Module 1 Finance and Administration Flashcards

Question

Airports who don't meet any criteria can be included through special justification such as:

Answer 1

- A determination that the benefits of the airport will exceed its development costs - Written documentation describing isolation - Airports serving the needs of American Indian tribes - Airports needed to support recreation areas - Airports needed to develop or protect important national resources

Answer 2

- Enplanements - Operations - Cargo Tonnage

Answer 3

- Private - Commercial Service - Cargo service - GA/GA reliever - Military

Answer 4

Publically owned and have at least 2,500 annual enplanements

Answer 5

Public use and no scheduled service or less than 2,500 enplanements

Answer 6

designated by the FAA to relieve congestion at commercial service airports and to provide improved access to the community

Answer 7

served by aircraft transporting cargo with a total annual landed weight of more than 100 million pounds. An airport can be both commercial service and cargo

Answer 8

Airport owned by DOD at which both military and civilian aircraft make shared use of the airfield

Answer 9

U.S. government owned airport that's co-located with a civil airport specified under, at which, portions of the movement/safety areas are shared with both parties

Answer 10

- Receive scheduled air carrier service with 10,000 or more enplanements a year - Grouped into 4 categories: - Large - Medium - Small - Non-hub

Answer 11

- Mainly used by GA aircraft - Included are nonprimary commercial service airport (enplanements 2,500-9999), GA and relievers - Grouped into 5 categories: - National - Regional - Local - Basic - Unclassified

Answer 12

- Largest commercial service airports - Serve at least 1% or more of total US passengers - 29 large hubs in the US (70% of all passengers) - Tend to be more commercial/cargo and minimal GA

Answer 13

- 33 in the US - Enplane .25-1% annually - 17% of all passengers - Mix of both commercial and GA

Answer 14

- Enplane .05-.25% total passengers - 76 in the US - 9% of all enplanements - Commercial usually less than 25% - Usually higher levels of GA

Answer 15

- 10,000 enplanements - 251 airports - 3% of all enplanements

Answer 16

- Predominantly GA - Included are nonprimary commercial service - Receiving 2,500-9,999 enplanements - GA/reliever airports - 125 Airports - Enplane .1%

Answer 17

- Account for enough activity - @ least 10 based aircraft - @ least 20 miles from the nearest NPIAS airport - 36%

Answer 18

- 84 - Located in metro areas near major business centers - heliports/seaplane bases not included

Answer 19

- 467 - located in metro areas - no heliports/seaplane bases - support both interstate and intrastate flying

Answer 20

- 1236 - Mostly piston aircraft - Accommodate flight training, EMS, and charter - No heliports - Business/personal needs

Answer 21

- Often have just 1 RWY, helipad, or seaplane base - Private - 3 heliports - 20 Seaplane bases

Answer 22

International Civil Aviation Organization Ensure that flight operations are conducted in a consistent manner and that there's a common vocabulary and operating principles amongst pilots, aviation systems, and airport operators

Answer 23

-14CFR119 air carriers and commercial operators -Identifies requirements for aircraft engaged in commercial carriage in passengers carrying or cargo

Answer 24

- Part 121 - Provides a schedule containing departure location, departure time, arrival location of flight offered - Can only operate at airports that are under part 139 - Restrictions based on class of airport but can allow alternatives if approved by the air carrier if not on a regular basis or an emergency - Covers 15 minutes before take off to 15 minutes after landing - ARFF, Wildlife, snow, and lightning

Answer 25

Operating requirements: Domestic, flag and supplemental operations (i.e. air carrier certifications)

Answer 26

- Usually non-scheduled - Operator requirements: commuter and on demand operations and rules governing persons on board such aircraft (i.e. air charter/taxi) - Different training, safety and maintenance standards

Answer 27

- Public charters (i.e. when an air carrier leases a plane to resort company to use the plane to fly their members to a destination). - Required to operate to/from part 139 airports - 1 way/round trip flight performed by direct air carrier and sponsored by an air charter

Answer 28

Certificated domestic/foreign air carrier, an air taxi operator or a commuter air carrier that directly engages in the operation of an aircraft under a certificate, permit or exemption issued by DOT. Has control over the operation function performed in providing transport

Answer 29

- Uses commercial air transport to move passengers/cargo but doesn't own/control aircraft - Any person (industry or corporation) such as tourist/athletic organization that engages in services of a direct carrier in the transport of passengers, cargo or baggage

Answer 30

- A/FD - Weather at both airports - NOTAMs - Other important information

Answer 31

- 1,000 ft. AGL (clouds) - 3SM - below 18k MSL= no flight plan required - "See and Avoid"

Answer 32

-Airport, weather, navigation, communication frequencies -navaids -light patterns of cities at night -terrain features -obstructions airspace

Answer 33

low= below 18k MSL high=above 18k MSL Show victor airways or jet routes between navaids

Answer 34

``` ASOS= Airport Surface Observation Station AWOS= Airport Weather Observation Station ATIS= Automated terminal information Service ```

Answer 35

- Airport owner/operator - Governing entity of a single airport or airport system - board of locally elected/appointed officials - "Any public agency or private owner of a public use airport as defined by the airport/airway improvement act of 1982"

Answer 36

Typically municipal airports. Refers to a branch of government that operates like a business

Answer 37

- Municipality - Airport Authority - Port Authority - State - Private

Answer 38

Review requests from airport staff and prepare recommendations for the airport sponsor to act upon

Answer 39

- Created through enabling legislation that makes the authority the legal sponsor of the airport - Makes decisions on the direction and overall mgmt of the airport

Answer 40

1. Airport market/service area have outgrown political boundaries, such as when its operated by a single entity but has economic impacts that affect a wider region 2. Authorized control of the airport allows for governing board to concentrate/specialize on airport business matters rather than general social/communication issues not related to the airport 3. Authorities can provide on scene decision making, which shortens the process and allows mgmt to take advantage of fleeting opportunities and less political influence 4. Can provide multiple jurisdictions with representation in the airports operation and development

Answer 41

- Airport administration often has better access to the resources of other city departments - Reduces requirements to have duplicate HR, purchasing, accounting, police/fire - Power to tax/issue bonds to aid in opportunity and capital development of an airport - Access to larger resources

Answer 42

- Policy makers are often unfamiliar with the operation of an airport nor can they devote a lot of time - Airport must compete for the same amount of attention as other departments - When financial times are tough in the city, the airport is usually viewed as another department and not that it generates its own funds, which leads to cuts - Decisions best for the airport mat conflict with what's best for the community

Answer 43

Special type of legally chartered institution that generally has the same status as a public corporation, but, along with the airport, operates other types of facilities such as harbors, toll roads, subways, etc

Answer 44

- Focused leadership and specialized attention - Equitable taxation - Authorities can provide a more business-focused, efficient operation and economy of scale

Answer 45

Resources and finances may not be readily available in quantities/levels necessary to provide support to the airport

Answer 46

- Planning/developing a safe/efficient national airport system - All programs related to airport safety and inspections - Standards for airport design, construction, and operation - Awards CIP grants, approves PFCs, compliance with grant assurances

Answer 47

Transfers the federal obligation, as well as the responsibility for operations, mx, and development of an airport from a public sponsor to a private one exempt from paying federal funds back Partial contract privatization isn't considered privatization by FAA definition

Answer 48

Clear comprehension of the essentials of pure business mgmt skills including: - development/execution of business strategy - ops mgmt related to providing the "product" to the airport customer - Finance and accounting - Organizational behavior including personnel mgmt and HR functions - Tactics/processes of effective marketing

Answer 49

- The airport is a public entity and must be managed as a public entity - The airport is a business enterprise and a place for commerce to take place and therefore must also be managed as a business

Answer 50

- set goals - identifies strategies for fulfilling the vision of the airport - approves plans and programs - assigns and oversees the airport manager's responsibilities

Answer 51

Governing body: - Establishes policy - Sets goals - identifies strategies for fulfilling vision of the airport - Executes contracts - serves as airport advocate - approves plans/programs - assigns/oversees airport managers responsibilities - Selects consultants/service providers Airport Manager: - Implements policy - runs airport day to day - reports to governing body - operates airport safely and efficiently - maintains airport/facilities - prepares financial plans - oversees public relations - makes provisions for passengers - recommends/enforces regulations - secures new business

Answer 52

- Type of governing body owning the airport - Size of airport - Extent to which different functions of the airport are operated by internal/external parties - political environment in which the airport is located

Answer 53

-Addresses areas of accounting: -payroll, audits, receivables/payable -Managing budget: HR Procurement PR Air Service Development Marketing Real estate Revenue mgmt

Answer 54

-addresses areas of CIP, construction standards, airport master plan and ALP -Compliance with environmental laws -participate in regional transportation planning -administrative space planning -noise abatement planning Frequently work with FAA's airports district office (ADO) in administration of federal grants through AIP

Answer 55

- enforces both operations/security regulations on the airfield and sometimes landside/terminal areas - operations deals with FAA certification inspectors for part 139 - Daily inspections and maintenance

Answer 56

- Marketing for airport services and properties - publicity and response to issues - marketing to new airlines

Answer 57

- often reports directly to the board or airport executive | - deals with user agreements, leases, mgmt of environmental issues, insurance, HR issues

Answer 58

a draft set of regulations is prepared by a federal agency and then published to the federal register. Upon publication, a public comment period is opened, usually 30-60 days, but varies. Anyone can comment and after the comment period is over, the government agency reply to each comment. They can make changes to regulation then publish it again in the federal register at which point the regulation is enforceable

Answer 59

- Regulating civil aviation to promote safety - encouraging/developing civil aeronautics, including new aviation technology - developing/operating a system of ATC and navigation for both civil and military aircraft - Researching and developing the national airspace system and civil aeronautics - developing and carrying out programs to control aircraft noise and other environmental effects of civil aviation - regulate commercial space transportation

Answer 60

1. airports (ARP) 2. air traffic organization (ATO) 3. Aviation safety (AVS) 4. Office of commercial space transport (AST) 5. NextGen

Answer 61

Responsible for keeping air traffic moving and navaid maintenance

Answer 62

focuses on the certification of pilots, mechanics, and other air safety related professionals

Answer 63

Responsible for all activities related to US commercial space transport industry

Answer 64

Oversees compliance with part 139 and grant assurances, airport safety/certification, land transfers, engineering issues, pavement maintenance/CIP, environmental, noise, master plan, RWY safety and guidance issues

Answer 65

Regional office of FAA that concentrates on enforcing regulations pertaining to aircraft and airman certification and licensing. Usually contacted for things such as low flying aircraft, accident reporting, air carrier certification and operations, aircraft maintenance, aircraft operational issues, aircraft permits, airman certification for pilots, mechanics, repairman, dispatchers and parachute riggers

Answer 66

- help explain the intent of an FAR to provide guidance and information to the aviation public in a designated subject area or to show a method of acceptable for complying with a regulation - Are not binding unless they're incorporated with reference to a regulation

Answer 67

Allows federal agencies to meet requirements to publish regulations by referring to materials already published elsewhere. The combination of referenced sub-parts is treated as if it were published in full

Answer 68

1. Airport Master Plan 2. Airport Design 3. ACM 4. Airport Self Inspection 5. Operational safety during construction 6. Airport FICON assessments and winter operations 7. Noise control and compatibility planning 8. Community involvement in airport planning 9. PFCs 10. AEP 11. Minimum standards for community aeronautical activities

Answer 69

- Directives on specific subjects/programs issued by FAA and remain in effect until rescinded - Provides guidance/instruction to FAA personnel on compliance, airport safety/operations and other related issues

Answer 70

SD- Provides changes in regulations to ASP IC- Provides intelligence information for, or suggest best practices in the domain of airport security Both are controlled as SSI and aren't intended for public dissemination

Answer 71

- Require the recipients to maintain and operate their facilities safely, efficiently and in accordance with specified conditions - Part of the final grant offer - Duration of obligation depends on type of recipient, and the useful life of the facility

Answer 72

1. Allow airport executives to better manage local affaird 2. They meet the requirement of the FAA to ensure that federal funds are effectively used to meet the need for public air transportation 3. Meets the goal of the federal government to promote social objectives, such as disadvantaged businesses and the rights of those with disabilities ex) Compliance with labor laws, legal provisions to ensure public access, compatibility issues

Answer 73

1. General federal requirements 2. Responsibility/authority of airport sponsor 3. Sponsor fund availability 4. Good Title 5. Preserving rights and powers 6. Consistency with local plans 7. Consideration of local interest 8. Consultation with users 9. Public hearings 10. Air/Water quality standards 11. Pavement preventative maintenance 12. Terminal development prerequisites 13. Accounting system, audit, record keeping requirements 14. Minimum wage rates 15. Veteran's preference 16. Conformity to plans and specifications 17. Construction inspection and approval 18. Planning objectives 19. Operations and Maintenance 20. Hazard removal and mitigation 21. Compatible Land Use * 22. Economic nondiscrimination 23. Exclusive rights 24. fee and rental structure 25. Airport Revenue 26. Reports and inspections 27. Use by government aircraft 28. Land for federal facilities 29. ALP 30. Civil Rights 31. Disposal of Land 32. Engineering and design services 33. Foreign market restrictions 34. Policies, standards and specifications 35. Relocation and real property acquisition 37. Disadvantaged business enterprises* 38. Competitive access

Answer 74

- Provides guidance to FAA personnel on interpreting and administering the ongoing commitments made by sponsors to the federal government - Rights and powers of the airport - complaint resolution - airport operations - exclusive rights - unjust discrimination - minimum standards - lease agreements - revenue diversion

Answer 75

1. Grant agreements issued under federal airport act of 1946, airport and airway development act of 1970, airport/airway improvement act of 1982 2. Surplus airport property instruments of transfer, issued pursuant to section 13G of the surplus property act of 1944 3. Deeds of conveyance issued under section 16 of 1946 airport act, under section 23 of the 1970 airport act, under section 516 of AAIP 4. AP-4 agreements authorized by various acts between 1939-1944 5. Commitments in environmental documents prepared in accordance with current FAA requirements, which address the NEPA act of 1969 and the AAA 6. Separate written agreements between sponsor and FAA, including settlement agreements resulting from litigation

Answer 76

- Lists obligates airports with egregious violations where the airport sponsor has been informally determined to be in noncompliance with its grant assurances and/or surplus property obligations as of a particular date - An airport is placed on the list if it falls in 1 or more categories and violations are so egregious as to preclude federal financial assistance until the issues are resolved

Answer 77

1. airports with a formal finding of noncompliance under 14CFR16 if corrective action hasn't been taken 2. Airports listed in the AIP 3. Certain violations of the US Code 4. Airports that are clearly in noncompliance despite FAA requests to the sponsor for corrective action 5. Airports where the violations area so egregious as to preclude additional federal financial assistance until the issues are resolved

Answer 78

1. Grant agreements for development other than land purchase 2. Grant agreements for land purchase 3. Surplus property deeds and non-surplus land conveyance documents

Answer 79

Pavement and other facilities built to FAA standards are designed to last at least 20 years, and the duration of the obligation should generally be 20 years. The duration may be shorter for grants made exclusively for certain equipment, such as a vehicle, that clearly has a useful life shorter than 20 years

Answer 80

AIP grant agreements for the purchase of land provide that obligations do not expire, since the useful life of land doesn't end or depreciate. However, federal aid to airports (FAAP) and airport development aid progra (ADAP) grants didn't always contain this language, and the grant documents should be reviewed to determine whether the obligations expire in 20 years or continue indefinitely. Also, grants to a private operator of a public use airport (GA) provide for a defined duration of the obligations attached to the grant

Answer 81

Documents conveying federal land and property interests for airport use generally have no expiration date, and obligations continue indefinitely until the sponsor is formally released from the obligation by the FAA. Obligations run with the land and bind subsequent owners

Answer 82

- Exclusive rights - Airport Revenue - Civil Rights - Real property acquired with federal funds * Unless exempted by the FAA* * If no longer used/needed for which it was developed*

Answer 83

1. Maintain the airport in good and servicable conditions 2. Use specific lands approved by the FAA for non-aeronautical use to generate revenue to support the airport's aviation needs 3. Operate the airport in the public interest 4. Ensure there's no grant of an exclusive right for any aeronautical purpose or use

Answer 84

- Provides the public a method of reporting compliance violations if federal laws affecting air transportation - Considered informal - Not for grant assurance violations - Accepted verbally/written - Submit to the ADO or FAA regional office

Answer 85

1. Evaluate facts surrounding the filing and identify possible sponsor violations 2. Clarify rights/responsibilities of the airport sponsor and the complaining party 3. Offer assistance to resolve the dispute in a manner consistent with the sponsor's federal obligations 4. Provide the sponsor the opportunity to comply with its federal obligations voluntarily when a violation is identified

Answer 86

Identifies the apparent violations, specifies corrective actions that would resolve the violation without further agency action and prescribe a deadline for completion If corrective actions aren't performed and attempts have been made to bring the airport into compliance, the ADO or regional office may initiate it's own part 16 complaint

Answer 87

- Processing of complaints against airports that receive federal assistance and relate specifically to grant assurances - A formal complaint and is often more serious as it imposes a deadline and has stringent requirements for the airport, the complaintant and the FAA - Must be filed directly with the office of the chief counsel of the FAA - Airport/airway improvement act, federal aviation act, surplus property act, and their predecessors - FAA has 20 days to respond

Answer 88

1. Require parties to make a serious effort to resolve disputes informally before filing a formal complaint 2. Focus FAA resources primarily on resolving complaints 3. Promote informal resolution by speeding the initial evaluation 4. Provide for a single complaint procedure to avoid overlap 5. Requires complaintants to be directly affected by the dispute 6. Specific deadlines for actions of all parties 7. Limit the number/type of pleading and must have supportive documentation 8. Establish burden of each party 9. Provide and effective appeal process 10. Establish FAA enforcement options

Answer 89

1. Withhold new grants, withhold payments on existing grants or terminating eligibility for future grants and PFCs 2. Cease and desist orders 3. Civil penalties 4. judicial enforcement

Answer 90

1. State name, address of each person who's subject of complaint 2. Specific provisions of each act that the complaint believes were violated 3. Complete, yet concise, statement of the facts that substantiate each allegation 4. Complaint should describe how the complaintant was directly and substantially affected by the act of, or omission of an act by, the respondents.

Answer 91

1. A review of the written submissions of the parties, information gathered by the FAA's investigation of the matter or information furnished by the parties at the FAA's request 2. Oral and documentary evidence obtained through the FAA's use of its authority to compel production of evidence 3. Conducting or requiring that a sponsor conduct an audit of airport financial records and transactions

Answer 92

1. The complaint is dismissed after investigation 2. A hearing isn't required by statute and isn't otherwise made available by the FAA 3. the FAA provides the respondent an opportunity for a hearing, and the respondent waives the opportunity for a hearing

Answer 93

A collection of FAA regulations, jurisdictions, various statutes, grant assurances, ACs, and court decisions at the local, state, and federal levels. Typically deals with regulatory compliance, tenant relations, financing, airport operations and certification mostly related to part 139 and SMS and airport development issues

Answer 94

1. Airport attempts at regulating pricing 2. Routes or restrictions on air carrier service 3. Airport executive unreasonably restricts aircraft operations 4. Airport executive unjustly discriminating against an airport user 5. Airport revenue not being used to benefit the airport

Answer 95

1. Freedom of speech (literature distribution) 2. Freedom of movement (of people) 3. Misuse of legal process (Public officials misusing power) 4. Interference with person (Right to be free from injury/threat) 5. Peace of mind (unnecessary mental suffering) 6. Privacy 7. Interference with reputation 8. Property rights 9. Contracts/business relationships

Answer 96

There must be both actual damage/injury and intent to cause such. a malicious act or an unavoidable accident that cause no damage is insufficient cause for legal action. If damages were unintentional but still resulted through accidental interference or the lack of action, the person or entity at fault may have been negligent

Answer 97

- Government can't commit a legal wrong and is immune from civil suit or criminal prosecution - Commonly extends to employees of federal/state/local government provided they're acting within the scope and authority of their position - Often protected unless negligent

Answer 98

Is the failure to use reasonable care. You fail to act as an ordinarily prudent person would act under the same circumstances

Answer 99

Waives the immunity if the act of a government employee caused damage

Answer 100

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

Answer 101

Occurs when someone has personally participated in an affirmative act of negligence, know about or complied in negligent acts or failed to perform a precise duty which he/she agreed to perform Response to incident/accident, snow removal, airfield maintenance

Answer 102

-Created TSA -3 major mandates: 1. Take responsibility for security of all modes of transportation 2. Recruit, hire, train and deploy security officers for 450 airports 3. Provide 100% screening for explosives of all checked baggage

Answer 103

- Became an independent agency in 1975 - Investigates every civil aviation accident and significant accidents in other modes of transportation - Often delegates non serious/fatal accidents to the FAA

Answer 104

-"secure international cooperation and the highest possible degree of uniformity in regulations/standards, procedures and organization regarding civil aviation matters." Specialized agency of the UN

Answer 105

- Lobbying congress - Working with regulatory agencies - Providing training - Seminars/trade shows - Accreditation

Answer 106

- September 1928 - One of most influential associations in congress - Goal: to better serve airport executives by providing continued improvement in products/services, along with providing representation in DC - Provides lobbying, regulatory services, training, accreditation, and other professional development programs

Answer 107

- 1991 - Represent common interests and to promote cooperation with associations in the airport transportation industry - "The airport community now speaks with a single voice on key issues and concerns and despite regional diversity can move forward as a united industry" - 5 world chapters

Answer 108

ACI-NA - Represents local, regional and state governing bodies that own and operate community airports in the US/Canada - Provides legislative advocacy, media promotion of airports and airport issues, information updates and conferences and research services

Answer 109

Brings together law enforcement leaders and facilitates communication between airport executives, intelligence officers, and investigators of airport LEO's to address mutual problems common to the field of airport security -Shares expertise with elected officials and government agencies

Answer 110

- April 1945 - Promotes safe, reliable, secure and economical air services for the benefit of the world's consumers - Represent, lead and serve the airline industry

Answer 111

Formerly ATA - Represents nation's leading airlines - Played major roles in government decisions including the creation of the CAB, FAA, ATC system and airline deregulation

Answer 112

- World's largest airline pilot union representing over 54,000 pilots at 31 US/Canada airlines - Provides airline safety, security and pilot assistance/representation/advocacy - Mission; Promote safety, represent collective interests of pilots, assist in collective bargaining, promote health/wellness of members, be the ultimate guardian/defender of the rights and privileges of pilots

Answer 113

- 1975 - Provides various tech. government relations and PR services - Promoting a safe, reliable and robust regional airline industry

Answer 114

- 1947 - Leading organization for companies who rely on GA aircraft to help make their business more efficient/productive/successful - Mission: Foster an environment that allows business aviation to thrive

Answer 115

- 1939 - Mission: To ensure that the sky remains within reach of everyone who dreams of becoming a pilot - Educates pilots/non-pilots/policymakers, supports activities that ensure long term health of GA, fight to keep GA accessible to all - Airport watch/Airport support network

Answer 116

- 1940 - Represents interests of GA business community before government - Relative to airport occupancy, airport security, competition and environmental issues

Answer 117

- 1919 - Represents nation's leading manufacturers/suppliers of civil, military, biz av, helos, drones, space systems, aircraft engines, missiles, materials, services and IT

Answer 118

- 1931 - Ensure uniformity of safety measures, to standardize airport regulations, and to develop a truly national air transport system responsive to local/sate/regional needs

Answer 119

- Exclusive bargaining representation for FAA ATC | - Advancing the status, professionalism and working conditions of ATC

Answer 120

-Providing programs that enhance safety, encourage professionalism and foster economic viability while promoting the unique contributions vertical flight offers

Answer 121

- HR - Organizational Mgmt - Quantitative Analysis - Commerce - Business Law - Economics - Inverstment Mgmt - Budgets/Accounting - Employee Mgmt - Motivation/Leadership - Marketing

Answer 122

- Public Finance - Leadership/Professional ethics - Public policy making - Communications - Purchasing/Procurement - Urban planning and land use - Mgmt public services organizations - Politics - Environmental Law - Geographic information system (GIS) - Planning for emergencies/disasters

Answer 123

"Good title" - Airport holds a good title to the airport that's satisfactory to the FAA - Provide FAA with complete title search report of all airport property on current ALP

Answer 124

- "Preserving the rights and power" - Prevent an airport sponsor from taking any action that may deprive the airport sponsor of it's rights/powers to direct/control airport development and comply with grant assurances - Prohibits an airport to sell/lease/encumber, transfer, dispose of any part of its title or other interests without written approval from the FAA

Answer 125

An important tool in ensuring that land adjacent to or in the vicinity of the airport is consistent with activities and purposes compatible with normal airport operations

Answer 126

Addressed in grant assurance #21. Requires the airport to make an attempt to restrict adjacent land use to activities/purposes common with airport operations

Answer 127

- Requires airport to take necessary action to protect airspace around the airport including visual/instrument approaches - Includes removing obstructions, securing land to prevent incompatible land use, and properly marking/lighting all obstructions

Answer 128

- Include off airport land in master plane - Noise compatibility studies - AIP grant money to purchase land - Negotiate with local zoning agencies

Answer 129

Airport Sponsor doesn't have the authority to enact zoning ordinances but must demonstrate a reasonable attempt to inform surrounding municipalities on the need for land use compatibility zoning through dissemination of information, education or ongoing communications with surrounding municipalities

Answer 130

Land can be used for more than 1 purpose at the same time

Answer 131

- Delineates airport boundaries, including all facilities - Identifies future plans - An airport must have an approved ALP to be eligible for AIP funds - Controls subsequent development of airport facilities and any construction/modifications or improvement - Doesn't represent the release of any federal obligations attached to land/property - Doesn't approve use for non-aeronautical purposes

Answer 132

1. Scheduled/non-scheduled air carrier service 2. Flight training and aircraft rental 3. Aviation maintenance operations 4. Maintenance repair stations 5. Aerial photography 6. Crop Dusting 7. Aerial advertising 8. Sight seeing 9. Aerial Surveying 10. Aircraft sales 11. aircraft storage 12. aviation fuel sales 13. sale of aircraft parts 14. Parachute activity 15. Military operations 16. FBOs

Answer 133

Requires the airport to be operated at all times in a safe/serviceable condition and requires the airport operator to operate and maintain the airport in a safe/serviceable condition in accordance with minimum standards. Keep the airport safe is to regulate the activities found to be permissible at the airport and developing/enforcing business operating standards. Therefore, grant assurances allows for minimum standards

Answer 134

Set forth the minimum requirements an individual/entity wishing to provide aeronautical services to the public on a public -use airport must meet in order to provide those services, such as minimum leasehold size, required equipment, hours of operation and fees. Ensures an adequate level of safe/efficient service is available to the public

Answer 135

1. Promote safety in all airport activities and maintain a high quality of service for airport users 2. To protect airport users from unlicensed/unauthorized products and services 3. Enhance the availability of adequate services for all airport users 4. To promote the orderly development of airport land 5. Provide a clear and objective distinction between service providers that will promote satisfactory service 6. Prevent disputes between providers and reduce complaints

Answer 136

1. Apply to all providers of aeronautical services, from full service FBOs to single service providers 2. Impose conditions that ensure safe/efficient operation of the airport in accordance with FAA guidance when available 3. Are reasonable, not unjustly discriminatory, attainable, uniformly applied and reasonably protect providers of aeronautical services from unreasonable competition 4. Relevant to the activity for which they apply 5. Provide the opportunity for others who meet the standards to offer aeronautical services

Answer 137

1. Experience and capability 2. Scope of allowance activity 3. Leased premise requirements 4. Facility maintenance, upkeep, cleanliness 5. hours of operation 6. Levels of expected service 7. Required licenses, permits and certificates 8. Training, minimum staffing, certificates 9. Security 10. Taxes, other fees 11. Fueling/Fuel storage 12. Equipment 13. aircraft removal

Answer 138

Restricts airport executives from granting exclusive rights to conduct a particular service unless it would be unreasonably costly, burdensome for more than 1 FBO to provide such services or require a reduction of lease space to an existing tenant. Second exception doesn't allow an airport to misuse space limitation exception by leasing all available space to an entity for the purpose of blocking access

Answer 139

Airport operators, acting in a government capacity, may exercise their police powers to regulate the operation of the airport. Rules/regulations designed to protect public safety, health, and welfare have been upheld as a valid use of police power provided the regulations are reasonable and don't conflict with existing state/federal regulations

Answer 140

1. Security 2. Conduct of individuals using the airport 3. Conduct of tenants/vendors using the airport 4. Schedule of frees, rates, and charges 5. Vehicle movement in the AOA 6. aircraft operations

Answer 141

Submission to screening, authorized signatory for tenants, used of access media and the access control system, credentialing process, proper applications for SIDA badges, rules pertaining to various security areas, enforcement, challenge procedures, unattended bags, and prohibited items

Answer 142

Distribution/literature, commercial photography, advertising on airport property, lost and found, pets, pedestrian and vehicle operations, luggage cart use, traffic/public safety, parking and smoking

Answer 143

GSE requirements, environmental and waste mgmt, use of motorized carts in the terminal, airline and tenant snow removal responsibilities, taxis, and community ground transportation, skycaps, newspaper distribution and vending push carts

Answer 144

- Signatory vs. non-signatory carriers - Landing Fees - Terminal base rent - Use/control of concourse gates - Use of baggage sorting system - Car rental concessions - Land rent - Late payments - Bonds - Subletting

Answer 145

- Vehicle permits - Airfield speed limits - Rules for driving on the AOA - Driver training - Bicycles/motorcycles/motorized cart operations

Answer 146

- Removal of disabled aircraft - Take off - Run ups - Aircraft parking - RON parking - Use of mechanical lifts - Ramps for en/deplaning - Fueling/Defueling - De-icing - Noise Abatement

Answer 147

Requires medium/large airport to report to the secretary of transportation any denial of a request by an air carrier for access to the airport

Answer 148

Restricts airport sponsor from taking any action that would deprive it of the ability to properly manage the airport Addresses through the fence operations

Answer 149

- A business operation that's located off airport and isn't under the control of the airport, but which has access to the airport runway/taxiway system through an access agreement - Not prohibited but strongly discouraged - Case by case basis

Answer 150

- Services provided by air carriers related directly and substantially to the movement of passengers, bags, mail and cargo at the airport - Landing fees, land leases, terminal/hangar rent, tie-down, fuel tax and fuel sales

Answer 151

Land rent received from an off-airport industrial park that's owned by the airport, reservation centers, catering facilities, rental car operations, parking, and concession sales

Answer 152

PFC's, customer facility charges (landside access fees, for commercial ground transportation such as taxis), interest income and grants

Answer 153

- Landing/ramp parking - Fuel flowage fees - Concessions - Restaurants - Retail - Parking - Rental Cars - Travel agent programs - Air shows/Open houses - Community ground transportation - Newstands - Leased areas

Answer 154

- Property Taxes - Sale of property - investment income - interest income - subsidies - Misc. sources not associated with the airport's primary business - Government grants - PFC's - Customer facility charges

Answer 155

-Wages and benefits -Engineering equipment maintenance -Advertising -Consultants -Ground maintenance -Supplies -Vehicle maintenance -Building maintenance -Service utilities Insurance

Answer 156

- Depreciation - Debt service - Capital Improvement - Interest - Government contribution - Amortization of deferred financing costs - Licenses - Losses/damages - Currency exchange gain/loss

Answer 157

- Seek additional TSA funding to support increased security related to checked baggage - Seeking grants to "go green" VALE program grants - Lease vacant airport property or mineral rights to industries such as agriculture, oil/gas. May also reduce costs associated with land maintenance - Focus on developing improved marketing/sales plans, strategies and tactics for existing tenants - Eliminate free parking or valuate parking rate structures. Add value services such as valet and corporate parking

Answer 158

- Personal property tax collected on aircraft ownership - Possessory interest taxes for use of government land - Sale/lease of property - Interest on earned investments - Local tax revenue - Collection on utilities - PFCs and customer facility charges

Answer 159

All revenues generated by the airport if its a public airport, will be expended for the capital or operating costs of the airport, the local airport system or other local facilities which are owned/operated by the owner/operator of the airport , and directly related to the actual transport of passengers and property

Answer 160

Airport must conduct an annual audit and assure that the government that the airport funds have been properly distributed

Answer 161

1. Generate economic development for the municipality 2. Marketing/promotional activities unrelated to the airport 3. Payments in lieu of taxes (pilots) that exceed the value of services 4. Payments to compensate sponsoring government bodies for lost tax revenue exceeding stated tax rates 5. Use of land for free or nominal rental rates 6. Rental of land to or use of land by the airport sponsor for non-aeronautical uses at less than fair market value rent

Answer 162

- Loss of ability to collect AIP - Civil penalties up to $50k - Require assessment of interest in the amount of diverted revenue - Withholding of other grants available to the sponsor

Answer 163

- Capital/operating costs of the airport, the local airport system, or other facilities directly related to air transportation. - Promotional expenditures designed to increase air travel at the airport and stimulate new service/competition - Airport marketing expenses - Cooperative airline airport marketing expenses to promote air service - Reimbursement to sponsors of capital/operating costs - Certain mass transit access projects - Costs incurred by government officials for services to the airport

Answer 164

- Sponsors are required to make available an annual budget report in the form prescribed by the DOT - Forms 5100-216 Government payment report and 5100-127 operating/financial summary (For enplanements above 2500) filled out within 120 days after the end of the fiscal year

Answer 165

- Sponsor required to file as the annual report on revenue paid to other unit of government and on compensation the airport received for services/property provided to other units of government - Internal service funds are used to account for the financing of goods/services provided by 1 department of a government unit to another on a cost-reimbursement basis (i.e. when a municipality provides police/fire services)

Answer 166

- Requires to breakdown revenue/expenses by: 1. Aeronautical operating revenue generated from landing fees, terminal/international arrival area charges, apron changes/tiedown, FBO revenue, cargo/hangar rentals, fuel sales, aviation fuel sales tax 2. Non-aeronautical operating revenue generated by land/non-terminal facilities, terminal food/beverage, retail store activities, rental cars, and parking lot activities 3. Non-operating revenue generated by interest income, grant receipts and PFC's

Answer 167

1. Bookkeeping 2. Financial Accounting 3. Auditing 4. Management accounting

Answer 168

Process of recording all financial transactions in a journal. Often affiliated with the concept of double-entry accounting (debits/credits), which is handled automatically today by software

Answer 169

Use of accounting data to calculate and report cash flows, profit/loss of a financial entity. It puts accounting information into a form that's easier for managers and outside personnel (non-accountants) to understand, in order to assess the success of the company or entity. Financial reports include an income statement and balance sheet

Answer 170

Process of checking the financial records of a company's owners/accountants to ensure integrity of the information

Answer 171

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

Answer 172

Used to account for operations that are either financially operated in a manner similar to private business enterprises or where the governing body has decided that a periodic determination of revenue/expenses is appropriate for capital maintenance, public policy, accountability, or other purposes Primarily used for activities that are financed through user charges; for airports, this can be lease revenue, landing fees, % of concession sales, etc

Answer 173

1. Statement of net assets or statement of net position 2. Statement of activities (income statement) 3. Statement of cash flow

Answer 174

(Balance sheet) statement that account for both the items owned and controlled by the entity (assets) and the items owed to others by the entity (liabilities)

Answer 175

(Income statement) Shows revenues of the entity, minus the expenses to arrive at the bottom line

Answer 176

(For communication and nonprofits) Shows how much cash the company has at the beginning of the reporting period and how much remained at the end of the reporting period

Answer 177

Mgmt provides detailed discussion of financial health and explains positive and negative trends and anomalies

Answer 178

Focuses on those expenses/revenues necessitated by normal and ongoing operations Objective is to provide and accurate estimate of the revenues/expenses of the airport for a future period, which is typically a year

Answer 179

1. Plan for the operational needs of the organization 2. Obtain resources for the airport operating environment 3. Distribute those resources throughout the organization 4. Track the resource expenditures to ensure they're used effectively/efficiently

Answer 180

Reflects an annual/multi-year financial plan for capital projects, or major equipment expenditures, and the stated means of implementing the plan Usually associated with state/national planning processes such as CIP and with the master planning project process for which PFC's and AIP funds are used

Answer 181

Process of evaluating proposed long-range airport projects, or courses of future activity, for the purpose of allocating resources to those projects deemed desirable and important

Answer 182

Lists each department and assigns a sum of money to the department or administrative unit to be spent as needed The money is divided into categories for specific purpose (Travel, payroll, commodities) and each department is expected to spend its allocation in accordance with the requirements of each line. The more detailed the budget, the less flexibility

Answer 183

Lists what each administrative unit is trying to accomplish, how much its planning to do, and with what resources. It focuses on results rather than on money spent. Lays out what programs cost and what they achieve and the criteria between programs Focuses on change: Can assist policy makers by providing the background on the purposes of funded programs and provides a deeper understanding of agency activities

Answer 184

Divides expenditures by activities (sn removal, ARFF, admin planning) with the emphasis on the appropriation of current spending priorities and the need for trade offs between the programs has the most potential for policy makers to review the implications of spending decisions by forcing comparisons between programs on the basis of stated priorities. Resources are allocated on the basis of goals, objectives and strategies

Answer 185

Starts from zero base and every function within an organization is analyzed for its needs/costs. Each unit must prioritize, rank and justify its needs, whereupon only those items falling under a certain appropriation limit are funded. Items at the top of the list are funded and items at the bottom are not

Answer 186

Public entity= will strive to set the lowest fees, rates, and charges possible Business enterprise= Will attempt to see fees, rates, and charges that are commensurate with what the market will pay

Answer 187

Requires the airport sponsor to set fees/lease rates and other charges that are directed at making the airport as self-sustaining as possible. Airports may not establish rents, fees, etc based on the cost of the airport property improvements/noise mitigation programs that were paid for with federal funds Airport must make financial decisions that are consistent with attempting to make the airport self-sufficient

Answer 188

Requires airports to be as self-sustaining as possible under the circumstances at that airport

Answer 189

- The airport relies only on its revenue streams for operational expenses - Doesn't mean the airport cannot accept federal/state grants for capital projects

Answer 190

Takes into account whether airport sponsors, when entering into a new agreement have undertaken reasonable efforts to be self-sustaining

Answer 191

- Maintain the utility of the federal investment in the airport and is in the spirit of the principle that those not using aviation transportation are, theoretically, not paying for it. - Airport must establish long term goals/targets to make the airport as financially self-sustaining as possible

Answer 192

-Must use for non-aeronautical use -Surplus can be used to subsidize aeronautical costs -exceptions: -Property for community purposes such as parks, rec facilities, bike/jogging paths -Not for profit aviation organizations -Transit projects/systems -Military aeronautical units

Answer 193

1. Property not needed for aeronautical use 2. Property isn't producing airport revenue and there are no near term prospects for producing revenue 3. Community purpose won't impact the aeronautical use of the airport 4. Community purpose will maintain/enhance positive community relations in support of the airport 5. Is consistent with the ALP 6. Proposed use of the property is consistent with other requirements, such as certain surplus and non-surplus property federal obligations

Answer 194

1. Aviation museums, CAP, accredited educational programs 2. In-Kind services: the airport may offset the value of any services that the units provide to the airport against the applicable airport fees

Answer 195

When the airport sponsor owns a transit system, and its use is for the transport of airport passengers, property, employees and visitors, the sponsor may makes its property available at less than fair market value rent for public transit terminals, right of way and related facilities

Answer 196

airports generally charge private ground transportation providers fair market value rental rates; however, the sponsor may charge private operators less than FMV when the service is extremely limited and where the private transit service-such as business/rail/ferry- provides the primary source of public transportation to the airport

Answer 197

1. Military units with aeronautical missions including the ANG, aviation units of the Army NG, USAF reserve, USCG, Naval reserve air units operating aircraft at the airport 2. Search and rescue and disaster relief roles played by USCG, USAF auxiliary and CAP are also recognized as a prime aeronautical role

Answer 198

Purchase/Operation of road maintenance equipment and police or fire services that are not directly in support of the airport, nor would the use of airport property for non-aeronautical purposes for which the airport doesn't generate and retain the revenue

Answer 199

1. Airport/aeronautical user/free market and the policies of the sponsor, are generally responsible for compliance with all legal requirements but he FAA will intervene if needed 2. Rates, fees, rentals, landing fees, and other fees imposed on aeronautical users for aeronautical facilities must be fair/reasonable 3. Aeronautical fees may not unjustly discriminate against aeronautical users 4. Airport proprietors must maintain a fee/rental structure that in the circumstance of the airport makes it self-sustaining 5. Airport proprietors may extend revenue generated by the airport only for statutorily allowable purposes 6. Fees imposed on international operations must also comply with international obligations of the US

Answer 200

- Residual or compensatory or combination of both - As long as methodology used is applied consistently to similarly situated aeronautical use and conforms with the requirements of the FAA's policies

Answer 201

Permit aeronautical users to receive a cross-credit of non-aeronautical revenues. 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 revenues is insufficient to cover airport costs. Aeronautical users may assume part/all liability for non-aeronautical costs

Answer 202

A sponsor assumes all liability for airport costs and retains all airport revenue for its own use in accordance with federal requirements. Aeronautical uses are charged only for the costs of the aeronautical facilities they use. The airport assumes the financial risk but retains all the profits 2 approaches: - Cost of service - Public subsidy approach

Answer 203

Fees/charges are set for each revenue-producing cost center, so that ideally, the charges match the costs of operation

Answer 204

Local government agency offsets the difference between the revenue and expenses by subsidizing the airport operations

Answer 205

May charge aeronautical users for the use of aeronautical facilities with aeronautical users assuming additional responsibility for airport costs in return for a sharing of non-aeronautical revenues that offset aeronautical costs

Answer 206

Total of all costs associated with providing airfield facilities and services to aeronautical users

Answer 207

- Costs of airfield facilities/services directly used by the aeronautical - Costs of airport facilities that are used for both aeronautical/non-aeronautical uses if the facility/service supports the airfield activity reflected in the rate base (i.e. ARFF, LEO coverage, and snow removal among other services)

Answer 208

- Historic financial information for the 2 fiscal years prior to the current year - Economic, legal or financial justification for changes in the rates/charges at the airport - Traffic information for the proceeding in 2 years - Planning/forecast information to the extent applicable to current or proposed fees

Answer 209

1. The airport proprietor is also the proprietor of the 2nd airport 2. The 2nd airport is currently in use 3. Costs of the other airports are reasonably related to the aviation benefits that they provide to the 1st airport, such as relieving GA traffic or providing support to the aeronautical users of the 1st airport (navaid facility)

Answer 210

Federal regulations require the airport to obtain a bid guarantee equal to @ least 5% of the bid price as well as performance and payment bonds= 100% of the contract

Answer 211

- Any federally funded construction project that exceeds $2k must comply - Providing weekly reporting of wages paid (minimum wage requirements)

Answer 212

- Publicly advertised - Must include enough information that the general public will know the nature of the project - How to bid on the work - When bids are due - Date/time/place of bid opening - Any criteria used in evaluating the qualifications of the bids must be included and can't be prescribed after the responses have been received

Answer 213

Contracts for construction and equipment must go to the lowest responsive and responsible bidder Precise scope of work is laid out

Answer 214

- Used in competitive proposals - The selection isn't limited to the lowest price but may include a #of factors such as the project approach, qualifications/experience of proposer and their personnel

Answer 215

In which 1 entity (the design build team) works under a single contract with the project owner to provide design and construction services

Answer 216

Permit government stocks of specific items to be maintained at the minimum levels and allow direct shipments to the users of products/services. Used by buyers who can't predetermine the precise quantities of supplies/services they'll require during the contract period Airports aren't allowed to extend contract beyond 1 year with re-advertising the contract

Answer 217

Similar to a general contractor who's 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

Answer 218

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 CMAR proposals or competitive proposals that don't involve quality based selection with negotiated prices

Answer 219

Typically used for program mgmt, construction mgmt, planning studies, feasibility studies, arch services, preliminary engineering, design, engineering, surveying/mapping, and related services

Answer 220

Require prior approval from the ADO and are typically only approved when the item/service is only available from a single source or when competition is deemed inadequate or during an emergency

Answer 221

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

Answer 222

On-site visits, personal interviews, license reviews, stock ownership, equipment, bonding capacity, completed work, resumes of principle owners, and financial capacity. The personal net worth standard used in determining eligibility is $1.32 million. Above that is not socially/economically disadvantaged for DBE purposes

Answer 223

Requires airports to implement a DBE program if they anticipate awarding more than $250k in prime contracts using federal funds during a fiscal year. Airports establish a DBE approx. 3 year goal (%) in DBE participation for prime contracts related to construction (Including noise mitigation), professional services, and equipment acquisition

Answer 224

1. Badging/access control 2. Airfield lighting and surface movement guidance control system (SMGCS) 3. Airport operating data (FIDs, baggage and NOTAMs) 4. Airside (radar, noise monitor, weather, pavement sensors) 5. Audio/visual paging systems 6. Landside (Parking, vehcile identification for taxi, etc) 7. Building mgmt (HVAC, electrical, fire) 8. Business and finance (property mgmt, finance, website, email) 9. Cable (electrical, fiber) mgmt system 10. CCTV 11. Common use passenger processing system 12. Computer aided dispatch

Answer 225

1. Compatibility and integration 2. Security and safety 3. Scalability 4. Usability

Answer 226

Whether the changes, acquisitions or implementations integrate with the technological requirements of the entire IT system

Answer 227

Plans must be in place to ensure that changes, acquisitions, or implementations can be made such that security/safety concerns can be maintained during the affected period and for any unexpected delays associated with these processes

Answer 228

A very challenging aspect of managing IT systems at the airport. Ensure that plans are in place for managing the effects that result from future expansions or modifications to part/all of IT infrastructure

Answer 229

Intuitive and easy to use

Answer 230

1. Denial of service 2. Malware 3. Phishing 4. Identity theft 5. Social engineering

Answer 231

Intended to disable a machine or system, making it unavailable to others

Answer 232

Designed to gain access to or cause damage to a computer. Can be activated when a recipient of a message, email or link clicks on the link or downloads attached software

Answer 233

Can come in the form of emails, messages, phone calls, or websites and is designed to steal information such as CC or personally identifiable information such as SS and drivers license information Spear phishing: highly targeted where emails are sent to a few people and appears to be realistic in nature

Answer 234

Data mining= collecting/examining large database in order to generate new information, but when combined, with ill intent, an individual's social media profiles, and other data, can be collected and used to determine locations, purchase histories and sensitive personally identifiable information i.e. CC

Answer 235

Human manipulation is when an attacker pretends to be someone/something known/trusted to the victim, who uses leverage to gain information the attacker desires. Information may help the attacker access additional information, such as passwords, or may manipulate the victim into downloading or linking malicious software

Answer 236

Typically provides 3 specific coverage areas to service providers and includes: - Hangar keepers liability: protects from damage they may cause to the aircraft under their care - Premises liability: coverage for injury to persons/property - Product liability: coverage on products, such as fuel/oil that tenants may sell

Answer 237

1. Damages to facilities and disruption of business for natural disasters 2. Destruction to valuable information or data (documents/database) 3. Injuries/death from operational procedures and infrastructure (elevators, equipment vehicles) 4. Wrongful acts by stakeholders, especially executives/officers, or employees of an airport 5. Failure to disseminate important information related to safety/security 6. Aircraft accidents/incidents 7. Crime

Answer 238

1. Compliance with requirements/standards as specified in part 139 2. Conduct regular training/compliance with TSA/FAA regulations/standards 3. Conducting annual/semi annual risk analysis programs 4. Conducting daily inspection programs 5. Maintain timely/accurate information sources along with dissemination processes 6. Obtain blanket insurance policy provisions for all stakeholders of the airport and require similar insurance that serves airports 7. Develop environmental policies and follow rules/standards of government agencies 8. Screening/evaluation of new employees for safety/security

Answer 239

1. Straight 2. Graduated 3. Revaluation 4. Percentage

Answer 240

Remains constant throughout its term

Answer 241

Provides for change in rent/fees at previously arranged intervals

Answer 242

Provides for periodic valuations of the property and rent adjustments to current values which can sometimes go down)

Answer 243

Calls for rents equivalent to a percentage of business sales, which are common in concession lease agreements

Answer 244

Represents and ownership interest in which a lessee holds real property, or in the case of a use agreement, the right to conduct a particular activity from a lessor for a period of time

Answer 245

1. Recitals: detailed statement that reflects the facts, events, and description of the general terms/conditions of lease. Contains information on lessor/lessee as well as statements that reflect terms that have been agreed upon 2. Grant of lease: official legal term that grants the lease to the lessee 3. Lease term: date of commencement/duration of lease 4. Rates/fees/charges: how much, rate adjustments, usually tied to a pre-determined rate 5. Taxes: if need to be paid, in this section 6. Security deposit: deposits listed here 7. Improvements: any construction/improvements 8. repair, maintenance and up keep: lessee/lessor responsibilities 9. Covenants by tenant: licenses, permits and right of lessor to inspect the facilities and approve alteration, etc. 10. Indemnity: Lessees promise to hold harmless and indemnifying the lessor from injury claims, etc unless caused by negligence, omissions, or willful acts on behalf of the lessor 11. Required insurance minimums 12. Signage and use of property by lessee: describes approved uses of property along with sign standards 13. Subletting: if allowed, procedures 14. Damage to premises: allows lessor to make rent adjustments or go after restitution/repairs for damage caused by lessee 15. Condemnation: Termination of lease prior to expiration, property expectations 16. Title: good title to lessee of leased premises 17. Signature blocks: Can only be signed by those with the authority to commit the lessor/lessee to contracts

Answer 246

1. Location of the airport 2. Size and type of facility needed 3. Suppose infrastructure needed 4. Exposure to traveler flow 5. Efforts the airport takes to highlight various shopping opportunities in the facility 6. Demand for the airport's space

Answer 247

Guarantees that the tenant will pay the airport a minimum amount annually

Answer 248

1. Standard approach- involves airport mgmt directly leasing/managing the space 2. Development company/retail expert can be engaged to provide mgmt services overseeing rental/concessionaire development in lieu of the airport 3. An industrial operator can be engaged as a master lessee and given responsibility for providing all required concessions or for subleasing to other concessionaires

Answer 249

- Identifies the legal, financial, and operational relationship between the airport operator and airlines - Specifies how risks, revenues, and responsibilities are shared - Grant operating rights and to provide or attempt to guarantee, a reliable stream of revenue for the airport

Answer 250

Whether or not the air carriers have entered into use agreements. Signatories may exercise significant control over an airport's capital budgeting process

Answer 251

- Give signatory airlines the ability to influence capital projects undertaken at the airport by giving them the right to approve/not approve proposed projects, depending upon how the agreement is structured - Common at airports with residual agreements and often allow airlines the right to review airport development that may affect rates/changes paid by airlines

Answer 252

1. Physical restraints 2. Zoning regulations 3. Political factors 4. Conveyance (or use) restrictions 5. General/contract legal counsel It's vital to investigate and consider the impact on public welfare in terms of health, safety, security, and environmental concerns

Answer 253

Contract for a study or engage a knowledgeable consultant to help identify the best land use compared to local demand, and to determine the market's strengths and weaknesses. A forecast for comparable space is then developed based on growth trends and influences such as road access, economic incentive, new employment facilities, etc

Answer 254

Data from the market analysis is used to develop ranges of lease rates and a projection of operating expenses Operating expenses: property mgmt/ leasing commissions, maintenance, utilities, insurance and taxes Additional: construction, loans, and other significant costs

Answer 255

Qualified construction/project manager can help with various permits, contracts, construction, change orders, field changes, and occupancy permits

Answer 256

- Close scrutiny of tenants - System of invoicing/collecting rent - Provisions for recovering utilities/maintenance - Active mgmt of development

Answer 257

Airport in competition with private developers. Public bodies less likely to assume risk. If allowed, airport can form alliance with private developer to assume some risk. Joint ventures, profit part., and guaranteed rate of return are various approached Alliances should be coordinated with FAA, especially when surplus property is developed/sold

Answer 258

- A need for development - Available land/facilities - Potential for economic gain - Supportive community - Financial resources

Answer 259

-Created the trust fund and required the collection of taxes or user fees from various segments. Fees were added to passenger tickets, domestic cargo waybills, and non-commercial aviation fuel

Answer 260

-Established the AIP AIP grants are awarded to public use airports if they're included in NPIAS Grants can be used for airport planning, airport development, or noise compatibility projects

Answer 261

Addresses the grant process, eligibility of the sponsor, eligibility of the project, allowable costs, and prioritization

Answer 262

The law requires that funds be apportioned by formula (aka entitlement funds) to specific airports and types of airports each year. Each primary airport apportionment is based on annual passengers boarding at the airport, number of aircraft operations, amount of cargo, airports that are part of the small airport fund, and a state apportionment calculation. Based on annual amount available, 18-20% goes to non-primary commercial service, GA, reliever airports

Answer 263

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 =35% of funds - Noise abatement - NCP - Noise compatibility implementation programs - Compatible land use planning - Clean air act projects

Answer 264

-2 types -Discretionary set aside and capacity/safety/security/noise funds -preserving/enhancing C/S/S and carrying out noise compatibility planning programs at primary/reliever airports -Remaining 25% aka pure discretionary funds, may be used for any eligible project at any airport - Projects funded should be based on national priority system and airport must be able to work on projects during same fiscal year or within 6 months, whichever comes later. 4% used military airport program. - If AIP at 3.2 billion increases, .66% goes to relievers with more than 75,000 annual operations, RWY >5,000 ft that have precision IAP, @ least 100 based aircraft and at least 20,000 hours of annual delays in commercial passenger aircraft take off and landing at the airport relieved

Answer 265

- At least $148 million must be available as discretionary funds after all apportioned and set asides are complete - If < $148 million remains, all apportioned and set asides are reduced by the same % in order to ensure $148 million is available - At large/small hub airports, federal share is 75% (80% for noise) - Federal shares for projects at sm/non-hub/GA is 90%

Answer 266

The first funds to be issued to airports/states

Answer 267

Distributed by office of mgmt and budget and allow FAA to obligate congressional apportionment with a financial plan. The plan is based on regional submission of program plans to the FAA. After the project is fully processed and approved, regions notify sponsors of an allocation of funds. This notification doesn't yet obligate sponsors of an allocation of funds. This notification doesn't yet obligate sponsors nor involve a transfer of funds

Answer 268

SA is AIP money for non-primary commercial service or GA and GA relievers. The amount of SA available are dependent on the amount of AIP funding available in a year Some states are considered "block grants" which means the state assumes responsibility for administering AIP at airports "other than primary" (non-primary commercial, reliever, GA)

Answer 269

1. "Reservation of funds" before grant is signed 2. "Obligation" reported when grant is signed Payment made through the processing of requests submitted by the sponsor. Airports must initiate a payment request for project accomplishments in accordance with project progress and receipt of invoices and must include supporting documentation

Answer 270

Requires the airport to carry out projects with policies, standards and specifications approved by the FAA, like AC's which become mandatory for the project being funded along with any special conditions added by the FAA

Answer 271

AIP handbook provides guidance on eligibility but if a specific project isn't identified, then an ADO must determine if it meets general guidelines Can't be approved unless its reasonably consistent, sufficient funds are available, the project can be completed without undue delay, location is included in the NPIAS and the project involves more than $25k in AIP. ALP must be current and depict current project

Answer 272

1. Site prep 2. Construction, alteration, repair of RWY/TWY, aprons 3. Access roads on airport property 4. Construction/installation of lighting, utilities, navaids, and aviation weather related reporting equipment 5. Safety equipment required for certification of an airport facility 6. Security equipment required by regulations 7. SRE 8. Limited public-use terminal development at commercial service airports 9. Equipment to measure runway surface friction 10. Land acquisition

Answer 273

1. Landscaping 2. Artwork 3. Parking facilities 4. Airport operational costs 5. Exclusive-use and near exclusive use areas (FBO support areas on an apron) 6. Industrial park development 7. Marketing plans 8. Training 9. Maintenance or office equipment

Answer 274

- Removal of obstructions - Installation of navaids - Dealing with airport utilities - Airport wastewater plants - Noise programs - ARFF training facilities

Answer 275

1. Computer hardware in planning projects 2. WHMP except where development may result 3. Surface transportation origin-destination surveys 4. Acquisition of communications systems except for safety/security 5. Installation of ILS unless coordinated with the FAA 6. Landscaping 7. Demonstration programs for noise-compatibility purposes 8. Construction of roads for non-aviation use 9. Construction of fuel farms at other than military/non-primary airports 10. Construction of maintenance facility except for ARFF/snow removal

Answer 276

- Cost principles for state/local governments - Describes requirements on allowable project costs - Governed by Single Audit Act of 1984

Answer 277

-Direct or indirect -Paid/incurred under a planning/airport development project or noise program implementation project -Eligibility based on FAA opinion as well as whether the costs were: -necessary for the accommodation of the project -Reasonable in amount/conformity with applicable plans/specifications -Supported by satisfactory evidence -Incurred after the date of execution of the grant agreement

Answer 278

- Costs were part of a study necessary for the project - Used to develop plans/specifications in preparation for the ALP - Involved in environmental assessments, land acquisition or airport noise compatibility program projects - Fund work accomplished after the issuance of the letter of intent

Answer 279

- Incurred for a common or joint purpose benefiting more than one cost objective - Not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved Allowable only if sponsor has an approved cost allocation plan and when requires, an executed indirect cost rate agreement

Answer 280

- Project admin - Study design and planning - Engineering - Construction, design and project formulation costs - Construction/equipment costs - Legal fees/litigation costs - Land/relocation assistance - Noise compatibility - Audits - Other situations determined by FAA

Answer 281

- Prioritized facilities previously acquired - Materials and supplies - Non expendable machinery - Tools or equipment - Costs associated with bond financing or other methods of fundraising - Costs of obtaining liability insurance - Costs of other federal programs - Costs of tuition, travel and subsidence to attend conferences - Costs incurred prior to a future grant agreement - Costs of active associations with lobbying or influencing federal employees

Answer 282

Describes priority system for discretionary funds that's used to determine which projects will receive funding. Also used with entitlement funds and block grants

Answer 283

1. Ensuring that the air transportation of people, services, and goods is provided in a safe and secure environment 2. Preserving/upgrading the existing airport system in order to allow for increased capacity as well 3. Improving the compatibility of airports with the surrounding communities and providing sufficient access to an airport for the majority of the public

Answer 284

Identifies airports that are significant to the national air transportation system. Also identifies the costs of airport development that are needed over the next 10 years to expand/improve the system in order to anticipate and meet the present/future needs of civil aviation, to support national defense and to meet the needs of the USPS

Answer 285

Portion of NPIAS that provides additional details including the anticipated sources of funds for specific developments that expect to be undertaken within 3-5 years and are considered likely to be funded through the AIP. In addition to the ACIP, airports have their own CIPs, that usually extend 5-6 years out, but include not just projects eligible for federal funding, but also projects that are funded by state grants, operational revenue, bonds and other means

Answer 286

Values only service to categorize airport development in accordance with FAA goals/objectives. NPS generates values 0-100, 100 being most consistent with agency goals. Point values reflect airport code: A: Large/medium hub (5 points) B. Small/non-hub (4 points) non-primary reliever/GA points based on # annual aircraft operations

Answer 287

National Priority System - Purpose points (Capacity, safety (10 pts), security (10 pts), reconstruction - Component points (Land, planning, apron, building) - Type points (Bond retirement, construction, fuel farm development, RWY/TWY signs)

Answer 288

- Review of relevant environment records - SMS plan for construction - DBE plan - Completion of necessary land acquisition - Completion of final plans - Engineers report

Answer 289

Program helps fund large-scale capactiy projects at primary/reliever airports An LOI states that the FAA intends to obligate AIP discretionary/entitlement funds from future budgetary authority for that project

Answer 290

Allowed public agencies that control commercial service airports enplaning more than 2500 passengers annually to charge each enplaning passenger a $1, 2, 3 facility charge in accordance with FAA regulations PFC's are levied on the ticket, collected by the airlines and forwarded to the airport

Answer 291

Used to preserve or enhance safety, security, capacity, reduce noise and to enhance competition between carriers. Max. PFC on 1 ticket is $18

Answer 292

- Imposed taxes on passenger tickets - PFC legislation provides for a reduction in AIP grants to primary airports if they receive FAA approval and permission to impose a PFC. Large/medium hubs that collect PFC's must return up to 50% of AIP apportionment if they collect $3, if they collect $4.50 then up to 75%

Answer 293

PFC is levied as a direct fee to the traveler and retained at the airport. Minimizes federal government handling and time constraints AIP collected as federal surcharge and paid to the US treasury to be distributed back to the airports. Redistribution is subject to congressional appropriation and political process

Answer 294

- Required to report to airlines and FAA - Includes: Revenue received from collecting carriers, interest, and expenditures for the 1/4 and cumulative period, current project schedule and the amount committed for the use on projects that are already approved - For airports enplaning more than .25% US enplanements, an additional report is due to FAA each year by 8/1 that estimates PFC collection for the next fiscal year

Answer 295

- Can be co-mingled with other airport funds but only when deposited into interest-bearing accounts or when interest generated on PFCs is accounted for separately - Annual independent audit is performed on PFC accounting procedure - FAA requires a plan of how unused PFCs will be used. If not submitted, the FAA can reduce future AIP entitlement funds by a comparable amount -Before PFC implementation is allowed, approved environmental/airspace studies and an approved ALP must be submitted

Answer 296

Airport Noise and Capacity Act 1. Approved projects only 2. Payment of all/part of allowable costs 3. The airport's AIP matching funds 4. Augmentation of AIP funded projects 5. Payment of debt service or financing costs of eligible airport development bonds

Answer 297

1. An AIP eligible development or planning project 2. Noise compatibility projects 3. Gates and related areas for movement of passengers and bags 4. Access projects on airport property 5. Construction, reconstruction, repair or improvement of airport areas used for the operation of aircraft or for compliance with the responsibilities under ADA, Clean Air Act, or the federal Water Pollution Control Act

Answer 298

- In the event of a violation of the PFC act, the FAA can decrease a sponsor's authority to collect PFCs to an amount necessary to pay off the bond. - The FAA can determine any PFC authority on any project not covered by bonds - The FAA can withdraw PFC authorization on any project when violations of the Noise Act occur - If a violation of the PFC Act occurs and the FAA reduces a sponsor's PFC authority, then the sponsor must accelerate payments of bonds

Answer 299

- Termination of PFC collection rights by the FAA if there is a violation on ANCA - Potential airline bankruptcy or service changes - When the airport doesn't implement the identified project within a specified number of years, and authorization to collect a PFC is revoked

Answer 300

- Municipal bonds refer to generically to interest bearing obligations issued by state/local government entities to finance capital costs. These funding instruments are generally broken down into the following categories: 1. General obligations 2. Revenue and special facility bonds 3. Hybrid source bonds 4. Industrial development and exempt facility bonds

Answer 301

- Typically lower interest rate due to community guarantee - Issued only by states/municipality/ or other authorized general purpose governments. Usually require voter approval, pledge the full faith and credit of the bond issuer as security to the investor. This means the issuer is providing its pledge to support the bonds as necessary to meet the debt service required and is accomplished through the government's ability to levy property sale or income tax. Bond issuers give bond holders first claim to monies in the general fund. Community also pledges the ability to pass legislation needed to increase general fund revenues to pay the debt service

Answer 302

- Issued by state/local government or by airport commission or special distribution - Based on the philosophies that facilities should be paid for by those who use them and are backed by revenue from issuing agency. Consequently. they don't usually require voter approval or constitute debt within the constraints of a municipality's maximum obligation of allowed taxpayer debt. Advantage: Can be issued for larger (25-30 year), resulting in decreased monthly payment. Enable airports to finance wide range of projects and are issued when the airport is seeking money to fund an expansion or help maintain current operations

Answer 303

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

Answer 304

Airport revenue bonds combined with PFCs, CFCs, G.O. bonds or some other ledge to fund a project. Debt instruments that carry pledges from 2 separate and distinct revenue streams, either of which could receive a credit rating. In these instances, the issuer's full faith and credit is pledged to meet debt service, but facility generated revenues are fully expected to cover all requirements

Answer 305

Revenue bonds in the sense that the credit and repayment source for such bonds is the private entity for which the facilities are financed. Typically a municipal or government unit, issues such securities in order to finance facilities that are then leased to the private entity user at a rental rate- the debt service and for a term equal to the maturity of the securities. In some jurisdictions, the issuer loads the proceeds of the IDB's directly to the private entity user on repayment terms equal to the terms on the IDB. No assurances made by any government agency

Answer 306

Can offer financing at tax exempt rates in return for making a capital investment. This can be the case when new development contributes to numerous public purposes of the issuer in such areas as job creation, cleaner air/water, and an increased tax base. Although airports are locally owned/operated, federal grant/tax exemption policies significantly assist airport capital development. Federal government requires many conditions for IDBs to be treated as a tax exemption. airport must consult with certified accountant or bond attorney

Answer 307

-Rated by a quality index (credit rating). It's purpose is to provide investors with an impartial assessment of their investment protection. A rating helps determine the risk of full and timely debt repayment - Bond rankings: 1. Best/high grade 2. Upper-medium grade 3. Lower-medium grade 4. Non-investment grade 5. Speculative grade

Answer 308

-Begins with the airport conducting preliminary informal discussions with the rating services before a sale. They help educate the rating service about the scope and need for the intended project. A bond services rating agency can provide a preliminary credit opinion by assessing preliminary financial strength and airport structure, thereby highlighting any areas of concern. An airport tour may be required in order to alert the credit agencies of the service area and particular airport facilities, capabilities and management

Answer 309

Submitted to formal rating agencies after initial review. This is frequently done during a visit to the agency's main office by a team composed of appointed and elected airport officials. Depending on the nature of the issue, a representative of the appropriate airport user, such as an airline within 2 weeks of the formal presentation to the rating service

Answer 310

- Financial performance - Legal issues - Environmental planning - Capital programming efforts - General operations - Mgmt procedures - Expansion projects -These have significant responsibility for resolving/mitigating problems in those areas

Answer 311

- Role of local politics in airport policy and operations - The mgmt's experience with large construction projects and financial planning - How well the airport's staff works with tenants and the airport - Mgmt's handling of public issues

Answer 312

-Not regulated by the FAA the way PFCs are. CFCs are charged to rental car operators at an airport with the monies commonly going towards landside CIPs or landside related operations and maintenance projects