The alliance was unveiled at the State College Air Service Summit, part of CBICC’s Voice of Business series, where speakers gave insights into the challenges facing regional air service and potential strategies to attract and retain new air carriers.

In addition to representatives from CBICC, CCAA, HVAB and PSU, guest speakers included Secretary of Transportation for the Commonwealth of Pennsylvania Mike Carroll and Tim Sieber, managing director of Volaire Aviation Consulting.

“We know that strong air service means a stronger economy,” said Gregg Scott, president and CEO of CBICC. “We also know that when business, government, the university and community come together, we can make big things happen.”

Scott said the decision to form the alliance was driven by community feedback highlighting the need to improve local air service.

HUNTER SMITH/THE EXPRESS Pennsylvania Secretary of Transportation Mike Carroll was among the speakers at the event.

“Strong air service isn’t just a convenience, it’s a catalyst for growth,” said Scott. “We’re ready to show the airlines that we’re serious and that Centre County is a place they want to select to expand their services.”

Goals of the alliance include unifying advocacy efforts for regional air service, providing coordinated outreach to demonstrate its need, pursuing marketing strategies that attract and retain carriers and securing public, private and grant-based funding opportunities to support incentives for new air service.

“The mission is simple: to strengthen connectivity, attract new carriers and make air service a driver of economic growth and quality of life (in Centre County),” Scott said.

Within the partnership, each organization will play a complementary role. The CCAA will engage with carriers, manage incentive programs and coordinate with federal and state aviation entities. CBICC will lead business community engagement, identify corporate travel demand and coordinate private-sector support as fiscal agent for the Fly State College Fund. The HVAB will develop marketing and tourism strategies to support growth and attract airline interest, while Penn State will provide institutional insight and travel demand data.

“Through the alliance, we aim to strengthen State College Regional Airport’s position to attract new routes, retain existing ones and expand travel options for businesses and residents,” said Ralph Stewart, executive director of CCAA. “We’re grateful to have community partners who share our commitment to strengthening regional connectivity and who are ready to lead initiatives that incentivise airlines to choose our airport.”

HUNTER SMITH/THE EXPRESS State College Regional Airport is pictured.

Currently, SCE is served by United and American Airlines, who offer nonstop flights to Philadelphia, Chicago and Washington Dulles.

According to Tim Seiber of Volaire Aviation Consulting, potential targets for service include ultra-low-cost carriers offering flights to popular leisure destinations, like Orlando and south Florida. Airlines such as Breeze and Avelo are key prospects, particularly if they receive support through marketing initiatives and competitive airport costs.

Seiber said there is also potential for southbound service, most likely to Charlotte, N.C., thanks to demonstrated interest from customers using Altoona-Blair County Airport. In addition, the Alliance hopes to recruit Delta back to State College, though Seiber noted that the airline has set a very high bar for returning service.

To support these efforts, the alliance also unveiled the Fly State College Fund. The fund is designed to help the community remain competitive in securing air service by providing revenue guarantees, marketing support and financial incentives that go beyond what the airport alone can offer prospective carriers.

“This fund will give us local capital to respond quickly when opportunities arise and demonstrate to airlines our community is investing in and committed to expanding air service,” said Scott.

He shared that the fund has already secured $130,000 in commitments from community partners toward its initial $500,000 goal.

Noting that the fund is actively accepting donations, Scott added, “Every contribution, large or small, helps strengthen our case to airlines seeking their next growth market.”

The alliance also launched a “Fly Local” campaign to incentivize local travelers to fly from SCE.

“When residents and businesses choose to fly from State College, we strengthen demand, reduce leakage to other airports and send a clear message to airlines that our market is worth investing in,” said CCAA’s Ralph Stewart. “Every ticket purchased at State College Regional Airport shows passenger demand and helps improve our long-term air service.”

As Centre County’s tourism and destination marketing agency, HVAB will spearhead promotional campaigns and collect visitor data to identify markets with the greatest potential for new service.

These efforts come amid headwinds in the airline industry, particularly economic uncertainty that is dampening travel demand.

Large-scale federal government layoffs and spending cuts, broad concerns about the global trade situation and declining international visitor counts, which are all largely the result of policies under President Trump that reduced the federal bureaucracy, raised tariffs and imposed stricter immigration and customs enforcement.

According to Seiber, premium leisure travel and international travel — including domestic trips by international visitors, which account for 10 to 20 percent of domestic traffic — have all been negatively impacted.

Additionally, he said airline profits are down across the board, and rising costs are increasing the minimum threshold needed to sustain air service. These challenges are further compounded by reduced competition among airlines.

With competition among airports for air service intensifying, airports must actively attract offers from carriers.

Sieber said airlines are looking for markets that fit their network and fleet strategies, generate profitable levels of traffic, do not dilute existing services at nearby airports and offer low airport costs alongside incentives like fee waivers, marketing support and minimum revenue guarantees.

SCE has several competitive advantages in this regard, including room to grow, low parking costs and plans to install amenities including jet bridges.

Transportation Secretary Mike Carroll highlighted ways the state could support regional airports in building on these advantages.

He explained that Pennsylvania has about 120 airports statewide but only around $15 million in annual funding to invest in air service, but that a legislative initiative to increase the state’s jet fuel tax could generate additional revenue for regional air service.

“We have a really low jet fuel tax in Pennsylvania that could be raised to generate funds for initiatives like those being considered here in Centre County,” Carroll said, adding that he welcomed the opportunity to explore whether there is support for small airports like SCE.

Ultimately, he promised, PennDOT “will be a partner with you as you advance your aviation vision,” but did not expand on what that partnership may look like.