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Flashcards in Test 3 Deck (44)
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1

An airport layout plan is significant because it is:

A legal document

2

Airport layout plan is a:

Drawling!

3

A regression analysis is a _____ technique of analyzing data

Statistical Technique

4

____ serve as financial engines for their communities

Airports

5

What does an airports Operating Budget consist of?

- Expenses/Revenues associated with ongoing operations of the airport
Ex: Airfield, Terminal, Landside, General/Admin.

6

What is the Capital Budget used to fund? What are sources of Capital funding?

Capital Projects only! "Big-Ticket Items"
- Yearly capital budget 3-5 years in the future
- Long term expenditures (terminals, runways, etc)
Sources include grants, bonds, PFCs, and tenant/3rd party funding

7

The difference between what you budgeted vs. what you actually spent is:

Variance!

8

True or False: MOST airports make more money Non-Aeronautically than they do Aeronautically

TRUE

9

Landing fees, fuel flowage fees, land leases and terminal rent are examples of _____ revenues

Aeronautical Revenues

10

Retail stores, food/bev., parking and touristy things are examples of _____ revenues

Non-Aeronautical Revenues

11

What is the main idea/purpose of bringing Non-Aeronautical venders into the airport?

- When the airport makes money non-aeronautically, they can charge the airlines less!

12

If the FAA paid for your parking lot, can you charge your visitors to park there?

NO! If the FAA paid for it, you cannot charge or make a profit off of it in any way.

13

Money that is coming into an airport "just because" is is considered what kind of revenue?

Non-Operating Revenue

14

What are some expenses that an Airport has?

Operations and Maintenance
Ex: Snowplow - FAA will buy the truck but will not pay for upkeep, running it, worker, etc.

15

What 3 main things are included in an Airports Financial Statements

1. Balance Sheet
2. Restricted/Unrestricted Assets
3. Income Statement

16

A statement of net assets, reflecting what a company owns, and includes liabilities (bills) is a(n):

Balance Sheet!

17

Money that an airport has, but can only INVEST is an example of a(n) ______ asset

Unrestricted Asset

18

A statement of what the airport is making and spending is a(n):

Income Statement

19

Rates, Fees and Charges cover the ______ expenses of the Airfield

Operating Expenses

20

Signatory v. Non-Signatory Lease

Signatory = signed with airport for that renter (usually cheaper)

21

Improved v. Un-Improved Ground Lease

Improved = there is gas, services, etc.

22

Taxi service coming in/out of your airport is considered ____ charges

Miscellaneous Charges

23

The ___________ is part of the Master Plan, and deals with/contributes to short, mid and long-term finances

Capital Improvement Plan (CIP)

24

Eligibility for the ___________ is greatly dependent on if the project will be PROFITABLE or not. If the airport can make money, then the project cannot get funding from this.

Airport Improvement Plan (AIP)

25

For most projects at medium and large hubs, Capital Development Funding will cover ___%

75%

26

Can airports issue stock?

NO! They are government owned!

27

____ are issued by airports because they are not able to issue stock, and account for ~50% of revenue sources

BONDS

28

Describe Bonds. What are the different ratings of bonds?

- An issuance of debt
- A secure investment, not much interest but very stable
1. General Obligation Bonds (public pays)
2. Revenue Bonds (most common for AIRPORT financing, revenue used to pay bond off right away)

29

What is the most common form of Bond used for Airport Funding?

REVENUE Bonds!

30

AIP grant revenues flow into the:

Trust Fund