The Centre County Airport Authority would acquire full ownership of State College Regional Airport under a proposed sale approved by the authority’s board and the Penn State Board of Trustees on Thursday.
The transaction still requires the approval of the Federal Aviation Administration and other entities, a process that could take several months, according to the university.
Penn State currently owns the airport on Fox Hill Road in Benner Township and is responsible for its administration, planning, development, operation, maintenance and security. The CCAA — which includes representatives from Centre County government, Bellefonte and State College boroughs and Benner — owns and operates the commercial airline terminal and oversees commercial airline service and parking.
The sale would transfer “substantially all the operating assets” to the CCAA, Senior Vice President for Finance and Business Sara Thorndike said. CCAA’s longstanding role overseeing commercial airline service will make for a smooth transition, she added.
“CCAA already owns the building and land for the commercial operations of the airport and parking, and has the interest and capability to operate and own the entire airport,” Thorndike said. “It is very unusual for a university to own an airport, especially when the university has no academic aviation program. To focus on our core academic and research missions, the university believes the airport can be more successful with one owner, and now is the time for CCAA to be that owner to operate the entire airport, consistent with CCAA’s purpose and mission.”
FAA regulations require that all assets remain with the airport, and CCAA will not pay a cash purchase price for transaction. It will, however, “repay to the university an amount equal to all outstanding indebtedness arising from the university’s internal loans relating to the airport and all other funds previously advanced by the university in connection with the airport,” Thorndike said.
The 20 full-time and 12 part-time university employees who work at the airport will have their Penn State employment terminated when the agreement is finalized, but prior to that they will have the opportunity to apply and interview for CCAA positions. Penn State’s Office of Human Resources will assist university employees at the airport who wish to continue working for Penn State with identifying suitable available positions.
According to CCAA, no immediate changes to airport operations, services or management are currently planned, and tenants, airlines and passengers can expect normal operations to continue.
“Together with Penn State, we remain committed to the safe, efficient, and reliable operation of the State College Regional Airport during this transition,” Chris Groshel, chair of the CCAA, said. “This will ultimately be a great outcome for the flying public, as we believe that with one owner, the airport will have more opportunities for growth and efficiency.”
The proposed sale comes as 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,” according to a university statement.
“Our fundamental mission as an institution of higher education is to provide a world-class education to our students,” Thorndike said. “Operation of the airport, while vital to the continued success of the University, does not directly support that core educational mission.”
Penn State opened the airport in 1958 and it began commercial airline service in 1978. Today, American Airlines and United Airlines operate daily service to and from Chicago O’Hare, Philadelphia International and Washington Dulles airports.
Local business leaders have been actively working with government and university officials to expand the airport’s commercial service offerings.
“Penn State’s influence on the growth and success of the State College Regional Airport cannot be overstated,” Greg Scott, president and CEO of the Chamber of Business & Industry of Centre County, said in a statement. “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.”
“Our regional airport is an important piece of infrastructure for our community, especially related to tourism and visitor attraction,” Fritz Smith, president and CEO of The Happy Valley Adventure Bureau, said in a statement. “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.”
