AAAE CM Exam 2023 with complete solutions

The Kelly Act - Answer- Authorized postmaster general to contract for domestic airmail service with commercial air carriers Fixed-Base Operator (FBO) - Answer- Provided fuel and place for pilots/passengers to rest. Offered services Air Mail Act of 1925 - Answer- Commercial airlines became widespread Commerce Act of 1926 - Answer- Federal govts.'s regulation of civil aviation American Association of Airport Executives (AAAE) - Answer- First airport management trade organization established Hub-and-Spoke - Answer- Allows cargo to be transported to central hub, where it's re-sorted and sent to final destination. Airlines also used for more efficient way of moving passengers Self-sustaining - Answer- Airport does not rely on municipal tax revenue to operate Airport Sponsor - Answer- this entity is own/controls the direction of and is accountable to the FAA for operating a public use airport Airport Executive - Answer- tactical leader of airport (airport direction/manager), in charge of day to day activities, makes recommendations to board Which entity is responsible for preparing financial plans? - Answer- Airport Executive/Manager FAA Orders - Answer- Memo to an FAA District Office. Explains how to administrate a process. How FAA will regulate a process Term for Grant Assurances - Answer- -Non-land: Typically 20 years -Land: Life of the land -Equipment: lifespan of equipment Part 13 Complain - Answer- Informal -Know where to file -Brief summary of process -Results of process Part 16 Complain - Answer- -Formal -Deadline driven -Have to prove that you attempted to fix things w/ airport first. What department was Aeronautics first organized under in the U.S.? - Answer- Department of Commerce Min. number of enplanements per year to be classified as commercial service? - Answer- 2500 Which precedent is the Works Progress Administration (WPA) responsible for setting? - Answer- Airports should be self-sustainable What signified the effective begging of privatized space flight? - Answer- Final flight of US Space Shuttle Correct classification for airport designated by FAA to relieve GA traffic from commercial service airport? - Answer- GA Reliever FAA Order - Answer- Directive to FAA Airport District Office personnel on specific subjects and programs What federal doc has the FAA found to be the most effective means for extending federal govt. policy to local govt. units? - Answer- Grant Assurances What waives immunity over claims arising out of contracts w/ the federal govt.? - Answer- The Tucker Act FAA term for the entity that is responsible for governance of the airport? - Answer- Airport Sponsor Benefit of grant assurances to the airport user? - Answer- Ensure that an adequate level of safe and efficient service is available to the public According to FAA, which area do the most conflicts occur, related to permitted activity on the airport? - Answer- Non-aeronautical use What doc must always be up to date to receive federal funds? - Answer- Airport Layout Plan 1987 Airport and Airway Safety and Capacity Expansion Act (ACEA) - Answer- Funding priority was given to airport projects that focused on enhancing safety and sustaining an airport's overall capacity to handle aircraft and ground operations Capacity - Answer- A protein of an airspace or airports ability to handle a given volume of traffic (demand) within a specified time period Airfield Capacity - Answer- A measure of the level of aircraft movements that the rwy/taxiway system is able to handle over a specified time period Which Act Transferred the federal govt.'s civil aviation role to a new independent agency, the Civil Aeronautics Authority? - Answer- The Civil Aeronautics Act of 1938 33% of all public use airports are owned by which entity? - Answer- City What impact did the Aviation Investment and Reform Act for the 21st Century have on the aviation industry? - Answer- Increased PFC's to $4.50 Which two key positions at any airport are generally outside of the vertical reporting structure? - Answer- Legal counsel and financial auditor When does governmental immunity apply? - Answer- To employees of the federal, state, or local govt., provided they are acting within the scope and authority of their position DBE requirements mean than not less than ___ of the funds authorized for the highway and transit financial assistance programs be expended with DBEs. - Answer- 10% What is the name of the agreements that transferred military airports to civilian airports after WWII? - Answer- AP-4 Agreements What type of use of airport revenue would NOT be approved by the FAA? - Answer- General Economic Development for the community What is the ONLY exception to the Exclusive Rights Grant Assurance - Answer- The airport may grant itself the exclusive right to conduct an operation The public comment period for a Notice of Proposed Rulemaking for a minor change is normally how long? - Answer- 30 days What does the grant assurance addressing compatible land use require the airport to do? - Answer- Attempt to restrict the use of land adjacent to or in the immediate vicinity of the airport Which reg. addresses airport noise planning? - Answer- Title 12 CFR Part 150 How many enplanements does a primary commercial service airport have? - Answer- 10,000 or more What FAA office provides oversight of airport compliance with Part 139? - Answer- Airport District Office What office can dismiss Part 16 complaints based on procedural grounds? - Answer- The Director of the Office of Airport Safety and Standards What plan addresses the strategy for Air Service Development for an airport? - Answer- Marketing Plan What document identifies the legal, financial, and operational relationship between the airport operator and the airlines? - Answer- Aeronautical Use Agreement FAA policy applies a strict ___ valuation standard to core aeronautical use facilities. - Answer- Historical What types of charges are related to the ops and uses of an airfield but are incidental to the operation of an aircraft? - Answer- Non-Aeronautical Use What gives signatory airlines the ability to influence capital projects undertaken at the airport by giving them the right to approve or disapprove proposed projects? - Answer- Majority in Interest ___ airports have commonly used the residual method fro setting rates because of the influence and power of the airlines in generating economic traffic. - Answer- Large Hub A personal property tax on an aircraft based at an airport is an example of what type of revenue? - Answer- Non-Operating Lease requires a period valuation of the property to set new rates. What type of lease is this? - Answer- Revaluation Lease This type of concession contract guarantees that the tenant will pay the airport a min amount annually - Answer- Min Annual Guarantee (MAG) Airports enplaning over ___ passenger annually are good candidates for brand-name vendors and concessions - Answer- 5,000,000 Amount owed to the airport are? - Answer- Accounts receivable What does the module consider the most important factor that affects an airport's ability to become more self-sustaining through commercialization or privatization? - Answer- The demographic makeup of the community What financial statement provides a fiscal description of airport assets and liabilities at a specific date? - Answer- Balance Sheet What statement shows revenues minus expenses to arrive at the "bottom line?" - Answer- Income Statement This is a decision making tool to assess whether a stock is earning money - Answer- P/E Margin What is an annual charge against income that reflects the cost of capital improvements and equipment used in the conduct of business? - Answer- Depreciation This type of budge is becoming the most popular for airports with compensatory agreements - Answer- Revenue or cost-centered Which type of budge is normally associate w/ a small airport? - Answer- Lump sum When you remove the costs of doing business from the income statement, you are left with what? - Answer- Gross profit Liquidity is - Answer- Amount of time required to convert an asset to cash Which category has the highest priority for AIP funding? - Answer- Safety and Security What is considered the most effective way to conduct a market analysis? - Answer- Hire a knowledgable consultant What is the first step in assessing the quality of a bond? - Answer- Airport conducts informal discussions w/ the rating services What type of federal funds are given to an airport through a set formula? - Answer- Entitlement Which doc conveys the intent of the FAA to obligate the money for an Airport Improvement Program project over a period of time? - Answer- Letter of Intent What types of bonds require the voter approval and are associated w/ being issued by States or Municipalities? - Answer- G