Penn State proposes sale of airport to Centre County Airport Authority. What to know
The Penn State trustees unanimously approved a resolution Thursday that would sell “substantially” all operating assets of the State College Regional Airport from the university to the Centre County Airport Authority.
The resolution included in the meeting agenda outlines that nearly all assets the university uses in the operation of the airport will be transferred to the authority, such as property, equipment and existing leases. Another part of the agreement says the university will provide the authority some short-term transitional services related to the operation of the airport after the transaction closes.
In addition to the Centre County Airport Authority, the transaction will need to be approved by the Federal Aviation Administration, the Transportation Security Administration and the Pennsylvania Department of Transportation, as well as other required approvals, the resolution states. A press release from the university states those processes could take at least several months, while airport authority executive director Ralph Stewart said he could not promise the agreement would be executed by the end of the year.
“All I can say is we’re both interested in making it happen as soon as reasonably possible,” Stewart told the CDT.
Sara Thorndike, Penn State’s senior vice president for finance and business/treasurer and chief financial officer, said during the trustees meeting that the CCAA has the interest and capability to operate and own the entire airport. It already owns the building and land for the commercial operations of the airport and parking, she said.
“It is very unusual for a university to own an airport, especially when the university has no academic aviation program,” Thorndike said. “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.”
Details on the proposed sale
CCAA will not pay a cash purchase price for the acquisition of the operating assets of the airport, Thorndike said, per rules and regulations of the Federal Aviation Administration. Instead, as consideration for the transfer, CCAA will repay Penn State 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.
There are 20 full-time and 12 part-time university employees who work at the airport. Their employments will terminate when the transaction closes, Thorndike said.
“Before closing CCAA will provide an opportunity for those employees who express an interest in continued employment at the airport to apply and be interviewed for positions with CCAA,” she said.
Likewise, Stewart said conversations with those employees would start soon — and Stewart said he believes they’re all needed.
“Everybody over there is valuable and needed,” he added. “We just have to come to terms. So we’re gonna go over soon and start talking and, hopefully, I would like to say nearly everybody comes over — if not everybody. That’s our goal.”
After an executive session, the board and finance and investment committee both unanimously approved the resolution, with no discussion.
“The airport is a vital asset to our community and region. The success of the airport is critically important to CCAA and the university,” Thorndike said. “We are recommending approval of the sale of the operating assets of the airport so that the airport can continue to thrive.”
In the university’s press release, Chris Groshel, chair of the CCAA, said the authority is appreciative of the decadeslong partnership with Penn State to maintain and grow the airport.
“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,” Groshel said.
The Centre County Airport Authority met Thursday evening and unanimously approved the terms of a proposed transaction. A release from CCAA states the approval authorizes the authority to work with Penn State to “execute definitive agreements to transfer ownership.” There are no immediate changes to airport operations, services or management at this time, it states.
In the current setup, Penn State owns the airport and is responsible for its administration, planning, development, operation, maintenance and security under Federal Aviation Administration and Transportation Security Administration regulations, a previous press release from the university outlines. The Centre County Airport Authority oversees commercial airline operations and parking at the airport.
The airport was previously named the University Park Airport; its name changed to the State College Regional Airport in 2023. At the time, the university said it was to help alleviate confusion and clarify the location. Penn State opened the airport in the 1950s to advance transportation in the Centre Region, as well as provide faculty, staff and students will a way to conveniently travel to and from the university, Penn State’s release says. It has been in commercial service since 1978.
American Airlines and United Airlines operate out of the airport with daily service to and from Chicago O’Hare, Philadelphia International and Washington Dulles airports, the release states.
Centre County leaders react to proposal
Local business and tourism leaders supported the proposed transfer in the release, including Greg Scott, president and CEO of the Chamber of Business and Industry of Centre County.
“Penn State’s influence on the growth and success of the State College Regional Airport cannot be overstated,” Scott said. “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.”
Fritz Smith, president and CEO of The Happy Valley Adventure Bureau, said the airport is an important piece of infrastructure for the community, especially with tourism and visitor attraction.
“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,” Smith said.
CDT reporter Josh Moyer contributed to this report
This story was originally published February 26, 2026 at 4:02 PM.
