Module 1 - Finance and Administration Flashcards by Trevor Klatko

What was the first air route system?

US mail (US government)

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___________ is any public agency or private owner of a public-use airport (governing body).

Airport Sponsor

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___________ is an individual, such as airport director or manager or director of aviation, that is retained by the Sponsor to manage the airport

Airport Executive

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___________ is the management structure overall, including sponsor, executive, and essential personnel

Airport Operator

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__________ are the operators of most US public-use airports.

Local governments

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What is the law that effectively created commercial aviation through air mail service? Set precedence aviation should pay for itself.

The Kelly Act

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Private aircraft operators use ___________ to fuel, flight plan, aircraft parking, and take care of other needs.

Fixed-base operator (FBO)

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What law gave the federal government regulation of civil aviation by establishing the Aeronautics branch to establish/improve safety standards?

Air Commerce Act of 1926

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What are mandates from the FAA?

Federal regulations

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The first airport trade organization, which sets professional accreditation standards is the ____________?

American Association of Airport Executives (AAAE)

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The predecessor to FAA - air traffic control, certification, safety enforcement and airway development is the ____________?

Civil Aeronautics Administration (CAA)

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_____________ established safety rules, aircraft accident investigations, and economic regulation of airlines.

Civil Aeronautics Board (CAB)

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Which law allowed airlines and air cargo operators to freely raise/lower airfares and expand/remove routes at will?

Airline Deregulation Act of 1978

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What are the root’s of today’s FAA?

To foster air commerce

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What program grants funds for airport projects (primarily runway and taxiway), if the airport is in the National Airport Plan?

Federal Aid to Airports Program (FAAP)

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Regulations for airport operators that accept federal grant monies or property that significantly impacts how an operator conducts businesses are ____________?

Grant/Sponsor Assurances

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What law gave the FAA safety and rulemaking authority from the Civil Aeronautics Board?

Federal Aviation Act of 1958

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What law created the Airport Development Aid Program (ADAP) and Planning Grant Program (PGP)?

Airport and Airway Development Act

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The certification program for commercial service airports and issuing operating certificates is regulated by ___________?

CFR Part 139

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What law established a fund financed by airfare taxes, aviation fuel taxes, air freight, and registration fees?

Airport and Airway Trust Act

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The ___________ lists projects eligible for federal funding (capital projects at public-use airports).

Airport Improvement Program (AIP)

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The Airport Improvement Program (AIP) and National Plan of Integrated Airport Systems were established by the ____________?

Airport and Airway Improvement Act

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____________ identifies 3,345 airports important to national air transportation and eligible for AIP grants.

National Plan of Integrated Airport Systems (NPIAS)

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What are the initiatives for efficient, more secure, and safer air travel, affecting the entirety of the US air traffic control system?

Next Generation Air Transportation System (NextGen)

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Which law endorsed NextGen?

Vision 100-Century of Aviation Reauthorization Act

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List the 4 airport stakeholder groups.

Government
Aeronautical users
Non-aeronautical users
Community

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Airlines, corporate flight departments, FBOs, aircraft manufacturers, UAV operators, are examples of ____________?

Aeronautical users

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Flight schools, maintenance repair shops, aircraft charter operations are known as ____________?

Specialized aviation service operators (SASOs)

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Concessionaires, vendors, contractors, rental cars, land lessees, and advertisers, are examples of ____________?

Non-aeronautical users

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Passengers, shippers, surrounding cities, nearby homeowners, are examples of ____________ stakeholders.

Community

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List 5 types of US airports

commercial service
general aviation
cargo service
military
private

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Which stakeholder desires hangar space and facilities for smaller aircraft?

Private aircraft operators

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Which stakeholder desires efficient passenger, baggage, cargo, and aircraft
throughput, as well as office/administration facilities?

Airlines

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Which stakeholders desire fueling abilities, confidentiality/discretion, exceptional pavement/maintenance?

Corporate aircraft operators

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Which stakeholders desire “good for business” conditions and level playing field?

FBOs and SASOs

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___________ of worldwide aviation is attributed to US?

40%

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What is included in the NPIAS?

AIP-eligible development

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A commercial service airport is defined by ___________ passenger annual boarding, receiving scheduled passenger service.

> 2,500

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___________ airports do not have scheduled service or have less than _________ annual passenger enplanements.

General Aviation

<2,500

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A ___________ airport relieves congestion at commercial service airports and provide improved GA access to community - an alternative to congested hub.

General Aviation Reliever

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A ___________ airport is only cargo with a total annual landed weight of ___________ pounds; can also be commercial service airport

Cargo Service

> 100 million

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A ___________ airport is owned by the Department of Defense, with leases or contracts between military and civil entities.

Joint-use

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A ___________ airport is co-located with civil airport, where portions of movement areas and safety areas shared by both parties.

Shared-use

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___________ regulates commercial service airports and cargo service.

CFR Part 39

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A ___________ airport has significant industrial operations, including Maintenance, Repair, and Overhaul (MRO) facilities.

Industrial Aviation

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Primary commercial service airports have ___________ annual enplanements?

> 10,000

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List 4 groups of primary airports.

large hub
medium hub
small hub
nonhub

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Large hub airports serve at least __________ or more of total enplanements, with __________ of all US enplanements.

>70%

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Medium hub airports serve between __________ to __________ of total enplanements, with __________ of all US enplanements.

0.25% to 1%

17%

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Small hub airports serve between __________ to __________ of total enplanements, with __________ of all US enplanements.

0.05 to 0.25%

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Nonhub primary commercial service airports have _________ enplanements, but _________ of total US annual enplanements.

> 10,000

less than 0.05%

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Nonprimary commercial service airports have __________ to __________ annual enplanements and primarily serve general aviation.

2,500 to 10,000

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What divided GA airports into 5 categories based on activity measures such as operations and types of aircraft; and listed benefits of GA to promote and protect these facilities?

GA Asset Report

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___________ airports are located in metro areas near major business centers and support flying throughout the nation and world.

GA National

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GA __________ airports are located in metro areas and serve relatively large populations, supporting interstate and intrastate flying.

Regional

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___________ airports are the backbone of GA system with at least one local airport in virtually every state, near large population centers, but not necessarily in metro areas. Typically intrastate flying.

GA Local

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___________ airports have one runway, helipad, or seaplane lane; private flying, and link the community to national airport system.

GA Basic

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What organization ensures flight operations are conducted in consistent manner and common vocabulary and operating principles amongst pilots, aviation systems, and operators?

International Civil Aviation Organization (ICAO)

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___________regulates private operations aircraft operations.

CFR Part 91

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___________ established requirements for aircraft operator certificates (air carriers and commercial operators).

CFR Part 119

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___________ established operating requirements for domestic, flag, and supplemental air carrier operations

CFR Part 121

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___________ regulates public charter operations conducted on a Part 121 air carrier.

CFR Part 380

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___________ regulates unscheduled commercial flight operations (commuter/on-demand).

CFR Part 135

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What is conducted under Part 121 and requiers a departure location, departure time, and arrival location?

Scheduled “air carrier operation”

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___________ regulates large, certain noncommercial flight operations (configured with seating capacity of 20 or more and max payload 6,000 lbs or more).

CFR Part 125

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A one-way or round-trip flight performed by one or more direct air carriers and sponsored by charter operator is known as ____________.

Public charter

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A ____________ is a certificated domestic or foreign carrier, air taxi operator, or commuter air carrier that directly engages in operation of aircraft under certificate or permit.

Direct air carrier

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A ____________uses commercial air transport to move cargo or people but does not own/control aircraft.

Indirect air carrier

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_____________ is a corporation that owns large aircraft to move employees and often regulated by Part 125.

Corporate charter

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What explains the intent of a federal regulation, provide guidance and information on a subject area, and show an acceptable method of complying with a related regulation?

Advisory Circulars (ACs)

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

DBEs (Disadvantage Business Enterprises)

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___________ assurances were made by state/municipality that airport would continue to be operated and maintained, traced back to 1946 when fed govt transferred ownership to local entities.

AP-4

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What is the independently created entity with legal control of airport (effectively another branch of local government)?

Airport Authority

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The following are roles of an _____________.

guidance and expertise for municipalities
review requests from staff and prepare recommendations for sponsor to act upon
authority delineated in enabling legislation

Airport Board.

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_____________ is a shift from traditional government responsibility to the control of private enterprise?

Airport Privatization

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The ____________ transfers federal obligation, responsibility for operation, management, and development of airport from public to private sponsor.

Airport Privatization Program

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Primary reasons municipalities create Airport Authorities.

airport outgrows political boundaries
allows more concentration/specialization on business matters
on-scene decision-making (more efficiency)
reduces political influence over business functions
provide multiple jurisdictions with representation

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What is a special type of legally-chartered institution that generally has the same status as a public corporation, but, along with the airport(s), operates other public facilities such as toll roads or public transportation?

Port Authority

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What has the same responsibilities and statures as airport authorities, allowing for focused attention and expertise to be applied in operating the airport by appointing (or electing individuals) by county/city?

Commission

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Who is eligible to be a Certified Member?

Affiliate, Associate, Participating, Corporate, Military , Academic Graduate AAAE members

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The AAAE ____________ team represents airports between key executive agencies, including the DOT, FAA, and EPA (not TSA).

Regulatory Affairs

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____________ regulates noise standards: aircraft type and airworthiness certification.

CFR Part 36

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___________ regulates airport security.

CFR Part 1542

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The public comment period is ________ for a minor change and ________ for a major change in the Notice of Proposed Rulemaking (NPRM) process?

30 days

60 days

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Where are draft set of regulations published?

Federal Register

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____________ provides regulatory alerts on FAA rulemaking/interpretations, regulatory issues, and connection to the ACRP.

Regulatory Affairs

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What are informal complaints filed with the FAA’s Airport District Office, which ensure sponsors are in compliance?

Part 13

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CFR ___________ requires becoming familiar with all available information including Airport Facility Directoy (AF/D), weather, and notices to airman (NOTMAS).

Part 91.103 Pre-Flight

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Commercial air carriers, fractional operators, and corporate flights hold a ____________ to perform flight research?

Flight Dispatcher Certificate

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The ___________ has final responsibility for the safety and security of the flight?

Pilot-In-Command (PIC)

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The navigational process that uses uses radio transceivers and position triangulation is known as ______________.

Dead Reckoning

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Visual flight rules require at least a ___________ cloud ceiling above ground level and ___________ or more forward visibility.

1,000-ft

3-miles

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At what elevation can a pilot operate under Visual Flight Rules with or without a Flight Plan?

Under 18,000-ft MSL

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______________ are below Visual Meteorological conditions, known as ___________ and require a flight plan with the FAA.

Instrument Meteorological Conditions

Instrument Flight Rules (IFR)

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____________ are used by pilots to identify the airport, weather, navigation/communication frequencies, navigational aids, obstructions, and airspace information?

Sectional Charts

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What must pilots under Visual Flight Rules have a copy of?

Sectional Chart(s)

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What do pilots operating under Instrument Flight Rules carry, showing routes between navigational aids, minimum altitudes to maintain safe separation?

Low Altitude En Route charts (below 18,000ft)

High Altitude En Route charts (above 18,000ft)

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What provides the pilot approaching an airport with current wind, weather, NOTAM, and airfield information?

Automated Terminal Information Service (ATIS)?

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List the 3 types of Runway Approaches.

visual approach
instrument approach non-precision
instrument approach precision

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_____________ chart outlines routes and altitudes to be flown for landing at airport, ensuring clearance over obstacles, descent altitudes, and missed approach procedure.

Instrument approach plate

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What are the standard defined flight path for aircraft departures, for flying under instrument procedures?

Instrument Departure Procedures (DP)

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The ____________ procedure is used to simplify communication and understanding during approaches.

Standard Terminal Arrival (STAR)

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The ____________ are specialized procedures pilots use to depart from and arrive into an airport, along with instrument approaches?

Terminal Instrument Procedures (TERPs)

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The standard TERPs approach has a __________ glideslope.

Three-degree

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What determines the necessary signs, marking and lighting, and approach lighting for a runway?

Type of approach

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What characterizes successful airports?

Effective working relationship between policy makers and management

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____________ is a branch of government that operates like a business, under a municipal structure?

Enterprise Fund

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Which law requires airports to be as self-sustaining as possible?

Airport and Airway Improvement Act of 1982 (AAIA)

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What is in place to protect airports from political influences?

Grant Assurances (along with FAA orders)

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List the 5 types of airport sponsorship.

municipality (city/county)
Airport Authority
Port Authority
State
Private

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___________ is another term for an Airport Authority or Airport Advisory Board?

Commission/Commissioners

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___________ created the Metropolitan Washington Airports Authority (MWAA)?

Federal government

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What are advantages and disadvantages of municipally owned airports?

++ better access to resources of other city/county departments

- policy-makers are often unfamiliar with the operation of an airport, nor can they devote as much time to airport because of other concerns
- decisions in the best interest of the airport may conflict with the decisions that are in the best interest of the community

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What are advantages and disadvantages of an Airport or Port Authority?

++ focused leadership and specialized attention to significant community asset
++ insulate from political influences
++ business-focused, efficient operation and economy of scale
– resources and finances may not be readily available in necessary quantities or levels

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How should Airport Executives think of airports?

Public entity that is run like a business

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Describe the main roles of an Airport Executive.

Safe, Secure, Efficient operation of airport and its facilities

implements policy
runs airport day-to-day
reports to governing body
operates airport safety and efficiently
maintains airport facilities
secures new business
oversees planning and construction projects
recommends and enforces rules/regulations

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Describe the main roles of Airport’s governing body.

establishes policy
sets goals
identifies strategies for fulfilling the vision
executes contracts
serves as airport advocate
approves plans/programs
assigns and oversees manager’s responsibilities
selects consultants and service providers

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List the 4 primary areas of airport management.

finance and administration
planning and engineering
operations and maintenance
marketing, public relations, and air service development

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___________ frequently works with Planning and Engineering department on federal AIP grants?

Airport District Office (ADO)

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What are 2 key positions at any airport that are generally outside of the vertical reporting structure?

airport’s legal counsel

2. financial auditor

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Why would an airport create security as a separate division reporting to the Airport Executive?

Prevent executive from circumventing enforcement of security regulations

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The Legal Counsel reports directly to __________ or ___________?

the Board

Airport Executive

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____________ is to establish a safe, efficient use and preservation of the navigable airspace.

CFR Part 77

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____________ regulates noise and compatibility planning.

CFR Part 150

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Aviation security is regulated by the _________ CFR __________ series of regulations.

Title 49

Part 1500

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____________ regulates aircraft operator security for air carriers and commercial operators.

CFR Part 1544

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Most regulations are created through the __________ process.

Notice of Proposed Rulemaking (NPRM)

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The FAA has ______ regional offices.

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List and describe the main function of 4 FAA business lines.

Airports (ARP)
Air Traffic Organization (ATO) - air traffic control and navaid maintenance
Aviation Safety (AVS) - certification of pilots, mechanics, and air safety professionals
Office of Commercial Space Transportation (ATS)

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Airport Executives most commonly work with __________ at the FAA?

Office of Airports (ARP)

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Which FAA division is responsible for all programs related to airport safety and inspections, as well as standards for airport design, construction and operation; AIP grants, PFC applications, grant assurances, and DBE requirements?

Office of Airports (ARP)

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The __________ can handle informal disputes at the regional or local FAA level by using both enforcement procedures and Alternative Dispute Resolution (ADR)?

Airports District Office (ADO)

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The __________ is a regional FAA office that concentrates on enforcing regulations pertaining to aircraft and airmen certification and licensing.

Flights Standards District Office (FSDO)

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ACs are identified by the title ____________ if they are binding and incorporated with reference to a regulation.

FAR Guidance Material

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Directives on specific subjects and programs issued by the FAA are __________. These provide guidance and instruction to personnel on compliance, airport safety, and operations. Essentially “rules” for airport management.

FAA Orders

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____________ provide regulatory requirements

for airport security related systems such as perimeter intrusion, biometrics, and identity management

Radio Technical Commission for Aeronautics (RTCA)

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A TSA ________ provides changing requirements to the airport security program, while a TSA _________ provides intelligence information or best practices for airport security.

Security Directive (SD)
Information Circulars (ID)

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How long do Grant Assurances address an airport’s responsibilities during a project and establish continuing obligations?

20 years

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Grant Assurances are primarily managed by the FAA through the _____________, order ___________, providing guidance to FAA on interpreting and administrating sponsor commitments.

Airport Compliance Manual

5190.6B

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Airport eligibility to receive grant monies is determined by whether airport is listed on the ____________.

Airport Noncompliance List (ANL)

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What is the expiry for Grant Agreements for land purchase, surplus property deeds and non-surplus land conveyance documents?

No expiry

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Overall requirements of Grant Assurances.

maintain the airport in good and serviceable condition
use specific lands approved for non-aeronautical use to generate revenue
operate in the public interest
ensure no exclusive right for any aero purpose

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What are formal complaints for the violation of regulations, with deadlines and stringent requirements for the Airport, complainant, and FAA?

Part 16 Enforcement

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How can the public report compliance violations of federal laws affecting air transportation?

Part 13 complaint

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___________ identifies the apparent violation(s), corrective action to resolve the noncompliance without further action, and deadline for corrective action?

Notice of Apparent Noncompliance

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_________ complaints cover matters involving federal obligations incurred by Airport Sponsor in accepting federal property of FAA grants.

Part 16

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Individuals file a formal complaint with ___________ of the FAA.

Office of the Chief Counsel

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Which FAA office investigates Part 16 complaints further if reasonable basis exists?

Office of Airport Safety and Standards

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After the last pleading date was due, the FAA has _________ to issue a non-final decision on the complaint and __________ for either party to appeal?

120 days

30 days

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List 3 conditions where the FAA administrator may issue a Final Agency Decision (FAD).

complaint is dismissed after investigation
hearing is not required or made available
FAA provides respondent an opportunity for hearing, and respondent waives opportunity

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___________ is a phrase to describe a collection of FAA regulations, adjudications, various statues, Grant Assurances, Advisory Circulars, court decisions at local/state/federal levels, and lease agreements.

Airport Law

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Once an airport has accepted AIP grant funding, the airport is in a ___________, where revenue generated must be expended at the airport.

closed fiscal system

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____________ is statutory and is considered a crime against society.

Criminal law

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A _________ is governed by state laws, and frequently used in airport management for regulatory compliance such as enforcing rules and regulations.

Infraction

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____________ is considered to involve injury to an individual, rather than to society? Referred to as “tort” law.

Civil law

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The legal precept of ___________ allows a person the unrestricted enjoyment of their personal and real property.

Quiet enjoyment

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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

___________ is a legal concept that the government cannot commit a legal wrong is immune from civil suit or criminal prosecution.

Governmental immunity

__________ is the failure to use reasonable care, if he or she fails to act as an ordinarily prudent person would act under the same circumstances.

Negligence

What law waives immunity if the act of a government employee caused damage?

Federal Tort Claims Act

What law gives immunity over claims arising out of contracts with the federal government?

Tucker Act

__________ occurs when someone has personally participated in an affirmative act of negligence, known about or complied in negligent acts, or failed to perform a precise duty. Snow removal, environmental remediation, for example.

Active negligence

Which law created the TSA?

Aviation and Transportation Security Act (ATSA)

Which agency investigates every civil aviation accident and significant accidents in other transport modes and develop safety recommendations?

National Transportation Safety Board (NTSB)

____________ was established to secure international cooperation and the highest degree of uniformity in regulations and standards, procedures, and organization regarding civil aviation.

International Civil Aviation Organization (ICAO)

____________ was created by Airport Executives around the world to represent common interests and to promote cooperation with associates in the air transport industry.

Airports Council International (ACI)

___________ is a nonprofit organization created to bring together law enforcement leaders and facilitate communication between Airport Executives, intelligence officers, and investigators of law enforcement agencies.

Airport Law Enforcement Agencies Network (ALEAN)

____________ promotes safe, reliable, secure, and economical air services for the benefit of consumers. Represent, lead, and serve the airline industry.

International Air Transport Association (IATA)

___________ nation’s oldest and largest airline trade association that represents leading airlines. Powerful lobbying force for airline industry.

Airlines for America (A4A)

___________ represents and advocates for more than 54,000 pilots at 31 airlines. Provides airline safety, security, and pilot assistance, representation, and advocacy.

Air Line Pilots’ Association (ALPA)

___________ represents North American regional airlines and ancillary industries supporting regional airlines before the US Congress, DOT, FAA, and other agencies.

Regional Airline Association (RAA)

___________ is an organization for companies who rely on GA aircraft to help make their businesses more efficient, productive, and successful

National Business Aviation Association (NBAA)

___________ is a non-for-profit organization dedicated to General Aviation. 2 notable programs include Airport Watch and Airport Support Network.

Aircraft Owners and Pilots Association (AOPA)

___________ represents interests of GA business community before Congress and federal, state, and local agencies.

National Air Transportation Association (NATA)

___________ is the premier trade association representing manufacturers and suppliers of civil, military, business aircraft, helicopters, UAVs, space systems, engines, and other technologies.

Aerospace Industries Association (AIA)

___________ one of most senior aviation organizations in US, predating FAA predecessor, representing those in state government aviation agencies who serve the public interest.

National Association of State Aviation Officials (NASAO)

The exclusive bargaining representative of FAA air traffic controllers is ____________. Affiliated with AFL-CIO and represents over 20,000 professionals at FAA, DOD, and some private air traffic control facilities.

National Air Traffic Controllers Association (NATCA)

____________ provides services that directly benefit

the operations of their members and strives to advance the international helicopter community.

Helicopter Association International (HAI)

Human resources, organization management, business law, economics, leadership, marketing, accounting, strategic planning, and quantitative analysis are examples of ____________ competencies.

Business enterprise

Public finance, leadership and professional ethics, public policy making, purchasing and procurement, urban planning, GIS, and environmental law are examples of ____________ competencies.

Public administration

__________ requires airport to provide the FAA with a complete Title Search Report of all airport
property depicted on the current Airport Layout Plan (ALP) and Exhibit “A” maps.

Grant Assurance 4, Good Title

___________ prohibits an airport to sell, lease, encumber, or otherwise transfer or dispose of any part of its title of interests in property shown on Exhibit “A” without written FAA approval.

Grant Assurance 5, Preserving Rights and Powers

List the 2 distinctions of On-airport land use.

Aeronautical use - land reserved for aeronautical activity
Non-aeronautical use - revenue to support airport’s aviation needs

____________ is an important tool in ensuring land adjacent to, or within immediate vicinity of, the airport is consistent with activities and purposes compatible with normal airport operations.

Land use planning

What method does FAA use to influence airport land use and land uses surrounding airport?

Grant Assurances

Grant Assurance #21 Compatible Land Use addresses _________ land use, requiring Sponsors to attempt to restrict the land use.

Off-airport

Which Grant Assurance addresses height restrictions?

20 Hazard Removal and Mitigation

FAA requires that the Airport Executive _________ to restrict incompatible land use around the airport, particularly in and along approach and departure paths.

Attempt

Defending the airport from incompatible off-airport land use starts with the _____________.

Airport Master Plan

While the Sponsor does not have the authority to enact zoning ordinances or changes, the Sponsor should demonstrate a ____________ to inform surrounding municipalities on the need for land use compatibility zoning.

Reasonable attempt

_____________ is when land can be used for more than one purpose at the same time.

Concurrent land use

The FAA ___________ residential development on or around airports.

Strongly opposes

Permanent or long-term living quarters, hangar homes, fly-in communities or residential hangars are ___________ and the FAA ___________. traditionally opposed

Airparks

Traditionally opposed

___________ delineates the airport’s boundaries, including all facilities, and identifies plans for future development; as required under Grant Assurance 29.

Airport Layout Plan (ALP)

What is a prerequisite to granting AIP funds?

FAA-approved ALP

The property designation of aeronautical or non-aeronautical is important in land use planning and ____________.

Revenue management.

List 3 Grant assurances addressing permitted activities on an airport.

#19 Operation and Maintenance (most encompassing) 
#22 Economic Nondiscrimination 
#23 Exclusive Rights

_____________ are requirements an individual or entity wishing to provide aeronautical services to the public on a public-use airport must meet in order to provide those services; required in Grant Assurance 19 Operations and Maintenance.

Minimum Standards (MS)

_____________ allow an airport operator to better ensure a safe operating environment, avoid tenant conflicts, provide quality services to public, provide protection to airport, and comply with Grant Assurances.

Minimum Standards

List 2 Grant Assurances to address application and management of Minimum Standards.

#22 economic discrimination  
#23 exclusive rights

Economic nondiscrimination Grant Assurance 22 uses the term ____________, which means airport operator may prohibit/limit a class of use but may not restrict an individual user.

unjust discrimination

Grant Assurance ____________ restricts the Airport Executive from granting any tenant the exclusive right to conduct a particular commercial aeronautical service unless it would be unreasonably costly, burdensome, or impractical.

23 Exclusive Rights

How can you ensure compliance with Grant Assurance 19 Operations and Maintenance?

Rules and regulations at each airport

security
individuals conduct
conduct of tenants/vendors
schedules of fees, rates, charges
vehicle movement in AOA, AMA, speed limits, etc.
aircraft operations

How are self-fueling and self-service operations addressed?

Minimum Standards and/or Rules and Regulations

Grant Assurance____________ requires large and medium hub airport operators to report to Sec. of Transportation any denial of a request by air carrier for access to airport.

39, Competitive Access

The FAA’s policy on hangar use is these facilities should be used for a ___________ use.

Aeronautical

Grant Assurance ___________addresses Through-the-Fence (TTF) agreements?

5 Preserving Rights and Powers

An off-airport business operation with access to the airport’s runway/taxiway system, discouraged by the FAA, are known as ____________.

Through-the-Fence

Which law authorizes Through-the-Fence agreements to allow for residential property next to General Aviation airports?

FAA Modernization and Reform Act of 2012

List the 3 types of airport revenue.

aeronautical
non-aeronautical
non-operating

_____________ includes services provided by air carriers related directly and substantially to the movement of passengers, baggage, mail, and cargo at the airport.

Aeronautical revenue

_____________ includes land rent received from an off-industrial park that is owned by the airport, reservations centers, catering facilities, rental car operations, parking, and concession sales

Non-aeronautical revenue

____________ includes passenger facility charges, customer facility charges, interest incomes, property taxes, sale of property, and grants

Non-operating revenue.

____________ is the most universal type of aeronautical user charge at commercial service airports, charged on per-operation or per-weight/operation basis.

Landing fee

___________ is a percentage on the amount of fuel sold on the airport to be collected as airport revenue.

Fuel flowage fee

Can leaseholds be both from aeronautical or non-aeronautical use sources?

Yes, both

Larger GA hangar tenants are often ____________ that may also request their own fuel farm, rent additional ramp, rent office space, and perform maintenance.

Corporate operators

_____________ are program grants to reduce airport ground emissions, allowing for Sponsors to use AIP and PFCs to finance low emission vehicles, refueling/recharging, and air quality improvements.

Voluntary Airport Low Emissions (VALE)

____________ airport revenue is the most significant and less limitations.

Non-aeronautical

Customer Facility Charges and Passenger Facility Charges are examples of ___________ revenue.

Non-operating

Which law establishes general requirements for airport revenue use?

Airport and Airway Improvement Act of 1982

Which Grant Assurance regulates the use of airport revenue generated by airport and local taxes on fuel must be expended for airport/airport-system capital or operating operating costs?

25, Airport Revenue

Which law requires conducting an annual audit and ensure the government that airport funds have been properly distributed?

Single Audit Act of 1984

Using airport revenue for non-airport uses is called ___________.

Revenue Diversion

Items not considered to be airport revenue include revenue generated by an airport __________ in the course of their business.

Tenant

Payments in Lieu of Taxis (PILOTS) or other assessments exceeding value of services are ___________uses of airport revenue, and represent ___________.

Prohibited

Revenue diversion

Examples of unlawful revenue diversion.

general economic development for municipality
marketing not directly promoting airport
airport funds to support community activities
loans or investments at less than prevailing rates
Direct subsidy of air carrier operations
Rental of land at less than fair market value rent

Grant Assurance ____________ addresses reporting financial information, implementing financial reporting provisions of the 1994 Authorization Act.

26, Reports and Inspections

When is the filing deadline for Forms 5100-126 and 5100-127 (financial reporting)?

120 days after end of fiscal year

____________ requires sponsors to file an annual report on revenue paid to other units of government and on compensation airport received for services and property to other government units.

Form 5100-126, Financial Governmental Payment Form

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

Internal Service Funds

The Airport Executive breaks down revenues and expenses by Aeronautical operating revenue, Non-aeronautical operating revenue, and non-operating revenue, in the ____________.

Form 5100-127, Operating and Financial Summary

__________ is the process of recording all financial transactions in a journal.

Bookkeeping

Using accounting data to calculate and report cash flows, profit, and loss of a financial entity is __________ accounting. Including income statement and balance sheet.

Financial

__________ is the process of checking financial records to ensure the integrity of the information.

Auditing

Detailed information about individual products, services, or managers that is used to make decisions about costs, pricing and who to promote is ________ accounting.

Management

Airports are often established as an ___________, accounting for operations that are finance-operated similar to private businesses.

Enterprise Fund

The _____________ accounts for Assets and Liabilities, i.e. the Balance Sheet

Statement of Net Assets/Statement of Net Position

The ___________ shows the “bottom line”, of revenues minus expenses

Statement of Activities/Income Statement

The ____________ shows how much cash the company had at the beginning of reporting period and how much remainder at end. of reporting period.

Cash Flow Statement

Details about company’s pension plans, changes in accounting practices, stock options, and income taxes, are located in ___________.

Notes of Quarterly Reports

List 2 documents containing airport Financial Statements.

Annual report

2. Quarterly 10-Q reports

Financial reports contain _____________, in which management provides detailed discussion of financial health and explains trends/anomalies.

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

Most state and municipal governments operate on a fiscal year that begins on ________ and ends on _________ of the following year.

July 1st

June 30th

_________ is defined as the annual cost for providing, operating, maintaining, and administering an airport
facility.

Break-even

An __________ focuses on those expenses and revenues necessitated by normal and ongoing operations, to provide an accurate estimate of the revenues and expenses of the airport for a future period (typically 1 year).

Operating budget

____________ reflects an annual or multi-year financial plan for capital projects, or major equipment expenditures, and means of implementing the plan; often associated with Capital Improvement Plans (CIP).

Capital budgeting

Passenger facility charges (PFC) and Airport Improvement Program (AIP) funds are often used with the ____________ process.

Master planning

A ____________ budget lists each dept. and assigns a sum of money to the dept. or administrative unit to be spent as needed.

Line-item

A ____________ budget lists what each administrative unit is trying to accomplish, how much it plans to do, and with what resources.

Performance based

____________ budgeting divides expenditures by activities, with emphasis on priorities and need for trade-offs.

Program

____________ budgeting starts from a zero base and every function within an organization is analyzed for its needs and costs.

Zero-based

Grant Assurance ____________ is directed at making the airport as self-sustaining as possible when setting fees and lease rates/charges.

24 Fee and Rental Structure

The ____________ requires airports to be as

self- sustaining (relies on its revenue streams for op expenses) as possible under the circumstances at that airport.

Airport and Airway Improvement Act of 1982 (AAIA)

Each established rate, charge, or fee is subject to scrutiny from FAA, required under the ____________ to take into account whether Sponsors have taken reasonable efforts to be self-sustaining.

FAA Authorization Act of 1994

What are individuals or businesses providing services involving operation of aircraft or flight support directly related to aircraft operation?

Aeronautical Users

Fair market fees for use of the airport are ____________ for non-aeronautical use of the airport and are ____________ for non-airfield aeronautical use.

Required

Optional

Airport sponsors must impose ____________ charges for non-aeronautical uses of airport property with certain exceptions.

Fair Market Value

List 4 exceptions to charging fair market value for Non-Aeronautical Revenue.

property for community purposes
non-for-profit aviation organizations
transit projects and systems
military aeronautical units

FAA prefers that Sponsors handle most rates and charges at the ____________, and make a good faith effort to reach an agreement between Sponsor and aeronautical users.

Local level

List 3 common approaches to airport Rate Setting.

Residual
Compensatory
Hybrid methods

Under the ___________ method, much of the financial risk is transferred to the airlines in return for a negotiated limit on the airport’s profits; seeks to result in a break-even and can have a Majority-in-Interest (MIII) clause.

Residual

Signatory agreements can provide exclusive rights of the air carrier to their ticket counters, lounges, gates, and other areas and in some cases, through a __________ clause, and air carrier has the right to approve capital projects or select Airport Executive.

Majority-in- Interest (MII)

Large airports have commonly used the ________ method for rate setting because of influence and power of airlines in generating economic traffic.

Residual

A ___________ is one in which a Sponsor assumes all liability for airport costs and retains all airport revenue for its own use in accordance with federal requirements. Aeronautical users are charged only for the costs of the aeronautical facilities used.

Compensatory agreement

Under the _________ method of compensatory approaches, fees and charges are set for each revenue-producing cost center.

Cost-of-service

Under the __________ approach, the local government agency offsets the difference between the revenue and expenses by subsidizing the airport’s operation.

Public subsidy

Sponsors that adopt rate setting systems employing elements of both residual and compensatory approaches are known as _________; charging for both use of aeronautical facilities and responsibility for airport costs in return for sharing non-aero revenues.

Hybrid agreements

The _______ is the total of all costs associated with providing airfield facilities and services to aeronautical users.

‘‘rate base’’

Federal law does not require a specific rate setting method, but it must be applied consistently to ___________ aeronautical users and conforms with FAA’s procedures on rate setting.

similarly situated

List 5 ways the airport operator may set fees for Aeronautical use.

ordinance
statute
resolution
regulation
agreement

In setting the rate base, the airport operator must apply a ____________ in establishing fees for comparable aeronautical users of the airport.

consistent methodology

List 4 types of information airports must provide to aeronautical users over Changes to Rates and Charges.

Historic financial information for two fiscal years prior
Economic, legal, or financial justification for changes
Traffic information for preceding two years
Planning and forecast information to extent applicable

The goal of airport ____________ is to ensure the airport’s economic self-sufficiency through the full use and occupancy of facilities.

Property management

Do collecting Passenger Facility Charges (PFCs) require the operator to use federal procurement standards?

No - PFCs = user fees not grants

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

Value Engineering (VE)

List 2 FAA requirements for federally-funded construction Contracts exceeding $2,000?

comply with Davis-Bacon Act

2. establish a Disadvantaged Business Enterprise (DBE) program and submit plan to FAA for approval

Which law requires providing a weekly reporting of wages paid (minimum wage requirement)?

Davis-Bacon Act

Which law requires all steel and manufactured goods used in AIP funded projects to be produced in US?

Buy America Act of 2003

For contracts over __________, federal regulations require airport to publicly advertise bid and require a 5% bid guarantee, and payment bonds equaling 100% of contract.

$100,000

Under the ___________ method, contracts for construction and equipment must go to the lowest responsive and responsible bidder.

Sealed bid

When conditions are not appropriate for the use of sealed bids, such as when the precise scope of work is not defined, ____________ may be used.

Competitive proposals

Competitive proposals are handled through the _________ process, where applicable state and local laws are addressed.

Request For Proposal (RFP)

___________ is a method of project delivery in which one entity works under a single contract with the project owner to provide design and construction services.

Design-Build

__________ permit government stocks of specific items to be maintained at minimum levels and allow direct shipments to the users of products or services; sometimes referred to as an infinite delivery.

Task-Order Contracts

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

Construction Manager at Risk (CMAR)

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

Professional services contracts

____________ contracts require prior ADO approval and are typically only approved when the item or service is only available from a single-source, when competition is deemed inadequate, or emergency.

Single-source or noncompetitive

Grant Assurances require a ___________ program in contracts.

DBE

DBE Regulation 49 CFR Part 26 requires airports to implement a DBE program if they anticipate awarding more than __________ in prime contracts using federal funds during a FY and establish a __________ goal in % DBE participation for prime contracts.

$250,000

3-year

What is a type of DBE-eligible company that can compete for concession opportunities?

Airport Concessionaire Disadvantaged Business Enterprise (ACDBE)

_________ is a core component of nearly all the processes at an airport.

Airport information technology (IT)

List the 4 implications for any planning, implementation, upgrading, or maintenance of IT systems.

Compatibility and integration
Security and safety
Scalability
Usability - one of most critical

__________ systems focus on the information delivery and decision making needed to support the movement of aircraft both on the ground and in the air.

Airside IT

___________ provides noise event and flight track analysis, reports on noise and flight track compliance, monitors noise complaints, and assists with noise management.

Airport Noise and Operations Monitoring System (ANOMS)

__________ systems are located in publicly accessible spaces, usually outside a terminal, and assist in passenger drop-off and pick-up, such as AVI, PARC, dynamic signage.

Landside IT

__________ systems monitor the activity of vehicles outfitted with a radio frequency identification display (RFID).

Automatic Vehicle Identification (AVI)

___________ systems often involve common use systems for processing and guiding passengers: common-use, local departure control systems, multi-user flight displays, and baggage RFID systems.

Passenger processing

A __________ is a computer system used to display flight information in real time to passengers, such as aircraft arrival and departure information.

Multi-user flight information display system (MUFIDS)

___________ systems are used to meet the airport organization’s administrative needs and are tailored to fit the airport’s unique business environment.

Business and financial management

___________ systems record asset ownership and usage, including lease and concession management, billing/invoicing, and work orders.

Asset or property management

__________ focuses on any item of text or media that is formatted into a binary source such as videos and music owned by an entity.

Digital asset management

___________ systems are critical to airport operations and to keeping the public safe: video surveillance, controlled access, and detection systems.

Safety and security

What is used to allow, restrict, or track the movement of individuals who have been issued airport credentials for secure areas?

Physical Access Control System (PACS)

___________ systems ensure that mechanical systems work properly so that building environments are pleasant and functional.

Facility and maintenance

The __________is a centralized data storage location whose resources are shared by other systems such as the flight information display system, and BHS.

Airport Operational Database (AOBD)

List 3 critical Stakeholders involved in updating IT systems.

Chief executive officer
Chief information officer
stakeholder executive (top airport admin)

Which IT stakeholder is concerned with managing cost estimates and preventing cost overruns as related to IT implementation?

Chief Information Officer

___________ are used to support planning, infrastructure, development, and management activities at an airport; comprising of technologies for presentation of geospatial data.

Geographic information systems (GIS)

How is the FAA collecting airport and aeronautical data to meet the demands of NextGen?

Airports Surveying-GIS (AGIS) Program

What is FAA’s online GIS-based system for airport layout plan visualization?

Electronic ALP (eALPs)

The goal of ___________ are to allow more collaboration with the FAA along business lines, better runway capacity decisions, obstruction analysis, and GPS analyses.

eALPs

In passenger security threat detection, IT technologies that are not detected by the individual, such as biometric scans, are _________.

Passive

IT security processes allowing the passenger to directly interact with IT infrastructure are ________.

Active

__________ standards, methods, and policies will continue to be one of the most demanding areas in airport operations

Security

Have hackers been able to penetrate IT systems through third-party software?

Yes (2013 Target breach)

List 2 ways airport executives can maintain IT Security.

ensure network security systems are up-to-date

2. conduct regular audits of security systems

__________ is one of the most powerful weapons in cyber attacker’s arsenal?

__________ is used to describe crime of breaking into individual’s computer to access personal or sensitive information.

Hacking

____________ attacks are intended to disable a machine or system, making it unavailable to users.

Denial-of-service

__________ can come in the form of emails, messages, phone calls, or websites and is designed to steal personally identifiable information.

Phishing

__________ is a highly targeted attack where emails are sent to only a few individuals in an organization.

Spear phishing

__________ is also a legitimate form of collecting and examining databases in order to generate new information, but when combined with ill-intent, can be used for identify theft and fraud.

Data-mining

___________ is when an attacker pretends to be someone or something known or trusted and uses leverage to gain information the attacker desires.

Social engineering

Certain systems such as __________ are particularly important to protect from data penetrations, malware, and other attacks. This system should be separated to extent possible.

ACAMS

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

Commercial General Liability (CGL)

List the 3 specific coverage areas of a Commercial General Liability (CGL) policy.

hangar keepers liability
premises liability
product liability

Airports can also be held liability for services and products sold by ___________ to the airports and therefore they should have liability insurance to protect the airport.

Tenants

List the 4 most common types of Lease Agreements.

straight
graduated
revaluation
percentage

The ____________ represents an 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.

Leasehold Agreement

The section of a lease that includes a detailed statement that reflects facts, events, and general terms and conditions is the ___________.

Recitals

The section of a lease that includes how much the lessee will pay, along with rate adjustments is the ___________.

Rates, Fees, Charges

The section of a lease for licenses, permits, and the right of lessor to inspect facilities and approve alterations is the ___________.

Covenants by Tenant/Lessee

The section of the lease that provides good title to the lessee of leased premises, right of the lessor in the event of foreclosure, and Quiet Enjoyment is the ___________.

Title

The establishment of an airport ___________ is intended to provide revenue for the airport while meeting the needs of passengers, visitors, and employees for food, beverage, retail, and other amenities.

Concession

Describe factors that determine Equitable Rents in a terminal.

value of space available for leasing
costs of space
amount of revenue producing space
variations in cost of different spaces
services provided for each tenant

____________ requirements are also often included in a concession contract, which guarantees that the tenant will pay the airport a minimum amount annually.

Minimum Annual Guarantee (MAG)

List the 3 approaches to Leasing Concession Space.

standard approach - directly leasing and managing space
development company or retail expert in lieu of airport
institution engaged as master lessee

Two trends in airport concessions at medium to large-hub airports are the ___________ approach and/or _____________ concessions approach.

shopping center

brand-name

__________ concessions often establish their rates as a percentage of Gross Revenue, with defining what is included in gross revenue an important consideration in agreement.

Car rental

Another important type of concessionaire is the ___________, which provides services for airport users lacking facilities of their own.

Fixed Base Operator (FBO)

In lieu of landing fees for GA aircraft, many smaller airports collect _________ fees, levied on each gallon of aviation fuel sold.

Fuel-flowage

The primary purpose of ______________ with the airlines is to grant operating rights and to provide, or attempt to guarantee a reliable stream of revenue for airport.

Aeronautical Use (or Lease) Agreements

__________ gates imply a right of first refusal,first scheduling rights, or first offer.

Preferential-use

__________ gates are open to variety of carriers and often managed by airport operator on an as-needed basis.

Common-use

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

Majority-In-Interest (MII)

MII clauses are common at airports with __________ and often allow airline operators to review airport development plans.

Residual Agreements

___________ carriers are more common at airports with residual agreements because of substantial commitment to an airport.

Signatory

List 5 considerations for Airport Executive in developing an airport.

physical constraints
zoning
political
conveyance restrictions
general & contract legal counsel
then market analysis

Final phase of development is to establish an ___________ for the life of the facility.

Operating Plan

Which law created the Airport and Airway Trust Fund, requiring the collection of taxes or user fees from various segments?

1970 Airport and Airway Revenue Act

Which law, and subsequent amendments/reauthorizations, established the Airport Improvement Program (AIP)?

Airport and Airway Improvement Act of 1982

The AIP processes are regulated under ___________, otherwise known as the Airport Improvement Programs Handbook.

FAA Order 5100.38C

__________ provides grant money for development of eligible NPIAS public-use airports.

Airport and Airway Trust Fund

The FAA will issue a ___________ to add to or revise guidance about the administration of AIP, related to the AIP Handbook.

Program Guidance Letter (PGL)

AIP funds must be apportioned by formula, known as ___________, to specific airports and type of airports.

Entitlement funds

Portions of AIP funds designed to achieve specified funding minimums such as approved Noise Abatement Programs, Military Airport Program, and GA reliever are ____________.

Set-Aside funds

Remaining AIP funds used for preserving and enhancing capacity, safety, and security, at primary and reliever airports are _____________.

Discretionary fund

Congress passes legislation about every 3 to 4 years that appropriates AIP funding, known as ___________.

Reauthorization bill

The ____________ authorized appropriations for the FAA for the fiscal years of 2011 through 2014, came after 22 interim continuing resolutions and a 10-day FAA shutdown.

FAA Modernization and Reform Act of 2012

____________ apportionments are the first funds to be issued to airports and states.

Entitlement

____________ monies are distributed by Office of Management and Budget and allow the FAA to obligate Congressional apportionments with a financial plan.

Discretionary

Some states are considered ___________ which means that the state assumes responsibility for administering AIP grants at airports classified as “other-than-primary” airports.

“block-grant”

What is the Electronic Grants Payment System for AIP FAA payments to a Sponsor?

Delphi eInvoicing System

What Grant Assurance requires airports to carry out an AIP-funded project with policies, standards, and specifications approved by FAA?

34, Policies, Standards, and Specifications

A development project must be depicted on the __________ to be approved for funding.

ALP

Which governs allowable AIP project costs?

Single Audit Act of 1984

What kind costs are incurred for a common or joint purpose benefiting more than one cost objective and are not readily assignable to cost objectives specifically benefited?

Indirect costs

Prioritized facilities previously acquired, materials and supplies, tools, equipment, travel, and conferences are ____________ costs.

Non-allowable

___________ describes the priority system for discretionary funds used to determine which projects will receive funding.

FAA Order 5100.39A

List 3 criteria for highest priority for AIP funds.

ensuring safe and secure transport
preserving and upgrading capacity
improving compatibility and sufficient access

____________ is that portion of the NPIAS that provides additional details including the anticipated sources of funds for specific developments in 3 to 5 years

Airports Capital Improvement Plan (ACIP)

____________ is that portion of the NPIAS that provides additional details including the anticipated sources of funds for specific developments in 3 to 5 years.

Airports Capital Improvement Plan (ACIP)

What is the highest AIP priority for 1. Purpose, 2. Component, and 3. Type projects?

Safety/security
Runways
Obstruction removal and construction/noise projects

For large-scale projects that may take years to complete, the FAA’s ___________ program helps fund large-scale capacity projects at primary or reliever airports.

Letter of Intent (LOI)

Which law allowed agencies controlling airports with more than 2,500 enplaning passengers, to charge passenger facility charges (PFC) on tickets?

Aviation Noise and Capacity Act of 1990 (ANCA)

Large and medium-hub airports that collect PFCs must return up to __________ of their AIP apportionment (entitlements) if they collect $3 in PFCs, or return up to __________ if they collect $4.50/pax; Funds from reduced grants distributed to smaller airports.

50 percent

75 percent

What is the primary difference between PFC and AIP charges?

PFC levied as a direct fee to the traveler and is administratively retained locally

What projects are PFC revenues to be applied to?

preserve or enhance safety
capacity
security
competitiveness of national air systems
noise mitigation

___________ are issued only by states, municipalities, and other authorized, general-purpose governments; requiring community/voter approval - lower interest rate.

General Obligation (G.O.) Bonds

What type of Bonds are issued by a state or local government, or by an airport authority, commission, special district –> lower monthly debt payment?

Revenue

____________ are issued by the Airport’s Sponsors in order to obtain tax-exempt status; secured by the revenue from indebted facility.

Special Facility Bonds

____________ are airport revenue bonds combined with PFCs, CFCs, G.O. bonds, or some other pledge to fund a project.

Hybrid Source Bonds

____________ are special types of revenue bonds suited to small airport; private entity user gets tax-exempt rates in return for making a capital investment.

Industrial Development Bonds (IDBs)

____________ are usually ranked with the best or highest credit rating.

G.O. Bonds

Which type of bonds is management a key component in the bond rating/assessment process?

Revenue Bonds

Airports may seek funding from ____________ grant programs, money can provide federal match for an AIP match, and structure varies widely.

State Aviation

___________ are charged to rental car operators, with monies going toward landside capital improvements projects, or landside related operations/maintenance.

Customer Facility Charges (CFC)

The ___________ provides a systematic approach to identify unmet needs, determine optimum distribution of grants, foster cooperation, advise/inform public, and determine impacts.

Capital Improvement Program (CIP)

What is the difference between Public and Public-Use Airport?

Public-use can include privately owned for public use

Brainscape's Knowledge GenomeTM

Module 1 - Finance and Administration Flashcards

Brainscape's Knowledge Genome^TM