administration (FAA), a process that could extend at least several months.
The board’s decision also authorizes the University to negotiate and execute definitive agreements to complete the transaction with CCAA.
“Penn State opened the State College Regional Airport in the 1950s to advance transportation in the Centre Region and provide a means for faculty, staff and students to conveniently travel to and from University Park,” said Sara Thorndike, senior vice president for Finance and Business/treasurer and chief financial officer. “Since that time, the airport has expanded significantly and grown into an important asset for the community well beyond the University. We are pleased that we have reached a preliminary plan with CCAA to allow the University to exit its role as owner and operator of the airport while maintaining the valuable service it provides to Penn State and all of Central Pennsylvania.”
CCAA, which includes representation from the Centre County government, Bellefonte and State College boroughs and Benner and Patton townships, already owns and operates the airport terminal and oversees commercial airline operations and parking, allowing for a smooth transition that will not disrupt commercial or private air travel. At present, Penn State owns the airport and is responsible for its administration, planning, development, operation, maintenance and security under FAA and Transportation Security Administration regulations. FAA regulations require that all earnings from airport operations are required to remain with the airport.
“Our fundamental mission as an institution of higher education is to provide a world-class education to our students,” said Thorndike. “Operation of the airport, while vital to the continued success of the University, does not directly support that core educational mission.”
Penn State has been exploring areas for potential efficiencies in its finances and operations to strategically and prudently manage its resources in ways that best serve its students and further its mission of educational excellence, research, outreach, and service.
“We recognize and appreciate our decadeslong partnership with Penn State in maintaining and growing the airport for the benefit of the traveling public,” said Chris Groshel, chair of the CCAA. “With one entity owning and operating the entire airport, we believe it can function more efficiently, expand service to the public and continue its growth well into the future.”
The preliminary terms for the acquisition require CCAA to interview all current University employees working at the State College Regional Airport. CCAA has the right, but not the obligation, to hire the employees to continue their employment at the airport. Human Resources will be available to assist University employees working at the airport who wish to continue their careers at Penn State, helping them identify available positions to which they may apply based on their professional experience.
University leaders are meeting directly with Penn State employees working at the airport to discuss next steps and answer their questions.
“Penn State’s influence on the growth and success of the State College Regional Airport cannot be overstated,” said Greg Scott, president and CEO of the Chamber of Business & Industry of Centre County. “Now, as our community and institutions evolve to meet the moment, it’s clear that bringing operations under one roof will ensure a unified voice in conversations with airlines, the FAA, elected officials, and funding agencies as we and our partners — including the University, the Airport Authority, and The Happy Valley Adventure Bureau — work to strengthen air service in our region.”
The preliminary terms of the proposed transaction also call for the University and CCAA to negotiate in good faith the inclusion in the definitive agreement of provisions to provide the University an ongoing role in the operations and governance of the airport following the closing. This could take the form of the appointment or designation of one or more representatives of the University serving as non-voting or ex officio members of the governing board of CCAA and/or participation by the University’s representatives on any advisory, outreach, or community engagement committees established by CCAA.
“Our regional airport is an important piece of infrastructure for our community, especially related to tourism and visitor attraction,” said Fritz Smith, president and CEO of The Happy Valley Adventure Bureau. “With added recreational, business, and entertainment events taking place over the next several years, we look forward to opportunities this consolidation offers to enhance visitor and traveler experience and ultimately expanded access to Happy Valley from more parts of the country.”
The airport originally opened in 1958 and began commercial service in 1978. Today, American Airlines and United Airlines operate out of State College Regional Airport with daily service to and from Chicago O’Hare, Philadelphia International and Washington Dulles airports.