A.A.A.E. C.M. Module Finance and Administration Objective 1 Exam

Finance and Administration Objective 1 - Answer- Describe the historical principles that have guided airport management, and identify the airport stakeholders, their primary function, and their expectations for the airport. What was the significance of the Kelley Act? - Answer- Authorized the postmaster general to contract for domestic airmail service with commercial air carriers. What did the Air Commerce Act of 1926 do? - Answer- Regulation of Civil Aviation: Fostering air commerce, issuing and enforcing air traffic rules, licensing pilots, certifying aircraft, establishing airways, operating and maintaining navigational aids. What was the first airport management trade organization that was created in 1928? - Answer- American Association of Airport Executives (AAAE) Adopted the first professional accreditation standards for their Accredited Airport Executives (AAE) program. What was the purpose of the Civil Aeronautics Administration (CAA)? - Answer- Responsible for Air Traffic Control (ATC) pilot and aircraft certification safety enforcement, and airway development. What were the functions of the Civil Aeronautics Board (CAB)? - Answer- Making the safety rules, conducting aircraft accident investigations, and economic regeneration of airlines. What did the Airline Deregulation Act of 1978 authorize? - Answer- Airline deregulation forever changed the airport-airline dynamics. Airlines were free to move operations to more profitable markets and routes. Deregulation allowed a concept known as "hub-and-spoke". Explain the primary function of the 1946 Federal Aid to Airports Program (FAAP). - Answer- Provided grant funds for certain airport projects (runway and taxiway development). What was the 1958 Federal Aviation Agency (FAA) purpose? - Answer- Took over safety rulemaking from the CAB and developed a common civil-military system of air navigation and air traffic control. The 1970 Airport and Airway Development Act created which two forms of grant funding? - Answer- Airport Development Aid Program (ADAP) expanded the list of eligible projects and provides funds for airport development projects. Planning Grant Program (PGP) provides funds for airport master plans and systems plans. What did the 1982 Airport Improvement program (AIP) provide? - Answer- Further expanded the list of projects eligible for federal funding. What are the Airport Stakeholders Functions and Expectations? - Answer- FAA - ATC & maintenance of airport navigational aids TSA - passenger and baggage security screening CBP/ICE - process intl. passengers and belongings USDA - control wildlife populations on airports Who are the aeronautical users at airports? - Answer- Airlines, FBO's, private operators, hangar lessees, flight schools, aircraft maintenance, military Who are the non-aeronautical users at airports? - Answer- Concessionaires, vendors, contractors, tenants, industrial parks The airport community encompasses; - Answer- Passengers, air cargo shippers, surrounding developments What are the (Airlines) stakeholder desires? - Answer- Efficient passenger, baggage, cargo, and aircraft throughput, office administrative facilities and amenities for their passengers. What are the (Corporate Aircraft Operators) stakeholder desires? - Answer- Desire to own their fueling abilities, considering their clientele, exceptional pavement and maintenance, a great degree of confidentiality and discretion. What are the (Private Aircraft Operators) stakeholder desires? - Answer- Tied downs on ramp space, small hangars such as T-hangars, Port-a-Ports or small box hangars. What are the (Fixed base Operators)stakeholder desires? - Answer- Level playing field all lessees adhering to minimum standards. Finance and Administration Objective 2 - Answer- Obtain a basic understanding of how flight operations work in the U.S. airspace system. Private Flight Operations are? - Answer- Regulated under Title 14 CFR Part 91 Private Pilot General Aviation Commercial Flight Operations are? - Answer- Regulated under Title 14 CFR Part 119 Operators engaged in commercial carriage (for hire) What does Title 14 CFR Part 121 regulate? - Answer- Air carrier operation; Domestic flag, air carrier certification What does Title 14 CFR Part 380 regulate? - Answer- Public Charters; Airline leases a plane to a resort company (Apple Vac.) What does Title 14 CFR Part 135 regulate? - Answer- Commuter and On Demand Operations Air charter or air taxi What does Title 14 CFR Part 91.103 Pre-Flight cover? - Answer- Pilot in command review of information before take-off Airport Facility Directory Weather at both arrival and departure airports Notice to Airmen (NOTAMS) Visual Flight Rules (VFR) operations require? - Answer- Pilot is operating an aircraft with visual references Cloud ceiling at least 1000' above ground level Instrument Flight Rules (IFR) operations require? - Answer- Pilot is specially trained and Instrument rated certified Flying above 18,000' mean sea level What is Aerial Navigation GPS? - Answer- Flexible air traffic management and a critical component to the FAA's Next Gen upgrade of the air traffic control system What are the three runway approaches at airports? - Answer- Visual Approach - VMC Non-Precision Approach - IMC Precision Approach - IMC Finance and Administration Objective 3 - Answer- Know the various types of structures for an airport sponsor and the fundamental role and challenges of the Airport Executive and understand the primary federal regulations and other documents that limit or mandate certain airport management and operational practices What are some challenges to airport management? - Answer- Municipal Structures FAA Encourages Airports to be Self-Sustainable FAA Airports District Office (ADO) What are the advantages and disadvantages of a Airport Authority? - Answer- Advantages; focused leadership, reduce political influence and change shared representation or equitable taxation beyond political boundaries Disadvantages; resources and finance may not be readily available need for large capital investments, can be eliminated by the same entity that created it What are the advantages and disadvantages of Municipality (City, County, Advisory Board) as airport sponsors ? - Answer- Advantages; better access to resources tax and issue bonds aid capital projects Disadvantages; policy makers unfamiliar with operation of airport Financial constraints; airport viewed as any other department, interest of airport may conflict with decisions that are in best interest of the community Port Authority operates what different modes of transportation? - Answer- Legally charted institution ,airports, harbors, toll roads, subways State airport sponsor? - Answer- Operate all public use airports in the state Private airport sponsor? - Answer- shift in traditional government responsibilities to private enterprise What are the primary functions of the Airport Executive? - Answer- Retained by the Sponsor to Manage the Airport Reports Directly to Policy Making Board Balance Desires of the Airport Sponsors/Stakeholders Ensures the Safety, Security, Efficiency Prepares Financial Plans Enforces Airport Rules and Regulations Oversees Planning and Construction Projects Secures new business and revenue streams What are the primary functions of Finance and Administration? - Answer- Accounting Public Relations Air Service Development Payroll Audits Marketing Accounts Receivable Real Estate Accounts Payable Revenue Mgmt. Budget Management Business Planning Human Resources Airline Rates/ Charges Procurement Use Agreements Noise Abatement Information Technology Intergovernmental Relations Customer Service What are the primary functions of Planning and Engineering? - Answer- Capital Improvement Construction Standards Airport Master Plan Airport Layout Plan Environmental Compliance Regional Transportation Planning Administrative space planning Noise Abatement Planning Administrative of Federal Grants What are the primary functions of Operations, Security and Maintenance? - Answer- Title 14CFR Part 139 Title 14CFR Part 1542 Airfield inspections Police Airfield lighting, signs, markings Airport security Wildlife management TSA Airfield construction safety Security Directives ARFF Information Circulars Maintain airport grounds Manage airport fleet What are the primary functions of Community Relations, Marketing, and Air Service Development? - Answer- Marketing for Services and Properties Public Information Officer Marketing to New Airlines Government and Legal Affairs Tracking Legislation and Policy Making Monitoring Performance of Airport Projects What are key positions at the airport that are generally outside the vertical reporting structure? - Answer- Airport Legal Counsel Financial Auditor Airport sponsors that accept funds from a FAA-administered financial assistance program are bound by what federal obligations? - Answer- FAA Grant Assurances - Funds from FAA-administrated financial assistance Require recipients maintain/operate facilities safely, efficiently, and in accordance with specified conditions 20 year obligated/useful life of the facility What is the primary function of the National Safety Transportation Safety Board (NTSB)? - Answer- Investigates civil aviation accident and significant accidents in other modes of transportation What is the International Civil Aviation Organization (ICAO) responsible for? - Answer- International cooperation/uniformity in regulations and standards, procedures, organizations regarding civil aviation What are the Obligations of the Grant Assurance Program? - Answer- Assurances part of the final grant offer Maintain and operate facilities safely and efficiently Allow airport executive better manage local affairs Ensure federal funds are effectively used to meet the Need for public air transportation Promote social objectives such as disadvantage businesses and the rights of those with disabilities The FAA and TSA are regulatory agencies that are: - Answer- Empowered to create and enforce rules and regulations the carry the full force of law What is the public method of reporting compliance violations of federal laws affecting air transportation? - Answer- Regulatory Enforcement (Title 14 CFR Part 13); Investigation and Enforcement of informal complaint, FAA not obligated to hold itself to a deadline in its response to a complaint What complaint does Title 14 CFR Part 16 address? - Answer- Formal complaint within the jurisdiction of the FAA involving federal obligations incurred by an airport sponsor in accepting federal property or FAA grants and often more serious, imposes deadline and has stringent requirements for the Airport, the complaint, and the FAA. What are the legal ramifications of Airport Management in the complaint process? - Answer- Loss of AIP Grant Monies Loss of Ability to Collect PFC's Subject to Fines or Cease and Desist Orders Aviation and Transportation Security Act (ATSA) passed on November 19, 2001 created the TSA and included what three major mandates? - Answer- Take responsibility of security for all modes of transportation Recruit, hire, train, and deploy security officers for 450 commercial airports Provide 100% screening for explosives of all checked baggage by December31, 2002 Title 49 CFR Part 1542, Airport Security: - Answer- Regulates the entirety of commercial airport operation including elements of the terminal and landside areas What are the primary functions of the National Transportation Safety Board? - Answer- Investigates Civil Aviation Accidents Investigates Other Serious Modes of Transportation Determines the Probable Cause of Accidents Develops Safety Recommendations International Civil Aviation Organization (ICAO) is a specialized agency of the United Nations and its purpose is to? - Answer- Ensure safe and orderly growth of the international civil aviation Develop standards for airport, airway, air navigation facility development Promoting flight safety during international air navigation Standards and Recommended Practices (SARPS) Name the various aviation industry trade associations. - Answer- American Association of Airport Executives (AAAE) Airport Council International (ACI) Airlines for America (A4A) Air Line Pilots Association (ALPA) Regional Airline Association (RAA) National Business Aviation Association (NBAA) Finance and Administration Objective 4 - Answer- Understand the definitions and restrictions of airport land use What are the two grant assurances that address federal land use requirements? - Answer- Grant Assurance 4, Good Title - requires airport to hold good title satisfactory to the FAA and current Airport Layout Plan - Exhibit A Grant Assurance 5, Preserving Right and Powers - prohibits airport to sell, lease, encumber any part of its title or other interest in the property shown on Exhibit A, with out prior approval from the FAA What are the two types of on-airport land use? - Answer- Aeronautical Use - land reserved for aeronautical activity any activity that involves or is required for the operation of aircraft or the contributes to or is required for the safety of such operations