Penn State University is moving to sell State College Regional Airport to the Centre County Airport Authority (CCAA), pending federal approval.

Both the CCAA board and Penn State’s Board of Trustees approved the proposed transaction on Thursday, February 27. The deal still needs the green light from the Federal Aviation Administration and other entities, a process the university says could take several months.

Penn State currently owns the airport along Fox Hill Road in Benner Township and oversees the administration, planning, development, operations, maintenance, and security for the facility. The CCAA owns the commercial terminal and parking facilities and manages commercial airline service.

Under the proposed agreement, the CCAA would take over “substantially all” of the airport’s operating assets, according to Senior Vice President for Finance and Business Sara Thorndike. Because the authority already oversees commercial airline operations, university officials expect to see a smooth transition.

“It is very unusual for a university to own an airport, especially when the university has no academic aviation program,” Thorndike said in a statement. She added that transferring ownership would allow Penn State to focus more directly on its academic and research mission.

Federal regulations require that airport assets remain dedicated to airport use, meaning the CCAA will not pay a traditional purchase price. Instead, the authority will repay Penn State for outstanding internal loans and other funds previously advanced for the airport.

The airport currently employs 20 full-time and 12 part-time Penn State staff members. When the agreement is finalized, those employees will be separated from the university but will have the opportunity to apply and interview for positions with the CCAA. Penn State’s Office of Human Resources will also assist employees who wish to remain with the university in finding other roles.

According to the CCAA, no immediate changes to airport operations, services, or management are planned or expected. Airlines, tenants, and passengers can expect normal operations during the transition period.

CCAA Chair Chris Groshel said consolidating ownership under one entity will create new opportunities for growth and efficiency and ultimately benefit the flying public.

The move comes as Penn State evaluates areas for financial and operational efficiency. University officials said operating the airport, while important to the institution’s success, does not directly support its core educational mission.

Some critics argue the move to sell the airport as a cost-cutting measure is too little, too late, saying other cost-cutting measures were not explored before the university decided to close 12 branch campuses last February.

Penn State opened the airport in 1958, with commercial airline service beginning in 1978. Today, American Airlines and United Airlines provide daily flights to Chicago O’Hare, Philadelphia International, and Washington Dulles.

Local leaders say bringing the airport fully under CCAA control will strengthen coordination with airlines, federal agencies, and funding partners as the region works to expand service. The airport recorded its highest passenger activity since before the COVID-19 pandemic in 2025, the third-highest total in its history.

With major recreational, business, and entertainment events on the horizon, community officials say the consolidation could help expand access to Happy Valley and improve the visitor experience in the years ahead.