Module 4: Non-Airline Agreements and Commercial Development Flashcards
These are reports that summarize and demonstrate the airport’s impact on the local and regional economy.
economic impact studies
What is the name of the report prepared by the Airport Cooperative Research Program (ACRP) that is extremely useful to airports in understanding the use, value, and methodology of economic impact stufies.
Synthesis 7 (ARCP 7), Airport Economic Impact Methods and Models
What are the top variables in an economic impact study, as cited by the ACRP?
Employment (number of jobs), Wages (payroll), Local/Regional spending, Tourism, Air Traffic, Cargo, Military/Emergency services, Time savings
What are the 3 primary methods used to measure economic impacts of aviation, as described in ARCP 7?
Input-Output Method, Collection of Benefits Method, Catalytic Method
This methodology take the various types of impacts the airport has on the economy and adds them together to determine a total impact for each variable.
Input-Output Method
What are the types of impacts measured in the Input-Output Method?
Direct Impacts, Indirect Impacts, Induced Impacts (also known as the “multiplier effects”)
This economic impact method focuses on both quantitative and qualitative research measures of benefits, reduced costs, revenues, etc. created by an airport.
Collection of Benefits Method
This economic impact study method, according to ACRP 7, measures the “spillover” effects of how the airport contributes the supply-side of the economy.
Catalytic Method
The most fundamental forms of terminal concession agreements center around what two primary areas?
food & beverage and retail
In a concession agreement, this is the minimum amount of concession fees the operator will pay the airport or the developer/manager, regardless of actual sales.
Minimum Annual Guarantee (MAG)
In this terminal concession management model, the airport enters into an agreement with a concessions developer/manager who is responsible for major capital development costs of concessions program and management of that program after the initial development is complete.
Developer Model
In this terminal concession management model, the set-up is very similar to the developer/manager model with the exception that the fee manager does not expend any of its own funds for capital development of the concession spaces. In this model, the manager earns revenue by sharing the concession rent with the airport.
Fee Manager
In this terminal concession management model, the airport selects on or two concessionaires, usually one for food/beverage and one for retail, that operates all the concession locations related to that area.
Master Concessionaire
In this terminal concession management model, the airport can elect to manage the entire concession program itself.
Direct Program Management
This term describes the requirement for concessionaires to price their items equivalent to the same item, or as close to the same as possible, available to customers off the airport.
street pricing
This is defined as a wage sufficient to provide necessities and comforts essential to an acceptable standard of living.
living wage
This federal program aspires to create a level playing field for socially and economically disadvantaged firms to compete for contracting opportunities in grant funded projects.
Disadvantaged Business Enterprise Program (49 CFR, Part 26) (DBE)
This federal program, similar to DBE, is a requirement for (commercial service) primary airports in the U.S. that have $200,000 or more in either rental car or non-rental car concession revenues that receive FAA grant funds.
Airport Concession Disadvantaged Business Enterprise (49 CFR, Part 23) (ACDBE)
For an ACDBE’s participation in the concession program to count toward the airport’s goals, the ACDBE must be certified by a state what?
Unified Certification Program (UCP)
Administratively, the airport ACDBE Program must include what three things?
- Provisions for a policy statement, liaison officer and directory
- Certification standards for eligible DBEs
- A statement committing the sponsor to operate the ACDBE Program in a nondiscriminatory manner
For many U.S. commercial airports, what is the single greatest source of non-airline revenue?
Parking
Ride-share companies are also known as this.
Transportation Network Companies (TNCs)
These facilities usually stand alone on airport property and house all of the rental concessionaire’s ticket counters, adjacent ready-return spaces, offices, and possibly quick turnaround (QTA) facilities that enable operators to clean, fuel, inspect and place the vehicle back into rentable inventory without returning it to the service facility.
Consolidated Rental Car Facilities (CONRACs)
Airports of all sizes require this to perform certain aeronautical services to aircraft owners and operators, including aircraft fueling, aircraft parking, hangar space rentals, aircraft maintenance and possibly aircraft rental, flight instruction, aircraft charter and aircraft sales.
Fixed Base Operator (FBO)
