Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

402 Airport Planning and Admin. > Test 3 > Flashcards

Test 3 Flashcards

1
Q

An airport layout plan is significant because it is:

A

A legal document

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Airport layout plan is a:

A

Drawling!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A regression analysis is a _____ technique of analyzing data

A

Statistical Technique

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

____ serve as financial engines for their communities

A

Airports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does an airports Operating Budget consist of?

A
  • Expenses/Revenues associated with ongoing operations of the airport
    Ex: Airfield, Terminal, Landside, General/Admin.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the Capital Budget used to fund? What are sources of Capital funding?

A

Capital Projects only! “Big-Ticket Items”
- Yearly capital budget 3-5 years in the future
- Long term expenditures (terminals, runways, etc)
Sources include grants, bonds, PFCs, and tenant/3rd party funding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The difference between what you budgeted vs. what you actually spent is:

A

Variance!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

True or False: MOST airports make more money Non-Aeronautically than they do Aeronautically

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Landing fees, fuel flowage fees, land leases and terminal rent are examples of _____ revenues

A

Aeronautical Revenues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Retail stores, food/bev., parking and touristy things are examples of _____ revenues

A

Non-Aeronautical Revenues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the main idea/purpose of bringing Non-Aeronautical venders into the airport?

A
  • When the airport makes money non-aeronautically, they can charge the airlines less!
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

If the FAA paid for your parking lot, can you charge your visitors to park there?

A

NO! If the FAA paid for it, you cannot charge or make a profit off of it in any way.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Money that is coming into an airport “just because” is is considered what kind of revenue?

A

Non-Operating Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are some expenses that an Airport has?

A

Operations and Maintenance

Ex: Snowplow - FAA will buy the truck but will not pay for upkeep, running it, worker, etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What 3 main things are included in an Airports Financial Statements

A
  1. Balance Sheet
  2. Restricted/Unrestricted Assets
  3. Income Statement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A statement of net assets, reflecting what a company owns, and includes liabilities (bills) is a(n):

A

Balance Sheet!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Money that an airport has, but can only INVEST is an example of a(n) ______ asset

A

Unrestricted Asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A statement of what the airport is making and spending is a(n):

A

Income Statement

19
Q

Rates, Fees and Charges cover the ______ expenses of the Airfield

A

Operating Expenses

20
Q

Signatory v. Non-Signatory Lease

A

Signatory = signed with airport for that renter (usually cheaper)

21
Q

Improved v. Un-Improved Ground Lease

A

Improved = there is gas, services, etc.

22
Q

Taxi service coming in/out of your airport is considered ____ charges

A

Miscellaneous Charges

23
Q

The ___________ is part of the Master Plan, and deals with/contributes to short, mid and long-term finances

A

Capital Improvement Plan (CIP)

24
Q

Eligibility for the ___________ is greatly dependent on if the project will be PROFITABLE or not. If the airport can make money, then the project cannot get funding from this.

A

Airport Improvement Plan (AIP)

25
Q

For most projects at medium and large hubs, Capital Development Funding will cover ___%

A

75%

26
Q

Can airports issue stock?

A

NO! They are government owned!

27
Q

____ are issued by airports because they are not able to issue stock, and account for ~50% of revenue sources

A

BONDS

28
Q

Describe Bonds. What are the different ratings of bonds?

A
  • An issuance of debt
  • A secure investment, not much interest but very stable
    1. General Obligation Bonds (public pays)
    2. Revenue Bonds (most common for AIRPORT financing, revenue used to pay bond off right away)
29
Q

What is the most common form of Bond used for Airport Funding?

A

REVENUE Bonds!

30
Q

AIP grant revenues flow into the:

A

Trust Fund

31
Q

What must your airport have to receive ENTITLEMENT money? How often are Entitlements disbursed?

A
  • Passengers!! Funding is based on the number of passenger enplanements.
  • Once a year
32
Q

What is Discretionary funding? Example of projects that would receive these?

A
  • Funds left over AFTER Entitlements have been distributed

- Safety projects, etc.

33
Q

The concept of Grant Assurances are:

A

To make sure that if you accept money from the FAA, you comply with their rules and requirements. (like accepting financial aid)

34
Q

Examples of Direct, Indirect, and INDUCED economic impacts from the Airport

A 
Direct = Employees at the airport (CFI)
Indirect = Passengers making purchases at local businesses (Loaf and Jug)
Induced = Expenditure of local employee wages (Loaf and Jug employee goes to a movie)
35
Q

What is the true purpose of Marketing at the Airport?

A

To influence the behavior of consumers (target audience)

36
Q

The idea of letting people into the airport past security to meet/see off their friends/family is a ______ technique to try and increase revenue

A

Marketing

37
Q

True or False: Giving Subsidies directly to the airlines is a legal strategy that airports can use to entice air carriers to operate out of their field

A

FALSE! The only incentives Airports can legally offer air carriers are offers/deals, but no direct payments. That is illegal.

38
Q

What is the purpose of Agreements? Who are they designed for, and what are 3 types?

A
  • Clearly spell out expectations, liabilities, lease rates and other terms/conditions
  • Designed for both commercial/non-commercial operators/tenants
  • Airline (signatory/non-sig.), Concessions, FBO Agreements
39
Q

Explain the difference between Residual, Compensatory and Majority-In-Interest Airline Agreements. Which is the most common?

A

Residual - You only want to recover what was spent to break even, significant control is given to carriers (MOST COMMON)
Compensatory - Does not guarantee airport will break even, but can generate substantial revenue
MII - A degree of control is given to carriers by airport

40
Q

A __________ is utilized for any organization/entity that uses land on an airport to agree on what they’re responsible for

A

Land Lease

41
Q

MOUs and LOAs

A
  • Enforceable documentation of agreements made on/concerning the airfield.
    MOUs = less formal
    LOAs = Formal
42
Q

How must airports interact/treat ALL their Tenants?

A

Professionally, fairly, and firmly in a straight forward manner.

43
Q

What kind of space is reserved for Aeronautical Use only?

A

Any space on the airport that has direct access to the airfield!

44
Q

Who is in charge of Information systems in the Airport and why?

A

The airport is in charge of signage and updating flight information because when airlines are in charge they tend to “forget” to post when flights have been delayed of cancelled.

402 Airport Planning and Admin. (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions