On March 15, 1932 the Merced City Council accepted title to the site of an airport as a gift from the Twenty-Thirty Club and the Crocker-Huffman Company.

In May 1936 the City of Merced assumed responsibility for the airport; constructing buildings, hangars, and other improvements; expanding the site to 123 acres (0.50 km2).

The United States Department of War would ultimately select an area 2 miles (3.2 km) northeast of Atwater, now the site of Castle Airport, for its Air Corps Basic Flying School.

After the United States entered World War II, the Civil Aeronautics Authority assumed responsibility for the final phase of construction of the New Merced Municipal Airport.

That year damage incurred during the Army Air Force's use of the site was repaired, and more improvements were made using federal funds.

[3][4] During the 1950s the airport was used to service United States Armed Forces aircraft, and a land acquisition in February 1955 allowed runway 12/30 to be extended.

Each year the fly-in drew hundreds of pilots from across the western United States to Merced to display their rare and antique aircraft.

[10] Since 2008 the Merced West Coast Antique Fly-In has been canceled due to lack of sponsors and volunteers.

United Airlines had Boeing 737-200s direct to Los Angeles and San Francisco, the airport's only scheduled passenger jets.