AAAE ACE Finance Module 5 | Questions with 100% Verified
Answers | Latest Update 2026/2027
Question: False
Answer: True/False - Federal regulations require airport sponsors to maintain a legal agreement with their
airline tenants.
Question: 1954
Answer: In ______, Miami was the first issuer of airport revenue bonds backed solely by the net revenues of
airport operations.
Question: Airline Deregulation Act of 1978
Answer: Following the effects of the _____, the prevailing practice of longer agreements began to evolve to
shorter agreements. Resulted in major financial distress and unpredictable futures for the industry.
Question: 5 to 10 years
Answer: The similar negative financial effects on the airline industry of the September 11, 2001 terrorist
attacks furthered this trend, with the term of virtually all airline agreements generally ranging from _____, and
entirely unlinked to the term of outstanding bonds (with the exception of facilities financed by special facility or
project revenue bonds, which still require a term linked to the bonds).
Question: AIP Grant Assurances
Answer: Certain obligations on airport sponsors as a condition of receiving federal grants. Airport sponsors
must sign in connection with every grant application.
Question: 39
Answer: As of March 2014, there are _____ grant assurances airport sponsors must certify, addressing
wide-ranging topics.
Question: True
Answer: True/False - Grant assurances generally have a duration related to the useful life of the grant-funded
project, but not to exceed 20 years, with the clock resetting with each new grant award. Exceptions that
continue without limit: Exclusive Rights (23), Airport Revenues (25), and Civil Rights (30).
Question: Airport Rates and Charges Policy
Answer: Originally published in 1996 and amended in 2013 - Purpose of this policy was to provide guidance to
airport sponsors with regard to setting rates, fees and charges for aeronautical use of their facilities without a
negotiated agreement, with particular focus on airline and FBO rates and charges. To ensure federal
grant-supported airports do not discriminate by user and therefore and truly public use.
Question: Direct Negotiation and Resolution
Answer: Establishes preference for direct negotiation between the airport sponsor and airline and other
aeronautical tenants and sets minimum expectations for meaningful consultation between airport sponsors
and aeronautical tenants.
Question: Fair and Reasonable Fees
Answer: Allows airport sponsors to utilize various cost-recovery rate-making approaches in setting airline rates
and charges in the absence of an airline agreement.
, Question: No Unjustly Discriminatory Rates
Answer: Requires airport sponsors to use consistent methodologies to set rates for comparable airport users.
Question: Self-Sustaining Rate Structure
Answer: Requires airport sponsors to employ a rate-making regime that makes the airport as financially
self-sustaining as possible.
Question: No Revenue Diversion
Answer: Prohibits airport sponsors from using revenues generated by the airport for non-airport purposes.
Question: Airport Revenue Use Policy
Answer: Defines certain key concepts concerning the allowable uses of airport revenue and, by extension,
allowable costs.
Question: Key provisions of Airport Revenue Use Policy include:
Answer: Definition of Airport Revenues Definition of Revenue Diversion Specifically Prohibited Uses Allowable
Marketing Expenses (including air service development) Allowable Indirect Costs Charges Below FMV for
Community and Nonprofit Use
Question: Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21)
Answer: The _____ contained new requirements for certain airport sponsors receiving AIP grants or imposing a
PFC to submit "competition plans" in support of improved airline access to terminal facilities to promote
competition. Applied to medium hub and busier airports at which one or two airlines together had a market
share of more than 50% of enplaned passengers.
Question: The statutorily required contents of competition plans include:
Answer: A description of the gates and related facilities at the airport, including an inventory of gates and gate
utilization by lessee and use type A summary of leasing and subleasing arrangements An analysis of airfares at
the airport as they compare to benchmark airports A description of any plans to deliver new gate and related
facility capacity
Question: True
Answer: True/False - Under current FAA program guidance, if an airport sponsor has submitted a full plan and
two updates, the FAA required subsequent updates if only one of two special circumstances exist:
1. If the airport sponsor has executed a new or significantly amended airline agreement
OR
2. If the airport sponsor has submitted a report of denial of access to an airline
requesting the use of gates or related facilities
Question: Rocket Docket
Answer: An accelerated review process prescribed in the regulations for Part 16 complaints.
Question: Part 16 Complaints Process
Answer: The principal recourse that airlines and other aeronautical tenants have with the federal government
to ensure airport sponsors comply with the economic discrimination, revenue diversion and other grant
assurances.
Question: 60 days
Answer: A complaint can be filed a maximum of _____ following notification of the rate increase by the airport
sponsor to the airlines.
Answers | Latest Update 2026/2027
Question: False
Answer: True/False - Federal regulations require airport sponsors to maintain a legal agreement with their
airline tenants.
Question: 1954
Answer: In ______, Miami was the first issuer of airport revenue bonds backed solely by the net revenues of
airport operations.
Question: Airline Deregulation Act of 1978
Answer: Following the effects of the _____, the prevailing practice of longer agreements began to evolve to
shorter agreements. Resulted in major financial distress and unpredictable futures for the industry.
Question: 5 to 10 years
Answer: The similar negative financial effects on the airline industry of the September 11, 2001 terrorist
attacks furthered this trend, with the term of virtually all airline agreements generally ranging from _____, and
entirely unlinked to the term of outstanding bonds (with the exception of facilities financed by special facility or
project revenue bonds, which still require a term linked to the bonds).
Question: AIP Grant Assurances
Answer: Certain obligations on airport sponsors as a condition of receiving federal grants. Airport sponsors
must sign in connection with every grant application.
Question: 39
Answer: As of March 2014, there are _____ grant assurances airport sponsors must certify, addressing
wide-ranging topics.
Question: True
Answer: True/False - Grant assurances generally have a duration related to the useful life of the grant-funded
project, but not to exceed 20 years, with the clock resetting with each new grant award. Exceptions that
continue without limit: Exclusive Rights (23), Airport Revenues (25), and Civil Rights (30).
Question: Airport Rates and Charges Policy
Answer: Originally published in 1996 and amended in 2013 - Purpose of this policy was to provide guidance to
airport sponsors with regard to setting rates, fees and charges for aeronautical use of their facilities without a
negotiated agreement, with particular focus on airline and FBO rates and charges. To ensure federal
grant-supported airports do not discriminate by user and therefore and truly public use.
Question: Direct Negotiation and Resolution
Answer: Establishes preference for direct negotiation between the airport sponsor and airline and other
aeronautical tenants and sets minimum expectations for meaningful consultation between airport sponsors
and aeronautical tenants.
Question: Fair and Reasonable Fees
Answer: Allows airport sponsors to utilize various cost-recovery rate-making approaches in setting airline rates
and charges in the absence of an airline agreement.
, Question: No Unjustly Discriminatory Rates
Answer: Requires airport sponsors to use consistent methodologies to set rates for comparable airport users.
Question: Self-Sustaining Rate Structure
Answer: Requires airport sponsors to employ a rate-making regime that makes the airport as financially
self-sustaining as possible.
Question: No Revenue Diversion
Answer: Prohibits airport sponsors from using revenues generated by the airport for non-airport purposes.
Question: Airport Revenue Use Policy
Answer: Defines certain key concepts concerning the allowable uses of airport revenue and, by extension,
allowable costs.
Question: Key provisions of Airport Revenue Use Policy include:
Answer: Definition of Airport Revenues Definition of Revenue Diversion Specifically Prohibited Uses Allowable
Marketing Expenses (including air service development) Allowable Indirect Costs Charges Below FMV for
Community and Nonprofit Use
Question: Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21)
Answer: The _____ contained new requirements for certain airport sponsors receiving AIP grants or imposing a
PFC to submit "competition plans" in support of improved airline access to terminal facilities to promote
competition. Applied to medium hub and busier airports at which one or two airlines together had a market
share of more than 50% of enplaned passengers.
Question: The statutorily required contents of competition plans include:
Answer: A description of the gates and related facilities at the airport, including an inventory of gates and gate
utilization by lessee and use type A summary of leasing and subleasing arrangements An analysis of airfares at
the airport as they compare to benchmark airports A description of any plans to deliver new gate and related
facility capacity
Question: True
Answer: True/False - Under current FAA program guidance, if an airport sponsor has submitted a full plan and
two updates, the FAA required subsequent updates if only one of two special circumstances exist:
1. If the airport sponsor has executed a new or significantly amended airline agreement
OR
2. If the airport sponsor has submitted a report of denial of access to an airline
requesting the use of gates or related facilities
Question: Rocket Docket
Answer: An accelerated review process prescribed in the regulations for Part 16 complaints.
Question: Part 16 Complaints Process
Answer: The principal recourse that airlines and other aeronautical tenants have with the federal government
to ensure airport sponsors comply with the economic discrimination, revenue diversion and other grant
assurances.
Question: 60 days
Answer: A complaint can be filed a maximum of _____ following notification of the rate increase by the airport
sponsor to the airlines.
