Could State College airport sale lead to more flights? Officials think so
AI-generated summary reviewed by our newsroom.
- Penn State agrees to transfer airport assets to Centre County Airport Authority.
- Unified ownership enables a streamlined budget to help lower carrier costs.
- Officials aim for a low-cost carrier to Fla., legacy carrier flights and Delta's return.
State College Regional Airport has tried for years to attract additional airlines while adding new flights and destinations. And, while it’s ramped up those efforts over the last year, officials said the newly proposed sale of the airport should make those goals significantly more achievable.
“That’s probably the best, strongest point — this will help us grow air service for our region and, if we do that, we’re happy,” Centre County Airport Authority interim executive director Ralph Stewart told the CDT after Thursday’s authority meeting. “It’s a great public service. It’s needed. It’s a great economic development component to businesses coming in, businesses staying and businesses growing.”
The airport is co-owned by both Penn State and the airport authority, with the authority generally handling revenue while the university addresses expenses. It’s an unusual setup and, according to one authority board member, the Federal Aviation Administration informed them State College was the only non-military airport in the U.S. to be operated by multiple owners.
Under the proposed sale, which both university trustees and authority board members separately approved Thursday, Penn State would transfer its airport operating assets — such as property, equipment and existing leases — to the authority, which would then have full control over the airport.
The transfer must clear several regulatory hurdles, such as the FAA, before it becomes official. But Stewart said some changes could potentially be implemented in the meantime.
At the heart of the proposed sale — the cost of which essentially reflects airport-related funds that Penn State fronted over the years — is the authority’s commitment to using a more efficient budget structure to reduce costs for carriers, an incentive officials hope attracts more flight routes.
That wasn’t lost on the business community, as several leaders attended a Friday morning press conference at the airport.
“We’re all very enthused about this development,” said Fritz Smith, president and CEO of tourism bureau Happy Valley Adventure Bureau. “For further air service, it means they’ll have the ability to lower the cost because of a unified budget structure. That’s one of the platforms that you need to attract the airlines here.”
Again, to be clear, that doesn’t mean residents seeking flights to Chicago, Philadelphia or Washington, D.C., should notice cheaper ticket prices. Instead, as has been emphasized since the summer, airline carriers don’t boast a high-profit business — so margins, and gate fees, are incredibly important when carriers decide when and where to expand. Their costs should decrease.
Officials acknowledged State College Regional Airport’s gate fees, or what an airline pays an airport to use a gate, have historically proved a bit costlier than some surrounding airports. That’s partly why the Fly State College Fund was established in the fall; the fund seeks to raise $500,000 to attract carriers — by using it to lower gate fees, provide marketing support and issue revenue guarantees.
Chris Groshel, the airport authority’s longest-serving member, said the authority still has the same three priorities: Bring in a low-cost carrier to Florida, bring in other flights from legacy carriers (preferably to Charlotte, N.C.) and convince Delta Airlines to return.
Groshel said he couldn’t make any promises about those coming to fruition — in part because he can’t foresee variables like recessions and pandemics — but he said the airport’s sale would undoubtedly help with all three goals.
“It will, it will,” Groshel told the CDT. “I can’t say it’s going to be immediate. It develops, and it evolves.”
Penn State opened the airport in the 1950s to advance transportation in the Centre Region, as well as provide faculty, staff and students a way to conveniently travel to and from the university. It has been in commercial service since 1978, and it was known as University Park Airport until 2023 — when its name was changed to alleviate confusion about the location.
No layoffs are expected, and customers will likely not notice any changes — outside of growth — as many are behind-the-scenes.
“Why would we pursue unified ownership?” Stewart asked during Friday’s press conference. “A single ownership structure strengthens clarity, accountability and long-term planning. It allows for more streamlined decision-making. It enhances financial flexibility. It strengthens our positioning for federal and state grants and, most importantly, it positions the airport for long-term growth.”
The airport authority’s next regular meeting is set for 7 p.m. March 26.
CDT reporter Halie Kines contributed to this report
