Module 1: The Airport Fiscal Environment Flashcards by Olivia Gunter

What authorized the US government to contract out air mail routes to private companies?

Air Mail Act of 1925

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What is the name for the operator of an airport, most commonly municipalities or authorities?

airport sponsor

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Beginning in 1938, the federal government provided financial support to airports through grants for capital projects (development) through what organization?

Federal Aviation Administration (FAA)

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What is the funding system used to grant airports funds through the taxes & fees on airport users with local funding support?

Airport Improvement Program (AIP)

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These funds must be reinvested in airport facilities and operations and cannot be shared or diverted to subsidize other municipal operations.

surplus funds

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What are the three primary components of the national air transportation system?

airports
aircraft
airspace

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What is the nexus of managing compliance with federal regulatory requirements and public finance practices?

airport finance

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What is the area of land or water designed to be used for the landing or takeoff of an aircraft?

airport

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What is the designated area for movement (taxiing, landing, and takeoff) of aircraft?

airfield

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What is the official national plan for developing public-use airports, adopted biannually?

National Plan of the Integrated Airport Systems (NPIAS)

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How many airports are in the U.S. as of the 2019-2023 NPIAS classification? And how many or classified under NPIAS?

19,627
3,321

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Of the two main types of airports under NPIAS, which type has scheduled air carrier service and 10,000 or more enplaned passengers per year?

primary airport

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What are the four classifications of primary airports?

large hub
medium hub
small hub
non-hub

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What are the two types of non-primary airports, except commercial service?

reliever and general aviation

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What is the area of an airport oriented towards the movement of aircraft?

airside

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What is the area of an airport oriented towards the movement of ground transportation?

landside

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How are runways identified?

By numbers — their degrees from magnetic north, divided by 10.

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What facilitates the movement between the aircraft parking areas and runways, and are primarily designated by letters (of the phonetic alphabet)?

taxiways

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These types of taxiways are aligned at a 30-to-45-degree angle to the runway and thought of as an “exit ramp”.

High-speed taxiway

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Runways at commercial airports are typically how long and wide?

8000 ft long
150 ft wide

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Instrument Landing Systems (ILS) and Local Area Augmentation Systems (LAAS) combined with Global Positioning Systems (GPS) are examples of what?

Precision Landing Systems

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Very High Frequency Omnidirectional Range (VORs), used to guide aircraft on instrument approaches, but typically to higher visibility and ceiling limits, is an example of what?

Non-precision Approach Aid

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This building on an airport is the most visible at an airport with responsibility for landing and takeoff, and the movement of all taxiing aircraft, vehicles, and pedestrians with the airside movement areas. It is owned, operated, and funded by the FAA.

control tower

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The area of pavement used for the parking of aircraft.

apron (or ramp)

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This term is used either exclusively to mean the pre-security "landside" facilities or collectively for the "landside" and post-security "airside" concourse or boarding gate facilities.

terminal building

What is the area called that typically accommodates a range of food and beverage, retail, and service outlets known as terminal concessions?

concourse

The structures and equipment that connect the boarding gate (in the concourse) to the aircraft are called what?

passenger loading bridges (or jetways)

What is it called when aircraft park remotely, and passengers are shuttled to the terminal via a bus or mobile lounge?

hardstand

These are the dedicated facilities for immigration (passport control) and customs and are required at airports serving heavy international traffic.

Federal Inspection Services (FIS) facilities

Who handles all international arrivals?

U.S. Customs and Border Protection (CBP)

An automated people mover (APM) is an example of what?

intra-airport transit system

What does FBO & SASO stand for? And what is the primary difference between the two?

Fixed Base Operator (FBO) and Specialized Aeronautical Service Operator (SASO). The difference is that FBOs offer fueling services.

The FAA sets strict requirements for these facilities & operations including minimum response times, specialized equipment & materials, and specialized training for responding to mass casualties.

Airport Rescue and Fire Fighting (ARFF)

What are the specialized storage facilities for jet fuel and AvGas called?

fuel farms

Collectively, what are the vehicles used to service aircraft called?

Ground Support Equipment (GSE)

In the U.S., the FAA manages and controls this space above the earth in the air, organized to allow for the safe movement of aircraft between airports.

airspace

The airspace is organized into how many different classes dependent upon altitude, proximity to the airport, and level of activity? What are they?

6; A, B, C, D, E, and G

What is the largest airspace class, located continuously above the U.S. borders, extending 12 miles off the coastline at altitudes between 18,000 and 60,000 ft.?

Class A, or positive control airspace

What are the two different sets of flight rules that apply to aircraft operating in each different class of airspace?

Instrument Flight Rules (IFR) and Visual Flight Rules (VFR)

What do we call the federally regulated 3D areas defined to protect the airspace surrounding the airports from ground obstructions that may pose a hazard to air navigation?

imaginary surfaces

What form is required by airport sponsors to obtain FAA determinations that surfaces remain protected when vertical development within the imaginary surfaces is proposed?

Form 7460 (Notice of Proposed Construction or Alteration)

The prime objectives of the FAA to promote air safety and the efficient use of the navigable airspace is stated in what code of federal regulations?

14 CFR, Part 77

The FAA grants authority to operate scheduled air service in the form of what certificate?

Part 121, Air Carrier Certificate

Scheduled or non-scheduled airlines operating aircraft with nine seats or less are regulated under what?

FAR Part 135

Who regulated airlines prior to the Airline Deregulation Act of 1978?

Civil Aeronautics Board CAB)

What is the agreement called when two or more airlines share the same flight?

codesharing

Large reductions in seat capacity and little to no growth is a strategy known as what?

capacity discipline

Mainline air carriers negotiate these with regional airlines. The mainline controls the scheduling, pricing, and other operating aspects of the regional airline.

Capacity Purchase Agreement (CPA)

What are the three major global alliances and their U.S. anchor airlines?

Star Alliance (United) SkyTeam (Delta) One World (American)

What is the name for all civilian flying except scheduled airline service?

general aviation

The legal authority establishing the rights, powers, obligations, and responsibilities that allow airports to operate.

airport sponsor governance

Airports generally operate as a __________________ of the municipal entity and rely on the revenues generated at the airport to cover operating costs.

enterprise fund

This type of airport sponsor is a special purpose entity created by state statute to own and operate an airport.

airport authority

This is a multimodal regional or state transportation authority where the airport is governed by the larger entity.

port authority

What are the two most notable airports owned by the federal government? And what is the organization operating them under a 50-year lease?

Reagan (DCA) and Dulles (IAD) Metropolitan Washington Airports Authority (MWAA)

What office under the Department of Transportation (DOT) provides the economic oversight of the domestic and international airline industry?

The Office of Aviation Analysis

What are the four divisions of The Office of Aviation Analysis?

1. Essential Air Service (EAS) & Domestic Analysis 2. Small Community Air Service Development Program (SCASD) 3. Competition and Policy Analysis 4. Air Carrier Fitness

Provides funding for the federal commitment to the aviation system of the U.S. through several aviation-related excise taxes.

Airport and Airways Trust Fund

The bill that extended the FAAs funding and authorities through FY 2023.

FAA Reauthorization Act of 2018

This division under the Office of Aviation Analysis guarantees that small communities would not totally lose air service.

Essential Air Service (EAS)

This division under the Office of Aviation Analysis provides funding for airports to address air service deficiencies and improvement.

Small Community Air Service Development (SCASD)

This division under the Office of Aviation Analysis investigates the potential impact from proposed mergers, alliances, code-sharing, and other operational activities.

Competition and Policy Analysis

This division under the Office of Aviation Analysis ensures that all existing and proposed airlines meet a fitness test.

Air Carrier Fitness

Name the four criteria in the airline fitness test?

1. Providers are owned and controlled by U.S. citizens. 2. Management is competent and capable. 3. Providers have financial sustainability. 4. Compliance with regulatory and safety standards.

What office of the DOT manages inter-airline agreements including codesharing, alliances and joint ventures with foreign airlines to promote global competition and avoiding antitrust concerns?

The Office of International Aviation

This office of the DOT collects data from airlines through regular reports regarding passengers and aircraft traffic, operating, and financial performance and airfares.

Bureau of Transportation Statistics (BTS)

This organization of the FAA provides leadership in planning and developing a safe and efficient national airport system.

the Airports Organization (ARP)

What are the three offices of the ARP?

1. Office of Airport Planning and Programming (APP) 2. Office of Airport Safety and Standards (AAS) 3. Office of Airport Compliance and Management Analysis (ACO)

This office under ARP is responsible for administering policy related to airport planning, development, and environmental protection. They also oversee the AIP grants and PFC program.

Office of Airport Planning and Programming (APP)

This office under ARP is responsible for the oversight of airport fiscal practices relevant to federally mandated obligations that are conditions for receiving federal grants.

Office of Airport Compliance and Management Analysis (ACO)

This office under ARP is responsible for the development and promulgation of policies and standards related to the certification of airports (14 CFR, Part 139) and maintenance, design and construction of airfield facilities.

Office of Airport Safety and Standards (AAS).

What are three offices outside of ARP that have responsibilities impacting airports?

1. Office of Policy, International Affairs and Environment (APL) 2. Office of Aviation Policy and Plans (APO) 3. Office of Environment and Energy (AEE)

The regulation prescribes the specific policies and procedures for administration of federal grants-in-aid to airports.

Federal Aid to Airports (14 CFR, Part 151)

This regulation compliments Part 151 by providing additional detail regarding project eligibility and the administration of grant fund payments.

Airport Aid Program (14 CFR, Part 152)

This regulation provides the requirements for applying PFC funds, project eligibility and administrative policies and procedures for the collection and disbursement of funds.

Passenger Facility Charges (14 CFR, Part 158)

This regulation contains provision for how the FAA will investigate complaints against airports for economic discrimination and other grievances.

Investigation and Enforcement Proceedings (14 CFR, Part 13)

This regulation provides guidelines for handling complaints against the airports by users.

Rules of Practice for Federally Assisted Airport Enforcement Proceedings (14 CFR, Part 16)

This regulation establishes both the policy and procedural requirements for sponsors to develop and implement plans for including economically disadvantaged business enterprises (DBEs) in federally funded projects and airport concession oppoertunities.

Participation by Disadvantaged Business Enterprises (49 CFR, Part 26 and 49 CFR, Part 23)

This must be passed by Congress and signed by the President before any funding occurs.

appropriation bill

The FAA issuance and sponsor's subsequent acceptance of an AIP grant offer represents this legally binding agreement.

grant assurance

There are a total of how many grant assurances?

This grant assurance requires airport sponsors to (1) make facilities available for public use to aeronautical users on reasonable terms, and (2) the rules, regulations, rates, fees, and rentals for airlines are nondiscriminatory and substantially comparable.

(22) Economic Non-discrimination

This grant assurance prohibits airport sponsors from giving exclusive rights to a provider of aeronautical services.

(23) Exclusive Rights

This grant assurance states airport sponsors should employ rate and fee structures that make the airport as (financially) self-sustaining as possible.

(24) Fee and Rental Structure

This grant assurance requires that all revenues generated on-airport can only be used for the capital and operating costs of the airport or the local airport system.

(25) Airport Revenue

What are the five general principles of the Airport Rates and Charges Policy?

1. Direct negotiation and resolution. 2. Fair and reasonable fees. 3. No unjustly discriminatory rates. 4. Self-sustaining rate structure. 5. No revenue diversion.

The use of airport revenues for purposes other than the capital or operating costs of the airport or the local airport system.

revenue diversion

What are the principle functions common amongst all airport operators?

Operations, Maintenance, Planning, Development, Finance & Administration, Marketing & Air Service Development, Public Relations & Customer Service

These agreements set the financial terms under which airlines pay for the use of airport facilities and prescribe the rate-making methodology by which rates, fees and charges are calculated, typically on annual basis.

Airline Use and Lease Agreement (ULA)