airline management midterm Flashcards

0
Q

The organization primarily concerned with representing individuals who fly general aviation aircraft for business and pleasure is the:

A

AOPA

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1
Q

One of the FAA’s principal responsibilities is:

A

Air traffic control

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2
Q

The FAA is responsible for all of the following functions except:

A

Reviewing appeals from airmen whose certificates have been revoked or suspended

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3
Q

The NTSB is required to determine the probable cause of:

Answer

A

All of the above

Fatal railroad accidents, marine accidents, etc..

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4
Q

A “type certificate” shows that the airplane:

A

Meets FAA standards of construction and performance

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5
Q

The major share of the NTSB’s safety recommendations are directed to the:

A

FAA

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6
Q

The Airport and Airway Development Act of 1970 authorized the FAA to:

A

Allocate funds for airport construction projects

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7
Q

The FAA is responsible for establishing and enforcing standards relevant to the training and testing of airmen, and the NTSB is responsible for issuing certificates of airworthiness relevant to aircraft

A

False

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8
Q

Almost all commercial air traffic operates under instrument flight rules.

A

True

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9
Q

The NTSB reviews appeals from airmen and merchant seamen whose certificates have been revoked or suspended.

A

True

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10
Q

Of the total number of registered civil aircraft on record with the FAA at the end of 1995, general aviation accounted for over:

A

90%

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11
Q

The greatest number of active general aviation aircraft fall under the primary use category:

A

Personal

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12
Q

As of December 31, 2000, the number of active private pilots in the United States was approximately:

A

385,000

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13
Q

The most widely used service provided by the FAA to general aviation pilots is the:

A

Flight service station

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14
Q

The most prevalent service provided by a typical small FBO is:

A

Flight instruction

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15
Q

Which of the following is probably the least likely reason for the decline in general aviation aircraft sales during the 1980s?

A

Growth in the number of ultralights

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16
Q

All of the following are factors causing the decline in new general aviation aircraft sales during the 1980s, except:

A

FAA certification requirements

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17
Q

Since most general aviation accidents can be attributed to pilot error, manufacturers are not particularly concerned with building aircraft stronger than FAA minimum requirements.

A

False

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18
Q

Product liability became a problem as early as the 1950’s

A

False

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19
Q

The General Aviation Revitalization Act of 1994 provides tax incentives for companies purchasing aircraft for business use.

A

False (possibly for personal use?)

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20
Q

Carriers whose annual gross revenues fall between $10 million and $99.9 million are classified as:

A

Large regionals

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21
Q

Which of the following statements concerning regional/commuter is not correct?

A

70% of all regional/commuter passengers fly directly between smaller cities and do not make connections with larger carriers

22
Q

The biggest advantage of the new carriers entering the market during the early 1980s was:

A

Lower cost structure

23
Q

Airline industry profits tend to rise during the:

A

Latter part of the decade

24
Q

American, Delta, and Federal Express are presently classified as National air carriers.

A

False

25
Q

Code-sharing agreements between the regionals and larger carriers has increased significantly in recent years.

A

True

26
Q

Frequent flyer programs were primarily designed for the leisure market to encourage more frequent travel.

A

False

27
Q

List six (6) characteristics of oligopolies

A

1) high barriers to entry
2) few sellers
3) similar product
4) mutual dependence
5) price rigidity and nonprice competition
6) growth through merger

28
Q

Which level of management is primarily responsible for developing operational plans and procedures

A

Middle

29
Q

Maintenance stations throughout the system with just enough mechanics and facilities to do routine servicing such as aircraft deicing, aircraft moving, and light maintenance on specific equipment are:

A

None of the above

30
Q

Most airline executives readily welcomed deregulation and were quite prepared for the freedom given to them.

A

False

31
Q

List 7 characteristics unique to the airlines {page 202-206 in book}

A
  1. Government financial assistance
  2. High technological turnover
  3. High labor and fuel expenses
  4. The competitive advantage of schedule frequency
  5. Excess capacity and low marginal costs
  6. Sensitivity to economic fluctuations
  7. Close government regulation
32
Q

How much of the aerospace industry’s sales are to the government?

A

2/3

33
Q

The aerospace industry changed considerably during the early 1950’s in response to the coming production of:

A

Jet powered supersonic military aircraft

34
Q

All but one of the following firms are members of GAMA. Which one is not?

A

Lockheed corp

35
Q

Who is the principal customer of the US aerospace industry?

A

Government is the principle customer

36
Q

What did the McNary waters act of 1930 do?

A

Provided the post master general with unlimited control over the air mail route system

37
Q

What were some arguments for deregulation

A

1) the need for free competition
2) to lower prices
3) to not be locked into fuel costs

38
Q

Factors that affect airline profitability

A
(Main factors stem from the cyclical nature of the airline industry)
Also affected by-
1) economic growth
2) inflation
3) fleet capacity
4) replacement aircraft
39
Q

What is commercial aircraft manufacturing dependent on?

A

The existence of healthy, profitable US airlines

40
Q

What aircraft was introduced in the mid 80’s to replace the B727

A

Boeing 757 and 767

41
Q

What did the Kelly act of 1925 do

A

Allowed civilians to fly the mail. Also gave birth to the airline industry

42
Q

How many jobs does the aviation industry creat in the US, directly and indirectly

A

Close to 2 million

43
Q

What is a production certificate

A

Certificate issued by FAA to an aircraft manufacturer after the type cert. and only when the manufacturers capability to duplicate the type design has been established. The aircraft is then ready to go into production.

44
Q

What is an airworthiness certificate?

A

Certificate attesting to the fact that each aircraft conforms to the type certificate and is ready to fly; the ability of an aircraft to fly safely through a range of operations is determined by the federal aviation administration

45
Q

Between 1979-1996 which airmen certificate increased

A

CFI

46
Q

When did certificated carriers earn record profits

A

1996 ($2.8 billion)

47
Q

What impact did regulation have on the number of regional carriers

A

Spurred many regionals no enter the market. Highest number of regionals was 246 in 1981.

48
Q

When did fuel prices affect the airline industry

A

1973 Arab oil embargo

49
Q

What level of management is primarily responsible for developing operational plans and procedures

A

Middle management

50
Q

What are the duties of flight dispatcher

A

To cover all details of the proposed flight, including all factors relating to safety of the flight.
Nature/duration of flight; wx conditions at various altitudes; airway routing; fuel requirements; alternate flight plan and airport if necessary; signing if necessary clearance papers after concurrence with captain

51
Q

Causal method

A

Express the relevant causal relationships between variables mathematically
( most sophisticated forecasting method )

52
Q

Trend analysis

A

Consists of enterprising the historical sequence and applying the interpretation to the immediate future. The data is then plotted into a graph and a trend is mapped.
( oldest and still most widely used form of forecasting )