Airport Financial Management Flashcards
7 cards from real ACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Airport Financial Management flashcards as text
Which cost center classification at an airport groups expenses directly associated with a specific, identifiable airport function or area?
Answer: Direct cost center
Direct cost centers track expenses that can be attributed specifically to a function, such as a runway or terminal building.
When an airport issues general airport revenue bonds (GARBs), the primary security pledged to bondholders is:
Answer: Net airport revenues
GARBs are secured by the net revenues of the airport system, not by general government taxing power.
Passenger facility charges (PFCs) collected by airlines on behalf of airports are primarily restricted to use on:
Answer: Eligible airport capital projects that preserve or enhance safety and capacity
FAA regulations restrict PFC use to FAA-approved capital projects that improve safety, security, capacity, or noise reduction.
An airport's cost per enplaned passenger (CPE) is used primarily to:
Answer: Benchmark airline cost competitiveness compared to other airports
CPE is a standard benchmark airlines and analysts use to compare the cost of operating at one airport versus alternatives.
Under a 'compensatory' airport use agreement, airline rates and charges are set to:
Answer: Recover only the actual costs of facilities used by each airline
Compensatory agreements charge airlines the actual cost of the specific facilities and services they use.
Which financial report provides information on cash inflows and outflows from operating, investing, and financing activities?
Answer: Statement of cash flows
The statement of cash flows categorizes all cash movements into operating, investing, and financing sections.
An airport that uses a 'signatory airline' rate-setting framework gives signatory carriers which benefit in exchange for their financial commitments?
Answer: Input into rate negotiations and often lower rates than non-signatory carriers
Signatory airlines commit to long-term use agreements and typically receive negotiated rates lower than non-signatory rates.