A new FAA bill could bring drone deliveries closer to reality

US Consumer Attitudes Drone Delivery
US Consumer Attitudes Drone Delivery

BI Intelligence

This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.

Senate legislators directed the Federal Aviation Administration (FAA) and US Department of Transportation to enact new rules to accelerate the development of drone delivery within US borders as part of a new FAA reauthorization bill, Bloomberg reports.

  • The bill directs the Department of Transportation to create a new certification for companies performing drone deliveries. Companies that receive the certificate would be able to operate drones for deliveries, though they would still be subject to other laws and regulations.

  • The bill authorizes the FAA to grant more exemptions for drone operations beyond pilots’ lines of sight. In the US, drones cannot be flown out of the line of sight of the operator. This significantly curtails the potential benefits of drone delivery. If companies were able to bypass this rule, long-distance, unmanned drone deliveries would come much closer to reality in the country.

  • However, the bill directly conflicts with House legislation endorsed by President Donald Trump that advocated privatizing US air traffic control, which is currently operated by the FAA. In contrast, the Senate's proposed legislation would strengthen FAA oversight of drones and air traffic control.

The certification program and line-of-sight exemptions are a positive step toward drone delivery. However, a potential conflict over the FAA’s mandate in regard to the US air traffic control system would likely complicate and delay drone delivery programs in the country. This could result in the US falling further behind in drone development, holding widespread drone delivery off for the near future. 

Jonathan Camhi, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on drone delivery that:

  • Provides an overview of how drones can transform parcel delivery by automating logistics, particularly for last-mile deliveries.

  • Examines the efforts of several companies across industries that are experimenting with drone delivery.

  • Highlights the major obstacles that remain in making drone delivery mainstream.

  • Provides a timeline for the adoption and scaling of drone delivery services in the US.

To get the full report, subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now

You can also purchase and download the full report from our research store.

See Also: