Page 1 of 128
AAAE CM EXAM - ALL MODULES*** QUESTIONS
AND VERIFIED ANSWERS | 2026/2027 UPDATE
Under part 150, Federal funding may be used but the airport is
required to maintain an _____ _____ _____ and a Noise
Complaint Program (NCP).
❖ Noise Exposure Map (NEP)
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 ______
______
❖ Self-Sustaining
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)
,Page 2 of 128
❖ "Airport and Airway Impairment Act of 1982
❖ Regarding self-sustainability"
How much can you charge for non-movement or non-
aeronautical rates?
❖ Fair market value.
Much of the financial risk is transferred to the airlines in
return for a negotiated limit on the airport's profits.
❖ Residual Agreements
What is a residual agreement?
❖ In a residual agreement, the airport applies excess non-
aeronautical 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
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agreement, aeronautical users may assume part or all of
the liability for non-aeronautical costs
Fees and charges are set for each revenue producing cost
center, so that ideally the charges match the cost of operation
❖ 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?
❖ Compensatory Agreement
What is a compensatory agreement?
❖ 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.
, Page 4 of 128
When the local government agency offsets the difference
between the revenue and expenses by subsidizing the airports
operation it is called this.
❖ Compensatory Agreement Public Subsidy Approach
Airport Sponsors that adopt rate setting systems employing
elements of both residual and compensatory approaches are
called what?
❖ Hybrid Agreements
Total of all costs associated with providing airport faculties
and services to aeronautical users
❖ Rate Base
What is Rate Base?
AAAE CM EXAM - ALL MODULES*** QUESTIONS
AND VERIFIED ANSWERS | 2026/2027 UPDATE
Under part 150, Federal funding may be used but the airport is
required to maintain an _____ _____ _____ and a Noise
Complaint Program (NCP).
❖ Noise Exposure Map (NEP)
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 ______
______
❖ Self-Sustaining
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)
,Page 2 of 128
❖ "Airport and Airway Impairment Act of 1982
❖ Regarding self-sustainability"
How much can you charge for non-movement or non-
aeronautical rates?
❖ Fair market value.
Much of the financial risk is transferred to the airlines in
return for a negotiated limit on the airport's profits.
❖ Residual Agreements
What is a residual agreement?
❖ In a residual agreement, the airport applies excess non-
aeronautical 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
,Page 3 of 128
agreement, aeronautical users may assume part or all of
the liability for non-aeronautical costs
Fees and charges are set for each revenue producing cost
center, so that ideally the charges match the cost of operation
❖ 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?
❖ Compensatory Agreement
What is a compensatory agreement?
❖ 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.
, Page 4 of 128
When the local government agency offsets the difference
between the revenue and expenses by subsidizing the airports
operation it is called this.
❖ Compensatory Agreement Public Subsidy Approach
Airport Sponsors that adopt rate setting systems employing
elements of both residual and compensatory approaches are
called what?
❖ Hybrid Agreements
Total of all costs associated with providing airport faculties
and services to aeronautical users
❖ Rate Base
What is Rate Base?
