AERT 4350 Mid Multi Choice Flashcards by Megan Schittenhelm

Which one of these types of airport sponsorships has the largest freedom in financial decision making?
Airport Authority
Port Authority
Municipality
State Ownership

Port Authority

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Which of the following type of airports would not qualify as a private owned airport here in the US?
Private Lake port
Private airstrip
County Airport
Corporate helipad

Country Airport

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____________ is the type of airport ownership (or sponsorship) in which the airport is run as department of either city or county
Port Authority
Airport Authority
State ownership
Municipal

Municipality

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Some of the duties of an Airport Executives include the following except for:
Setting the goals of the airport and identifying the right strategies
Negotiating leases with new tenants
Interacting with the local community

setting the goals of the airport and identifying the right strategies

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Which among these would an ideal metric to measure the activity level at the Washington Dulles International airport?
Passenger Traffic
Aircraft based at the airport
Aircraft Operations

passenger traffic

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__________ is the type of ownership (or sponsorship) in which the municipality creates a legal agency to make the decision on the direction and overall management of the airport
Airport Authority
State Ownership
Municipality
Port Authority

airport authority

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Which of the following is not a disadvantage for states to own/control their own airport?
Proximity effects of the airports to the state capital
Revenue generation source for the state
Competition of resources with other state departments/units
Lack of good understanding of the local area where an airport is located at

Revenue generation source for the state

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Which of these is not considered as one of the four primary areas of management at an airport (mostly medium to large hubs)?
Finance and Administration
Marketing
Auditor
Operations, Maintenance, & Security

auditor

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Title 49 CFR Part ________ was created after 9/11 attack to address the security aspects at airports

1542
1562
1520
15

1542

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Two of the FAA Grant Assurances that bind the airport sponsors and executives to ensure they designate the use of the airport land as either aeronautical or non-aeronautical are:
Grant Assurances 4 and 21
Grant Assurances 4 and 5
Grant Assurances 20 and 21
Grant Assurances 5 and 19

GA 4 and 5

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Which of these is not one of the reasons for having executive sessions during the airport decision making processes?
Concealing the information from the rest of the public
Protecting the innocent people such as the employees
Protecting proprietary information that may be part of the business negotiations
Discussing sensitive security information

concealing the information from the rest of the public

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An airport manager has found out that the airport needs to sign a $1.2 million contract with a local engineering firm so they can start renovating the existing runway. However, this amount is outside what she has been allocated by the board to spend on any fiscal year. In order for her to get the contract moving, she will need to file a _________ with the airport board as soon as possible
Regular Agenda
Resolution
Public Discussion
Consent Agenda

resolution

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_____________ is the one who creates the strategic vision and plan of the airport
Federal Aviation Administration
Sponsor
Airport Manager
Executive

sponsor

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Which of these would be considered as a reasonable compatible land use investment near the airport?
A cargo depot for UPS
A church
A school
A hospital

a cargo depot for UPS

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The three main areas which are considered important for an airport executive to both know and be aware of their authority levels in are the following except for:
Personnel Handling
Agreements
Flight Operations
Purchasing

flight operations

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Which of these FAA Grant Assurances requires the airports to take necessary actions to protect the airspace around the airport?
Grant Assurance #5
Grant Assurance #21
Grant Assurance #7
Grant Assurance #20

GA #20

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Any activity that involves, makes possible, or is required for the operation of aircraft or that contributes to or is required to the safety of such operations is regarded as______________
Non-aeronautical activity
Aeronautical Activity
Minimum Standard
In-Compatible Land Use Activity

aeronautical activity

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________________ involves extrapolating existing data into the future to see how the variables will behave; in most cases, it works better if we have enough historical data
Time series modeling
Econometric modeling
Market share
Simulation modeling

time series modeling

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Which of these is not one of the ways in which airports collect revenue from Rental Cars companies operating at those airports?
Customer Facility Charges
Base rents for the use of airport facilities
Set percentage of car rentals’ revenue
Fuel flowage fee

fuel flowage fee

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Based on the statistics, _____________ is considered to be the most significant source of non-airline revenue for airports
Concession revenue
Airport parking revenue
Rental Car revenue
Restaurant revenue

airport parking revenue

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At times the airport operators at small airports may substitute the _________ fee for ______ fee to attract more aircraft users at their airports
Rental___________ Landing
Landing __________ Fuel
Fuel ______________ Landing
Lease____________Fuel

fuel and landing

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Among the following listed activities, which one of them would not be considered to be an aeronautical activity?
Model rocket operations
Air taxi operations
Scheduled air carrier operations
General aviation operations

model rocket operations

incremental budgeting

incremental

program budgeting

expenditures

line item budgeting

every departure

zero based budgeting

we start from

From the list of revenues below, check all the boxes for those items that are non-operating revenue type Fuel flowage fees Restaurants Property Taxes Rental Cars Concessions Interest Income Customer Facility Charges Passenger Facility Charges

property taxes interest income CFC PFC

_______________ is a form of advertisement in which we help the passengers find their way to the various locations within the airport - in the process, they get exposed to the advertisements You Answered Sponsorship Method Touch-Screen Directories Wifi Applications Maximum Exposure

touch screen directories

___________________ is a financial statement that shows the revenues of the entity minus the expenses to arrive at the 'bottom' line Income Statement Balance Sheet Cash Flow Statement

income statement

Which of the following is not one of the main types of airport revenues? Non-Operating revenue Cash Flow revenue Non-aeronautical revenue Aeronautical Revenue

cash flow revenue

When there is a variation between what is estimated on the budget and what gets spent or collected, this situation is called ___________________ Forecasting Regression Econometric Variance

variance

_____________ involves measuring a particular activity at an airport as a share of some other aggregate measure Market share Econometric modeling Time series modeling Simulation modeling

market share

___________________ is a financial statement that shows the items owned or controlled by the entity (assets) and the items owed to the others by the entity (liabilities) Cash Flow Statement Income Statement Balance Sheet

balance sheet

__________________ is the process of checking the financial records of a company or entity's owners and accountants to ensure the integrity of the information Financial accounting Book keeping Auditing Management accounting

auditing

______________________ is obtained from serviced provided by air carriers related directly and substantially to the movement of passengers, baggage, mail, and cargo at the airport Cash Flow revenue Aeronautical Revenue Non-Aeronautical revenue Non-operating revenue

aeronautical revenue

__________ is the process of preparing to issue out a bond to interested investors. It includes the costs of preparing the _________, getting bond ratings and insurance, and conducting feasibility studies for your bonds and projects Ordinance _________ Issuance Issuance _________ Ordinance Ordinance __________ Indenture Issuance ________ Interest

issuance and ordiance

Very fiscal year, the FAA ensures that there is a remaining amount of AIP funds available after all the various types of funds have been distributed to airports. Recently, this amount has been set at $ ___________ Million 148 550 250 100

148

Which of the following airport work costs would be eligible for funding through the AIP? Liability Insurance Land and Relocation Assistance Non-expendable machinery, tools, or equipment Tuition, Subsidies, and Workshop Travel for Airport Personnel

land and relocation assistance

Which of the following are the primary regulations that provide details on how the AIP grants are to be processed by airport sponsors and executives? Grant Assurance #5 and Program Guidance Letter (PGL) Grant Assurances #5 and #24 Grant Assurance #24 and Program Guidance Letter (PGL) FAA Order 5100.38C and Program Guidance Letter (PGL)

FAA order 5100.38c

__________ is a money market security that is used to manage cash flow and not generally used to finance long-term projects instead of pursuing bond options Capital Lease Bond Note Bond Anticipation Note Commercial Paper

Commercial paper

Both large and medium hub airports that collect Passenger Facility Charge (PFCs) fees, are supposed to return up to ________ of their entitlement funds if they collected ________ per passenger 75% ________$3.00 50%________$4.50 75% _______ $4.50 50%________$3.50

75% 4.50

Which of these would not be used as factor to determine the investment quality of the airport bond issuance? Bond Ratings Insurability Bond Note Value Number of Prior Defaults

bond note value

Which of these is not one of the main purposes for provision of Airport Improvement Program (AIP) grants? Airport Development Airport Planning Airport Sponsors' Professional Development Noise Compatibility

airport sponsors' professional development

____________ is a loan that a a borrower agrees to pay a fixed amount per period (this would be the interest) while repaying the funds borrowed (also known as the principal) Debt Claim Equity Stock Claim Account Payable

debt claim

Which of the following airport work items would not be eligible for funding through the AIP? Land Acquisition Ground Access Roads on Airport Property Industrial Park Development Snow Removal Equipment Purchase

Industrial park development

_________ informs the investor as to whether the bonds being by a particular airport are creditworthy Bond Value Note Bond Ratings Insurability Number of Prior Defaults

bond ratings

Which of these types of bonds are more prevalent at small general aviation airports? Revenue Bonds Special Facility Bonds Passenger Facility Charge Bonds General Obligation Bonds

general obligation bonds

Which of these AIP funds are only available to Large, Medium, Small, and Non- hub type of airports? Pure Discretionary Funds Set-Aside Funds Entitlement Funds Discretionary Set-Aside Funds

entitlement funds

___________ is an amount that the lender of the capital monies (loan) receives i.e. it is the compensation they receive for not having the money with them because they loaned it out to another entity Issuance Interest Bond Ordinance Bond Indenture

interest

Which of these types of bonds is most commonly utilized in medium and large commercial airports? Revenue Bonds Special Facility Bonds Passenger Facility Charge Bonds General Obligation Bonds

revenue bonds

One of the similarities between the National Airport System Plan (NASP) and the National Plan of Integrated Airports System (NPIAS) is that they both categorized General Aviation airports as having ________ Less than 2,500 passengers annually At least 10,000 passengers annually At least 100 aircraft locally based at those airports At least 25,000 itinerant operations

less than 2,500 passengers annually

Entitlement Funds that are collected back from the large and medium hub airports that collect PFCs are normally collected under the _______________ to support non-primary airports Aviation Trust Fund AIP Matching Fund Small Airport Fund Federal Aviation Fund

small airport fund

The following data below are the annual enplanement for the listed commercial airports during the year 2019. Based on this information, which airports whose management would not have to submit a special report to the FAA regarding their PFCs collection and near-future projections?

Memphis and Oklahoma