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Module 1 Flashcards

1
Q

Authorized the postmaster general to contract for domestic air service w/ commercial air carriers. Created commercial air industry. Only those who use aviation should pay.

A

Air Mail Act of 1925 / The Kelly Act

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2
Q

Pan Am, TWA, Delta, United, Northwest, American, Braniff, and Eastern airlines.

A

First of the US airlines

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3
Q

Cornerstone of the federal government’s regulation of civil aviation. Created an Aeronautics Branch within Dept of Commerce.

A

Air Commerce Act of 1926

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4
Q

Responsible for FOSTERING AIR COMMERCE, issuing & enforcing air traffic rules, pilot licensing, certifying aircraft, establishing airways, operating & maintaining navaids.

A

Federal Aviation Administration (FAA)

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5
Q

1928 first airport management trade organization was established. 1954 adopted 1st prof accreditation standards.

A

AAAE

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6
Q

1930’s Aeronautics Branch restructured and became this but still remained under the Dept of Commerce?

A

Civil Aeronautics Administration (CAA)

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7
Q

CAA created this for the purpose of making safety rules, conducting aircraft accident investigations and economic regulation of the airlines including approving air routes & regulating airfares?

A

Civil Aeronautics Board (CAB)

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8
Q

The CAB was dissolved by this allowing airlines and air cargo operators to raise and lower airfares and expand / remove routes and destinations, creating hub-n-spoke to take hold?

A

Airlines Deregulation Act of 1978

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9
Q

Part of FDR’s New Deal - assisted w 50% of funding new airports and expansion of airports (total 852 airports).

A

The Works Progress Administration (WPA)

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10
Q

What percentage of a project is covered by FAA monies for certain eligible projects?

A

75% - 90%

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11
Q

Allowed for Secretary of War & Commerce and Sect of Navy to acquire land for dev of airports needed for the war.

A

Development of Landing Areas for National Defense (DLAND)

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12
Q

How many airports were handed over after the war to cities & counties who promised to make it available for public use without discrimination?

A

500

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13
Q

1946 the Federal Aid to Airports Act created this to provide grant funds for certain projects (runways/taxiways dev).

A

Federal Aid to Airports Program (FAAP)

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14
Q

Inclusion allows for eligibility for grant funding, it lists recommendations for airport construction, maint, and operations.

A

National Airport Plan (NAP)

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15
Q

The expectation that public use airports cannot deny civil aeronautical operations & will operate without discrimination.

A

Sponsor Assurances / Grant Assurances

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16
Q

Result of 1958 accident over Brunswick, Maryland killing 12 people.

A

Repeal of Air Commerce Act. Federal Aviation Act 1958 created Federal Aviation Agency. 1966 renamed Federal Aviation Administration (FAA) under Dept of Transportation.

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17
Q

Developed a common civil-military system of navigation and air traffic control?

A

FAA

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18
Q

1970 this act was passed to continue the flow of grant money to airports and created certification program & issued operating certificates.

A

Airport and Airways Development Act

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19
Q

Developed as a result of the Airport & Airways Development Act

A

The Airport Development Aid Program (ADAP) and the Planning Grant Program (PGP).

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20
Q

Provided funds for airport master plans and system plans.

A

Planning Grant Program (PGP)

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21
Q

Provided funds for airport development projects - expanding the list of eligible projects.

A

Airport Development Aid Program (ADAP)

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22
Q

1970 the Airport and Airway Revenue Act created this fund financed by an 8% tax on domestic pax airfares $3 surcharge on pax ticket, .07 on fuel, 5% on freight, registration fee.

A

Airport and Airway Trust Fund

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23
Q

1982 Airport & Airway Improvement Act established this program and continued to expand the list of airport projects eligible for federal funding.

A

Airport Improvement Program (AIP)

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24
Q

National Plan of Integrated Airport Systems (NPIAS)

A

Formerly known as the National Airport Plan, created a classification sys for comm svc airports, published every 2 years. 5 year projection, includes dev proj that the Sect of Trans considers necessary to meet safe need….,Identifies for Congress amounts & types of dev eligible for AIP funding over next 5 years. Only AIP funding included in NPIAS.

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25
Q

To be classified as a commercial service airport you must have what?

A

Enplane 2,500 or more passengers per year and received scheduled passenger service.

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26
Q

Airport classifications

A

large hub, medium hub, small hub, non-hub

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27
Q

FAA funding mechanism for capital projects at public use airports

A

Airport Improvement Program (AIP)

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28
Q

9/11 terrorist attack resulted in what new agency?

A

Transportation Security Administration (TSA)

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29
Q

2003 The Vision 100-Century of Aviation Reauthorization Act endorsed what concept?

A

Next Generation Air Transportation System (NextGen)

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30
Q

A multi-faceted series of initiatives designed to make air travel more efficient, secure and safer overall

A

NextGen

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31
Q

What stakeholder group includes FAA, TSA, CBP, ICE, FPS, USDA

A

Government

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32
Q

What stakeholder group includes airlines, corporate flight dept., private aircraft operators, SASO’s, flight schools, hangar lessees, etc

A

Aeronautical Users

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33
Q

What stakeholder group includes concessionaires, vendors, contractors, non-aeronautical tenants, rental car, advertisers, etc

A

Non-aeronautical Users

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34
Q

What stakeholder group includes passengers, air cargo shippers, hotels, restaurants, industrial park tenants, homeowners within airport’s influence area.

A

The Community

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35
Q

Airlines desire -

A

Efficient pax, baggage, cargo and aircraft throughput, aircraft space, admin facilities, amenities for pax.

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36
Q

Corporate desire -

A

Own fueling ability, affordable fuel, confidentiality, pavement maintenance

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37
Q

FBO’s & SASO’s desire -

A

An airport that is “good for business”, level playing field

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38
Q

Non-aeronautical users desire -

A

Good pax traffic, good positioning w max visibility & specifics to other no-aeronautical users.

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39
Q

What are the 5 types of airports in the US?

A

Private, commercial service, cargo, GA, GA reliever and military

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40
Q

How many airport are eligible for grants under the FAA Airport Improvement Plan (AIP)

A

3,345 (3,331 existing & 14 proposed)

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41
Q

What is the criteria for an airport to be included in the NPIAS?

A

Publicly owner, if privately owned must be designated as a reliever by the FAA, or privately owned w/ scheduled air service of at least 2,500 annual enplanements, GA reliever, contract under USPS, Air National Guard or Armed Forces operate.

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42
Q

Other Airports that do not meet NPIAS criteria may be included under what 4 circumstances?

A

Part of State Airport Sys Plan, Serving community more than 30 min from nearest NPIAS airport, forecast to have 10 o more base aircraft in next 5 years AND currently being considered by an eligible public sponsor taking ownership.

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43
Q

What does the FAA use to measure airport activity?

A

Enplanements, operations, cargo tonnage.

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44
Q

An airport owned by the Dept of Defense, both military and civilian make shared use of airfield.

A

Joint-Use Airport

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45
Q

US Government owned airport that is co-located with civil airport where portion of the movement and safety areas are shared by both parties.

A

Share-Use Airport

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46
Q

Types of commercial airports and the distinction between them.

A

Primary - rcvs scheduled air service w 10,000 or more annual enplanements. Nonprimary (2,942) - between 2,500 & 9,999 annual enplanements.

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47
Q

Category of Commercial service airport which serves at least 1% or more of US pax enplanements and accounts for 70% of all pax enplanements, consists of 29 airports.

A

Large hub

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48
Q

Category of comm svc airport enplaning .25% to 1% and accounts for 17% of all enplanements consists of 33 airports.

A

Medium hub

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49
Q

Category of comm svc airport enplaning .05%-.25%, accounts fo 9% of enplanement and consists of 76 airports

A

Small hub

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50
Q

Category of comm svc airport enplaning less than .05% of pax, but at least 10,000 annual enplanements and consists of 251 airports

A

Nonhub primary

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51
Q

Predominately used by GA aircraft, GA relievers, comm svc 2,500-9,999 enplanements, .1% enplanements and consists of 125 airports

A

Nonprimary airport

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52
Q

GA Airports: A National Asset identifies what criteria for a GA airport to be included in the NPIAS?

A

No scheduled comm svc, but account for enough activity (10 based aircraft) and are at least 20 miles from the nearest NPIAS airport. 2,553 in US with an average 29 based aircraft.

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53
Q

Provides relief to comm svc airports, must be open to the public, have 100 or more based aircraft or 25,000 annual itinerant operations. Currently 264 airports.

A

GA Reliever Airport

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54
Q

These 84 airports located in metro areas near major business centers, support sophisticated aircraft incl jets. Heliport and seaplanes not in this category.

A

GA National Airport

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55
Q

These 467 airports located in metro areas in 49 states, serve large populations, both interstate & intrastate flying, no heliports or seaplanes in this category.

A

GA Regional Airport

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56
Q

These 1236 airports considered the backbone of GA system w at least one in virtually every state, mostly piston aircraft is support of business & personal, flight training, emergency services, charters, tend to be within state or immediate region, no heliports, 4 seaplanes bases.

A

GA Local Airports

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57
Q

These 668 airports generally have 1 runway, helipad or lane, link community to national air system, mostly self piloted using propeller driven aircraft, 3 heliports, 20 seaplane bases.

A

GA Basic Airports

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58
Q

Associated with GA, addresses General Operating and Flight Rules applicable to aircraft in the US airspace; both GA or comm flight. Used to describe a private flight operation.

A

Part 91

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59
Q

Identifies the requirements for aircraft operators engaged in commercial pax carrying & cargo operations.

A

Part 119: Air Carrier and Commercial Operators

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60
Q

What identifies - Operating Requirements: Domestic, Flag, and Supplemental Operation. Scheduled comm air carrier operations. Can only operate at airports under Part 139, (Note, there are special exceptions)

A

Part 121

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61
Q

What identifies - Operating Requirements: Commuter & on demand operations and rules governing persons on board such aircraft (ie. charter or air taxi), usually non scheduled

A

Part 135

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62
Q

A certificated domestic or foreign air carrier, an air taxi operator, or a commuter air carrier that directly engages in the operation of aircraft under a certificate,
permit, or exemption issued by the Department of Transportation. A direct air carrier has control over the operational functions performed in providing that transportation.

A

Direct Air Carrier

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63
Q

Any person (individual or corporation), such as a tourist or athletic organization, that engages the services of a direct air carrier in the transportation of passengers, baggage, or cargo. Uses commercial air transportation to move cargo or people but does not own or control aircraft

A

Indirect Air Carrier

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64
Q

Certification and Operations: Airplanes Having a Seating Capacity of 20 or More Passengers or a Max Payload Capacity of 6,000 Pounds or more; and Rules Governing Persons on Board Such Aircraft. Large, certain noncommercial flight operations.

A

Part 125

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65
Q

Navigation based on ground reference points that can be identified from the air.

A

Pilotage

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66
Q

Using radio transceivers installed in the cockpit to triangulate position, determine ground speed, navigate to the next point.

A

Dead reckoning

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67
Q

Cloud ceiling is at least 1,000 feet above ground level and forward visibility is 3 or more miles straight ahead

A

Visual Meteorological Conditions (VMC)

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68
Q

Routes below 18,000’ __________. Routes above 18,000”_______.

A

Victor Airways & Jet Routes

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69
Q

Pilot flying under VFR must have this. Identifies the airport, related weather, navigational and communication frequencies, navigational aids, light pattern of cities at night, terrain features, obstructions (building, antennas, etc.), and airspace information.

A

Sectional Chart

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70
Q

Pilots flying under IFR can carry either of these. Show both Victor or Jet routes between navigational aids. For below 18,000’_________, for above 18,000’ ______.

A

Low Altitude En Route chart & High Altitude En Route chart

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71
Q

Pilot can access this at a towered airport for weather conditions, updated hourly by the air traffic control tower. Provides weather, NOTAMS, airfield info.

A

Automated Terminal Information Service (ATIS)

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72
Q

FAA published charts on standard arrival and departure paths into and out of airports to lessen the burden of repeatedly communicating the same ATC clearance instructions.

A

Instrument Departure Procedures (DP) & Standard Terminal Arrival (STAR)

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73
Q

The specialized procedures pilots use to depart from and arrive into an airport, along with the instrument approaches, are collectively referred to as. 1,000 obstacle clearance, 3% glideslope, final approach clearance of 700’ , threshold clearance 50’.

A

Terminal Instrument Procedures (TERPs)

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74
Q

The governing entity of an airport, usually consists of a Board of elected or appointed officials, charged with operating the airport, policy makers, set broad goals and objectives for management. Strategic leaders.

A

Airport Sponsor

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75
Q

Responsible for Tactical operatives, provides counsel to Sponsor, executing policy directives.

A

Airport Executive

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76
Q

Under a municipality structure and refers to a branch of government that operates like a business. ie. Parks & Rec departments, USPS. Primarily used for activities that are financed through user charges.

A

Enterprise Fund

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77
Q

5 types of Airport Sponsorship

A

Municipality (e.g. city or county is most common), Airport Authority, Port Authority, State, and Private.

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78
Q

Municipalities that seek to maintain control of the airport, but desire more guidance and expertise by which to make decisions, may elect to create this?

A

Airport Advisory Board

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79
Q

Certain municipalities have elected to give over near or total control of the airport to an independently created entity, which is known as? This becomes the legal Airport Sponsor, empowered to make decisions on direction & overall management of the airport.

A

Airport Authority

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80
Q

In airport management, the shift some traditional roles of airport management to a private entity, in part or whole is known as?

A

Airport Privatization

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81
Q

The transfers of federal obligation, as well as the responsibility for operation, management, and development of an airport, from a public airport sponsor to a private airport sponsor.

A

Airport Privatization Program

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82
Q

Advantage & Disadvantage of municipally-owned airport.

A

Advantage: airport admin has better access to other city/county departments such as HR, purchasing, APD,, etc. Has power to tax & issue bonds.
Disadvantage: policy makers unfamiliar w operation of airport, can’t devote needed time, during financial hardship airport is viewed as just another dept of city rather than an Enterprise Fund - generating revenue, best interest conflicting w community.

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83
Q

Advantage & Disadvantage of Airport or Port Authority.

A

Ad: insulated from political influences and impact of political change, provide business focused, efficient operation & economy of scale.
Disad: resources and $$ may not be readily available, can be eliminated through a resolution of legislative process if elected officials are unhappy - thus it’s back as a municipal structure.

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84
Q

The airport is a Public Entity that is run like a Business.

A

Airport Exec must balance the desires of the sponsor with the needs and desires of the key stakeholders such as business operators (concessionaires, airlines, tenants, FBO’s), users (pax, pilots), community, FAA, TSA, etc

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85
Q

Positions outside the vertical reporting structure?

A

Legal counsel and financial auditor.

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86
Q

Safe, Efficient Use and Preservation of the Navigable Airspace

A

Title 14, Part 77

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87
Q

Certification and Operations: Land Airports Service Certain Air Carriers

A

Title 14, Part 139

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88
Q

Airport Noise and Compatibility Planning

A

Title 14, Part 150

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89
Q

Federal Aid to Airports

A

Title 14, Part 151

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90
Q

Airport Aid Program

A

Title 14, Part 152

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91
Q

Terrorist act on 9/11/01 resulted in this.

A

Aviation and Transportation Security Act of 2001, moved security regulations from FAA to newly created TSA

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92
Q

Airport Security. Effectively regulates the entirety of a commercial airport operation including elements
of the terminal and landside areas.

A

Title 49 CFR Part 1542

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93
Q

Aircraft Operator Security: Air Carriers and Commercial

Operators

A

Title 49 CFR Part 1544

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94
Q

Aircraft Operating Rules (also refers to aircraft operated as a private operation, i.e. not commercial/for-hire)

A

Title 14, Part 91

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95
Q

Operating Requirements: Domestic, Flag, and Supplemental Air Carrier Operations

A

Title 14, Part 121

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96
Q

Operating Requirements: Commuter and On Demand

Operations

A

Title 14, Part 135

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97
Q

When an independent agency of the government desires to add, change or remove a regulation this is issued. The US judicial system may directly review these agency decisions.

A

Notice of Proposed Rulemaking (NPRM)

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98
Q

This journal contains public notices by government agencies such as FAA or TSA.

A

Federal Register

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99
Q

Public comment period after publication of draft regulations in the Federal Register.

A

30 days minor change, 60 days major change.

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100
Q

FAA has 4 lines of business that relate to the operation of an airport.

A
  1. Airports (ARP) - Airport Exec work directly with
  2. Air Traffic Org (ATO) - air traffic control / navaid maint
  3. Aviation Safety (AVS) - cert of pilots, mechanics, & safety personnel
  4. Office of Commercial Space Transp (AST) - space transportation
    * 5. NextGen (ANG)
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101
Q

Responsibilities of the FAA Office of Airports (ARP)

A

Provides leadership in planning & developing a
safe and efficient national airport sys, responsible for all programs related to airport safety and inspections as well as standards for airport design, construction, and operation, approves PFC apps, DBE, grant assurance compliance, rates & fees.

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102
Q

The line-of-business director for the FAA”s Airport District Office (ADO)

A

Associate Administrator for Airports

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103
Q

Airport District Office (ADO) responsibilities.

A

Oversees airport compliance with Part 139 and grant assurances, airport safety and certification, land transfers, engineering issues, pavement maintenance and capital improvement projects, environmental issues, noise abatement, master planning, runway safety, and guidance issues, and allocation of discretionary grant money.

104
Q

The regional office of the FAA that concentrates on enforcing regulations pertaining to aircraft and airmen certification and licensing. With the Associate Administrator for Safety as the line-of-business director

A

Flight Standards District Office (FSDO)

105
Q

The principal documents affecting airport operators include.

A 
FAA Advisory Circulars, FAA Orders, Airport Cooperative Research Program (ACRP) Reports, FAA
Certification Alerts (known as Cert Alerts), FAA Policy Guidance Letters, TSA Security Directives, and TSA Information Circulars, Grant Assurances.
106
Q

The FAA issues these to help explain the intent of a federal aviation regulation, to provide guidance and information to the aviation public in a designated
subject area, or to show a method acceptable for complying with a related regulation. Not binding on the public unless they are incorporated with reference to a regulation.

A

Advisory Circulars (ACs)

107
Q

AC 150 Series

A

Addresses Airports and areas related to airport operations, planning and management including AMP, Design, Certification Manual, PFC, Self Inspection,AEP

108
Q

Directives on specific subjects and programs issued by the FAA, remain in effect until rescinded by the FAA, provide guidance and instruction to FAA personnel on compliance, airport safety, operations, and other related issues, the “rules” for airport management.

A

FAA Orders

109
Q

Provides the policies & procedures to be followed in carrying out FAA functions related to airport compliance, guidance on Grant Assurances, minimum standards, exclusive rights, fees & charges, maint & ops, etc.

A

FAA Order 5190.6A

110
Q

Provide the regulatory requirements for airport security related systems such as perimeter intrusion, biometrics, and the identity management system.

A

Radio Technical Commission for Aeronautics (RTCA) Standards for Security Access Control Systems.

111
Q

Security Directives (SD)

A

Issued by TSA, provides changing requirements to the Airport Security Program of a commercial service airport. SSI, not intended for public dissemination.

112
Q

Information Circulars (IC)

A

Issued by TSA, provide intelligence information for, or suggest best practices in the domain of, airport security. SSI, not intended for public dissemination.

113
Q

AP-4 agreement.

A

Traced back to WWII, transfer of airports constructed during war to local entities, assurances were made such that the airport would continue to be suitably operated and maintained. AIP grants have superseded the AP-4

114
Q

Grant Assurance obligation period and what it applies to.

A

During construction and up to 20 years, no limit for real property. Applies to development, development, equipment acquisition, or Noise Compatibility Program
(NCP) projects.

115
Q

Preserving Rights and Powers, This prohibits an airport to sell, lease, encumber, or otherwise transfer or dispose of any part of its title or other interests in the property shown on Exhibit “A” without the prior written approval of the FAA.

A

Grant Assurance #5

116
Q

Operation and Maintenance; related to the day-to-day operation of an airport, requires the airport to be operated at all times in a safe and serviceable condition and requires the airport operator to operate and maintain the airport in a safe and serviceable condition, and in accordance with the Minimum
Standards (MS).

A

Grant Assurance #19

117
Q

Hazard Removal and Mitigation; requires the airport to take necessary actions to protect the airspace around the airport including visual and instrument approach paths.

A

Grant Assurance #20

118
Q

Compatible Land Use; requires the airport to make an attempt to restrict the use of adjacent land, or land in the immediate vicinity, to activities and purposes compatible with airport operations.

A

Grant Assurance #21

119
Q

Economic Nondiscrimination; the airport must be available for public-use on reasonable terms and without unjust discrimination to all types, kinds, and classes of aeronautical activities, including commercial aeronautical activities offering services at the
airport.

A

Grant Assurance #22

120
Q

Exclusive Rights; 1. restricts the Airport Executive from granting any tenant the exclusive right to conduct a particular commercial aeronautical service unless it would be unreasonably costly, burdensome, or impractical for more than one FBO to provide such
services; 2. does not allow an airport to misuse the space limitation exception by leasing all available land to an entity for the purpose of preventing competing business’ access or use.

A

Grant Assurance #23

121
Q

Fee and Rental Structure

A

Grant Assurance #24

122
Q

Airport Revenues; restricts the use of airport revenue generated by the airport and local taxes on aviation fuel to be expended for the capital or operating costs of the airport, the local airport system, or other facilities owned or operated by the Airport Sponsor which directly and substantially relate to the actual air transportation of passengers or the property or noise mitigation efforts.

A

Grant Assurance #25

123
Q

Airport Compliance Manual (FAA Order 5190.6B)

A

Provides guidance to FAA personnel on interpreting and administering the ongoing commitments made by
sponsors to the Federal Government.

124
Q

Public Complaints considered to be informal, which means that the FAA is not obligated to hold itself to a deadline in its response to the complaint. Filed at ADO level. Specifics of filing addressed in FAA Order 5190.6B, The Airport Compliance Manual.

A

Part 13, Investigation and Enforcement

125
Q

Specified the processing of FORMAL complaints specifically against airports that receive federal assistance and that relate specifically to a Grant Assurance concern. Imposed deadlines, filed at Office of the Chief Counsel of the FAA. Notification within 20 days of filing, requires response within 20 days, determination within ~6 months.

A

Part 16, Rules of Practice for Federally-Assisted Airport Enforcement Proceedings

126
Q

Timeline when FAA issues it’s OWN investigation without formal complaint>

A

Parties involved must respond within 30 days.

127
Q

Under Part 16 the FAA will issue one of these.

A

Non-Final Decision - within 120 days which either party may appeal within 30 days.
Final Agency Decision (FAD) - wherein: complaint is dismissed, hearing not required, hearing waived.

128
Q

A phrase used to describe a collection of FAA regulations, adjudications, various statutes, Grant Assurances, Advisory Circulars, and court decisions at the local, state, and federal levels.

A

Airport Law

129
Q

Once an airport has accepted AIP grant funding, the airport is in this.

A

Closed fiscal system. Revenues generated by the airport must be expended at the airport.

130
Q
  1. Statutory and is considered a crime against society.
  2. Considered to involve injury to an individual (or property), also referred to as Tort Law, Contract Law.
  3. Governed by state, Exec often engaged in, not criminal offense, used for regulatory compliance.
A
  1. Criminal Law
  2. Civil Law
  3. Infraction*
131
Q

Waives the immunity if the act of a government employee causes damage.

A

Federal Tort Claims Act

132
Q

Waives immunity over claims arising out of contracts with the federal government.

A

Tucker Act

133
Q

3 mandates as part of the Aviation and Transportation Security Act (ATSA).

A

(1) take responsibility for security of all modes of transportation; (2) recruit, hire, train, and deploy security officers for 450 commercial airports; and (3) provide 100 percent screening for explosives of all checked baggage by December 31, 2002.

134
Q

Determines the probable cause of all U.S. civil
aviation accidents, certain public-use aircraft accidents, accidents involving the release of hazardous materials in all forms of transportation, and selected transportation accidents that involve problems of a recurring nature.

A

National Transportation Safety Board (NTSB)

135
Q

Who is responsible for accident investigation of aircraft weighing less than 12,500 pounds Maximum Take Off Weight (MTOW)? Over 12,500 MTOW

A

FAA

NTSB - dispatches the “go team” for major accidents

136
Q

Its purpose is to “secure international cooperation and the highest possible degree of uniformity in regulations and standards, procedures, and organization regarding civil aviation matters.” Agency of the United Nations. 18 annexes address the Standards & Practices.

A

International Civil Aviation Organization (ICAO)

137
Q

Founded in Havana, Cuba to promotes safe, reliable, secure, and economical air services for the benefit of the world’s consumers.

A

International Air Transport Association (IATA)

138
Q

Formerly known as the Air Transport Association (ATA), nation’s oldest and largest airline trade association, played a major role in all the significant government decisions regarding aviation, powerful lobby force, recognized by ALL major groups from government to the press.

A

Airlines for America (A4A)

139
Q

Represents and advocates for more than 54,000 pilots at 31 U.S. and Canadian airlines, making it the world’s largest airline pilot union. ALPA provides three critical services to its members: airline safety, security, and pilot assistance; representation; and advocacy.

A

Air Line Pilots’ Association (ALPA)

140
Q

Represents North American regional airlines and ancillary industries supporting regional airlines before the U.S. Congress, DOT, FAA, and other federal agencies.

A

Regional Airline Association (RAA)

141
Q

The leading organization for companies who rely on GA aircraft to help make their businesses more efficient, productive, and successful.

A

National Business Aviation Association (NBAA)

142
Q

A not-for-profit organization dedicated to General Aviation. Partnered with the TSA to develop a nation-wide Airport Watch Program that uses its more than 650,000 pilots as eyes and ears for observing and reporting suspicious activity.

A

Aircraft Owners and Pilots Association (AOPA)

143
Q

Represents the interests of the GA business community before Congress and federal, state, and local government agencies.

A

National Air Transportation Association (NATA)

144
Q

Premier trade association representing the nation’s leading manufacturers and suppliers of civil, military, and business aircraft, helicopters, unmanned aerial systems, space systems, aircraft engines, missiles, materiel and related components, services, and information technology.

A

Aerospace Industries Association (AIA)

145
Q

Includes the following core management competencies: human resources; organizational management; quantitative analysis; commerce; business law; economics; investment management; budget and accounting; employee management; motivation and leadership; marketing, and strategic planning.

A

Business enterprise

146
Q

Includes the following core competencies: public finance; leadership and professional ethics; public policy making; communications; purchasing and procurement processes; urban planning and land use; management of public service organizations; the social
impact of the public process; politics; emerging disciplines such as environmental law; public artwork; the impact and use of (GIS), and planning for
emergencies and disasters.

A

Public administration

147
Q

Airport revenue falls into one of these 3 categories.

A

Aeronautical (most restricted), Non-Aeronautical, and Non-Operating

148
Q

Type of Revenue includes services provided by air carriers related directly and substantially to the movement of passengers, baggage, mail, and cargo at the airport, required for operation of aircraft; includes landing fees, land leases, terminal and hangar rents, tie-down rents, fuel tax, and fuel sales.

A

Aeronautical Revenue

149
Q

Type of Revenue includes land rent received from an off- industrial park that is owned by the airport, reservations centers, catering facilities, rental car operations, parking, and concession sales. Can exceed 50% of airports annual gross revenue.

A

Non-Aeronautical Revenue

150
Q

Type of Revenue includes PFCs, CFCs, interest income, and grants.

A

Non-operating revenue

151
Q

How are Landing fees generally charged?

A

Either based on a per-operation basis or a per-weight (max allowable landing weight is used in US)/per-operation basis.

152
Q

Program created to reduce airport ground emissions at commercial service airports located in designated air quality non-attainment and maintenance areas. Allows sponsor to use AIP & PFCs to finance low emission vehicles, charging stations & other air quality improvements.

A

Voluntary Airport Low Emissions (VALE)

153
Q

The act that states an airport must conduct an annual audit and assure the government that airport funds have been properly distributed.

A

Single Audit Act of 1984

154
Q

Municipalities often charge tenants of leased property a payment-in-lieu-of-taxes since the lessor doesn’t pay property tax. Revenue must be used to benefit the airport.

A

Payments in Lieu of Taxes (PILOTS)

155
Q

Implements the financial reporting provisions of the 1994 Authorization Act. Sponsors are required to make available an annual budget report in a form
prescribed by the Secretary of the DOT. Commercial service airports enplaning 2,500 pax or more (since 1995) annually, are required to file Form 5100-126 Financial Governmental Payment Report and Form 5100-127, Operating and Financial Summary. To be filed within 120 days after the end of their fiscal year.

A

Grant Assurance 26, Reports & Inspections

156
Q

Used to account for the financing of goods or services provided by one department of a government unit to another on a cost- reimbursement basis.

A

Internal Service Funds

157
Q

Presents detailed information about individual products, services, or managers that is used to make decisions about costs, pricing, and who to promote; it’s divided into several types of activity, such as cost accounting, which focuses on unit costs, and budgetary controls, which identifies inputs and outputs with managers to help them make operational decisions.

A

Management Accounting

158
Q

Airport financial statements can be found in the Annual Report and in the Quarterly Filings. There are known as.

A

10-Q Report

159
Q

Three most common financial documents.

A

(1) The Statement of Net Assets or Statement of Net Position (the government’s balance sheet), (2)
Statement of Activities (the income statement), and (3) the Statement of Cash Flow.

160
Q

A statement that accounts for both the items owned or controlled by the entity (Assets) and the items owed to others by the entity (Liabilities).

A

Statement of Net Assets/Statement of Net Position (i.e. the Balance Sheet)

161
Q

Shows the revenues of the entity, minus the Expenses, to arrive at the “bottom line.”

A

Statement of Activities (Income Statement)

162
Q

Shows how much cash the company had at the beginning of the reporting period and how much remained at the end of the reporting period.

A

Cash Flow Statement

163
Q

Report in which management provides detailed discussion of the financial health and explains positive and negative trends and anomalies.

A

Management’s Discussion and Analysis and Discussion (MD&A)

164
Q

The future period covered under Operating Budget? Capital Budget?

A

1 year and 36 years (this can’t be correct, need to verify!)

165
Q

In formulating an operating budget, four important tasks must be addressed:

A

(1) plan for the operational needs of the organization, (2) obtain resources for the airport operating environment, (3) distribute those resources throughout the organization, and (4) track the resource expenditures to ensure they are used effectively and efficiently.

166
Q

4 common types of airport & municipality budgets.

A

Line-Item, Performance Based Budget (PBB), Program Budgeting, Zero Based Budgeting (ZBB)

167
Q

Aeronautical fees for landside or non-movement area airfield facilities (e.g., hangars and aviation offices)

A

May be at a fair market rate, but are not required to be higher than a level that reflects the cost of services and facilities; in other words, those charges can be
somewhere between cost and fair market value.

168
Q

Airport sponsors must impose this type of charge for non-aeronautical uses of airport property with certain exceptions.

A

Fair Market Value (FMV)

169
Q

Expectation of the FAA on setting of rates, fees, charges.

A

Airport Sponsor and aeronautical users should make a good-faith effort to reach an agreement. FAA would like it handled at the local level without federal intervention.

170
Q

Rate setting is typically based on assessing the costs or expenses associated with?

A

Airfield Assets

171
Q

Ramps or aprons that are not subject to preferential or exclusive lease or use agreements, runways, taxiways, and land associated w these facilities, and land acquired for the purpose of assuring land-use compatibility with the airfield, if the land is included in the rate base associated with the airfield.

A

Airfield Assets

172
Q

Methods of Rate Setting.

A

Residual, Compensatory, Hybrid

173
Q

Much of the financial risk is transferred to the airlines in return for a negotiated limit on the airport’s profits. The airport applies excess non-aeronautical
revenue to the airfield costs to reduce air carrier fees; in exchange, the air carriers agree to cover any shortfalls if the non-aeronautical revenue is insufficient to cover airport costs. Often referred to as the “O’Hare or Chicago” agreements. 20-30 yrs term with signatory airlines where they have a significant say.

A

Residual Agreement/Method

174
Q

The air carrier has the right to approve an airport’s capital projects or even the selection of who the Airport Executive is.

A

Majority-in-Interest (MII) clause

175
Q

Benefits of a residual agreement.

A

Greater security of revenue bond financing, automatic subsidy of uneconomic facilities, a guaranteed annual cash flow, less impact of political decisions on airport financial results, and a financial transfer of risk to the airlines.

176
Q

Agreement in which a Sponsor assumes all liability for airport costs and retains all airport revenue for its own use in accordance with federal requirements.
Aeronautical users are charged only for the costs of the aeronautical facilities they use. The airport assumes the underlying financial risk of operating the airport but retains all profits for its own use.

A

Compensatory Agreement

177
Q

Two types of Compensatory Agreement approaches.

A

The “Cost-of-Service” (a.k.a. multiple cost center approach) and the Public Subsidy approach. Under the cost-of-service method, fees and charges are set for each revenue-producing cost center, so that ideally, the charges match the cost.
Under PS, local government agency offsets the difference between the revenue and expenses by subsidizing the airport’s operation.

178
Q

Benefits of compensatory agreement.

A

It allows the Airport Executive to manage facilities as a business enterprise; it provides incentives and
financial rewards for good management; it permits discretionary use of surplus monies within limits; and it provides a greater degree of flexibility in managing the airport.

179
Q

The total of all costs associated with providing

airfield facilities and services to aeronautical users.

A

Rate Base

180
Q

Methodologies for rate base setting, found reasonable by the FAA.

A

Historic cost valuation (HCA), direct negotiation with aeronautical users, or objective determinations of fair market value.

181
Q

In the interest of transparency, airport operators should expect to provide the following information to aeronautical users in connection with consultations over changes to airport rates and charges.

A

Historical financial info fo prior 2 years, economic / legal / or financial justification, traffic info for prior 2 years, planning & forecast info.

182
Q

Method of collecting PFCs which are considered a user fee.

A

State & Local procurement process and does not impose additional requirements. NOT federal procurement standards.

183
Q

Promotes the substitution of materials and methods with less expensive alternatives that do not compromise functionality.

A

Value Engineering (VE)

184
Q

Unless there’s an exception by the FAA, federally grant funded construction projects must be under this type of contract.

A

Fixed Fee. Contingency and escalators are not allowed.

185
Q

Construction contracts over $100,000, federal regulations require the airport to obtain a bid guarantee equal to.

A

5% of the bid price as well as performance and payment bonds equaling 100 percent of the contract.

186
Q

Any federally-funded construction contract that

exceeds $2,000 must comply with.

A

Davis-Bacon Act providing a weekly reporting of wages paid (i.e. the minimum wage requirement).

187
Q

Require that all steel and manufactured goods used

in AIP funded projects are produced in the United States.

A

Buy America Act of 2003

188
Q

similar to a General Contractor who is retained to provide advice to the airport operator during the design phase, to take bids for construction from multiple prime trade contractors, and then to manage the prime trade contractors.

A

Construction Manager at Risk (CMAR)

189
Q

Must pre-review and concur with design-build proposals in order for the project to be funded with AIP, or for any AIP-funded project using construction manager at risk proposals, or other competitive proposals that do not involve qualifications-based selection w negotiated prices.

A

The FAA ADO

190
Q

Typically used for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, and mapping and related services.

A

Professional services contracts

191
Q

Contracts require prior approval from the ADO and are typically only approved when the item or service is only
available from a single-source (i.e. unique patent rights, secret processes, or control of certain materials), or when competition is deemed inadequate or during an emergency situation.

A

Single-source or noncompetitive

192
Q

Small businesses that have socially and economically disadvantaged individuals who own at least a 51% interest of a business and control management and daily business operations.

A

DBEs (Disadvantaged Business Enterprises)

193
Q

Required if an airport anticipate awarding more than $250,000 in prime contracts using federal funds during a fiscal year.

A

Implement a DBE Program. Establish a 3 year goal (percentage) for prime contracts related to construction (including noise mitigation), professional services, and equipment acquisition.

194
Q

An IT system’s most overlooked, yet arguably most critical, aspects in gauging an airport’s likely success.

A

Systems usability

195
Q

Provides noise event and flight track analysis, produces reports on noise and flight track compliance, helps to monitor noise limits, assists with curfew management, monitors no-fly zones, assists with handling noise complaints by providing accurate information about particular flights and noise emissions, and provides data for the generation of Integrated Noise Model contour. Can collect data from multiple sources including weather stations, METAR reports, ATIS, and airline schedules.

A

Airport Noise and Operations Monitoring System (ANOMS)

196
Q

Provides guidance, control, surveillance, and planning /routing of all vehicles and aircraft on the airport surface and in any type of weather conditions.

A

Surface Movement Guidance and Control System

SMGCS

197
Q

System used to allow, restrict, or track the movement of individuals who have been issued airport credentials throughout the security areas of the airport. Can include proximity cards, magnetic stripes or barcodes,
keypads, smart cards with integrated biometrics, or a combination of these technologies. The system must also connect to the badging system.

A

Physical Access Control System (PACS)

198
Q

Failure of the security system could result in?

A

Breach of security, a Letter of Investigation (LOI) and possible fines from the TSA.

199
Q

The three critical stakeholders involved in updating information technology systems at airports?

A

The chief executive officer (often Airport Exec. usually directly related to the airport master plan, and the overall mission, vision, and purpose of the airport. ), the chief information officer (CIO), and the stakeholder executive, described as a triangle of communication.

200
Q

FAA is collecting airport and aeronautical data to meet the demands of the Next Generation National Airspace System (NextGen) under this program. The goal of the program is the centralized storage and access of GIS data for most US Part 139 and NPIAS airports.

A

Airports Surveying-GIS Program (AGIS).

201
Q

Particularly important to protect from data penetrations, malware, and other cyber-attacks and should be separated to the extent possible from other airport systems.

A

Access Control and Alarm Monitoring System (ACAMS)

202
Q

The basic policy that most commercial aeronautical service providers should hold is a?

A

Commercial General Liability (CGL) policy.

203
Q

A CGL policy typically provides three specific

coverage areas to service providers and includes the following:

A

(1) Hangar Keepers Liability, which protects the insured from any damage they may cause to an aircraft under their care and control,
(2) Premises Liability, which provides coverage for injury to persons or property, and
(3) Product Liability, which provides coverage on products, such as fuel and oil, that tenants
may sell.

204
Q

Requires the ability to budget and invest large amounts of liquid capital that can be used to pay future
judgments against the airport.

A

Self-insurance. Airports should “self-insure” as much as possible.

205
Q

The 4 most common types of lease agreements & description of each.

A

Straight - remains constant throughout the term.
Graduated - provides for changes in rents and fees at previously arranged intervals.
Revaluation - provides for periodic valuations of the property and rent adjustments to current values.
Percentage - rents equivalent to a percentage of business sales, which are common in concession lease
agreements.

206
Q

This section of a lease includes a detailed statement that reflects the facts, events, and description of the general terms and conditions of the lease. Contain
information on the lessor and lessee, as well as statements that reflect the terms that have been agreed upon.

A

Recitals

207
Q

Major financial difference between developing a project or facility using a ground lease and developing the property through fee-simple ownership.

A

That no mortgage interest can be placed on the land under a ground lease.

208
Q

Whereby vendors are not allowed to charge a price greater than the average price for a product or service that might be found in the local area or city shopping
malls.

A

Street Pricing

209
Q

An airport can develop rates and charges for

concessions in a number of ways:

A

gross revenue per square foot (of usable footage); gross revenue per enplaned passenger; net revenue per square foot; or net revenue per enplaned
passenger.

210
Q

Two trends in airport concessions at medium to large-hub airports are.

A

Shopping Center approach and/or Brand-Name Concessions approach.

211
Q

Common measures of concession performance are.

A

Sales per enplaned passenger, sales per square foot, or a revenue percentage of the total airport budget. A common measure of concession quality performance is a customer survey.

212
Q

Car rental concessions often establish their rates as a percentage of what? What needs to be defined under this method.

A

Gross revenue. Are add-ons included.

213
Q

In lieu of landing fees for GA aircraft, many smaller airports collect?

A

Fuel-flowage Fees

214
Q

Aeronautical Use (or Lease) Agreements with the airlines does not generally guarantee what.

A

Service by the airlines to the airport and nearby community.

215
Q

Signatory carriers may exercise significant control over an airport’s capital budgeting process under
provisions in a use agreement known as.

A

Majority-In-Interest (MII) clauses. Usually seen in residual agreements.

216
Q

MII clauses give signatory airlines the ability to influence what?

A

Capital projects, giving them the right to approve or disapprove proposed projects, depending upon
how the agreement is structured.

217
Q

Developing an airport requires that the Airport Executive consider these 5 items:

A

(1) physical constraints, (2) zoning regulations, (3) political factors, (4) conveyance (or use) restrictions, and (5) general and contract legal counsel.

218
Q

Steps to developing an airport.

A
  1. consider impact on public welfare
  2. preparation of a market analysis
  3. develop a pro forma economic analysis (op expense)
  4. construction phase
  5. establish an operating plan for life of facility
219
Q

The most common alternate (from AIP funds) forms of capital monies include:

A

PFCs, CFCs, Bonds, & State Aviation Grant monies.

220
Q

The Airport and Airway Improvement Act of 1982 established what?

A

Airport Improvement Program (AIP)

221
Q

Under AIP, grants can be issued for purposes of?

A

Airport planning, airport development, or noise compatibility projects. Eligible airport planning projects can address area-wide or individual airport needs. Project must involve a minimum of $25k.

222
Q

The AIP processes are regulated under FAA Order ?

A

5100.38C, otherwise known as the Airport Improvement Program Handbook. The handbook addresses the grant process, eligibility of the sponsor, eligibility of the project, allowable costs, and prioritization.

223
Q

Periodically, the FAA will issue this to add to or revise guidance about the administration of AIP, related to the AIP Handbook.

A

A Program Guidance Letter (PGL)

224
Q

AIP Entitlement funds are apportioned by a formula and is based on?

A

Annual passenger boardings at that airport, number of aircraft operations, amount of cargo, airports that are part of the Small Airport Fund, and a State Apportionment calculation.
Based on the annual amount of AIP funding that is available, 18-20% of the annual amount is
apportioned for use at non-primary commercial service, general aviation, and reliever airports.

225
Q

Portions of AIP funds are designed to achieve specified funding minimums such as approved Noise Abatement Programs, airports eligible for the Military Airport Program, and GA reliever airports. Noise Abatement equal 35% of available funds and can be used for noise compatibility plans, noise compatibility implementation
programs, compatible land-use planning, and Clean Air Act projects.

A

Set-Aside Funds

226
Q

Remaining AIP funds after Entitlement and set-aside.

A

Discretionary Funds. Two types: discretionary set-aside and capacity/safety/security/noise (C/S/S/N) fund. Based on national priority, must be able to start same fiscal year or within 6 months. Distributed by Office of Management and Budget.
The remaining 25 percent, known as pure discretionary funds.

227
Q

Percentage of discretionary funds used for Military?

A

4%

228
Q

Provided AIP is funded at $3.2 billion or above, reliever airport have .66% of discretionary funds available if they meet what conditions.

A

More than 75,000 annual operations, runways of 5,000-feet or greater that have a precision instrument
landing procedure, at least 100-based aircraft, and at least 20,000 hours of annual delays in commercial passenger aircraft takeoffs and landings at the airport relieved.

229
Q

How much must be available as discretionary funds

after all apportionments and set-asides are completed.

A

$148 million. If not first 2 groups are reduced by same percentage to ensure the $148 million.

230
Q

Under the AIP Handbook, at large and small-hub airports, the federal share is?

A

75 percent (80 percent for noise implement programs).

231
Q 
Federal share (AIP funds) for projects at small and
non-hubs and GA airports is?
A

90 percent, but this number has periodically been increased by Congress to 95 percent.

232
Q

How often does Congress passes legislation that appropriates grant funds? What is it known as?

A

Every 3-4 years. Reauthorization Bill

233
Q

AIP money for non-primary commercial service or general aviation and GA reliever airports

A

State Apportionments

234
Q

The state assumes responsibility for administering AIP grants at airports classified as “other-than-primary” airports (i.e. non-primary commercial service, reliever, and GA airports).

A

Block Grants

235
Q

Payments to a Sponsor are either made through the processing of requests submitted by a Sponsor to the FAA through the Electronic Grants Payment System called?

A

Delphi eInvoicing System.

236
Q

AIP grants focus on projects associated with?

A

The construction, improvement, and preservation of airport infrastructure or the acquisition of land or equipment.

237
Q

AIP grant funds Ineligible improvements include:

A

Landscaping, artwork, parking facilities, airport
operational costs, Wildlife hazard management plans, installation of surface detection sys & instrument landing sys, and exclusive-use and near exclusive-use areas (i.e. FBO support areas on an apron), industrial park development, marketing plans, training, maintenance or office equipment, and development that exceeds FAA Standards.

238
Q

What to all AIP projects, including projects for plans and specifications, require prior to FAA approval.

A

Environmental processing.

239
Q

In awarding AIP funds to airports, the FAA emphasizes that the highest priority projects are funded with an emphasis on projects that relate to the following goals:

A

(1) ensuring that the air transport of people, services, and goods is provided in a safe and secure environment; (2) preserving and upgrading the existing airport system in order to allow for increased capacity, as well as to ensure reliable and efficient use of existing capacity; (3) improving the compatibility of airports with the surrounding communities and providing sufficient access to an airport for the
majority of the American public.

240
Q

That portion of the NPIAS that provides additional details including the anticipated sources of funds for specific developments that are expected to be undertaken within the next 3 to 5 years and are considered likely to be funded through the Airport Improvement Program.

A

Airports Capital Improvement Plan (ACIP)

241
Q

Extends 5 to 6 years out, include not just projects eligible for federal funding, but also projects that are funded by state grants, operational revenues, bonds, or other means.

A

Airport Capital Improvement Plans

242
Q

Issued by the FAA for multi year projects. States that the FAA intends to obligate AIP discretionary and entitlement funds from future budgetary authority for that project. States that reimbursement will be made according to a given schedule as funds become available from Congress each year over the specified term.

A

Letter of Intent (LOI)

243
Q

Allowed public agencies that control commercial service airports enplaning more than 2,500 pax annually to charge each enplaning passenger a $1, $2, or $3 facility charge in accordance with FAA regulations.

A

Aviation Noise and Capacity Act of 1990 (ANCA)

244
Q

The maximum PFC charge as of 2000.

A

$4.50 per segment, with a round trip cap at $18.

245
Q

For med or lg airports the level of eligibility for PFC funding if the project will make a significant contribution to improving air safety and security, increasing competition among air carriers, reducing current or anticipated congestion, or reducing the impact of aviation noise on people living near the airport.

A

$4 or $4.50

246
Q

Large and medium-hub airports that collect PFCs must return what percent of their AIP apportionment (entitlements) if they collect $3 in PFCs, or return up to what percent of their entitlements if they collect $4.50 per passenger.

A

50%

75%

247
Q

As part of the application approval process, and before any PFC implementation is allowed what must be submitted?

A

An approved environmental and airspace studies and an approved airport layout plan must be submitted to the FAA just as in the AIP process.

248
Q

Revenue from PFC may be used for?

A

(1) approved projects only, (2) payment of all or part of allowable costs, (3) the airport’s AIP matching funds,
(4) augmentation of AIP funded projects, and (5) payment of the debt service or financing costs of eligible airport development bonds. May be used along with general airport revenue to provide a “double-barreled” effect for bond debt service coverage.

249
Q

The risks associated with using PFCs solely for the backing of bond issues.

A

Primary is the termination of PFC collection rights by the FAA if there is a violation of ANCA. 2nd, airline bankruptcy. 3rd, the airport does not implement the identified project within a specified number of years, and authorization to collect a PFC is revoked.

250
Q

Types of Interest-bearing obligations (bonds) issued by state and local government entities to finance capital costs.

A

(1) general obligation, (2) revenue and special facility bonds, (3) hybrid source bonds, and (4) industrial development and exempt facility bonds.

251
Q

Issued only by states, municipalities, and other
authorized, general-purpose governments, require voter approval, key advantage is they are issued at lower interest rates due to community guarantee.

A

General Obligation (G.O.) bonds

252
Q

Issued by a state or local government, or by an airport authority, commission, special district. Revenue
bonds are based on the philosophy that facilities should be paid for by those who use them. Advantage is that they can be issued for longer periods of time 25-30 yrs = lower monthly debt payments.

A

Revenue bonds

253
Q

Issued by the Airport’s Sponsors in order to obtain tax-
exempt status. These bonds are secured by the revenue from the indebted facility (e.g., terminal,
hangar, or maintenance facility) rather than the airport’s general revenue fund.

A

Special Facility Bonds

254
Q

Airport revenue bonds combined with PFCs, CFCs, GO bonds, or some other pledge to fund a project.

A

Hybrid Source Bond

255
Q

Which type of bond is management a key component in the assessment process because of the impact of management policies and practices on the bond performance.

A

Revenue Bond

256
Q

Issued by the DOT in each state, the key distinction with a state aviation or aeronautics grant program?

A

Airport receiving the state’s grant money can typically use that money to provide the federal match for an AIP grant. Non NPIAS airports can use state grant money.

257
Q

Are CFCs regulated by the FAA like PFCs.

A

No.

CM (4 decks)

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