Airport finical management
BY:
4/24/15
A.Introduction
1. The vast amount of property, infrastructure, and labor that is required to operate, maintain, and improve airports requires significant levels of finical resources
2. Airport expenses may be described as falling in two types: Capital improvement expense and operation and maintenance (O&M) costs
3. Operation and maintenance costs consist of those expenses that occur on a regular basis and are required to maintain the current operations at the airport
B.Airport financial accounting
1. The nature of airport expenses depends on a n number of factors including the airports geographical location, organizational setup, and finical structure
2. Airports in warmer climates, for example, do not experience the sizeable snow removable and other cold-weathered expenses that airports in colder climates must face
3. Certain operating functions such as emergency service, policing, and traffic control might also be provided by local fire departments and local law enforcements agencies at some airports
4. Airport accounting involves the accumulation, communication, and interpretation of economic data relating to the finical position of an airport and the results of its operations for decision-making purposes
5. Operating expenses can be divided into four major groupings: airfield, terminal; hangars, cargo, other buildings, and grounds: and general and administrative expenses
I.Operating expenses
1. Operating and maintenance expenses associated with the airfield area include: (1) Runways, taxiways, apron areas, aircraft parking areas, and airfield lighting systems maintenance,(2) service on airport equipment,(3) other expenses in this area, such as maintenance on fire equipment and airport service roads,(4) utilities (electricity) for the airfield
2. Genral and administrative expenses include all payroll expenses for the maintenance, operations, and...