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Airport Operations and Management, Exams of Aviation

An overview of various aspects of airport operations and management, including airport organizations, procurement methods, environmental considerations, airspace classifications, airport inspections, and signage. It covers topics such as the roles of different airport stakeholders, the certification process for commercial service airports, the components of a successful self-inspection program, and the use of various airport equipment and technologies. The document aims to give a comprehensive understanding of the complex and multifaceted nature of airport operations, which is crucial for the efficient and safe functioning of the aviation industry.

Typology: Exams

2023/2024

Available from 10/07/2024

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CM Training AAAE Questions &
Answers 100% Solved 2023/2024
Update
Where does TSA have regulatory influences and authority within the terminal? - Answer 1.
Checkpoint operations
2. Airport police response to checkpoints and incidents
3. Unattended bags
4. Unattended vehicles
What did the Air Commerce Act (1926) prohibit? - Answer Using federal funds to build or
improve airports.
Works Progress Administration (WPA) - Answer Provided 50% of needed funding.
Built over 800 new airports.
Air Commerce Act of 1926 created what? - Answer Aeronautics Branch (soon known as the
Civil Aeronautics Admin) under the Dept. of Commerce.
Charged with fostering air commerce, establishing air traffic control, licensing for pilots,
aircraft certification, establishing airways, and issue and enforce air traffic rules
What was the effective beginning of privatized space flight? - Answer Final flight of the U.S.
space shuttle.
What does a GA Reliever airport do? - Answer Relieves a Commercial airport from GA
traffic.
What is the enplanement threshold for commercial service? - Answer 2,500
Large hubs have what percentage of U.S. enplanements? - Answer 70% or more of the
enplanements
What are the cloud ceiling and visibility requirements for Visual Flight Rules? - Answer
Cloud ceiling: 1,000'
Visibility requirements: 3 miles
"1000 and 3"
What is the entity who is responsible for airport governance? - Answer The Airport Sponsor.
What is the most common airport ownership type in the U.S.? - Answer Municipalities (cities
and counties)
Who sets standards for security access control systems? - Answer The Radio Technical
Commission on Aeronautics
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CM Training AAAE Questions &

Answers 100 % Solved 2023 /

Update

Where does TSA have regulatory influences and authority within the terminal? - Answer 1. Checkpoint operations

  1. Airport police response to checkpoints and incidents
  2. Unattended bags
  3. Unattended vehicles What did the Air Commerce Act (1926) prohibit? - Answer Using federal funds to build or improve airports. Works Progress Administration (WPA) - Answer Provided 50% of needed funding. Built over 800 new airports. Air Commerce Act of 1926 created what? - Answer Aeronautics Branch (soon known as the Civil Aeronautics Admin) under the Dept. of Commerce. Charged with fostering air commerce, establishing air traffic control, licensing for pilots, aircraft certification, establishing airways, and issue and enforce air traffic rules What was the effective beginning of privatized space flight? - Answer Final flight of the U.S. space shuttle. What does a GA Reliever airport do? - Answer Relieves a Commercial airport from GA traffic. What is the enplanement threshold for commercial service? - Answer 2, Large hubs have what percentage of U.S. enplanements? - Answer 70% or more of the enplanements What are the cloud ceiling and visibility requirements for Visual Flight Rules? - Answer Cloud ceiling: 1,000' Visibility requirements: 3 miles "1000 and 3" What is the entity who is responsible for airport governance? - Answer The Airport Sponsor. What is the most common airport ownership type in the U.S.? - Answer Municipalities (cities and counties) Who sets standards for security access control systems? - Answer The Radio Technical Commission on Aeronautics

How many days are required for the Notice of Proposed Rule-Making? - Answer 30 days What is the directive to FAA personnel on specific subjects and programs? - Answer The FAA Order What is the method the FAA has found to be the best to extend federal policy to local government units? - Answer Grant Assurances What is 14 CFR Part 13 Investigation and Enforcement - Answer The informal complaint system that is filed with the Airport District Office. FAA will investigate and offer to help resolve. If the sponsor is in violation, the FAA provides the opportunity to comply. A Notice of Noncompliance may be issued if the FAA believes the airport is non-compliant. The letter will identify the apparent violation(s), specifies corrective action(s), and gives a deadline. What is 14 CFR Part 16 Rules of Practice for Federally-Assisted Airport Enforcement Proceedings - Answer The formal complaint system that is filed in Washington DC. It involves financial compliance and reasonable and nondiscriminatory access, but includes all obligations in the Grant Assurances and property deeds. Formal agency finding regarding the compliance status of an airport. Prior to a Part 16 complaint, a person must have initiated and engaged in good faith efforts to resolve informally (Part 13 will work). Deadline driven, including pleadings, investigations, and lawyers If airport is non-compliant, FAA may withhold new grants, withhold payment on existing grants, terminate eligibility for future grants and passenger facility charges; cease and desist orders; civil penalties; or judicial enforcement. What does the Tucker Act do? - Answer Waives immunity over claims arising out of contracts with the federal government. What agency has the power to make safety related regulations after an aircraft accident? - Answer The FAA Who produces standards and recommended practices for aviation worldwide? - Answer The International Civil Aviation Organization (ICAO) What professional industry trade organization represents GA pilots of small aircraft? - Answer Aircraft Owners & Pilots Association What does Grant Assurance #21 (Compatible Land Use) ensure? - Answer The sponsor must make a reasonable attempt at compatible land use outside airport property boundaries. Incompatible land is generally residential, schools, hospitals or public health entities, and concert halls. What document must always be up to date to receive FAA funds? - Answer ALP The ALP must delineate the airport boundaries, all facilities, and identify future development plans. FAA approval represents concurrence in the conformity of design standards and criteria.

Adopted first professional accreditation standards in 1954. Provides lobbying, regulatory services, training, accreditation, and other professional development programs. What was the Aeronautics Branch was reorganized and restructured into? - Answer Civil Aeronautics Administration (CAA) under the Dept of Commerce What did the Civil Aeronautics Admin (CAA) split into, and what were the duties of each branch? - Answer CAA maintained Air Traffic Control, Pilot and aircraft certification, Safety enforcement, and Airway development Civil Aeronautics Board (CAB) ensured safety rules, conducting aircraft accident investigations, economic regulation of the airlines, approving air routes, and regulating airfares What was the Development of Landing Areas for National Defence (DLAND) appropriation?

  • Answer Secretary of War and Commerce & Secretary of the Navy could acquire land for airport development needed for the war effort. 986 airports built in the US. Post war, 500 airports were declared surplus and handed over to public cities and counties for civil use. Airport sponsor had to promise to make the airport available for public use without discrimination, and to allow the the government to use in the event of a national emergency. What did the Federal Air to Airports Program (FAAP) in 1946 do? - Answer Provided grant funds for certain projects, mostly RW and TW development. Airport had be in the National airport Plan (NAP) Airports held to previous promises to allow the public to use the airport without discrimination. Federal Aviation Act of 1958 - Answer Air Commerce Act was repealed, and the Federal Aviation Agency (FAA) was created. The FAA was directed take over rule-making from the CAB, and was responsible for developing a common civil-military system of air navigation and air traffic control When was the FAA moved and renamed to the Federal Aviation Administration? - Answer Federal Aviation Agency renamed to Federal Aviation Administration in 1966, and put under the newly created Dept of Transportation.

Airport and Airway Development Act of 1970 - Answer Created the Airport Development Aid Program (ADAP) and the Planning Grant Program (PGP), expanded the list of eligible projects, created the Part 139 Certification of Airports, created the Aviation Trust Fund. What was the Aviation Trust Fund? - Answer Created under the Airport and Airway Development Act of 1970 so that only those who use aviation would pay for aviation, it collected a passenger seat tax, a cargo waybill tax, a fuel tax, and an aircraft registration fee. Airport and Airway Improvement Act of 1982 - Answer Created the Airport Improvement Program where 75-90% of a project is covered by federal money. Reorganized the National Airport Plan as the National Plan of Integrated Airport Systems (NPIAS), establishing airport categories of commercial and GA. Why was the Transportation Security Administration started? - Answer In response to the 9/11 terrorist attacks. Vision 100 - Century of Aviation Reauthorization Act of 2003 - Answer Endorsed Next Generation Air Transportation System (NextGen). Multi-faceted series of initiatives designed to make air travel more efficient, secure, and safer. What are the new challenges in aviation? - Answer 1. Unmanned Aerial Vehicles (UAVs)

  1. Commercial space transportation industry
  2. Cybersecurity and integration of NextGen and UAV operations What is the National Airport Plan as the National Plan of Integrated Airport Systems (NPIAS)? - Answer Identifies public use airports eligible for federal funds that are critical to US safety. "Wishlist" of what the airport is eligible for. Criteria: airports must be publicly accessible, be commercial service (2,500 enplanements), be a GA reliever, have a USPS contract, be an National Guard base, or meet other conditions. How many airports are there in the US, how many are public use, and how many are on the NPIAS? - Answer 19,360 nation wide 5,148 public use 3,345 on NPIAS What percentage of worldwide aviation is in the US? - Answer 40% What three primary measurements does the FAA use on airports? - Answer Enplanements - a passenger boarding a commercial service aircraft or transferring to another commercial service flight Operations - an aircraft taking off or landing Cargo - measured in annual tonnage moved through the airport
  1. Check weather at departure, en route, and forecasted arrival (plus alternate airports in some cases)
  2. Flight planning including weights & balances and aircraft performance Part 121 operators and major corporate operators have Flight Dispatchers to "do the math" on the flights Pilot in command has the final say on if the flight goes or not (power of the parking break) Where is Class A airspace? - Answer Between 18,000 and 60,000 feet Requires Instrument Flight Rules (IFR) Air Traffic Control separation Flight plan is required No VFR allowed What are Visual Flight Rules (VFR)? - Answer See and avoid Flight plan may not be required Lower than 18,000 feet Visual Meteorological Conditions (VMC) - 1000 feet ceiling and 3 miles visibility What are instrument departure procedures? - Answer Used to transition aircraft out of terminal area airspace. Allow the pilot to follow a defined flight path to intercept an en route flight path. What are instrument landing approach charts? - Answer AKA approach plates. Used by pilots to provide guidance down to the runway or air traffic control pattern. What is Standard Terminal Arrival Route (STAR)? - Answer Procedures used to move aircraft into terminal airspace for transition to landing; STARs are used to simplify communication and understanding during approaches and allows air traffic control to bring aircraft in through arrival gates. What are the three types of runway approaches? - Answer 1. Visual - approved when the ceiling is 1,000' or greater, and the visibility is 3 statute miles or greater
  3. Non-precision - uses one or more NAVAIDs that provide lateral positioning
  4. Precision - uses NAVAIDs that provide lateral and vertical positioning What is an instrument approach plate? - Answer AKA approach chart. A published flight path that ensures clearance over obstacles, sets minimum descent altitudes, and includes procedures for a missed approach. What are the two primary obligations of airport operators? - Answer 1. Responsibility to the FAA to operate the airport as an essential component of the national aviation system.
  5. Responsibility to the local community to minimize negative impacts of the airport's operation. What is an Enterprise Fund? - Answer A branch of government that operates like a business.

Advantages and disadvantages of a municipal airport. - Answer Advantages - generally better access to municipal resources and funding, such as human resources, purchasing, etc; General Obligation bonds; power to tax; power of eminent domain. Disadvantages - policy makers have less time to spend on airport issues; conflict of interest in decision making; artificial fiscal and personnel constraints. Municipalities that seek to maintain control of the airport, but desire more guidance and expertise, may create an Advisory Board. Advantages and disadvantages of an Airport/Port Authority - Answer Created through enabling legislation by a municipality, level of authority through legislation (make decisions). Advantages - focused leadership and specialized attention; insulate the management and operation from political influences; serve a metropolitan community better through shared representation or equitable taxation; more business focused; on-scene decision making. Disadvantages - resources and finances may not be readily available in the quantities or levels necessary to provide support. Port Authority operates other forms of transportation or industry. What is privatization? - Answer The transfer of a typical government function to a private function. Airport Privatization Program - Answer Transfers the federal obligation, as well as the responsibility for the operation, management, and development of an airport from a public sponsor to a private sponsor. What are the responsibilities of the Airport Executive? - Answer 1. Charged with operating the airport.

  1. May report directly to the sponsor, a division or department head, or a municipal manager/administrator
  2. Must understand and balance the dichotomous philosophies of being a public entity and a business enterprise. What is airport management's primary duty? - Answer The safe, secure, and efficient operation of the airport and all of its facilities What two positions report directly to the board? - Answer Auditor and legal counsel 14 CFR Part 77, Safe, efficient use and preservation of the navigable airspace - Answer Obstructions 14 CFR Part 107, Small Unmanned Aircraft Systems - Answer UAVs 14 CFR Part 150, Airport Noise and Compatibility Planning - Answer Airport Noise 14 CFR Part 1542, Airport Security - Answer Airport Security

Risk losing federal funds by being placed on the Airport Noncompliance list if the airport doesn't adhere to them. Grant Assurances essentially cover what? - Answer 1. Maintain the airport in good and serviceable condition.

  1. Use specific lands for non-aero use to generate revenue to support aviation needs.
  2. Operate the airport in the public interest
  3. Ensure the airport operator does not grant an exclusive right to any aero-use tenant for any aero purpose or use. How can the FAA or aero user report the airport for non-compliance of grant assurances? - Answer File a Part 13 or Part 16 complaint. What is airport law? - Answer A phrase used to describe a collection of FAA regulations, adjudications, various statutes, Grant Assurances, ACs, and court decisions. What four hats does the FAA wear? - Answer 1. Regulator
  4. "Gift giver" in the form of FAA grants
  5. "Permission giver"
  6. Operator of the air traffic control system Governmental immunity - where does it NOT apply? - Answer 1. Negligence - failure to use reasonable care
  7. Active/gross negligence - you knew it was wrong and you did it anyways
  8. Tucker Act - waives immunity over claims arising out of contracts with the federal government
  9. Federal Tort Claims Act - waives immunity if the act of a government employee was negligent or constitutes some other tort What does the National Transportation Safety Board do? - Answer Investigates accidents to determine probable cause, non-rule making entity. May delegate some investigations to the FAA. Airports Council International (ACI) - Answer Represents local, regional, and state governing bodies that own or operate commercial airports; represents common interests and to promote cooperation with associates in the air transport industry. The airport is the member. Airport Law Enforcement Agencies Network (ALEAN) - Answer Brings together airport police agencies International Air Transport Association (IATA) - Answer Promotes safe, reliable, secure, and economical air services for the benefit of the world's consumers Airlines for America (A4A) - Answer Nation's oldest and largest airline trade association that represents the nation's leading airlines Air Line Pilots Association (ALPA) - Answer World's largest airline pilot union; focus on airline safety, security, and pilot assistance, representation, and advocacy

Regional Airline Association (RAA) - Answer Represents regional airlines and supporting industries before Congress, DOT, FAA, and other federal agencies National Business Aviation Association (NBAA) - Answer Represents companies who rely on general aviation aircraft to help make their businesses more efficient, productive, and successful; 11,000 members. Aircraft Owners and Pilots Association (AOPA) - Answer Non-profit organization dedicated to GA pilots and aircraft owners. Notable programs are Airport Watch and Airport Support Network. National Air Transportation Association (NATA) - Answer Represents aviation businesses such as FBOs, Specialized Aviation Service Operators (SASO), and other provider Aerospace Industries Association (AIA) - Answer Represents manufacturers and suppliers of civil, military, and business aircraft, helicopters, unmanned aerial systems, space systems, and aircraft engines, as well as provides security detection technology at airports. National Association of State Aviation Officials (NASAO) - Answer Represents employees of state government aviation agencies. National Air Traffic Controllers Association (NATCA) - Answer Represents over 20, controllers, engineers, and other safety-related professionals at FAA, DOD, and some privately-contracted air traffic control facilities Helicpoter Association International (HAI) - Answer Provides support and advocacy to helicopter operators Airport operators must remember what two concepts? - Answer They are running a public entity that is also a business entity (that is heavily regulated by the FAA, TSA, and EPA) What are the two types of airport land? - Answer On-airport and off-airport What are the two types of on-airport land? - Answer Aeronautical and non-aeronautical. The FAA must give permission to reclassify aero land as non-aero. Grant Assurance #20, Hazard Removal and Mitigation - Answer Requires the airport to protect the airspace around the airport, including approach paths The airport must attempt to reduce or eliminate incompatible land through what methods? - Answer 1. Airport Master Plans - integration with local zoning and community plans

  1. Adopt ordinances restricting incompatible land development and limit the height of structures
  2. Noise compatibility studies
  3. Educate zoning and planning entities
  4. Develop or allow concurrent land use (eg agriculture in RPZ) Residential development around airports - Answer 1. FAA strongly opposes
  5. FAA will not release land if it's for residential development
  6. FAA will not release land for through-the-fence agreements

Through the fence - Answer FAA generally believes a Through the fence agreement denies an airport's rights and powers (Grant Assurance #5). Strongly prohibited They are not subject to Minimum Standards What are the 3 types of airport revenue? - Answer Aeronautical - services related directly and substantially to the movement of passengers, baggage, mail, and cargo. Non-aeronautical - services related to those operations and uses that are incidental to the operation of aircraft. Non-operating - relates to taxes on personal property or possessory interest, grant monies, Passenger Facility Charges (PFC) and Customer Facility Charges (CFC) Fuel Flowage fee - Answer Airport charges a percentage on the amount of fuel pumped at the airport, including self-fueling operations Land Lease and Terminal Rent Agreements for Aeronautical Use Space - Answer Hangar and terminal space leasing and leasing land for aero development (eg ticket counter, baggage claim areas) Non-aeronautical revenue sources - Answer Terminal rents to concessions, rental car fees, parking lot charges, advertising space, industrial park 2 ways a community benefits from having an airport? - Answer 1. Economic benefits from new money that comes into the community via air.

  1. Job creation (and hence more taxable income) Grant Assurance #25, Airport Revenues - Answer Restricts the use of airport revenue generated by the airport and local taxes on aviation fuel, to be expended for capital or operating costs of the airport, local airport system, or other facilities owned or operated by the airport sponsor which directly and substantially relate to the actual air transportation of passengers or the property or noise mitigation efforts. What are 8 ways of diverting revenue? - Answer 1. General economic development for the municipality, or using fees or airport land/resources to benefit the community
  2. Marketing and promotional activities not related to the airport.
  3. Payment in Lie of Taxes (PILOTS) that exceed the value of the services
  4. Payments to compensate municipalities for lost tax revenues
  5. Loans or investments of airport money at less than the prevailing interest rate
  6. Use of land for free or nominal rents for aero purposes (some exceptions are allowed)
  7. Rent of land for non-aero purposes at less than fair market value
  8. The direct subsidy of air carriers (certain exceptions allowed) What are 8 allowable uses of airport revenue? - Answer 1. Capital and operating costs
  9. Promotional expenditures related to air travel
  10. Cooperative airline-airport marketing expenses
  11. Reimbursements to sponsors for capital or operating costs
  1. Support of community activities that promote or are related to the airport
  2. Certain mass transit projects located on airport property
  3. Costs incurred by governments for services to the airport (eg fire, police)
  4. Lobbying and attorney fees that support the airport Grant Assurance #26, Reports and Inspections - Answer Requires sponsors to annually report their budget Who must submit Form 5100-126, Financial Government Payment Report, and Form 5100- 127, Operating and Financial Summary. - Answer Commercial service airports enplaning 2,500 or more passengers Grant Assurance #24, Fee and Rental Structure - Answer Requires the sponsor to set fees, lease rates, and other charges so that the airport is as self-sustaining as possible. Airports may NOT set rents, fees, etc based on the cost of airport property improvements or noise mitigation programs that were paid for with federal funds Self Sustainability on airports - Answer Required by the Airport and Airway Improvement Act of 1982 To maintain the utility of federal investment in the airport, and relates to the principle that those not using aviation shouldn't have to pay for it Aeronautical rates - Answer Charges for the use of movement areas and associated costs (eg snow removal) must be at least a level to cover the cost of providing such facilities (fair and reasonable) Non-aeronautical rates - Answer Charges for non-movement area must be based on fair market value. Exceptions include property for community purposes if no longer needed by airport, non-profit (Civil Air Patrol, aviation educational programs), transit projects accessing airport, private transit systems where service is extremely limited, military (National Guard) FAA's Rates and Charges Policy - Answer Provides guidance on setting of fess to ensure they are fair, reasonable, and not unjustly discriminatory. FAA relies on the sponsor to oversee compliance, charges must attempt to make the airport as self-sustaining as possible, can only expend money on allowable purposes, charges must not discriminate against foreign carriers What are the 4 types of rate setting at airports? - Answer 1. Residual - the airline(s) cover the additional expenses of the airport
  5. Compensatory - sponsor assumes all liability for airport costs, and retains all revenue
  6. Hybrid - combo of Residual and Compensatory that can result in the airlines sharing in airport revenue
  7. Public subsidy - local government agency offsets the difference between the revenue and expenses by subsidizing the airport's operation What is a rate base? - Answer The total of all costs associated with providing airfield facilities and services. Reasonable methodologies may include historic cost valuation, direct negotiation with aero users, or objective determination of fair market value (appraisal). Rate

FAA prefers what type of contract? - Answer Fixed rate (because it's easier to audit). Will do a Time and Materials contract with an exception. Value Engineering (VE) - Answer Promotes the substitution of materials and methods with less expensive alternatives that do not compromise functionality Construction contracts require performance and payment bonds equaling _______% of the contract - Answer 100% Federally funded projects exceeding __________ must be publically advertised for at least ____ days. - Answer $100, 30 Contracts go to whom under the sealed bid method? - Answer Lowest responsive and responsible bidder Request for Proposal (RFP) process is not limited to the lowest price, but instead considers what factors? - Answer Approach, qualifications, experience, and personnel Construction manager-at-risk proposals - Answer Contractor retained to provide advice to the airport during the design phase Design-build - Answer One entity works for a single contract to provide design and construction Task-order - Answer Permits stocks of specific items to be maintained at minimum levels, and allows direct shipments to the users Professional Services contract - Answer Typically used for program management, construction management, planning studies, feasibility studies, architectural or engineering services, surveying, and/or mapping Single source or non-competitive contract - Answer Usually only approved when the item or service is only available from one source Disadvantaged Business Enterprises (DBEs) - Answer Small businesses that have socially or economically disadvantaged individuals who own at least 51% interest, and control management and daily operations. Personal net worth can't exceed $1.32 million. States and some primary airports certify the eligibility by establishing goals for the DBE or the Airport Concessions DBE. Primary airports that accept federal funds must have an airport concessions DBE program. Airports are required to have a DBE program if they anticipate more than $250,000 in prime contracts using federal funds. 3 - year goal (percentage) for prime contracts.

What is a primary airport? - Answer More than 10,000 enplanements annually What are the 4 components for airport IT? - Answer Compatibility & Integration - does it all work together Security & Safety - does the old stuff continue to work until the new stuff works Scalability - can we add to, update, or upgrade later? Usability - can the users actually use it Geographical Information Systems (GIS) - Answer Links geographical information with descriptive information Presents many layers of data, model patterns, reveal relationships, and analyse trends Key component for eALPs 9 common airport IT systems - Answer 1. Airfield Lighting

  1. Airport Noise and Operations Monitoring System - tracks noise events and provides flight track analysis
  2. Automated Vehicle Identification - transponders that track commercial vehicle traffic for revenue purposes
  3. Passenger processing systems - kiosks, multi-user flight information display systems (arrival/departure screens)
  4. Business and financial management systems - business functions
  5. Property and asset management systems - tracks asset ownership, lease and concession management, digital asset management system
  6. Physical Access Control System (PACS) - allow, restrict, or track movement of people who have been issued airport credentials
  7. Facility and maintenance - environmental functions, heating, ventilation, electrical, water, sewer
  8. Airport operational database - centralized data storage such as the Flight Information Display System and baggage management systems) Malicious outsiders ("outsider hacking") account for what percentage of breaches and how long does it take to breach the system? - Answer 50-60% About a minute One of the most powerful weapons in a cyber attacker's arsenal - Answer Email Hacking - Answer The crime of breaking into an individual's computer to access sensitive information Denial of Service - Answer Intended to disable a machine or system, making it unavailable for users Malware - Answer Short for "malicious software", designed to gain access or cause damage to a computer. Usually activated by clicking on a link on an email or a webpage.

Percentage lease - Answer Rents equivalent to a percentage of sales, common for concessions Concessions - Answer Provide revenue while simultaneously meeting the needs of passengers, visitors, and employees for food, beverage, retail, and other service amenities. Can charge higher prices due to higher rents, operating costs, and a captive audience Street pricing - Answer What airports add to their concessions contracts to keep the costs of products near that of local areas or city shipping malls. Passengers notice, especially with popular brands, if prices are substantially different. Rental costs factors - Answer 1. Location in airport

  1. Size and type of facility needed
  2. Support infrastructure needed
  3. Exposure to traveler flow
  4. Airport efforts to highlight shopping opportunities
  5. Demand for space 3 methods airports use to balance concession revenue with service - Answer 1. Profit margins are specifically delineated in the lease
  6. Prices are specifically delineated in the lease
  7. Competing concessions are established What types of payments do concessions have to the airport? - Answer 1. Annual minimum payment (minimum annual guarantee, MAG)
  8. Percentage of gross revenue payments
  9. Combination of the first 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)
  10. Development company provides management services (advantage - experienced personnel, disadvantage - another layer of cost)
  11. Institutional operator engaged as a master lessee (lower risk, but lower profits) Why is it important to define revenue with some concessions? - Answer Concessions like car rentals will try to exclude fees from their profit Pre-screening area concessions - Answer Advantages: increased exposure, cost efficiencies Disadvantages: passengers want to get through screening ASAP Sterile area concessions - Answer Advantages: secure facilities, capture connecting traffic Disadvantages: higher cost Airline/Airport/Aeronautical Use Agreements - Answer Grants operating rights to the airline, provides (or attempts to provide) a reliable stream of revenue for the airport. Includes landing fees, lease rates for space (ticket counter, gates, admin), rights to gates (preferential, exclusive, or common). Don't necessarily guarantee service by the airlines to the airport and the nearby community.

Signatory vs non-signatory - Answer 1. Signatory carriers have made a major investment or commitment to the airport.

  1. Signatory carriers can exercise some control over the airport through Majority in Interest (MII) clauses.
  2. Most common is the right to approve capital projects and development plans.
  3. Title bestowed by the airport operator. Stages of Airport Development - Answer Stage 1 - assess (physical constraints, zoning regulations, political factors, conveyance restrictions, legal counsel); due diligence Stage 2 - conduct a market analysis Stage 3 - develop a pro forma (what to charge) Stage 4 - construction Stage 5 - develop an operating plan Airport Improvement Program - types of money - Answer Entitlement - awarded through a formula, based on enplanements, operations, and cargo Set-aside - noise, military (former or current joint-use or shared-use), GA reliever, state apportionment Discretionary - what's left over, 75% capacity/safety/security, 25% "pure" discretionary Federal share of a project - Answer Large or medium hubs - 75% (80% for noise programs) Small, non, and GA - 90% Block grant states - Answer States receive a block of AIP funds, and distribute it to non- primary, GA, and GA reliever airports AIP process - Answer 1. Money is collected through the Trust Fund and the general tax fund
  4. Congress "appropriates" the money
  5. Only NPIAS airports are eligible
  6. How much money is collected will determine the amount of discretionary funds available Federally funded project must be what? - Answer 1. Aligned with plans of planning agencies
  7. Money (sponsor match) be available
  8. Project completed without undue delay
  9. Airport is in the NPIAS
  10. Involves more than $25,000 in funds
  11. ALP must be current and depict proposed project with FAA approval (safety, utility, and efficiency) National Priority System - Answer Assigns a value between 0 and 100 with 100 being most consistent with FAA goals