Aviation Business Basics, IBAAS, Dr Wali Mughni

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7. ACARS Aircraft communications addressing and reporting
system.
ACAS Airborne collision avoidance system.
ACMI lease An operating lease which includes aircraft, crew,
maintenance and insurance. Also known as a ‘wet lease.’
Aircraft on ground (AOG) A term commonly used to refer to an
aircraft that is grounded due to a technical problem. It is
occasionally used by leasing companies to refer to aircraft that are
not on lease.

8. Airworthy aircraft An aircraft which conforms to its Type Design,
as approved under the Type Certificate or a Supplemental Type
Certificate, to all applicable Airworthiness Directives; and which is
able to operate without significant hazard to aircrew, ground crew,
passengers or the general public.
Airworthiness Directive (AD) AD’s are used by the certifying
authority to notify aircraft owners and operators of unsafe
conditions and to require their correction. Sometimes during
service the aircraft may encounter problems that may compromise
the aircraft’s safety

9. Air Operator Certificate (AOC) The approval granted from a
national aviation authority (NAA – i.e. CAA in Pakistan) to an
aircraft operator to allow it to use aircraft for commercial purposes
such as charter.
Altitude The height at which an aircraft flies.
Appraiser A person or organization which values (appraises)
aircraft. In the US they are usually members of the American
Society of Appraisers.
APU (Auxiliary power unit) A generator used to provide power to
aircraft on the ground.

10. ATP Airline transport pilot certificate issued by the US FAA.
ATPL Airline transport pilots license
Business liner Also known as a corporate airliner. A term given to
a business jet that is sold as new to be used as a corporate jet but
has been adapted from a model available for commercial airlines.
Call option The right to buy. An operating lease with a call option
gives the lessee (or operator) the right to buy the aircraft or
helicopter at the end of the lease. The opposite of a call option is
a put option (the right to force someone to buy something).

11. Certificate of Airworthiness (C of A) A Certificate of
Airworthiness (C of A) is issued for an aircraft by the national
aviation authority of the state in which the aircraft is registered.
Continuing airworthiness A continuous status of compliance
with all valid airworthiness requirements.
The Continuing Airworthiness Management Organization
(CAMO) The organization responsible for the management and
coordination of all continuing airworthiness requirements. The
term CAMO was implemented by the European Aviation Safety
Agency (EASA)
Certificate of Registration Certifies that an individual aircraft
(serial number) was entered in to the particular national register
under the assigned registration mark

12. Concierge services Charter and fractional jet owners will often
offer this extra service to customers (as do the hotels these
customers stay in.)
Cross-border deal Where a financier leases an aircraft from one
country to another.
Cruising altitude The height aircraft climb to.
Deadleg A term used in charter and fractional ownership to refer
to a route where a flight is empty.

13. Designated Airworthiness Representative The nature,
responsibilities and duties of this function are identical with
CAMO.
Electronic flight bag – Digital alternative to the real flight bags
containing paper pilots carry. Includes flight plans, taxi routes at
airports, aircraft operating handbooks, airplane operation manuals
etc. Now may be carried on an iPad.
ETOPS: Extended-range Twin Operations. Certification given to
two-engine aircraft for long overwater flights. Popular deformation
of this term is “Engines Turning Or Passengers Swimming”!

14. Fixed base operator (FBO) A provider of support services such
as fueling, hangaring, parking, aircraft maintenance permanently
based at an airport.
FBW: Fly-By-Wire. Aircraft controls where the pilot’s commands
(bank, yaw…) are transmitted to control surfaces electronically or
via fiber optics, instead of mechanical linkage. Also called FBL
(Fly-By-Light).
FDR: Flight Data Recorder. One of the so-called “black boxes”. It
is actually painted bright orange to be easily identified among
aircraft debris, and records various parameters like speed, ht. etc.

15. Freedom of the air: Commercial aviation right governing carriage
of payload between or within countries. Recognized by the ICAO:
1st freedom: the right to overfly a country without landing (for
example: Singapore Airlines from the United States to Singapore,
overflying Russia)
2nd freedom: the right to stop in a country for refueling without
transferring payload (for example: Airblue, from the UK to
Pakistan via Turkey for refueling)
3rd freedom: the right to carry payload from one’s country to
another (for example: Air Canada flying from Canada to China)

16. 4th freedom: the right to carry payload from another country to
one’s own (for example: Air Canada flying back from China to
Canada)
5th freedom: the right to carry payload from one’s country to
another, then on to a third one (for example: Jet Airways, an
Indian airline, from India to Belgium then on to Canada)
The following are not recognized by the ICAO but often mentioned
as “so-called” freedom rights:
6th freedom: the right to carry payload from one country to one’s
own, then on to a third one.

17. 7th freedom: the right to carry payload between two foreign
countries as a stand-alone service (for example: BA, a British
airline, from France to the United States)
8th freedom: the right to carry payload within a foreign country,
as part of a flight originating/terminating in one’s own country (for
example: Qantas from Australia to a US city, then on to a second
US city) – also known as consecutive Cabotage
9th freedom: the right to carry payload within a foreign country as
a stand-alone service (for example: a hypothetical New Zealand
airline flying between two cities in Australia) – also known as
standalone Cabotage

18. FOD Foreign object damage.
Fractional ownership Where a customer buys a ‘time share’
General Aviation Manufacturers Association (GAMA) A trade
body representing over 60 manufacturers of general aviation
aircraft, parts and components.
HDD Heads Down Display – a flat panel cockpit or electronic
flight bag
HUD Heads Up Display – a display system in the cockpit that
shows what is going on, on the window of the cockpit

19. Maximum take-off weight (MTOW) The maximum weight than
an aircraft at sea-level can weigh at take-off.
MRO Maintenance and Repair / Overhaul Organization
OEM Original equipment manufacturer (an aircraft, engine or
helicopter manufacturer).
Operating lease An operating lessor owns the aircraft or
helicopter and leases it to the operator. Similar to the concept of
car hire leases are typically one to five years.

20. Put option The right to force someone to buy something back at a
set price. Fractional ownership deals typically give owners the
right to sell their share back at the end of a lease.
Service Bulletin (SB) With increasing in-service experience, the
type certificate holder (manufacturer) may find ways to improve
the original design resulting in either lower maintenance costs or
increased performance
Sweetheart deal or Sweetheart lease Where a manufacturer or
lessor enters into a deal that is very attractive for the client.
Sweetheart deals are common when manufacturers are trying to
break into a market like China.

21. TAWS Terrain awareness and warning system.
TCAS Traffic alert and collision avoidance system.
TODA Take-off distance available.
TORA Take-off run available
Transponder. A transmitter and Responder for identification of
aircraft – Squawk mode A or C for altitude to help identification for
Air Traffic Controllers. IFF is for military – Identification of Friend or
Foe.

22. ULD Unitary load device (baggage/cargo container).
VHF Very high frequency.
UHF Ultra High Frequency
XR / ER Extra range.
ZT Zulu time (=GMT, UTC)