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AAAE CM- ALL COMBINED MODULE EXAM 2025/
REAL 600 + Qs&As|BRAND NEW 2025|A+GRADE
ASSURED
US Government hires private contractors to carry mail by air. Represents the start of aviation. ANS:->>Air Mail Act of 1925 (Kelly Act) The Civil Aeronautics Board (CAB) was charged with these three things: ANS:->>"1) Making Safety rules
- Conducting aircraft investigations
- economic regulation of airlines" This Act split the CAA into two agencies, the CAA and the CAB. ANS:->>Reorganization Act of 1940 What phased out CAB economic regulation of airlines? ANS:->>"Airline Deregulation Act of 1978 The Civil Aeronautics Board (CAB) would control the economics of the airline industry for nearly four decades, approving air routes and regulating airfares, until finally being dissolved by the Airline Deregulation Act of 1978" Federal Aviation Act of 1958 ANS:->>"Driven by a the ""jet age,"" safety became a concern. A mid-air collision of 2 aircraft, killing 12 prompted the repeal of the Air Commerce Act. Federal Aviation Act created the Federal Aviation Agency (FAA), taking over rulemaking from the CAB. Renamed to Federal Aviation Administration in 1966 and moved from the Commerce Department to the Department of Transportation." What government Act did Part 139 evolve from? ANS:->>Airport and Airway Development Act (1970) This establishes Airport Improvement Program (AIP) and establishes the National Airspace System (NAS), which eventually becomes the National Plan of Integrated
Airport Systems (NPIAS). NPIAS is reflected at the local airport level in the Airport Capital Improvement Program. ANS:->>Airport and Airways Improvement Act of 1982
- How many enplanements per year does an airport have to have to be considered as commercial service? ANS:->> 2500 or more This refers to the concept of a 'Next Generation Air Transportation System' or the ongoing transformation of the NAS, moving from land based navigation to satellite. ANS:->>NextGen "This Act endorsed the concept of a Next Generation Air Transportation System (NextGen). NextGen is a multi-faceted series of initiatives designed to make air travel more efficient, more secure, and safer overall.""Reauthorization of FAA Funding launches NEXTGEN""" ANS:->>Vision 100 - Century of Aviation Reauthorization Act of 2003. What are the type types of airport land use? ANS:->>Aeronautical and Non-aeronautical Publicly or privately owned airports with scheduled air carrier service with 2500 enplanements per year are categorized as... ANS:->>included in the NPIAS An airport that doesn't meet qualifications to be part of the NPIAS may be considered if... ANS:->>" Other airports that do not meet the criteria may be included if they are:
**1. Part of a State Airport System Plan;
- Serving a community more than 30 minutes from the nearest NPIAS airport;
- Forecast to have 10 or more based aircraft within the next 5 years; and
- Currently being considered by an eligible public sponsor who is willing to undertake ownership and development of the airport.** Airports that do not meet any of the aforementioned criteria may still be included through
enplanements per year. ANS:->> Primary Airports This Airport Type is mainly used by GA Aircraft, Scheduled passenger service with between 2,500-9,999 enplanements per year ANS:->>Non-Primary
This Airport Type serve at least 1% or more of US passenger enplanements ANS:-
Large Hub Airports This Airport Type enplanes .25%-1% of all US enplanements ANS:->>Medium Hub Airports This Airport Type has less than .05% but at least more than 10, enplanements per year ANS:->>Non-Hub Primary Airports This Airport Type has enplanements between .05% to .25% ANS:->>Small Hub Airports What is an GA Airport? ANS:->>Public use airport that does not have scheduled air service or has less than 2500 annual enplanements What type of airport relieves congestion from commercial service airports and provides improved GA access ANS:->>GA Reliever Airport What are the four categories of General Aviation (GA) Airports? ANS:->>"GA National (near major metropolitan centers) GA Regional (Several large metropolitan centers) GA Local (backbone of the system) GA Basic (link to other NAS)" This governs private operation of an aircraft ANS:->>Part 91 "This is the operating requirements for Domestic, Flag and Supplemental Operations. Also covers Air Carrier Certification." ANS:->>Part 121 "This is the operating requirements for Commuter and on-demand operations. (i.e., Air Charter or Air Taxi)" ANS:->>Part 135 "This covers public charters. (i.e., When an airline leases an aircraft.)" ANS:->>Part 380 Part 121 operations must operate at airports that are certified as. ANS:- Part 139 What is VMC? ANS:->>"Visual Meteorological Conditions Clouds greater than 1000' AGL and visibility of 3 statute miles.
Days Passed to promote the development and stability of commercial aviation. Establishes jurisdiction of aviation under the secretary of commerce who issues and enforces air traffic rules, establishes pilot and aircraft licensing, establishes airways and maintains aids to navigation ANS:->>Air Commerce Act of 1926 What are Grant Assurances? ANS:->>When an organization accepts funds from FAA Administered airport financial assistance programs (AIP Grants) they must adhere to grant assurance obligations. Most effective way to extend federally mandated policies? ANS:->>Through Grant Assurances How long do airports responsibilities continue after receiving new facilities through grants? ANS:->> 20 years Grant Assurances are primarily managed by the FAA through the. ANS:-
Airport Compliance Manual (the other ACM) When may an airport be placed on the Airport Non-Compliance List? (ANL) ANS:->>"1.
Part 121 "This is the operating requirements for Commuter and on-demand operations. (i.e., Air Charter or Air Taxi)" ANS:->>Part 135 "This covers public charters. (i.e., When an airline leases an aircraft.)" ANS:->>Part 380 Part 121 operations must operate at airports that are certified as. ANS:- >>Part 139 What is VMC? ANS:->>"Visual Meteorological Conditions Clouds greater than 1000' AGL and visibility of 3 statute miles. Days Passed to promote the development and stability of commercial aviation. Establishes jurisdiction of aviation under the secretary of commerce who issues and enforces air traffic rules, establishes pilot and aircraft licensing, establishes airways and maintains aids to navigation ANS:->>Air Commerce Act of 1926 What are Grant Assurances? ANS:->>When an organization accepts funds from FAA Administered airport financial assistance programs (AIP Grants) they must adhere to grant assurance obligations. Most effective way to extend federally mandated policies? ANS:->>Through Grant Assurances How long do airports responsibilities continue after receiving new facilities through grants? ANS:->> 20 years Grant Assurances are primarily managed by the FAA through the. ANS:- >>Airport Compliance Manual (the other ACM) When may an airport be placed on the Airport Non-Compliance List? (ANL) ANS:->>"1. Airports with a formal finding of noncompliance under Title 14 CFR Part 16 if corrective action has not been taken;
- Airports listed in the Airport Improvement Program (AIP)
- Certain violations of the United States Code (USC);
- Airports that are clearly in noncompliance despite FAA requests to the sponsor for corrective action; and
- Airports where the violations are so egregious as to preclude additional federal financial assistance until the issues are resolved." If an airport is not eligible to receive federal monetary aid, it will be on the. ✔Ans✔ The Airport Non-Compliance List To which grant agreements does this rule apply? Pavement and other facilities built to FAA
standards are desired to last at least 20 years. The duration should be assumed to be 20 years for the federal obligation ANS:->>Grant agreements for development other than land purchases These obligations do not expire since useful life of land does not end or depreciate. ✔Ans ✔ Grant agreements for land purchases Surplus property deeds and non-surplus land conveyance documents. ANS:->>Documents conveying federal land and property interests for airport use generally have no expiration date, and obligations continue indefinitely until the sponsor is formally released from the obligation by the FAA What is 14 CFR Part 13? ANS:->>"Investigation and Enforcement Part B complaint are considered as informal FAA is not obligated to hold itself to a deadline in its response to the complaint." What is 14 CFR Part 16? ANS:->>"Rules of Practice for Federally-Assisted Airport Enforcement Proceedings Specified processing of complaints specifically against airports that receive federal assistance and that relate specifically to a Grant Assurance concern." What is a Closed Fiscal System? ANS:->>Revenues generated by the airport must be expended at the airport (or within the airport system). Homeland Security Act of 2002 ANS:->>"Moved the TSA from the Department of Transportation to the Department of Homeland Security Transfers FAA security responsibility to TSA Creates Federal Security Director (FSD)" This created the National Transportation Safety Board (NTSB). NTSB remained a part of the Department of Transportation until the Independent Safety Board Act of 1974; becoming an independent agency in 1975. ANS:->>Department of Transportation Act of 1966
to identify plans for further development on its Airport Layout Plan. ANS:->>Grant Assurance 29 - Airport Layout Plan What is Grant Assurance 29 - Airport Layout Plan? ANS:->>Airport Sponsor to delineate the airports boundaries, including all facilities and to identify plans for future development in the Airport Layout Plan (ALP). This requires the airport to operate and maintain the airport in a safe and serviceable condition, and in accordance with minimum standards. ANS:->>Grant Assurance 19 - Operations & Maintenance Define Grant Assurance 19 - Minimum Standards ANS:->>Airport minimum standards set forth the minimum 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, such as minimum leasehold size, required equipment, hours of operation, and fees. Minimum standards should be imposed to ensure that an adequate level of safe and efficient service is available to the public. What do minimum standards accomplish? ANS:->>Promote Safety and high quality of service, Protects airport from unlicensed services, Prevents disputes between providers and complain tents This requires that airport must not unjustly discriminate ANS:->>Grant Assurance 22, Economic Nondiscrimination What is the purpose of an Airline Use Agreement? ANS:->>Grants operating rights to the airline, and provides reliable stream of revenue to the airport. This requires large and medium size hub airport operators to report the Secretary of Transportation any denial of an request by an Air Carrier for access to the airport ANS:-
Grant Assurance 39, Competitive Access "This prevents an airport sponsor from taking any action that may deprive an airport sponsor of its rights and powers to direct and control airport development and comply with grant assurances. FAA must approve sale of airport property" ANS:->>Grant Assurance 5 - Preserving Rights and Powers
This source of revenue includes land rent received from an off airport, industrial park that is owned by the airport, reservation centers, catering facilities, rental car operations parking, and concessions sales. ANS:->>Non-Aeronautical Revenue Aeronautical, Non Aeronautical and Non-Operating are the three types of ANS:->>Three Types of Airport Revenue Do you have to tell rental car companies what the revenue is? ANS:-
"Yes Rental Cars fall under Operating Revenues budget." National Program created to reduce airport emissions. Allows airport Sponsors to use AIP and PFC to finance low emission vehicles, refueling and recharging stations, gate electrification, and other airport air quality improvements ANS:->>Voluntary Airport Low Emission (VALE) Grants What are examples of Non-Operating Revenue Sources? ANS:->>"Non-operating revenue can consist of personal property taxes collected on aircraft ownership and possessory interest taxes for use of government-owned lands, the sale or lease of properties owned by the airport but not needed for airport operations, interests on earned investments such as money market or certificates of deposit, U.S. Treasury securities, or other approved investments, local tax revenue collected by the municipality to fund airport projects, federal and state grants, mineral rights, and agriculture. Examples: Collection on utilities provided to the tenants by the airport; Revenue from the sale of surplus property; and Passenger Facility Charges (PFC) and Customer Facility Charges (CFC)."
Accounting "Statement of Net Assets Statement of Net Position" ANS:->>"""Balance Sheet""
Accounts for both of the items owned or controlled by the entity (assets) and the items owed to others by the entity (liability) Statement of Activities (income statement) shows revenues, minus expenses to arrive at the ""bottom line""" Management's Discussion and Analysis (MD&A) ANS:->>management provides detailed discussion of the financial health and explains positive and negative trends and anomalies. This is the Annual cost for providing, operating, maintaining, and administering an airport facility. ANS:->>Break Even This focuses on expenses and revenues necessitated by normal and ongoing operations. ANS:->>Operating Budget This is an annual or multi-year financial plan for capital projects, or major equipment expenditures, and the stated means of implementing the plan. ANS:-
Capital Budgeting Capital budgeting is associated with state and national planning process such as ANS:->>Capital Improvement Plans (CIP) and with Master Planning processes for which Passenger Facility Charges (PFC) and Airport Improvement Program (AIP) funds are used. What are two requirements of setting rates? ANS:->>"1) Airport to attempt to be as selfsustaining as possible
- Airport can't charge customers for what the airport did not pay for (using AIP funded revenue as an excuse to raise rates)" What allows the Airport sponsor to set fees and lease rates and other charges that are directed at making the airport as self-sustaining as possible. ANS:->>Grant Assurance 24 - Fee and Rental Structure FAA encourages airports to be. ANS:->>Self-sustaining as possible The FAA Authorization Act of 1994 establishes requires Airport Sponsors to take into account, when entering into a new agreement, have undertaken reasonable effort to be
This requires airports to be as self-sustaining as possible under the circumstances of the airport. (Self-sustaining, in this context, means that the airport relies only on its revenue streams for operational expenses) ANS:->>"Airport and Airway Impairment Act of 1982 Regarding self-sustainability" How much can you charge for non-movement or non-aeronautical rates? ANS:->>Fair market value. Much of the financial risk is transferred to the airlines in return for a negotiated limit on the airport's profits. ANS:->>Residual Agreements What is a residual agreement? ANS:->>In a residual agreement, the airport applies excess nonaeronautical revenue to the airfield costs to reduce air carrier fees; in exchange, the air carriers agree to cover any shortfalls if the non-aeronautical revenue is insufficient to cover airport costs. In a residual agreement, aeronautical users may assume part or all of the liability for nonaeronautical costs Fees and charges are set for each revenue producing cost center, so that ideally the charges match the cost of operation ANS:->>Compensatory agreement, Cost of Service Method When a Sponsor assumes all liability for airport costs and retains all airport revenue for its own use in accordance with federal requirements, it is called what? ANS:-
Compensatory Agreement What is a compensatory agreement? ANS:->>A compensatory agreement is one in which the Airport assumes all liability for airport costs and retains all airport revenue for its own use in accordance with federal requirements. When the local government agency offsets the difference between the revenue and expenses by subsidizing the airports operation it is called this. ANS:->>Compensatory Agreement Public Subsidy Approach Airport Sponsors that adopt rate setting systems employing elements of both
residual and compensatory approaches are called what? ANS:->>Hybrid Agreements
Name two Appropriation Selection Methods ANS:->>"Sealed Bid - contracts for construction and equipment must go to the lowest responsive and responsible bidder Competitive Proposals - when the precise scope of work is not defined" What is the Sealed Bid Method? ANS:->>Contracts for construction and equipment must go to the lowest responsive and responsible bidder. What are Competitive Proposals? ANS:->>Handled through Request for Proposal (RFP) When must Disadvantaged Business Enterprise (DBE) be implemented? ANS:->>DBE Regulation Title 49 CFR Part 26 requires airports to implement a DBE program if they anticipate awarding more than $250,000 in prime contracts using federal funds during a fiscal year. What are good principles for upgrading IT systems? ANS:->>"Compatibility and Investigation Safety and Security Scalabilit y Usability " What three things does Commercial General Liability (CGL) cover? ANS:->>"(1) Hangar Keepers Liability: protects the insured from any damage they may cause to an aircraft under their care and control (2) Premises Liability: provides coverage for injury to persons or property (3) Product Liability: provides coverage on products, such as fuel and oil, that tenants may sell." What are the three items covered under Commercial General Liability policy? ANS:->>"Hangar Liability Premises Liability Product Liability"
What does Hangar Keepers cover? ANS:->>Damage to hangar or aircraft. What does premises liability cover? ANS:->>Injury to persons on property
