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- Medium Hub Airport Classification: -Includes 33 airports -Account for 17% of all US enplanements -Approx. even mix of commercial and General Aviation
-Accounts for between .25% and 1% of passenger enplanements
- What is the purpose of an Airline Airport - Aeronautical Use Agreement?: -To grant operating rights to the airline. -To provide (or attempt) a reliable stream of revenue.
- What is an enplanement?: One passenger getting on a plane.
- Large Hub Airport Classification: -Account for more than 70% of all US en- planements -Includes 30 Airports (big 30) -Mostly commercial w/ low amount of General Aviation.
-Accounts for 1% or more of US passenger enplanements.
- What is the project's Federal Share (%) at Small Hub, Non-Hub, and General Aviation airports?: 90% FAA
- Which grant assurance states that the Airport must be available (on a reasonable basis) without unjust discrimination to all aeronautical activities?
i.e.: Lawful access to each / same rights.: No. 22 - Economic Non-Discrimination
- Which grant assurance strives to make the airport self sustainable (i.e.: not reliant on tax monies) by sustaining fees, rents, and charges?: No. 24 - Fee and Rental Structure
- What are the USA's 4 airport categories?: -Commercial
-General Aviation
-Cargo
-Military
- What are the airport's advantages of being connected to a city/county municipality?: - Easier access to municipal resources
- Funding and functional elements like HR/Purchasing
- Power to issue bonds and take land
- Power to tax
- How is an Airport Authority or Port Authority created?: -Thru an enabling legislation by a municipality.
-Level of authority is thru legislation; they have authority to make decisions.
- What is the current Passenger Facility Charge (PFC) cap - per passenger / per segment?: $4.50 per pax/per segment
$18.00 round trip cap
- How are Passenger Facility Charges (PFCs) assessed?
And, what are PFCs used for?: Charges are assessed on a passenger ticket by the Airport Operator.
Money is used for capital improvement projects.
- What does the FAA look for in regards to eligibility of allowable project costs?
-Was the cost to the completion of the project?
-Was the cost and conformed to the approved and ?
-Were the costs incurred the date of the of Agreement?: -Was the cost necessary to the completion of the project?
-Was the cost reasonable and conformed to the approved plans and specifications?
-Were the costs incurred after the date of the execution of grant Agreement?
- Describe the AIP Distribution Flow?: The FAA gives funds to: -Large, Medium and Small Hub Airports; and -State Aviation Agencies.
State Aviation Agencies then give funds to: -Non-Hub; -General Aviation -GA Relivers (Block-Grant States)
-Must reasonably protect aviation businesses from unreasonable competition.
- What do Minimum Standards promote and protect?: -Promotes Safety and maintains High Quality service.
-Promotes the orderly development of land.
-Protects Airport USER from unlicensed products of service.
- What is Grant Assurance No. 23 - Exclusive Rights?: Aeronautical tenants cannot be given exclusive rights to perform aeronautical functions, unless the tenant is the Airport Director (aka Airport Executive).
- Describe how Airline and Airport Use Agreements can challenge minimum standards?: Air carriers may be held to varying levels of service depending on their agreement.
- Which Airport Sponsor is at a level of Government that controls several things, including an airport?: A Port Authority
- What must be afforded to air carriers in regards to Airport and Airline Use Agreements?: Non-discriminatory and substantially comparable rules, regulations, conditions, fees, rates, and other charges, as applicable to other air carriers.
- What are some examples of rules and regs that ensure a safe and efficient operation?: -Wearing badges -Not parking unattended -Self service fueling -Environmental cleanup -Smoking and fire alarms -Aircraft cleaning, de-icing, parking -Airfield speed limits -Distribution of leaflets -Protesting -Aircraft Ops (Runups) -Security Screening
- What do grant assurances protect, ensure and promote?: Protect - Airport from its Sponsor -Allows Airport Executive to better manage local affairs.
Ensure - Money goes to the Airport -Meets FAA requirements that Federal Funds are used for Public Air Transportation.
Promote - Government Programs
-Meet goal of Federal Government to promote social objectives (DBE Business, Rights of People with Disabilities).
- How do grant assurances protect airports?: They protect airports from their own sponsors.
Example: If the county wanted to take assets and land from the airport, dissolve the authority, and want the airport to pay for all of it, they cannot. Grant assurances keep that from happening. Money must be used for public air transportation.
- What does Grant Assurance No. 5 - Preserving Rights and Powers pre- vent?: It attempts to prevent the Airport from making bad decisions, which would preclude the airport from maintaining its compliance with the assurances.
- What is included in an Airline and Airport Use Agreement?: -Landing Fees
-Lease Rates for Space (ticket counters, gates, etc.)
-Rights to Gates (preferential, exclusive, common)
- Which Federal Agency was created to implement and enforce economic regulations over the airline industry?: Civil Aeronautics Board (CAB)
CAB regulated airfare and how many/which airlines could fly between cities (Costs/Location/Airline)
- After the Civil Aeronautics Association (CAA) splits with The Civil Aero- nautics Board (CAB), what are the leftover responsibilities for the Civil Aero- nautics Association (CAA) ?: -Certifications for Air Traffic Control (pilot and air- craft)
-Safety Enforcement
-Airways Development
- After the Civil Aeronautics Association (CAA) splits with The Civil Aero- nautics Board (CAB), what are the leftover responsibilities for the The Civil Aeronautics Board (CAB)?: -Safety Rules
-Conducting Accident Investigations
-Economic Regulations of Airlines
Note: Privatization can also occur outside of the Airport Privatization Program, municipalities may sell /lease public airport to private airport operators without applications for participation in the airport privatization pilot program.
- Which grant assurance makes reasonable attempts to protect land use around the airport from land use that is incompatible with flight operations?- : No. 21 - Compatible Land Use
- Describe Grant Assurance No. 22 - Economic Non-Discrimination.: Airport must be available for Public Use on reasonable terms (minimum standards) and without unjust discrimination to all types, kinds, and classes of aeronautical activi- ties.
- When is "Just Discrimination" allowed?: If the two aeronautical activities are different.
Apples to Oranges.
- What are the most effective means for extending the federal government policy to local government authorities?: Sponsor Assurances
- What are Non-Aeronautical Revenues? And, what are they considered?: - -Concessions -Vehicle parking -Ground transportation -Access fees -Rental car fees -Ad space -Industrial parks, etc.
Considered "Incidental" to operations
- What set the foundation for the industry (civil aviation)?: The Air Commerce Act
- What are hangars used to store? And, what should they not store?: Should be used to store aircraft.
Should not be used to store boats, boxes of files for non-aeronautical natured items, cars, or as a base of operations for non-aeronautical business.
- What happened to the extra airports after World War II?: 500 Airports were declared surplus. -Given to the cities and counties. -Made public use.
Beginning of sponsor / grant assurances
- Which Program established the National Airport Plan?: The Federal Aid to Airport Act
- What program created the Federal Aid to Airports Program (FAAP) and provides 50% funding?: Federal Airport Act of 1946
The Federal Airport Act of 1946 was repealed and superseded by the Airport Development Aid Program (ADAP) of 1970.
- A General Aviation Reliever status is based on: (#) or more based aircraft, OR (#) or more annual itinerant operations.*
*coming from or flew more than 20 miles: -100 or more based aircraft
-25,000 or more itinerant operations
and must be open to the public
- What categories are factored into Airports Rates?
And what is not factored in?: Factored In: -Maintenance -Snow Removal, and -Fire Response to Runways and Taxiways
NOT Factored In: Improvements to airways and taxiways
- What is the FAA's position on non-aeronautical property?: The Airport must attempt to get Fair Market Value (FMV) for the use of non-aeronautical property.
- What Act authorized the postmaster general to contract for domestic airmail service with commercial air carriers?: The Airmail Act of 1925 (The Kelly Act)
- What industry accused the government of creating a monopoly on carrying mail by air and convinced Clyde Kelly to sponsor the Airmail Act?: The railroad industry.
- What did the Air Commerce Act (of 1926) create?: A new aeronautics branch (within the Dept. of Commerce).
Later to be the Civil Aeronautics Administration, and even later than that, the Federal Aviation Authority.
SASOs do not provide Fuel.
- What do Specialized Aviation Service Operators provide?: flight schools private aircraft owners specialty operations commercial hangar rental aircraft maintenance charter operations skydive, glider, banner tow helicopter operations
- In which airport and airline agreement does the Airline take the majority of the risk?: Residual Agreement.
Airlines take more risk, but have more authority. Airlines cover additional expenses, if any gaps exist, airlines pays.
- Which Act creates both the: Airport Development Aid Program (ADAP) and Planning Grant Program (PGP)?: The Airport and Airway Development Act (of 1970)
- What is important to be clarified with certain concessions?: Revenue (es- pecially rental car revenue)
- What is typically not eligible for Airport Improvement Program (AIP) Fund- ing?: Vehicle Parking Garage
- What is the most common Majority In Interest Clause (MII)?: The Right to approve capital projects and develop plans.
- What is involved in the planning of flight operations?: Preflight planning Clearance Push-back and taxi-out Take off Climb to altitude
- How do signatory airlines exercise some control over the airport?: The Majority in Interest Clauses (MII)
- Under Airport Property Management, what is included in general revenue management?: Leasing Real Property
Airport Access Agreements
Concessions
- What are the five steps to an informal complaint (Title CFR Part 13 Inves- tigation and Enforcement)?: 1. Aggrieved party files complaint with FAA Airport
unty munic-
District Office (ADO).
- FAA ADO reviews complaint and offers to help resolve.
- If airport is in violation, the FAA will provide an opportunity for the airport to comply.
- FAA might issue a Notice of Apparent Non-Compliance which motivates the airport.
- And, if desired, complainant can move to a Part 16, Formal Complaint.
- Non-Hub Primary Airport Classification: -251 Airports. -3% of all US enplanements -Commercial AND General Aviation -Commercial Service enplanes LESS than .05%, but have MORE than 10, annual enplanements.
- Non-Hub/Non-Primary Airport Classification: -Between 2,500 - 9,999 annual passengers.
-3,000+ Airports (includes commercial, GA, GA Reliever)
-GA Traffic
- What are the disadvantages for working for an Airport or Port Authority?: - Resources and Finances may not be readily available in the quantities and/or levels needed to provide airport support.
Like road maintenance and extra funding.
- What percentage of airports are operated by: -A city/county municipality -An airport authority (and other State, etc.): 2/3 operated by a city/co ipality 1/3 operated by an airport authority
- Small Hub Airport Classification: -76 Airports -Account for 9% of all US enplanements -LESS Commercial and MORE General Aviation.
-Account for between .05% and .25% of passenger enplanements.
- What is the main premise of the Airport and Airway Act of 1970?: Only those that use aviation should pay for it.
- Give examples of On Airport - Aeronautical Use.: Runways,. Taxiways, Hangars, Airline Gates, and Operating Areas
- Give examples of On Airport - NON-Aeronautical Use.: Parking Lot, Conces- sions, Ground Transportation (AKA Incidental)
- What happens if an Airport is in violation of its Grant Assurances?: The FAA (or an aeronautical user) may file a complaint with the FAA through either a Part 13 or Part 16
- When the Airport Operator allows unauthorized items to be stored in a hangar, AIP money essentially ...: Subsidizes a non-aeronautical function.
- What type of lease requires periodic valuations of the property to set new rates?: Re-Valuation Lease
- What are two "OFF AIRPORT" land uses? And, give examples of each.: Compatible Land Use -Does not interfere with flight ops and does not adversely affect flight operations.
- Industrial parks, industry, shopping, commercial
Incompatible Land Use -Does interfere with flight ops and adversely affects flight operations.
- Residential, Schools, Churches, Public Hospitals, Health Facilities, Concert Halls
- What can Non-Operating Revenue include?: Taxes on personal property or possessory interest. Grant Money. PFCs (Pax Facility Charges) CFCs (Customer Facility Charges)
- What is the definition of "OFF AIRPORT" compatible land use?: Land use that does not interfere with flight operations OR is not adversely affected by flight operations.
i.e.: Commercial, Light Industry, Industrial Parks
- When can airport money be used for transit projects?: When transit pro- jects access the airport.
Note: Off airport then the city / county pick up the bill.
- When can an airport charge less for private transit system providers (aka ground transportation)?: When service is extremely limited.
- Which Act created the Aviation Trust Fund?: The Airport and Airways De- velopment Act (AADA)
- What funds the Airport Improvement Program (AIP)?: Aviation Trust Fund
- Do use agreements guarantee service by airlines to airport and nearby communities?: No, they do not necessarily guarantee service.
- Define revenue diversion.: When money is used towards something that does not benefit the airport.
- What charges are usually assessed on rental cars?: Customer Facility Charges (CFCs) Non-Operating Revenue
- Which airport revenue is income derived from activities not-related to its core business operations?: Non-Operating Revenue
Taxes on personally owned property, grant monies, PFCs, CFCs
- What is Airport rate setting typically based on?: Based on assessing the costs or expenses associated with the airfield assets.
- What are the Visual Meteorological Conditions (VMG) for ceiling and visibility?: 1,000 feet ceiling 3 miles visibility
- What are the two Visual Flight Rules (VFR)?: -See and Avoid technique -under 18,000 ft MSL w/ OR w/out a Flight Plan
And, For Hire, sometimes required to file a flight plan depending on specifics
- What relieves commercial airports from General Aviation traffic?: General Aviation Reliever
- Under the National Plan of Integrated Airports (NPIAS), how many airports are: -public-use? -Essential public-use?: -5,100 Public Use -3,300 Essential Public Use
Essential = important to national air transportation, eligible for AIP grants.
- At a large or medium hub airport, what is the Federal Share of monies for: -Development /Assets (%)? -Noise Programs (%)?: Development /Assets = 75% Federal
Noise Programs = 80% Federal
- What operations are involved in flight descension?: 1. Descend
- Terminal Area / Traffic Pattern
- Final Approach
- Landing
Provides guidance and expertise, does not have authority to make decisions.
- What is the upper limit of Class A Airspace?: 60,000 feet MSL / Flight Level 600
- What is a joint-use airport?: Entirely owned by the dept. of defense. (Both military aircraft and civilian aircraft share airfield.)
Space is leased for the commercial service airport.
Ex. Mother-in-laws suite on owner's property.
- What is a shared-use airport?: US Government owned airport.
Co-located with a civil airport
Share portions of runways and taxiways
Ex. Townhouses that share the maintenance / landscaping
- What is a block-grant state?: States that receive a block of AIP money for distribution to: -Non-Primary Airports -General Aviation Airports, and -General Reliever Airports.
- Which act created the Federal Aviation Agency (FAA)?: The Federal Avia- tion Act (FAA)
Created the Jet Age
- How were sponsor assurances created?: Traced back to:
AP-4 Agreements
AND
The Surplus Property Act (SPA)
- Describe grant assurance No. 29 - Airport Layout Plan (ALP). (Include who, what, and FAA approval...): Requires Airport Sponsor to: -delineate the Airport's boundaries, inc. all facilities. -identify plans for future development on its Airport Layout Plan (ALP)
FAA Approval represents concurrence of the FAA in the conformity to design standards and criteria.
- What does grant assurance No. 25 - Airport Revenue ensure?: Ensures airport revenue is spent on airport expenses.
- What are sponsor assurances (aka grant assurances)?: Promises that the Airport Sponsor makes when accepting Airport Improvement Program (AIP) money or land from the federal government.
These promises are another foundational principle of airport management, the expectation that public-use airports cannot deny civil aeronautical operations
- How long are sponsor assurances good for: For Improvements? For Property? For Assets?: Improvements = 20 Years Property = Life Assets = Life of Asset (Ex. fire truck, snow plow, etc.)
- What does No. 20 - Hazard Removal and Mitigation ensure?: Ensures that the airspace around the airport is cleared of obstacles that could affect flight operations.
Airport Operator is responsible for monitoring.
- What is the formal process for a Part 16 complaint?: 1. Prior to filing a Part 16 complaint, complainant must initiate and engage in a good faith effort to informally resolve dispute (aka Part 13 or similar)
- FAA will reject complaint if complainant failed to make good faith effort.
- Complaints go to the FAA's legal office (FAA Attorneys) for review (Not the ADO like Part 13).
- Part 16 is deadline driven with pleadings, investigations, and lawyers.
- If FAA rules against Airport, FAA can withhold: Monies, term pay on existing grants, term the ability to collect PFCs, issue cease and desist, and charge civil penalties
- What percentage of all passenger traffic do Large Hubs account for?: 70% of all passenger traffic comes from the BIG 30
- What types of bonds require voter approval and are closely associated with being issued by States and Municipalities?: General Obligation Bonds (GOB)
Gobs of voter approval issued by State & Municipalities.
- What do airlines think of PFCs?: They dislike and oppose them. It makes their tickets look more costly.
- What do airports think of PFCs?: Airports like them. They keep money local and allow for other items.
- AIP entitlements are reduced by what amount, for Airports that accept the cap PFC?: Reduced by 75%
PFC cap is $4.50 per passenger.
- How does the FAA add to or revise the AIP program?: By periodically issuing Program Guidance Letters (PGL)
- What does the FAAs Airport Improvement Program Handbook address?- : Grant processes
Eligibility of: -Sponsor, and -Project
Allowable costs
Prioritization
- Aeronautical Revenue includes services provided by Air Carriers related directly and substantially to the movement of:: Passenger, Baggage, Mail, and Cargo at the airport.
Including: landing fees fuel flowage fees ground leases, and hangar leases.
- What are the 3 types of Airport Revenue?: Aeronautical Revenue Non-Aeronautical Revenue Non-Operating Revenue
- Which leasehold agreement represents an ownership interest, wherein a lessee holds real property or the right to conduct an activity (or both)?: Ground Lease
i.e.: Menzies Ground Lease for fuel tanks.
- Which type of Airport Revenue is incidental to aircraft operations and classified as non-aeronautical revenue?: Concessions
- What are the 3 most common agreement types airports use?: Compen- satory Residual Hybrid
- Some airports are operated by the in which they are .- : State Located
Ex. Alaska
- Promoting the location of a new amusement park as a way to drive more business thru the airport is an example of what?: Revenue Diversion.
- What are the common approved projects for AIP?: -Land -Runways & Taxiways -NAVAIDS (weather reporting equipment) -Safety equipment (by regulations) -Security equipment (by regulations) -Snow removal equipment -Site preparation -Plans (master plans, noise)
- Which type of lease has constant rates throughout the term of the lease?- : Straight Lease
- How are the rates setup in a graduated lease?: Rates change at predeter- mined levels.
- Which type of lease has periodic evaluations of the property value and the rates are adjusted accordingly (3-5 yrs)?: Revaluation Lease
- How are the rates setup in a percentage lease?: Rates are equivalent to a percentage (%) of sales (common with concessions agreements)
- Under Grant Assurance No. 24: Fee & Rental Structure: Describe the 6 Rate Setting principles: 1- Purpose 2- Self Sustaining 3- Can't charge for what you didn't pay for
