AVS 4240 Corporate Aviation Management Final Exam | Q & A

AVS 4240 Corporate Aviation Management Final Exam | Q & A Scenario: You are a corporate president that controls a fast growing midwestern wireless provider. You intend to expand your market farther to the East. You ha ...

AVS 4240 Corporate Aviation Management Final Exam | Q & A Scenario: You are a corporate president that controls a fast growing midwestern wireless provider. You intend to expand your market farther to the East. You have always used the airlines; however routes are limited and you are now considering corporate aviation. Since you fly about 100-150 hours of block time per year, what might be your first transportation step after leaving the airlines and moving toward corporate aircraft? Chartering an aircraft Which of the following is not an advantage to using corporate aircraft over the airlines? Individual work Corporate aviation operations saw a ________ in use before World War II. Increase Which of the following airframe and engine configurations would be more likely used by in-house corporate flight operations? Multiengine Turbine The Lindbergh's solo transatlantic flight in 1927, along with_____ served as the basis for corporate aviation as we know it today and gave travelers new confidence in this form of transportation. All of the above Current events in corporate aviation have seen some important trends in? -pending carbon tax in airspace over Europe and biofuel experimentation to reduce greenhouse gases -once the pandemic is over, continuing to open corporate aviation support facilities in countries such as China, India and the UAE -continued design improvements of corporate airframes to adjust size, speed, range, and reduce operating costs -All are current trends Use of a corporate aircraft can effect? -corporate image -value of productive time enroute -cost of employee travel time -All can be affected Personal and business aviation are separated by a single factor Purpose Which of the following would not be an example of General Aviation? Airline operations Scenario: You are a corporate CEO and have faced some significant negative criticism for using your corporate aircraft to further your business. What might you use as a defense for the continued use of the aircraft? You can actually illustrate that you bring in 2.5 to 15 times your compensation in revenue due to the corporate aviation asset Use of the corporate aircraft can increase safety due to which of the following? -Control of the pilot training & hiring -Control of the aircraft maintenance & scheduling -Control of executive exposure to the public environs -All increase safety Instead of buying an entire business aircraft, you may just purchase shares of one. Which of the following refers to that option? Fractional ownership Scenario: As the CEO of a growing bank, you want to take advantage of an accelerated depreciation schedule by purchasing an aircraft. However you do not want to increase your employee payroll. What might you do? Use a management company In order to execute the maximum amount of control over the corporate flight operation you would use which of the following? Owned/leased in-house flight department Which of the following might be called a tangible benefit for corporate aviation? Time When people began building early flying machines their primary preoccupation was to understand and master aerodynamics; potential markets for the technology were merely a secondary consideration. True The U.S. Governments first primary interest regarding aviation in 1911 was ... Airmail service The Federal Aviation Administration (FAA) is not the primary regulatory and safety agency for the aviation industry in the U.S. False What are the "four functions" of management s they are traditionally discussed? Planning, organizing, coordinating, and controlling If a company intends to use an aircraft less than 100 to 150 hours annually, _______ is probably the best option. For between 100 to 300 hours of use,______ or _______makes economic sense. Above 250 hours efficiencies of scale begin to make __________ or _________more viably. What is the most correct answer? Charter, joint, fractional, full ownership, leasing ________are the four points that underpinned the Wright brothers patent claims; those points also thwart challenges to their status as the pioneers who first solved the riddles of heavier-than- air flight. Sustained, manned, engine-powered, and controlled The Wright brother's flying machine was called the _________? Wright flyer The Wrights designed the propeller and thanks to the machining and engine expertise of their shop machinist, they got an engine and tested it for the thrust they calculated their aircraft needed to take off from level ground. The shop machinist is generally thought of as the first aircraft mechanic and his name was______? Charlie Taylor Charles Lindbergh flew a Ryan M-1 closed cabin monoplane on his historic New York to Paris flight. What was the name of that aircraft? Spirit of Saint Louis The National Transportation Safety Board (NTSB) reports directly to Congress on safety and accidents and provides interpretations of ______for serious or fatal accidents and incidents. The best answer is... Probable cause The NTSB is responsible for investigating domestic aircraft accidents, but it often delegates those responsibilities to the FAA in cases of nonfatal general aviation accidents. The inspector delegated that task should be assuming the responsibilities of which government agency? NTSB The NTSB reports also provide _____ on corrective actions aimed at preventing similar problems in the future. The best answer is...? Recommendations Which one of the following would not be considered by the FAA as possible aeronautical services offered by a full service FBO at an airport? Ground transportation The implications of jet aircraft travel pertained not only to speed but also to... All of the above The various FAA Reauthorization Acts have emphasized the revenue diversion issue. It has to do with using airport money for ... Non-aviation needs Scenario: You've just heard from the President that the company is considering the purchase of a new aircraft. You will be supervising the project to evaluate the corporate jet for your company. In order to understand the company's expectations of the general mission parameters for the aircraft asset you need to understand early in the process: Who, from the company, will be using the aircraft to develop a list of users? Which of the following is not a variable operating cost? Pilot salaries Before deciding to move into a corporate aircraft, it would be very wise to perform a complete and overall? Air Transportation Analysis Scenario: You are still supervising a new project to acquire a corporate jet for your company. You have narrowed the decision down to 2 aircraft. As you would expect, the salespeople for the new jets claim their aircraft to be superior over the other. What might help you make a well-informed decision? Consult with operators that fly the same version of the aircraft to get an overall opinion of the advantages and disadvantages of operating the aircraft Scenario: You are still supervising a new project to acquire a corporate jet for your company. Your company needs a large tax depreciation of an asset and has a large amount of cash on hand. The company has a steady monthly income that can be allotted to operate an aircraft. Which path might you recommend? Purchase the aircraft and hire a professional crew As the hourly use of the aircraft ______ the fixed costs per hour ______ and the variable costs per hour ______. (It may help to draw the chart in the space to the left) Decreases, increase, decrease An intangible asset to the use of a corporate aircraft might be? Corporate image Why would a company put travel restrictions on who could fly together for some upper level employees? Safety exposure When getting started in corporate aviation a cost/benefit analysis should be done looking at which of the following? -Cost of different bases of operation -Cost of similar airframes -Costs per flight hour, costs per mile -All should be examined Scenario: You are still supervising a new project to acquire a corporate jet for your company. You present to your company a city pair analysis histogram depicting past travel demand. Given the yearly projected travel determined from company goals, your next step may be? -Produce a small list of mission appropriate aircraft to select -Determine appropriate airports that might be required near corporate destinations for travel -How the aircraft will be managed including scheduled, maintained, and stored -All are good next steps Scenario: As the pilot-owner of a growing sole proprietorship, you want to take advantage of a limited payment schedule (3-5 years) of aircraft use. After which the aircraft would be returned for an upgraded model. Which of the following would you most likely do? Lease the aircraft In order to execute the maximum amount of control over the corporate flight operation you would use which of the following? Owned/leased in-house flight department What is the significance of the General Aviation Revitalization Act of 1994? -GARA placed a time limit on liability for aircraft hulls -Cessna resumed single engine aircraft manufacturing after GARA -Aircraft sales increased after GARA -All are significant results of GARA The General Aviation Act of 1994/ Tort Reform established that the time period for potential liability for aircraft manufacture or faulty maintenance goes back (only). 18 years Aircraft users are looking for three elements in an on-demand air transportation service provider. These elements are prioritized in the following order. Which is the best answer? Safety/security, service, value You are considering providing an on-demand transportation solution to your company. Which one of the following methods requires no capital outlay of money? Charter Considering total fixed costs, as the flight hours increase over the operational budget period, usually a year, the costs will do what over that period? Stays the same Leasing the aircraft protects the company's cash reserves, keeps the asset off the balance sheet and takes advantage of the users cash flow without affecting its debt-equity ratio. Lease amounts are based on the difference between the asking price and the residual value; high residual values for popular aircraft tend to do what to the overall cost of the lease? Decrease What are the two types of depreciation that an aviation department manager should understand? Tax and book Which of the following is a strategic plan for the aviation department? Air transportation analysis Which of the following expenses is a fixed/indirect cost? Insurance premium Which of the following best defines the direct operating expenses that may be charged in a FAR 91.501 Timesharing agreement? Fuel, additives, travel expenses, landing fees and an additional charge of 100% of the fuel used When talking about fuel, maintenance, engine restoration, landing/parking/handling fees, catering and crew expenses. You are identifying what type of expenses? Variable/direct expenses When talking about salaries/benefits, hangar, insurance, and training expenses. You are identifying what type of expenses? Fixed/indirect expenses As the hourly use of the aircraft increases, what happens to the fixed per hour operating costs? They become less per hour When evaluating the purchase of a new aircraft, which would be of least importance in your decision? Exterior color scheme In an Air Transportation Analysis (ATA) which of the following is the best answer? -A historical view of airline and on demand travel -Planned and expected travel needs in the near future -Solutions for those needs -All of the above Corporate aviation is defined as flying personnel, cargo, and mail on a company aircraft. The pilots of the aircraft would be... What is the best answer? Professional pilots Who in the company should be provided with the entire emergency response plan? All of the above Which of the following would likely be a reason to switch to fractional aircraft clients? -smaller corps that have closed their flight dept -some frequent charter fliers that have exceeded 150hrs per year -some business people who have realized on demand flight as a great bottom line All of the above Which of the following is not a fixed operating cost? Landing Fees Which of the following might be called an intangible benefit for using corporate aviation? Privacy and confidentiality Scheduled maintenance of the aircraft may consist of the following item(s). Which is the best answer? (NBAA) All of the above Depreciation expense recognizes the fact that from an accounting standpoint, a capital asset has a finite life span, and therefor loses value over its life span. When its useful life has expired only its _________ remains. Tax value If the company has a disaster or crisis response plan, the aviation emergency response plan should follow its guidelines as closely as possible. In fact, the aviation plan should be integrated into the company plan. True A just culture is one in which errors and inconsequential unsafe acts will not be punished if they were unintentional. However, those who act recklessly or take deliberate and unjustifiable risks will still be subject to disciplinary action. True The General Aviation Revitalization Act (GARA) provided for an 18 year "statute of repose" for manufacturers when none existed before. True Every inspection, time remaining, or life-limited component, and AD must be recorded by time and date accomplished, and any recurring inspection requirement noted. True Considering total fixed costs, as the flight hours increase over the operation budget period, usually a year, the costs will do what over that period? Stay the same The principal reason for an emergency response plan is to control the confusion that inevitably follows an aircraft-related mishap and to provide organization and structure to a highly disturbing and unstructured event. True Scenario: You've just heard from the President that the company will be purchasing a new aircraft. You will be supervising the new project to acquire the corporate jet for your company. In order to understand the company's expectations of the general mission parameters for the aircraft asset you need to understand early in the process: Who, from the company, will be using the aircraft to develop a list of users and what are the long-term company goals What is the principal reason for the use of flight attendants? Safety Scenario: You are the Flight Director of a large in-house flight department. You have just hired a new employee and would like them to transition into the department with maximum impact and minimal disruption to the operation. This may be accomplished by assigning a... Mentor Which of the following is a major component of a Behavior-based Safety System? All are major components of a BBSS. A thorough understanding of the various styles of leadership allows one to: Build a more effective team. What is the ultimate goal of a risk management program? To get all employees to ask, "what is the risk?" Which of the following is not a good reason to have a flight operations manual. Does not form a contract between company management and the flight department There are two related areas of risk management, which are risk reduction and risk transfer. False The focus of preventative security will be to... All are true When examining efficiency verses effectiveness in a flight department, which of the following is correct? -accurate means -need to understand the value -measure both -you can track -All are correct The use policy serves as an essential tool to communication the basic operating rules for the entire company, whether the reader is the owner, chairperson or the accounts receivable clerk. True Which is not one the three main categories of emergencies requiring a qualified cabin safety attendant? Customer service The resale value of a $10M turbine-powered aircraft with poorly maintained or lost logbooks will be... Reduced by two to three million dollars A Change Management process is a documented strategy to proactively recognize changes when they occur, define the potential hazards associated with the changes, determine the risks, and apply mitigating factors as necessary. True As part of an organization's pre-accident plan, clear procedures for responding to an aircraft accident should be developed that: Detail the type of statements that flight crews make to the authorities or media. "Hard time" indicates a methodology that allows the component to operate to a set utilization point (whether hours, landings or cycles) with less maintenance/servicing until the component is removed for overhaul or replaced. True Scenario: You are the Flight Director of a large in-house flight department. You have not been given feedback from the proper communications channels on overall performance of your department. You continue not to get your questions answered through your normal chain of command. What might this mean? Potential warning signs of a flight department in trouble "On condition" indicates a methodology that might require more frequent inspection or servicing for the evaluation of the current condition against set standards or until failure is predicted or failure occurs. True Use of a corporate aircraft can affect? -corporate image -value of productive time enroute -cost of employee travel time -All can be affected