AAAE CM Exam 2023 Questions with Verified Answers

How did the railroads start commercial aviation? - Answer- The rail industry helped kick start commercial aviation with the Kelly Act/Air Mail Act. They accused the govt. of creating a monopoly for carrying mail by air. Who is the ultimate customer of the airport? - Answer- The Pilot. What are a few facts about airports? - Answer- Airports are heavily regulated by the FAA. Airports are essential to functioning of the planet. They Airport System must operate symbiotically. No two airports are the same. An airport can be many things, but only an airport can be an airport. Describe the Air Commerce Act of 1926? - Answer- Air Commerce Act created the Aeronautics Branch (CAA) which is the Civil Aeronautics Administration. This fell under the Dept. of Commerce. Est. Air traffic control, pilots license, airways, - aviation is a commerce function. Foundation of aviation. What did the Works Progress Administration do? - Answer- Provided federal funding to develop or expand 852 airports. Responsible for providing govt. subsidies (first form of AIP funding). What was the CAB (Civil Aeronautics Board) in charge of? - Answer- CAB was charged with making rules, conducting accidents and the economic regulation of the airlines. They economically regulated aviation. What is DLAND (Development of Landing Areas of National Defense)? - Answer- After WWII, 500 airports were declared surplus and given to cities because they could afford them. Promise to make the airport available for PUBLIC use (early start of Grant Assurances). Which act created the FAA? - Answer- Federal Aviation Act of 1958 also known as the Jet Age. It's main reason was to make it safer b/c there was too many mid-air collisions. What did the Airport & Airway Dev. Act of 1970 do? - Answer- Filled gaps in the system, expanded the list of projects available for aid, created FAR Part 139 Cert. and created the Aviation Trust Fund. What is the Aviation Trust Fund? - Answer- A tax collected to fund aviation with the premise only those who use aviation should pay for it. How did deregulation affect the airline industry? - Answer- It ended regulation of the airlines, deregulation created the hub and spoke system allowing airlines to fly where they want without restrictions (Fed Ex model). Which act created the TSA? - Answer- The Aviation and Transportation Security Act (2001) after the attacks of 9/11. Describe what the Airport Improvement Act of 1982 does? - Answer- Created the NPIAS and AIP Funding (capital projects) and est. airport categories. What is NextGen? - Answer- Overhaul of our entire aviation system - affecting everyone. What started private companies to offer space commercialization's? - Answer- When Shuttle Atlantis lands, ending the US Space shuttle program. What are the challenges facing our industry in the future? - Answer- Security measures, NextGen, UAV operations - trying to keep up with them. What do air carriers desire? - Answer- Access to good market, lower operating costs and influence over key airport decisions. Air carriers are your most significant tenant. What is the difference between and FBO and a SASO? - Answer- An FBO can provide fuel, SASO's can not. Which airports can be in the NPIAS? - Answer- Airports who are publicly accessible. Receive more then 2500 annual enplanements or are a qualified GA airport, Relieve airports, Bases or airports with a postal contract. What are the three methods to measure airport activity? - Answer- Enplanements: a passenger boarding commercial Operation: Aircraft taking off or landing Cargo: measured in tonnage What is the difference between a local operation and an itinerant operation? - Answer- A local operation is within 20 miles of the airport, itinerant is outside of the airport area and uses Instrument Flight Rules or Visual Flight Rules. How many Airports are in the NPIAS? - Answer- 3,300 What type of airport must have at least 25,000 itinerant aircraft or 100 based aircraft? - Answer- GA Reliever Airport How many annual enplanements must an airport have for commercial service? - Answer- 2,500 How many enplanements are needed to be a Primary commercial service airport? - Answer- 10,000 Who makes up for 70% of all passenger traffic? - Answer- Large Hub Airports "Big 30" What's the qualifier for non-hub airports and non-primary? - Answer- More GA then Commercial, Commercial still has more then 10,000 enplanements. Non-Hub/Non-primary are predominately GA airports or commercial service with less then 2500 enplanements. What is a joint-use airport? - Answer- Joint Use is entirely owned by the DOD, they lease space to civilian. Shared use of the airfield. What is shared-use airport? - Answer- Govt. owned, co-located with a civil airport, share portions of the runway/taxiways. What is Part 91? - Answer- General Aviation (private) not commercial & not military Part 119 exceptions - Answer- Student Instruction, nonStop air Tours, ferry flights, aerial work, 25-SM nonStop parachute ops, 25 SM flight with max two passengers, external loads, emergency mail service, ops under 91.321, small UAS ops. 119- basic requirements What is the importance of Part 91, 121 and 135 - Answer- Part 91 - General Aviation/ Private Part 121 - Scheduled Commercial Aircraft Part 135 - Charter What is a public charter? - Answer- company contracts for the operation of an aircraft to and from a destination What items are pilots required to check before flying - Answer- Pilots must check the complete visual inspections of the aircraft, test emergency and safety systems, configure the GPS and instrumentation, check the weather, routing, and weight & balance Pilots check the Airport Facility Directory - now called Chart supplements. What does Grant Assurance #19 Operations & Maintenance require the airport to do? - Answer- Operated in a Safe and Serviceable condition Why does the FAA encourage airports to have minimum standards? - Answer- Minimum Standards - min requirements a business must meet, to provide aeronautical services at the airport. Help ensure adequate level of safe and efficient service available to the public. What is an example of "just" discrimination - Answer- Essentially requiring different standards for different kinds of tenants (i.e. flight school and fbo) Overall benefits of minimum standards? - Answer- Promote safety, protect airport from unlicensed products of services, orderly development of land, prevent disputes - level of safe and efficient service. What does the Exclusive Rights Grant Assurance #23 require and what are the exceptions? - Answer- Airport cannot grant an aeronautical tenant exclusive right to conduct a commercial service. Airport however CAN grant itself an exclusive right. Explain what you can and cannot do on an airport? - Answer- Aircraft Owners can provide preventative maintenance to their own plane and can self-fuel. What is Through-The Fence TTF Agreements? - Answer- An agreement between the airport and an aeronautical user adjacent to airport property, not prohibited but discouraged. No rules/regs and no minimum standards. What is revenue diversion? - Answer- Revenue Diversion is using airport revenue to pay for things other then operating or capital costs. What is the difference between aeronautical and non-aeronautical revenue? - Answer- Aeronautical revenue comes in the form of landing fees, fuel flowage fees - services provided by air carriers, non-aeronautical is revenue earned from concessions, parking - all incidental What are some examples of non-operating revenue? - Answer- Grant Money, PFCs What are the most common aeronautical revenue sources at an airport? - Answer- Fuel Flowage Fees, landing fees, hangar fees What is the benefit to the community of having an airport? - Answer- Economic benefits; new money, creation of jobs Identify the items that constitute revenue diversion - Answer- Grant Assurance #25 Airport Revenues - restricts the use of airport revenue generated by the airport to be expended to the capital or operating costs. Examples: economic development, marketing (not related to airport), PILOTS, lost tax revenues, loans or investments of airport money at less that the prevailing interest rate. What can airport revenue be used for? - Answer- Airport revenue can be used for Capital & Operating Costs Reimbursements to sponsors for costs Air travel for promo expenditures Promote airlines - marketing What does Grant Assurance #24 mean? - Answer- Fee & Rental Structure - Airport Sponsor to set fees & lease rates so airport can be self-sustaining as possibel. What are airports prohibited from factoring in to the rate base? - Answer- AIP costs (federal funding) that improved that ground What does self-sustainability mean? - Answer- Airport must be able to function without. All comes back to only people who use the airport should have to pay for it. Maintain the utility of the federal investment in the airport. Airport & Airways Improvement Act Difference between est. rates for aeronautical vs. non-aeronautical rates? - Answer- Aeronautical - break even, agreement that structure is similar for tenants who are alike. Non-Aeronautical - Fair Market Value How to residual agreements work? - Answer- Airlines cover the additional expenses of the airport What can be included in the rate base? - Answer- Total of all costs associated w/ providing airfield facilities and services. Cost of airfield facilities, Services like ARFF, deb-services, cash reserves, environmental costs. When are federal procurement policies & processes required to be used? - Answer- When using federal funds What are federal procurement policies designed to do? - Answer- Fair and Open bids, ensure integrity - applies to AIP money, TSA grants & OTAS (not PFCs) What are the various types of contracts and their central elements? - Answer- CMAR - provide advice during design (General Contractor) Design-Build - one entity works under a signed contract to provide design and construction Task-Ordered - Salt/Sand - specific items Professional Services - program management, construction management, architectural Single-source or noncompetitive - approved by ADO when only one source What are the dollar requirements & minimum public posting requirements for construction contracts using federal funding? - Answer- $100,000 threshold, 30 days Briefly explain the DBE requirements - Answer- DBE is disadvantaged businesses (small businesses), own 51% of business, implement a DBE if awarding more than $250k in prime contracts - creates a level playing field What are the 4 areas airport execs should assess when upgrading a computer system? - Answer- 1. Compatibility & Integrations 2. Security & Safety 3. Scalability 4. Usability Identify the primary IT system at an airport & their function - Answer- GIS - links geographic info w/ descriptive critical component of eALP's electronic Layout Plans Identify the types of cybersecurity attacks & explain how they work - Answer- Hacking - crime of breaking into individuals computer to access personal info. Email - most powerful weapon Denial of Service - disable a machine/system Malware - malicious software, gain access to cause damage Phishing - emails, messages, phone calls Spear - targeted What is Social Engineering? - Answer- Art of human manipulation - pretend to be someone trusted What are the 3 types of insurance under the CGL? - Answer- Hangar Keepers - damage to aircraft Premises Liability - persons or property Product Liability - fuel and oil Identify methods to reduce risk on the airport. - Answer- Part 139 compliance Training Risk analysis Daily inspection Screen employees Accurate information "Blanket" insurance policy Environmental policies What are the 4 basic types of leases? - Answer- Straight lease, graduated, percentage, re-evaluation lease What are the critical elements of a leasehold agreement? - Answer- Term, use, recitals, improvements, expiration What are factors to consider in concession & rate setting - Answer- MAG, higher rent/higher cost - street pricing What is the MAG? - Answer- Minimum Revenue Guarantee - % of gross revenue payments or combo of two 3 approaches to leasing concession space - Answer- 1. Traditional - the airport manages and directly leases the space (higher risk for airport, but higher profits) 2. Development company provides management services (advantage - experienced personnel, disadvantage - another layer of cost) 3. Institutional operator engaged as a master lessee (lower risk, but lower profits) Explain Airport Use Agreements? - Answer- Grants operating rights to the airline, reliable stream of revenue for the airport What is a signatory carrier and an MII clause? - Answer- Signatory carrier - major investment or commitment to airport, exercise control over airport (MII). MII - right to approve capital projects & development. 5 steps of airport property development? - Answer- Assess, conduct market analysis, pro forma, construction phase, operating plan What is the Policy Guidance Letter (PGL) - Answer- FAA issues PGL to add or revise guidance of an AIP What are the 3 types of AIP money & how are they disbursed? - Answer- Entitlement - formula Discretionary - left over Set-aside - noise, military, GA reliever, state What is the federal share of the project depending on the airport size? - Answer- Large Hub - 75 % (80% for Noise) Small - 90%