Module 4: Non-Airline Agreements and Commercial Development

Question 1

These are reports that summarize and demonstrate the airport’s impact on the local and regional economy.

Answer 1

economic impact studies

Question 2

What is the name of the report prepared by the Airport Cooperative Research Program (ACRP) that is extremely useful to airports in understanding the use, value, and methodology of economic impact stufies.

Answer 2

Synthesis 7 (ARCP 7), Airport Economic Impact Methods and Models

Question 3

What are the top variables in an economic impact study, as cited by the ACRP?

Answer 3

Employment (number of jobs), Wages (payroll), Local/Regional spending, Tourism, Air Traffic, Cargo, Military/Emergency services, Time savings

Question 4

What are the 3 primary methods used to measure economic impacts of aviation, as described in ARCP 7?

Answer 4

Input-Output Method, Collection of Benefits Method, Catalytic Method

Question 5

This methodology take the various types of impacts the airport has on the economy and adds them together to determine a total impact for each variable.

Answer 5

Input-Output Method

Question 6

What are the types of impacts measured in the Input-Output Method?

Answer 6

Direct Impacts, Indirect Impacts, Induced Impacts (also known as the “multiplier effects”)

Question 7

This economic impact method focuses on both quantitative and qualitative research measures of benefits, reduced costs, revenues, etc. created by an airport.

Answer 7

Collection of Benefits Method

Question 8

This economic impact study method, according to ACRP 7, measures the “spillover” effects of how the airport contributes the supply-side of the economy.

Answer 8

Catalytic Method

Question 9

The most fundamental forms of terminal concession agreements center around what two primary areas?

Answer 9

food & beverage and retail

Question 10

In a concession agreement, this is the minimum amount of concession fees the operator will pay the airport or the developer/manager, regardless of actual sales.

Answer 10

Minimum Annual Guarantee (MAG)

Question 11

In this terminal concession management model, the airport enters into an agreement with a concessions developer/manager who is responsible for major capital development costs of concessions program and management of that program after the initial development is complete.

Answer 11

Developer Model

Question 12

In this terminal concession management model, the set-up is very similar to the developer/manager model with the exception that the fee manager does not expend any of its own funds for capital development of the concession spaces. In this model, the manager earns revenue by sharing the concession rent with the airport.

Answer 12

Fee Manager

Question 13

In this terminal concession management model, the airport selects on or two concessionaires, usually one for food/beverage and one for retail, that operates all the concession locations related to that area.

Answer 13

Master Concessionaire

Question 14

In this terminal concession management model, the airport can elect to manage the entire concession program itself.

Answer 14

Direct Program Management

Question 15

This term describes the requirement for concessionaires to price their items equivalent to the same item, or as close to the same as possible, available to customers off the airport.

Answer 15

street pricing

Question 16

This is defined as a wage sufficient to provide necessities and comforts essential to an acceptable standard of living.

Answer 16

living wage

Question 17

This federal program aspires to create a level playing field for socially and economically disadvantaged firms to compete for contracting opportunities in grant funded projects.

Answer 17

Disadvantaged Business Enterprise Program (49 CFR, Part 26) (DBE)

Question 18

This federal program, similar to DBE, is a requirement for (commercial service) primary airports in the U.S. that have $200,000 or more in either rental car or non-rental car concession revenues that receive FAA grant funds.

Answer 18

Airport Concession Disadvantaged Business Enterprise (49 CFR, Part 23) (ACDBE)

Question 19

For an ACDBE’s participation in the concession program to count toward the airport’s goals, the ACDBE must be certified by a state what?

Answer 19

Unified Certification Program (UCP)

Question 20

Administratively, the airport ACDBE Program must include what three things?

Answer 20

1. Provisions for a policy statement, liaison officer and directory
2. Certification standards for eligible DBEs
3. A statement committing the sponsor to operate the ACDBE Program in a nondiscriminatory manner

Question 21

For many U.S. commercial airports, what is the single greatest source of non-airline revenue?

Answer 21

Parking

Question 22

Ride-share companies are also known as this.

Answer 22

Transportation Network Companies (TNCs)

Question 23

These facilities usually stand alone on airport property and house all of the rental concessionaire’s ticket counters, adjacent ready-return spaces, offices, and possibly quick turnaround (QTA) facilities that enable operators to clean, fuel, inspect and place the vehicle back into rentable inventory without returning it to the service facility.

Answer 23

Consolidated Rental Car Facilities (CONRACs)

Question 24

Airports of all sizes require this to perform certain aeronautical services to aircraft owners and operators, including aircraft fueling, aircraft parking, hangar space rentals, aircraft maintenance and possibly aircraft rental, flight instruction, aircraft charter and aircraft sales.

Answer 24

Fixed Base Operator (FBO)

Question 25

Some airports, either due to size or distribution of opportunities, may have one or more this that offers only one or several products, services and/or facilities that full-service FBOs offer, excluding aircraft fueling.

Answer 25

Specialized Aviation Service Operators (SASOs)

Question 26

The FAA may issue this type of finding on an Environmental Assessment (EA) which approves development from an environmental standpoint.

Answer 26

Finding of No Significant Impact (FONSI)

Question 27

For all Environmental Impact Studies (EISs), and some Environmental Assessments (EAs), the FAA will issue this providing its approval of the development project.

Answer 27

Record of Decision (ROD)

Question 28

The FAA defines this as the formal, written authorization discharging and relinquishing the FAA’s right to enforce an airport’s contractual obligations.

Answer 28

a release

Question 29

This type of release is one in which the airport maintains ownership of the land but is seeking an alternate, non-aeronautical activity to take place on it.

Answer 29

partial release

Question 30

What type of release is requested when the airport has property it wishes to sell and remove from its ALP?

Answer 30

full release

Question 31

The airport may request this from the FAA if it intends to use property for a non-aeronautical purpose, limited to five years, at the end of which time the property will revert to aeronautical use.

Answer 31

Interim Use

Question 32

This type of FAA land use approval allows for the land to remain in aeronautical use but also be used for other non-aeronautical, usually revenue producing, purposes.

Answer 32

Concurrent Use

Question 33

The release of land is subject to what six grant assurances?

Answer 33

4 - Good Title

#5 - Preserving Rights and Powers
#21 - Compatible Land Use
#25 - Airport Revenues
#29 - Airport Layout Plan/Exhibit “A”
#31 - Disposal of Land

Question 34

The FAA Airport Revenue Use Policy requires that airports obtain this for any and all non-aeronautical leases, and is simply defined as what another party is willing to pay.

Answer 34

fair market value