AERT 4350 Mid T/F Flashcards
Using Local Operation and Itinerant Operation metrics, we can distinguish between flight training operations and other general aviation operations at an airport
true
An airport with a good organization structure will ensure that ownership and operations (management) are the same people (or entity)
false
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
false
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
false
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
true
A person may act as the Airport Sponsor and also as an Airport Executive; however, these are two distinct roles in the airport industry
true
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.
false
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
false
The planning and engineering department of the airport is responsible with managing the operational budgets and procurements at an airport
false
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
false
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.
true
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
false
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
true
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.
false
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
true
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
false
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
false
Public facilities such as parks and schools are considered as compatible land uses around the airport
false
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
true
Type of activity, level of activity, and peak periods are examples of parameters that can be utilized during forecasting
true
Airports are regarded as enterprise funds because part if their revenues comes from user charges fees
true
Most airports have the right to charge ‘privilege fee’ to the rental car companies that operate within the airport grounds
false
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
false
One advantage of using incremental budget instead of the zero-based budget is the amount of work required to prepare the budget
true
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
false
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
false
Airport hangar ownership can be under the airport, FBO, private developers. All these are the different options of ownership regarding hangar space
true
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.
true
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.
false
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
true
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
false
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)
true
Discretionary Funds are administered under the Office of Management and Budget; they are specifically allocated to the general aviation airports
false
Commercial Papers can only be out for about 270 days
true
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
true
Both commercial and general aviation airports are allowed to collect Passenger Facility Charges from passengers who go through their airports
false
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)
true
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
false
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
true
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)
false
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
false
In order for airports to be eligible for AIP funding, they must first be part of the National Plan of Integrated Airports System
true
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
true
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
true
