AERT 4350 Mid T/F

Question 1

Using Local Operation and Itinerant Operation metrics, we can distinguish between flight training operations and other general aviation operations at an airport

Answer 1

true

Question 2

An airport with a good organization structure will ensure that ownership and operations (management) are the same people (or entity)

Answer 2

false

Question 3

One of the distinctions between the roles of the airport sponsor (or policy maker) and the airport executive is that the former prepares the financial plans of the airport while the latter reviews and approves those plans

Answer 3

false

Question 4

An airport is a public entity that runs like a business; a policy maker will always view the airport as a business while the airport executive will view the airport as a public entity

Answer 4

false

Question 5

Although they are both created by the municipalities, Airport Advisory Board and Airport Authority do not have the same legal authority when it comes to airport ownership and/or operations

Answer 5

true

Question 6

A person may act as the Airport Sponsor and also as an Airport Executive; however, these are two distinct roles in the airport industry

Answer 6

true

Question 7

If airport executives and sponsors need to contact the FAA regarding some issues at their airport, they would reach out to the Aviation Safety district representative of the FAA.

Answer 7

false

Question 8

Government’s agencies that need to add new regulations that are to be enforced at an airport, they must at all times utilize the Notice of Proposed Rule-making (NPRM) process; this was defined in the Administrative Procedure Act to ensure the industry stakeholders are also engaged in the process

Answer 8

false

Question 9

The planning and engineering department of the airport is responsible with managing the operational budgets and procurements at an airport

Answer 9

false

Question 10

The number of aircraft based at an airport is a useful metric to measure activity levels at an airport where collegiate flight trainings are being undertaken

Answer 10

false

Question 11

The main difference between airport authority and port authority is that a port authority can be in charge of other public facilities such as railway, toll roads, etc.

Answer 11

true

Question 12

Airport operators should always strive to minimize the non-aeronautical activity land in an airport as this type of land does not add value to airport operations

Answer 12

false

Question 13

One of the consequences that can arise due to incompatible land uses around the airport is the delay costs due to difficulty in accessing the airport

Answer 13

true

Question 14

If an airport executive encounters a situation that he/she can not make a decision, because it is outside the given authority, the executive will present the matter to the governing board (sponsor). If the governing board requires more details on the topic, they will call for the executive session.

Answer 14

false

Question 15

One of the reasons for establishing the intergovernmental relations and affairs division at an airport is to have a representation at regional forums with federal, state, and local government officials

Answer 15

true

Question 16

The Federal Aviation Administration (FAA) does not support the airport operators from buying the adjacent land as an attempt to prevent development of incompatible land uses

Answer 16

false

Question 17

The Federal Aviation Administration (FAA) does not support the airport operators from buying the adjacent land as an attempt to prevent development of incompatible land uses

Answer 17

false

Question 18

Public facilities such as parks and schools are considered as compatible land uses around the airport

Answer 18

false

Question 19

If an airport operator or sponsor does not have enough influence on the development of incompatible land uses around the airport, a ‘reasonable attempt’ to influence would include dissemination of information, education to the surrounding society, and ongoing communication with the surrounding community

Answer 19

true

Question 20

Type of activity, level of activity, and peak periods are examples of parameters that can be utilized during forecasting

Answer 20

true

Question 21

Airports are regarded as enterprise funds because part if their revenues comes from user charges fees

Answer 21

true

Question 22

Most airports have the right to charge ‘privilege fee’ to the rental car companies that operate within the airport grounds

Answer 22

false

Question 23

When a vendor provided flat screen TVs at no cost to the new DFW terminal D, this was an example of maximum exposure approach as far as the advertisement goes

Answer 23

false

Question 24

One advantage of using incremental budget instead of the zero-based budget is the amount of work required to prepare the budget

Answer 24

true

Question 25

Examples of non-operating revenues include land rent received from an off-industrial park that is owned by the airport, reservations centers, catering facilities, rental cars operations, parking, and concession sales

Answer 25

false

Question 26

Lump sum budget is mostly applied in large commercial airports as it gives them the freedom to execute the large projects which they creatively develop from time to time

Answer 26

false

Question 27

Airport hangar ownership can be under the airport, FBO, private developers. All these are the different options of ownership regarding hangar space

Answer 27

true

Question 28

Landing fee can charged based on a pre-operation basis or a per-weight/per operation basis. Airport operators may also designate the landing fee based on a combination of these two factors.

Answer 28

true

Question 29

Book-keeping is the use of accounting data to calculate and report cash flows, profit, and loss of financial entity. It puts accounting information into a form that is easier for managers and outside personnel to understand.

Answer 29

false

Question 30

Airport Sponsors and Executives ought to be familiar with Grant Assurance #34 which describes the policies, standards, and specifications on handling the Federal funded projects

Answer 30

true

Question 31

By examining the airport bond rating, potential investors can determine whether the interest they receive from the bonds they buy will will be taxable or not

Answer 31

false

Question 32

One of the ways airports can attract investors to buying airport bonds is by leveraging the future grants’ letters of intents (from FAA and other agencies)

Answer 32

true

Question 33

Discretionary Funds are administered under the Office of Management and Budget; they are specifically allocated to the general aviation airports

Answer 33

false

Question 34

Commercial Papers can only be out for about 270 days

Answer 34

true

Question 35

Some of the requirements for handing the PFCs is that the airports should handle the monies through a separate account and perform an independent audit on the PFC accounting procedures

Answer 35

true

Question 36

Both commercial and general aviation airports are allowed to collect Passenger Facility Charges from passengers who go through their airports

Answer 36

false

Question 37

According to history, the first airport revenue bond was issued back in 1945 by the Dade County (Florida) so they could obtain funds to purchase the airport (now known as Miami International Airport) from an airline (Pan American World Airways)

Answer 37

true

Question 38

Similarly to the AIP grants, once the PFCs have been collected by airlines and/or airport operators, they are reported to the FAA before being used at the respective airports

Answer 38

false

Question 39

If an airport decides to collect the PFCs, the airport executives and sponsors have to provide a report to the airlines and the FAA for each quarter of the year

Answer 39

true

Question 40

If the Federal Aviation Administration (FAA) wants to revise or add a guidance regarding the AIP funding process, it will issue an Advisory Circular (AC)

Answer 40

false

Question 41

In order for the FAA to distribute the allocated AIP funds to airports within a span of three (3) to four (4) years, Congress would have to authorize the process by passing the continuing resolution bill

Answer 41

false

Question 42

In order for airports to be eligible for AIP funding, they must first be part of the National Plan of Integrated Airports System

Answer 42

true

Question 43

Other than the federal and state grants, and the charges that airports are allowed to charge users, the next largest source of funding airports projects has been financial bonds

Answer 43

true

Question 44

Bond Ordinance is the legal document (or agreement) which defines what is the definition and computation of the revenues and expenses related to the bond which is about to be issued. In short, it provides a legal framework for issuing a bond to the investors

Answer 44

true