Module 1 Flashcards
Airport Sponsor
the entity legally responsible for the operation of the airport (city, county, Airport Authority, State or Port authority)
Federal Regulations
Mandates from the FAA
Advisory Circulars
General guidelines from the FAA about the requirements for airports/airlines/etc.
General and used to provide additional information about complex regulations
Local Govt Rules
Zoning
Airports operate under what guidelines?
Federal regulations, Advisory Circulars, Local government rules
How is an airport a public service?
Water, trash, etc
How is an airport a business?
FAA mandates that all airports must be self sufficient (grant assurances) - ie. profit center
How does an airport generate economic development?
Creates jobs at the airport and in the region
How is an airport a transportation center?
Provides airline/GA service to the local community
What are the joint use functions that take place at the airport?
Cargo, passengers, GA, military, evacuation
A marriage is a dichotomy (marriage) between a ____ and _____.
public entity; business
How are capital improvements at an airport paid for?
through the Aviation Trust Fund (not local money)
Where can money made at an airport be spent?
All money made at the airport must remain at the airport - requirement of the FAA
What “hats” must an airport executive wear to effectively do their job?
Regulatory (FAA, TSA, EPA); Tenant relations (air carriers, ground services, concessions); City/County/Business-2-Business); Politics; Promote the benefits of aviation to their community and beyond
Federal Airport Act of 1946
transferred ownership of surplus military airports to local municipalities with contracts
AP-4 Agreements
promises made by municipalities that the airport would continue to be operated and maintained
What percentage of U.S. airports are operated by a municipality?
33%
What percentage of U.S. airports are operated by a county?
15%
What percentage of U.S. airports are operated by a state?
7%
What percentage of U.S. airports are operated by a Port Authority?
9%
What percentage of U.S. airports are operated by an Airport Authority?
30%
What percentage of U.S. airports are operated through other agreements such as inter-city contracts (Dallas/Ft. Worth) or by special tax districts?
6%
What is an Airport Authority?
An independent, public agencies created by state legislation that add another layer of government - 30% of all U.S. airports
What are some advantages of Airport Authorities?
Airports outgrow political boundaries; allows for more specialization; smaller, more experienced staff for better coordination; on-scene decision making; airport is sole focus of the organization; insulated from political impact; more efficient operations
What is a Port Authority?
Special type of legally chartered institution that generally has the same status as a public corporation but operates other facilities along with the airport such as harbors, toll roads, railways, or other public transportation systems (ie. Port Authority of New York and New Jersey (PANYNJ))
What is a commission?
Same responsibilities and statures as airport authorities; generally established to allow for focused attention and expertise to be applied in operation the airport by appointing individuals to represent the city or county (ie. Los Angeles World Airports Authority (LAWA))
What is a disadvantage of a municipally owned airport?
In time of financial constraints, airports are often viewed as a liability and suffers corresponding budget reductions or personell restrictions, and; the airport must compete between other departments for the attention of local leadership
What is a disadvantage of an airport or port authority?
Resources (HR functions, health care and benefits, etc) and funding may not be readily available as the authority operates in isolation from the county - usually more of a problem for smaller authorities
Privatization (Definition)
Shifting government functions to private enterprise
Grant Assurances (Definition)
Specify the use of airport revenue; set fair and reasonable fees for airport users, and; disposition of airport property
What are the primary areas of airport management that report to the airport executive?
Finance and administration; Planning and engineering; Operations and maintenance, and; Marketing, public relations (PR), and air service development (ASD)
List some of the functions of Operations & Maintenance
Comply with Part 139; airfield and inspections; maintain airport elements; wildlife management; ARFF, security
List some of the functions of Finance & Adminsition
Accounting; manage the budget; HR, business planning; revenue management; customer service
List some of the functions of Planning & Engeineering
Capital improvement plans; airport master plans, compliance with environmental laws; administrative space planning; noise abatement planning; works with FAA’s Airports District Office
List some of the functions of Marking, PR, and ASD
Publicity and response to issues; marketing to new airlines to provide services to the airport; marketing for airport services and properties
What are the primary functional areas that report to the airport sponsor?
Airport executive; legal council; engineering consultant; auditor
Surplus Property Act of 1944
has deed restrictions including the requirement to keep the airports open
Government Immunity
Concept that government cannot commit a legal wrong; provides protection for employees acting within the scope of their job
Federal Tort Claims Act
waives immunity if a government employee causes damages
Tucker Act
waives immunity over claims arising out of contracts with the federal governemnt
Notice of Proposal Rulemaking (NPRM)
Commonly issued when independent agencies desire regulation changes, additions, or removal
Federal Register
The place where proposed regulations are published in their final, edited version after the public comment period closes becoming enforecable
Sponsor Assurances (Grant Assurances)
Agreements or obligations, typically lasting up to 20 years, to be fulfilled upon accepting FAA funds (ie. AIP funds)
Grant Assurance #5: Preserving Rights and Powers
Restricts sponsors from taking any action that would take away ability to properly manage the airport; sponsors cannot sell airport property acquired with federal funds without the permission of the FAA
Through-the-Fence (TTF) Agreements
Airports are expected to negotiate and require access fees to balance difference from lease fees; allows airports to make money on other businesses that use the airport to further their business (if a business makes money at the airport - the airport should make money)
Grant Assurance #19: Operations and Maintenance
Set minimum standards for safe and serviceable condition; establishment of rules and regulations at each airport
Grant Assurance #20: Hazard Removal and Mitigation
Airport is required to take action to protect airspace including approach paths
Grant Assurance #21: Compatible Land Use
Airport needs to attempt to restrict use of land adjacent or within vicinity
Grant Assurance #22: Economic Nondiscrimintation
Airport must be available for public use on reasonable terms without unjust discrimination to all types, kinds, and classes of aeronautical activities, including commercial aeronautical activities offering services at the airport
Unjust Discrimination
Parameter the airport can use to prohibit or limit any given type, kind, or class of aeronautical use of the airport if such action is necessary for the safe operations of the airport
Grant Assurance #23: Exclusive Rights
Airport operator cannot grant exclusive rights to a tentant
Grant Assurance #24: Fee and Rental Structure
Requires set fees and lease rates directed at being as self-sustaining as possible; must impose fair market value charges for noncommercial uses of property
Grant Assurance #24: Airport Revenue
Revenue earned on airport property stays with the airport or authority
Revenue Diversion
Use of airport revenue for: general economic development; marketing and promotional activities unrelated to the airport or airport system; payment in lieu of taxes or other assessments that exceed the value of service; payments to compensate sponsoring governmental bodies for lost tax revenues exceeding state tax rates, and; direction or indirect payments of airport revenue beyond what is required to pay for services and facilities provided to the airport
Grant Assurance #24: Disposal of Land
Requires the airport to dispose of land no longer needed at FMV
Grant Assurance #24: Competitive Advangage
Addresses medium or large hub airport operators who cannot accommodate access or additional gate request by an air carrier to allow or expand service at the airport; requires airport operator to report to the Secretary of Transportation why requests cannot be accommodated
FAA Orders (FOs)
Directives on specific subjects and programs issued by the FAA and remain in effect until rescinded by the FAA (Guidance/instruction to FAA personnel on compliance, airport safety, operations, and other related issues)
Joint Use Airports
Owned by the DoD with leases or contracts between the military and civil entities
Commercial Service Airports
2,500 annual passenger emplanements
Primary Commercial Service Airports
10,000+ annual emplanements
Nonprimary Commercial Service Airprots
2,500-10,000 annual emplanements
Large Hub Primary Commercial Service Airports
1% or greater of annual national enplanements
Medium Hub Primary Commercial Service Airports
At least .25% but less than 1% annual national enplanements
Small Hub Primary Commercial Service Airports
At least .05% but less than .25% of national annual enplanements
Non-hub Primary Commercial Service Airports
More than 10,000 but less than .05% of national annual enplanements
National GA Airports
Located in metropolitan areas, multiple sophisticated jet aicraft
Regional GA Airports
Support interstate and intrastate flying, usually support jet and charter aircraft