Certified Aviation Manager (CAM) Practice Test

Which option best defines direct operating expenses in a FAR 91.501 Timesharing Agreement?

1. Fuel, additives, travel expenses, landing fees, and an additional charge of 100 percent of the fuel used

2. Fuel, travel expenses, maintenance accrual, landing fees, and an additional charge of 100 percent of maintenance

3. Fuel, travel expenses, catering, landing and customs fees, maintenance accrual, and an additional charge of 100 percent of the fuel used

4. Fuel, insurance, catering, travel expenses, flight planning, maintenance accrual, and an additional charge of 100 percent of the fuel used

The correct answer is: Fuel, additives, travel expenses, landing fees, and an additional charge of 100 percent of the fuel used

Direct operating expenses in a FAR 91.501 Timesharing Agreement are specifically defined to encompass a range of costs directly associated with the operation of an aircraft during a specific flight or series of flights. The correct answer identifies fuel, additives, travel expenses, landing fees, and includes an additional charge of 100 percent of the fuel used. This definition aligns with the regulatory framework, which emphasizes that direct operating expenses should reflect the actual costs incurred while operating the aircraft. By including fuel and additives, it addresses the most significant variable operating costs. Travel expenses and landing fees are also critical components as they relate directly to the operation of the flight. The requirement of an additional charge of 100 percent of the fuel used is a stipulation that ensures operators account for both the cost of the fuel and an additional markup to cover other associated expenses. The other options introduce various elements that may not fit within the stringent definitions provided by FAR 91.501 or do not align with the typical classification of direct operating expenses. These redundancies or inaccuracies detract from the clarity and precision needed in such agreements, underscoring the importance of understanding the specifics of direct operating expenses in the context of regulatory compliance and financial transparency in aviation operations.