AAAE CM MODULE 1
PRACTICE EXAM
Question 1: Which federal law most directly helped establish a commercial U.S.
airline industry by authorizing the Postmaster General to contract with private carriers for airmail service?
Choices:
1) Air Commerce Act of 1926 2) Federal Airport Act of 1946 3) Kelly Air Mail Act of 1925 4) Airline Deregulation Act of 1978
Correct Answer: Kelly Air Mail Act of 1925
Explanation: The Kelly Air Mail Act of 1925 authorized contracts with private carriers to transport mail. Those contracts provided an important early revenue base for developing commercial air carriers.Question 2: An airport executive reviewing early federal aviation history wants the law that �rst assigned the federal government broad civil-aviation duties such as Page 1
pilot licensing, aircraft certi�cation, airway development, and air tra�c rules.Which law is most relevant?
Choices:
1) Airport and Airway Improvement Act of 1982 2) Air Commerce Act of 1926 3) Civil Aeronautics Act of 1938 4) Aviation Safety and Capacity Expansion Act of 1990
Correct Answer: Air Commerce Act of 1926
Explanation: The Air Commerce Act of 1926 directed the Department of Commerce to foster air commerce, establish airways and navigation aids, license pilots, certify aircraft, and regulate air tra�c.Question 3: What was the principal airport-development signi�cance of the Federal Airport Act of 1946?
Choices:
1) It created the Transportation Security Administration 2) It created the Passenger Facility Charge program 3) It established the Federal-Aid Airport Program for civil airport development 4) It deregulated airline routes and fares Correct Answer: It established the Federal-Aid Airport Program for civil airport development Explanation: The Federal Airport Act of 1946 established the Federal-Aid Airport Program, the �rst peacetime federal grant program devoted speci�cally to development of the nation's civil airports.Page 2
Question 4: The Airport and Airway Revenue Act of 1970 is especially important to airport �nance because it did what?
Choices:
1) Ended federal participation in airport development 2) Authorized airports to impose any passenger fee without federal approval 3) Transferred air tra�c control to state governments 4) Created a dedicated Airport and Airway Trust Fund supported largely by aviation-user taxes Correct Answer: Created a dedicated Airport and Airway Trust Fund supported largely by aviation-user taxes Explanation: The 1970 revenue law created the Airport and Airway Trust Fund, providing a dedicated source of federal aviation funding supported principally by aviation excise taxes.
Question 5: Which development is most closely associated with the Airline
Deregulation Act of 1978?
Choices:
1) Federal control of every airline fare and route became more restrictive 2) Airport sponsors lost authority to enter airline use agreements 3) The FAA stopped regulating aviation safety 4) Air carriers gained substantially greater freedom to choose fares, routes, and markets Correct Answer: Air carriers gained substantially greater freedom to choose fares, routes, and markets Explanation: The Airline Deregulation Act phased out federal economic regulation of airline fares and routes. Safety regulation remained with the federal government.Page 3