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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
- A determination that the benefits of the airport will exceed its development costs;
- Written documentation describing isolation;
- Airports serving the needs of American Indian communities;
- Airports needed to support recreation areas; and
- Airports needed to develop or protect important national resources." What are the NPIAS airports and roughly how many are there? ✔Ans✔ Commercial service, GA Relivers, National Guard base of average airport, airport with US Mail contract; Roughly 3300 (3345) What are the three measurements the FAA uses to gauge airport activity? ✔Ans✔ 1) Enplanements 2) Operations 3) Cargo Tonnage "butts, boxes, and bad landings" What is an Commercial Service Airport? ✔Ans✔ Publicly owned airport with at least 2500 passengers per year annual boarding that receives scheduled passenger service This type of airport has more than 100 million pounds of total annual landed weight ✔Ans✔ Cargo Airport *What is a shared airport? ✔Ans✔ US Government owned airport co-located w/ a civil airport specified under, and at which, portions of the movement areas and safety areas are shared by both parties *DOD and Civilians share an airfield but is owned by the DOD is called what? ✔Ans✔ "Joint Use Airport Tip: ""Owned by the Joint Chiefs""" *This Airport Type has scheduled Air Carrier Service with more than 10,000 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 10,000 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.
Municipalities that elect to give over near or total control to an independently created entity are referred to as what? ✔Ans✔ Airport Authority Municipalities that seek to maintain control of the airport but need expertise and guidance may create this. ✔Ans✔ Airport Advisory Board Grant assurances generally require the AD to do the following ✔Ans✔ Maintain the Airport in an serviceable condition, use specific land approved by the FAA for non-aeronautical use to generate revenue to support airport aviation needs, Operate the airport in the public's interest and ensure there is no grant of an exclusive right for any aero nautical purpose of use This is the same status as public corporation, but operates other types of public facilities. ✔Ans✔ Port Authority This is a shift from traditional government responsibility to a private enterprise. ✔Ans✔ Airport Privatization This transfers the federal obligation, as well as the responsibility for operation, management, and development of an airport, from a public sponsor to a private sponsor. ✔Ans✔ Airport Privatization Program According to what Process_____; how long does the public have to comment on a draft set of regulations? ✔Ans✔ The Notice of Proposed Rulemaking process; usually a length of 30- 60 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
This requires the airport to hold a good title to the airport or give assurance to the FAA that a Good Faith will be acquired. ✔Ans✔ Grant Assurance 4 - Good Faith On-airport land use can be further distinguished between these two groups. ✔Ans✔ "Aeronautical Use Non-Aeronautical Use" What is Land Use Planning? ✔Ans✔ An important tool in ensuring that land adjacent to, or in the immediate vicinity of, the airport is consistent with activities and purposes compatible with normal airport operations This requires the airport to take necessary actions to protect the airspace around the airport including visual and instrument approach paths. ✔Ans✔ Grant Assurance 20 - Hazard Removal and Mitigation This addresses off airport land use. Requires airport to make an attempt to restrict the use of adjacent land or and in the immediate vicinity, to activities and purposes compatible with airport operations. ✔Ans✔ Grant Assurance 21 - Compatible Land Use This is ensuring that land adjacent to, or in immediate vicinity of the airport is consistent with activities and purposes compatible with normal airport operations. ✔Ans✔ Land Use Planning What is Grant Assurance 21 - Compatible Land Use? ✔Ans✔ Airport to make an attempt to restrict the use of adjacent land, or land in the immediate vicinity of activities and purposes compatible to airport operations. What is Grant Assurance 20 - Hazard Removal and Mitigation? ✔Ans✔ Airport to take necessary actions to protect the airspace around the airport including visual and instrument approach paths.
This states that land can be used for more than one purpose at a time. ✔Ans✔ Concurrent Land Use This requires the Airport Sponsor to delineate the airport boundaries, making all facilities and 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.
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)." What type of revenue source Includes Passenger Facility Charges (PFCs), Customer Facility Charges (CFCs), interest income, and grants? (Money generated out of thin air) ✔Ans✔ Non- Operating Revenue Individuals or businesses providing services involving operation of aircraft of flight support directly related to aircraft operation. ✔Ans✔ Aeronautical Users This restricts the use of airport generated revenue by the taxes on aviation fuel to be expended for the capital on operating costs of the airport, local airport system, or other facilities owned by the airport sponsor which directly and substantially relate to the actual air transportation of passengers on or off the property of noise mitigation efforts ✔Ans✔ Grant Assurance 25, Airport Revenues This Act stats the Airport must conduct an annual audit and assure the government that airport funds have been properly distributed. ✔Ans✔ Single Audit Act of 1984 The requirement for reporting financial information is addressed in: ✔Ans✔ Grant Assurance 26, Reports and Inspections What is the Form 5100- 126 - Financial Government Payment Report? ✔Ans✔ Annual Report on revenue paid to other units of government and on the compensation the airport received for services and property provided to other units of government including in kind services. What is the Form 5100- 127 - Operating and Financial Summary? ✔Ans✔ "requires the Airport Executive to break down revenues and expenses by: Aeronautical Operating Revenue Non-Aeronautical Operating Revenue
Non-Operating Revenue" What are the four types of Accounting Activities ✔Ans✔ Bookkeeping, Financial Accounting, Auditing and Management 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 self- sustaining as possible
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 Total of all costs associated with providing airport faculties and services to aeronautical users ✔Ans✔ Rate Base What is Rate Base? ✔Ans✔ The ''rate base'' is the total of all costs associated with providing airfield facilities and services to aeronautical users. What is a public subsidy approach? ✔Ans✔ "Where the local government or governing authority subsidizes the operating expenses of all of an airports operation (Delta's terminal at JFK)" "What are: Historic cost valuation
Direct negotiation, and Fair market value " ✔Ans✔ Three reasonable rate base methodologies "This Act requires any federally-funded construction contract that exceeds $2,000 must provide a weekly reporting of wages paid. Airports must also establish a Disadvantaged Business Enterprise (DBE) program that contains DBE participation goals and submit the plan to the FAA for approval." ✔Ans✔ Davis-Bacon Act This promotes the substitution of materials and methods with less expensive alternatives that do not compromise functionality. ✔Ans✔ Value Engineering (VE) _____ _____ _______ do not require the airport operator to use federal procurement standards as they are considered a user fee, not a grant. ✔Ans✔ Passenger Facility Charge (PFC) Construction contracts over ____ require an bid guarantee equal to at least 5% of the bid price. As well as performance bonds and payment bonds equal to _____ of the contract. ✔Ans✔ "$100, 100%" Federally funded projects exceeding _$____ must be publicly advertised ✔Ans✔ $100, 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 the methods to reduce risk? ✔Ans✔ "Part 139 Training Risk Analysis Daily Inspections Screening Dissemination of Accurate Information Blanket insurance policies Environmental Policies and Rules" What are the four most common types of leases? ✔Ans✔ 1) Straight, 2) Graduated, 3) Revaluation 4) Percentage The four most common type of lease agreements are: ✔Ans✔ "1) Straight
- Graduated
- Revaluation
- Percentage" What are the four most common types of lease agreements? ✔Ans✔ "straight lease graduated lease revaluation lease percentage lease" Revaluation Lease ✔Ans✔ The revaluation lease provides for periodic valuations of the property and rent adjustments to current values (which can sometimes go down). Graduated lease ✔Ans✔ Rate changes at periodic intervals.
Percentage Lease ✔Ans✔ "Rates equivalent to a percentage of sales (concessions)" Straight lease ✔Ans✔ "The straight lease remains constant throughout its term." What is a Leasehold Agreement? ✔Ans✔ The leasehold agreement represents an ownership interest in which a tenant holds real property, or in the case of a use agreement, the right to conduct a particular activity from a landlord for a period of time. Leasehold costs can include ..... ✔Ans✔ "Location in the airport Size and type of facility needed Support infrastructure needed Exposure to traveler flow Efforts the airport may make to highlight various shopping opportunities in the facility, and Demand for the airport's space" Airports can require ________ keeping costs down to near prices at shopping malls. ✔Ans✔ street pricing What is the Minimum Annual Guarantee (MAG)? ✔Ans✔ Guarantees tenant will pay the airport a minimum amount annually. "These describe approaches to what?
- the standard approach which involves airport management directly leasing and managing the space,
- a development company or retail expert can be engaged to provide management services overseeing rental and concessionaire development in lieu of the airport, or
