AERT 3540

The National Transportation Safety Board (NTSB) is the primary regulatory and safety agency for the aviation industry

False

One of the practical solutions to dealing addressing economies of scale in aviation businesses is through consolidation 

True

Its up to local airport owners and/or authorities to define what a full-service FBO is and is not

True

International Organizations, such as the International Air Transport Association (IATA) and the Airports Council International (ACI), do not play important role within international air law

False

Which of the following entities have the ability to adopt new aviation multilateral regulations?

International Governmental Organizations

The first International Freedom of the Air allows an aircraft operator to land in another country without picking up or setting down passengers or cargo

False

The FAA defines exactly what services an FBO can provide at an airport.

False

The second International Freedom of the Air allows an aircraft operator to fly over another country without landing. 

False

Which of the following services would not be categorized under flight line services?

Flight Planning

Which agency of the federal government is responsible to monitor the incidents and accidents that occur in the aviation industry?

National Transportation Safety Board

Some of the common/typical services provided by a FBO include:

Flight Training and Charter Flights

Aircraft Storage and Repair

Aircraft Rentals and Fueling Services

General Aviation can serve as means of transport and also means of accomplishing an activity while in the air

True

It is challenging for FBOs to build equity since the land they operate on doesn't belong to them

True

Which of the following entities make up the Aviation System?

Airline Operators and the Airport System

Regulatory Bodies and Industry Groups

Aircraft Manufacturers and other OEMs

National Airspace System

Pilots and Aviation Personnel

Which of the following regulations pertains to the certification of helicopter operations?

Part 127

Aircraft operators are still expressing the need for cost-effective aircraft

True

Secretariat

Consists of permanent administrative offices; Led by the Secretary General

Air Navigation Commission

An independent advisory board to the ICAO; 21 member states

Council

Governing body of ICAO; 36 member states

Assembly

Sovereign body of ICAO; 193 contracting states

The association that mainly represents the business aviation operators in the USA is known as the _____________

National Business Aviation Association (NBAA)

The ICAO Instruments include:

The Interim Agreement on International Civil Aviation

Technical Annexes

The Two Freedoms Agreement

Standard Form of Bilateral Agreements

The Five Freedoms Agreement

The sovereign body of the International Civil Aviation Organization (ICAO) is its Assembly, with representatives from 193 Member States. ICAO’s Assembly meets at least once every

3 years

Signatory to the convention and contracting State refer to the same meaning i.e. A Member State that has signed on to a convention. 

True

Annexes to the Chicago Convention contain Standards and Recommended Practices (SARPs) which Member States must abide by and those they comply with. The convention originally established __________ and currently has ________ annexes

12, 19

As a result of aviation demand bring derived instead of autonomous, meaning:

Aviation demand is heavily depended on the need to fly

Under international air law, all countries that have signed on to the Chicago Convention have complete freedom to each other's space

false

Unlike other types of autonomous demands, aviation demand is considered to be a derived type of demand

true

Airports sponsors (or owners) can list several service that an FBO has to provide to be qualified a full-service at that airport

true

Air Service Agreements (ASAs) are aviation related bilateral agreements between two countries.

True

Demand substitution means the demand for a particular product or service can be met through a different or alternative product or service

True

The Wright Brothers are famous because they were the inventors of aviation

False

Which of the following commercial flight operations is considered to consist of one of the most thoroughly and tight controlled aviation activities in the US?

Agricultural Application

Which of the following international organizations was a result of the first attempts to create aviation multilateral regulations?

International Commission for Air Navigation (ICAN)

In general, the aviation industry is an example of

Oligopoly

Demand substitution means the demand is easily reacting to the market changing conditions

False

Charter Flight operations can occasionally be performed by scheduled air carrier such as airlines

True

Which of the following regulations pertains to the certification of business aviation, as one of the general aviation activities?

part 91

In 1997, The Boeing company merged with McDonnell Douglas in a US$13 billion stock swap with Boeing being the surviving company. Each of these companies was an aerospace/aircraft manufacturer. This is an example of a __________ type of consolidation

Horizontal Concentration

Which of the following is not one of the main components of the aviation industry in the US?

International Civil Aviation Organization

4P’s of marketing

price, product, promotion, place

A Business with a good forecasting regression model will have to continue reviewing the model over time as the relationships among the variables may change

True

Marketing covers four areas and one of them is the price of the product or service

True

When it comes to marketing, as long as a business has a solid plan and strategy there is no need to be marketing oriented

False

Realistically, the final price of the product or service will be determined based on supply-demand conditions, along other factors (also called price elasticity by economists)

True

Price-based pricing is very similar to the demand-based pricing method except here we also consider the prices offered by our competitors in the market. 

True

The ABC FBO Services company pays about $2.50 for every gallon of aviation gasoline (avgas) they purchased from the fuel supplier. The company plans to sell avgas to their customers at the rate of $4.00/gallon. What is the actual mark-up for the company if the 20% of the net profit will go to the government in form of taxes?

$1.20

Which of the following is NOT one of the sources of aviation forecasting data

Aerospace Industrial Forecast Magazine

Which of the following should we use when we are trying to price a product based on the amount of money we spent producing it?

Cost-Based

In the ____________ process, we basically try to find out how much of the customer base we have in an area as well understand what are their behaviors and preferences

Market research

An airline wants to start offering first-class tickets for its route serving the cities of New York and Dubai. As part of the first-class airfare, passengers will be provided with specialized check-in services, and special designated lounge service. During the flight, the first-class passengers will be seated in their special designed 'first class suites'. Since the fares will be strictly high, the airlines plans to promote this product to its VIP customers (mostly high-end business men/women and diplomatic personnel) to at least cover the cost of offering the product. This product is an example of a __________ good

Specialty

__________ is one of the methods we can utilize to help us obtain the desired marketing results; it involves continual review of our sales data (such as sales per region, sales quantity, etc.)

Performance Evaluation

Which of the following would not be an example of demand-based pricing method?

Promotional Pricing

Which of the following business aviation expenses would be an example of a fixed cost?

Full-Time Equivalent Employee Salaries

Fuel is the one variable cost that is difficult to estimate due to the volatility of pricing

true