Guidebook for Developing General Aviation Airport Business Plans (2012)

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156 GLOSSARY OF TERMS AND ACRONYMS The terms identified in this Glossary of Terms and Acronyms shall be construed as defined (unless, from the context, a different meaning is intended or a different meaning is specifically defined). Where the context requires, the use of singular numbers or pronouns shall include the plural and vice versa and the use of pronouns of any gender shall include any other gender. Words or phrases that are not defined shall be construed consistent with common meaning or as generally understood throughout the general aviation industry. TERMS Advisory Body—A group of elected or appointed officials who advocate for the airport on behalf of the public. Airport Improvement Program (AIP)—A program that provides funds to public agencies—and, in some cases, to private entities—for the planning and development of public-use airports included in the National Plan of Integrated Airport Systems (FAA). Airport Layout Plan (ALP)—A scale drawing of existing and proposed land and facilities necessary for the operation and development of the airport. The ALP shows boundaries and proposed additions to all areas owned or controlled by the airport operator for airport purposes, the location and nature of existing and proposed replacement airport facilities and structures, and the location on the airport of existing and proposed non-aviation areas and improvements thereon (FAA). Airport Master Plan—A comprehensive study prepared to support modernization of existing airports and the creation of new airports, regardless of size, complexity, or role. Using graphics, tables, diagrams, reports, and various studies, an Airport Master Plan provides a framework for decision making related to airport development. Airport Sponsor—A public agency or private entity with control of a public-use airport (FAA). Aircraft Owners and Pilots Association (AOPA)—A trade association that represents aircraft owners and pilots; its mission is to effectively serve the interests and needs of its members as aircraft owners and pilots and establish, maintain, and articulate positions of leadership to promote the economy, safety, utility, and popularity of flights in general aviation aircraft (AOPA). Best Practices—A method, process, activity, incentive, or reward which is believed to be more effective at delivering a particular outcome than any other technique, method, or process when applied to a particular condition or circumstance. Capital—The factors of production used to create goods or services that are not themselves significantly consumed, though they may depreciate, in the production process. In finance and accounting, this refers to the funds provided by lenders to businesses to purchase real estate and real capital (facilities and equipment) for producing goods or services. Capital Improvement Plan (CIP)—A document prepared by the airport sponsor on an annual basis that represents the airport sponsor's 5-year program for capital development at the airport. Capital Investment—Expending capital to make improvements to an airport.

Glossary of Terms and Acronyms 157 Cash Flow—Refers to the movement of money into or out of a business, project, or organization. Cash flow is generated by operations, not from selling bonds or borrowing money. Commercial Service Airport (United States)—A publicly owned airport having scheduled passenger service and 2,500 or more passenger enplanements per year (FAA). Commercial service airports are classified under NPIAS, as follows: • Primary Large Hub—Airports that enplane at least 1 percent of the total passenger enplanements in the United States. • Primary Medium Hub—Airports that enplane between 0.25 percent and 1 percent of total passenger enplanements in the United States. • Primary Small Hub—Airports that enplane between 0.05 percent and 0.25 percent of the total passenger enplanements in the United States. • Primary Non-Hub—Airports that enplane more than 10,000 passengers, but less than 0.25 percent of the total passenger enplanements in the United States. • Non-Primary Non-Hub—Airports that enplane at least 2,500, but not more than 10,000 passengers. Economic Development—Influencing growth and restructuring of an economy to enhance the economic well being of a community, region, state, or nation and its citizens. Economic Impact—As it relates to airports, a measure of the direct and indirect economic impact of the airport on the surrounding community. Direct impacts are primary impacts directly associated with the generation or expenditure of money at the airport, including salaries and wages paid. Indirect impacts are the secondary economic impacts not directly associated with the airport, such as an increase in bus passengers on the route to the airport. Financial Statement—A formal record of the financial activities of an entity with all the relevant financial information, presented in a structured manner and in an easy-to-understand form. Typically includes three basic financial statements: Statement of Net Assets, Statement of Financial Activities, and Statement of Cash Flows. Fixed Base Operator (FBO)—An FBO is defined by the FAA in Advisory Circular 150/5190-6 Exclusive Rights at Federally Obligated Airports as “… a business granted the right by the airport sponsor to operate on an airport and provide aeronautical services such as fueling, hangaring, tiedown and parking, aircraft rental, aircraft maintenance, and flight instruction.” General Aviation (GA)—Portion of civil aviation that encompasses all facets of aviation except air carriers (FAA). General Aviation Airport—A public airport that, as determined by the Secretary of Transportation, does not have scheduled service or has scheduled service with less than 2,500 enplanements per year. General Aviation Manufacturers Association (GAMA)—A trade association that represents manufacturers of aircraft, engines, avionics, and components; its mission is to foster and advance the general welfare, safety, interests, and activities of general aviation (GAMA). Goal—A statement of a desired result, outcome, or level of attainment that needs to be reached to realize the mission and vision for the airport. Governing Body—A body of elected or appointed officials serving a general-purpose or special purpose unit of government tasked with ensuring the safe, secure, and efficient operation and management of the airport.

158 Guidebook for Developing General Aviation Airport Business Plans Hangar—A hangar is a closed structure to hold aircraft or spacecraft in protective storage. Infrastructure—The built facilities, generally publicly funded, required in order to serve a community's developmental and operational needs. The infrastructure includes such things as roads, airports, water, and sewer systems. As it pertains to airports, this includes runways, taxiways, and other facilities that support aeronautical activities. Master Plan—Assesses the current capacity of the airport’s infrastructure; evaluates current and future demand; identifies existing and anticipated deficiencies; and, outlines short-, medium-, and long-term infrastructure goals for the airport. Milestone—Within the framework of project management, a milestone is the end of a stage that marks the completion of a work phase, typically marked by an event such as delivering a product or completing a document. Mission—A pre-established and often self-imposed objective or purpose (Merriam-Webster). With regard to business planning, an organization’s mission is commonly conveyed in a mission statement—a formal, short written statement of the purpose of an organization. A mission statement typically spells out an organization’s overall purpose, provides a sense of direction, guides the organization, and helps facilitate decision making. National Air Transportation Association (NATA)—A trade association that represents aviation service businesses; its mission is to be the leading national trade association representing the legislative, regulatory, and business interests of general aviation service companies and to provide education, services, and benefits to members to help ensure long-term economic success. National Plan of Integrated Airport Systems (NPIAS)—Identifies nearly 3,400 existing and proposed airports significant to national air transportation and thus eligible to receive federal grants under the Airport Improvement Program (AIP). It also includes estimates of the amount of AIP money needed to fund infrastructure development projects that will bring these airports up to current design standards and add capacity to congested airports. Every 2 years, the FAA is required to provide Congress with a 5-year estimate of AIP-eligible development. The NPIAS comprises all commercial service airports, all reliever airports, and selected general aviation airports (FAA). National Business Aviation Association (NBAA)—A trade association that represents organizations using general aviation aircraft for business purposes; its mission is to be committed to promoting an environment that fosters business aviation in the United States and around the world (NBAA). Objective—A clearly defined and desired result an organization wants to achieve. Objectives are realistic and measureable targets established to track the implementation of a plan and the progress being made toward achieving goals. Organizational Chart—A graphic representation of how authority and responsibility are distributed within an organization; it shows the structure of an organization and the relationships and relative ranks of positions and jobs. Performance Measures—Ways to objectively measure the degree of success an organization, initiative, or program has had in achieving its stated goals, objectives, and activities. Common measures for evaluating performance include outputs, outcomes, and efficiency. Policymakers—Those individuals who have the authority to set the policy framework of (or determine the policies for) an organization. In the case of general aviation airports, policymakers include the members of the airport’s

Glossary of Terms and Acronyms 159 governing body or airport sponsor. Some examples of policymakers include city council members, county commissioners, and airport board members. Reliever Airport—An airport designated by the FAA to reduce congestion at a commercial airport and provide more general aviation access to the overall community. An airport that has scheduled airline passenger service cannot be a reliever airport (FAA). Self-Sustaining—Maintaining an organization by independent effort. As it relates to airports, it means maintaining a rent and fee structure that conforms with the Airport Sponsor Assurances and financially supports the airport under the particular circumstances that exist. Airports must maintain a fee and rental structure that makes the airport as financially self-sustaining as possible under the particular circumstances at that airport. The requirement recognizes that individual airports will differ in their ability to be fully self-sustaining, given differences in conditions at each airport. The purpose of the self-sustaining rule is to maintain the utility of the federal investment in the airport (FAA 5190.6B). Small Business Development Center—A United States based business assistance program funded by the U.S. Small Business Administration. Socioeconomic—Refers to indicators for both social and economic conditions relevant to well being. The field is often considered multidisciplinary, using theories and methods from sociology, economics, history, psychology, and others. Specialized Aviation Service Operator (SASO)—Typically specializes in a single service or operation, for example, maintenance, charter, hangar rental, or sales. The key difference between an FBO and a SASO is SASOs do not sell fuel. Stakeholder—Anyone who has an interest in the organization, initiative, or project. Stakeholders are individuals who are actively involved in the organization, initiative, or project or whose interests may be affected as a result of execution or completion of an initiative or project. Stakeholders may also exert influence over the organization’s goals and objectives or over the outcomes of an initiative or project. T-hangar—A hangar that typically has the capacity to store only one aircraft, usually not larger than a cabin class multi-engine aircraft. This type of hangar derives its name from its shape (in the form of a “T”) which increases the efficiency of the design so as to accommodate the wing span and the tail section of an aircraft. T-hangars may be stand-alone structures or they may be combined and “nested” so that the tail sections of the “T” configuration interlock to form a single congruous structure. U.S. Small Business Administration—A federal government organization that assists small businesses in providing programs and opportunities to hasten their potential growth and success. Values—As it relates to business planning, values are collective beliefs held throughout an organization or the standards or parameters for the way an organization does business. Values are enduring and will not be compromised or abandoned by the organization. Vision—As it relates to business planning, is commonly conveyed in a statement that captures the essence of what the organization aspires to be in the future; it is a picture of success. A vision statement is typically inspirational, memorable, and reflective of the desires of the individuals who have a vested interest in the organization.

160 ACRONYMS AAAE American Association of Airport Executives ACRP Airport Cooperative Research Program AIP Airport Improvement Program ALP Airport layout plan AOA Air operations area AOPA Aircraft Owners and Pilots Association ARFF Aircraft Rescue and Fire Fighting ATADS Air Traffic Activity Data System ATCT Air traffic control tower BOCP Business and operational continuity plan CIP Capital improvement program EMS Environmental management system FAA Federal Aviation Administration FBO Fixed Base Operator FTE Full-time equivalent FOIA Freedom of Information Act GAAP Generally accepted accounting principles GAMA General Aviation Manufacturers Association GASB Governmental Accounting Standards Board GFOA Government Finance Officers Association GROW Goal, reality, options, and will MD&A Management’s discussion and analysis NAS National airspace system NASAO National Association of State Aviation Officials NATA National Air Transportation Association NBAA National Business Aviation Association NOSF Non-operating sources of funds NOTAM Notice to airmen NOUF Non-operating uses of funds NPIAS National Plan of Integrated Airport Systems RFP Request for Proposals RFQ Request for Qualifications SASO Specialized Aviation Service Operator SBA U.S. Small Business Administration SBDC Small Business Development Center SCORE Service Corps of Retired Executives SMART Specific, measureable, attainable, relevant, and time bound SMS Safety management system SOP Standard operating procedure

Acronyms 161 SPCC Spill prevention control and countermeasures SWOT Strengths, weaknesses, opportunities, and threats SWPPP Stormwater pollution prevention plan TAF Terminal Area Forecast WHMP Wildlife hazard management plan