Amazon’s drones in regulatory dogfight

   In mid-March, the Federal Aviation Administration finally caught up to the times and issued the OK for Amazon to move forward with testing its Prime Air drone delivery program in the great outdoors. 
   From the moments after the 60 Minutes unveiling of Jeff Bezos’ drone delivery program in December 2013 to current day, Amazon has been busy testing unmanned aircraft systems (UAS), but only conducting those flights within extremely limited parameters. A lack of regulatory approval domestically hindered research, company officials argued. That forced the company to test in other countries with more drone-friendly regimes.
   Prime Air may still be more of a grand idea than a practical tool for widespread use, but the FAA has now given Amazon the leeway to at least try drone-based parcel delivery in the light of day. The only problem? The regulatory body’s experimental airworthiness certificate was nearly out of date from the start. 
   On March 24, Paul Misener, Amazon’s vice president for global public policy, explained the cost of the FAA’s slow drone acceptance to the aviation subcommittee of the Senate Commerce Committee. During the hearing, senators also heard from the American Farm Bureau Federation, which is concerned about the use of data collected by drones, and representatives from the Government Accountability Office, Brookings Institution and FAA. 
   “While the FAA was considering our applications for testing, we innovated so rapidly that the UAS approved last week by the FAA has become obsolete. We don’t test it anymore,” Misener told the subcommittee. “We’ve moved on to more advanced designs that we already are testing abroad. Last Friday, we asked the FAA for permission to fly one of these advanced UAS in the United States as well, and we are hopeful that this permission will be granted quickly.”
   The FAA’s approval allows Amazon to legally experiment with drones for research purposes at a height of 400 feet, as long as the unmanned aircraft is within line-of-sight on a clear day and that an actual pilot is flying the craft. Amazon is to report back to the FAA regarding the number of test flights flown and the results of each session. 
   On March 23, the FAA decided that drones operating at or below 200 feet don’t need to apply for individual airworthiness approval. This move, which is only an interim decision, erased what had become a 60-day waiting period for drone approval. According to a press release, “the agency expects the new policy will allow companies and individuals who want to use UAS within these limitations to start flying much more quickly than before.”
   But Amazon has its sights set much higher in the sky. Misener said his goal is “to ensure that important commercial UAS services become available in the United States safely and soon.” This can happen, he said, if Congress compels the FAA to act on sweeping drone regulations; this encouragement would help the United States catch up with the regulatory regimes of other countries, Misener argued.
   “With few exceptions, the agency already has adequate statutory authority,” he said. “What the FAA needs is impetus, lest the United States fall further behind.”
   His request is that the FAA allow drone operations beyond line-of-sight, assist the Commerce Department with the development of privacy guidelines, and push for harmonized drone rules through an international regulatory agency like the International Civil Aviation Organization.   
   According to Margaret Gilligan, the FAA’s associate administrator for aviation safety, the agency is hard at work developing tools to regulate a constantly shifting technology. Agency staffers are well aware of the congressional mandate to regulate drones in the national airspace, and the agency’s own timeline.
   “The FAA is safely and steadily integrating UAS into the largest, most complex aviation system in the world,” she told the committee. “At the same time, UAS technologies continue to advance at a rapid pace. Consequently, novel applications emerge challenging us to develop a regulatory framework that will allow for continued innovation while ensuring the safety of other users of the airspace and people and property on the ground.” 
   The jury is still out on how drones will help the air cargo proposition. In its recent annual aviation forecast, the FAA predicted that cargo revenue ton miles will increase 3.6 percent per year, on average, through 2035. Domestically, that revenue number will grow 0.6 percent each year, while international activity is predicted to shoot up 4.6 percent annually. As these cargo numbers rise, airports will get even more crowded. The agency found the number of takeoffs and landings by aircraft will rise by around 0.9 percent each year between 2014 and 2015, ending the period at close to 60 million takeoffs and landings annually. 
   The agency anticipates more than 300 cargo aircraft will enter international airspace over the next 20 years, an increase of 1.7 percent. In this growing airspace, it makes sense for the FAA to take its time and do its research before handing out airworthiness certificates for drones. But those within and outside the air cargo industry are getting restless, and their patience has been growing thin. 
   While the FAA has been more amenable to granting airworthiness certificates for drones, European regulators have surpassed the United States in the examination of real-world drone usage. In September, DHL began testing drones to deliver medical supplies to a small island off Germany. In the United States, parcel carrier UPS has looked at the technology but put on the brakes, while FedEx considered looking at niche applications for it.
   Domestically, it seems Amazon is the major driver of commercial drone use, pushing for the United States to catch up to the regulatory zeitgeist. What remains to be seen is exactly how long that will take. 
   Ross, a former American Shipper editor, writes about air transport and freight issues. He can be reached by email.

This column was published in the May 2015 issue of American Shipper.