Marcos Osorno Chief Technology Officer at Skyward

Launching a commercial operation in a new (and highly regulated) market requires calculated choices about business goals, the regulatory environment, the competitive landscape, and timing.

For the past four years, the FAA has required commercial drone operators in the United States to have a 333 Exemption. This has been a major regulatory hurdle for early adopters and business innovators.

But, the FAA is expected to finalize formal rules for commercial UAVs in late spring. Titled Part 107, the new rules are expected to lower the barrier to entry for new commercial drone programs.

So, if you are on the verge of launching a commercial drone operation today, you have a few choices:

Operate without permission from the FAA Apply for a 333 Exemption from the FAA Wait for the FAA to finalize formal rules (Part 107)

The FAA Says Part 107 Will Be Finalized by Late Spring

Recently, FAA Administrator Michael Huerta announced that formal rules allowing commercial drone operations would be finalized in late spring. Part 107 will still require businesses to comply with operational requirements.

The most recent Section 333 Exemptions have taken about six months to be approved. So it’s possible that, if you apply for an Exemption now, you may find that the FAA publishes Part 107 before your Exemption is approved. For many businesspeople, that would feel like a waste of time and money.

While the FAA has historically failed to meet Congressional deadlines, Administrator Huerta’s announcement and the rule under review by the Office of Information and Regulatory Affairs at the White House is a positive indication that the FAA may in fact deliver a rule this spring.

How the Rules Under Part 107 Will Differ from 333 Exemptions

The FAA recently began allowing commercial operators to register small drones online, which is a huge improvement, especially for small business owners.

The last major hurdle facing commercial drone operators today is the legal requirement for an operator’s certificate.

Traditionally, the FAA has relied on instructors to provide flight training and hands-on examinations and on testing centers for knowledge tests. As of December 2015, the FAA listed 696 test centers across the United States, with many cities having multiple test centers. The draft of Part 107 includes provisions for flight instructors and pilot examiners to be part of the verification process.

So, while there may be some delay in tailoring the existing testing system to accommodate drones, the infrastructure is already in place.

According to the draft of Part 107, the new rules will be generally more permissive, or in some cases the same, as existing rules.

Topic General 333 and Blanket COA

Based on April 2016 Blanket COA and Exemption No. 15857 retrieved from FAA.gov on April 27, 2016.

Draft Rule Training At least a sport-pilot’s license and current flight review Pass an initial aeronautical knowledge test and recurrent test every 24 months Medical certificate FAA medical certificate Self-reported Crew size At least 2: Pilot + visual observers 1 person: Operator Flight restrictions Must not operate in: Prohibited Areas Special Flight Rule Areas DC Flight Restricted Zone Temporary/Permanent Flight Restricted Areas Special permission for airports in controlled airspace and certain airports in uncontrolled airspace. See example below Must not operate in: Class A airspace (18,000 feet and above) Prohibited or restricted areas Temporary/Permanent Flight Restricted Areas Special permission needed when in controlled airspace (Class B, C, D and airport Class E) See example below Time of day Daylight hours only Only between official sunrise and sunset Weight limit 55 pounds 55 pounds Speed limit 100 miles per hour 100 miles per hour Weather 3 mile visibility, 500 feet below clouds, 2000 feet horizontally away from clouds 3 mile visibility, 500 feet below clouds, 2000 feet horizontally away from clouds Height limit 400 feet 500 feet Visual line of sight Required Required Operation above people Not allowed if not participating or under covered structure providing protection Not allowed if not participating or under covered structure providing protection Buffer At least 500 feet from other property No buffer Aircraft registration Required Required Aircraft allowed Specified by FAA Any aircraft under 55 pounds NOTAM filing Yes No Incident reporting Yes Yes

Airspace under a Section 333 Exemption

Today, commercial drone operators are prohibited from operating in restricted airspace (in red). They must get special permission to operate within a certain distance from airports both in controlled and uncontrolled airspace (in yellow).

Airspace under Part 107

Under part 107, commercial drone operators will still be prohibited from operating in restricted airspace (in red) and will need special permission to operate in Class B, C, D and airport Class E airspace.

If your business is waiting for a 333 or for Part 107 to be published, focus on building your business

I know it’s frustrating to be caught in regulatory limbo. But the industry is still very young. Focus on building your business so you’re able to launch and operate as a pro as soon as you’re authorized to do so.

Build your business and your strategy. Any business is about finding clients, managing resources, and delivering results. Create a website, learn your potential customers’ business needs, and figure out how you’ll be able to meet them better than others.

When planning your strategy, remember: Businesses operating in such a high-visibility industry should plan on being scrutinized by regulators and law enforcement. In addition, businesses in new markets, like drones, are put in the position of having to positively shape public perception. Part of this means being a responsible and safe business owner.

Operations management software equals successful operations. A successful business is organized, runs on-time, delivers on-budget, and is reliable. An operations management platform, like Skyward’s, will enable you to know where it’s safe to fly, lower your risks, meet regulatory requirements, and manage the paperwork and business metrics inherent to every successful business. It’s the difference between keeping your business accounts in Quickbooks rather than a paper ledger.

Learn by flying recreationally—and behaving professionally. If you aren’t authorized to fly commercially now, you can still accumulate flight hours and become an expert drone pilot as a recreational pilot. Be sure to use a validated airspace map for recreational pilots. Plan and log your flights just as you would a commercial operation.

If you already have a 333…

Keep flying and look for new opportunities. As new companies enter the market, stay competitive by honing your services, building your portfolio, providing solutions tailored to your customers, and adding new technologies.

Consider specializing in a specific industry such as digital surface models for construction projects or NDVI for agriculture.

If you provide aerial imaging for real estate, you might supplement this with ground-based 360-degree virtual reality footage to help your customer integrate even more cutting edge technologies into their business.

If you use Skyward, you can start expanding your geographical footprint, by sending distributed teams out into the field to your growing customer base.

Prepare for the big leagues. At Skyward, we’ve helped Fortune 100 companies integrate drone services into their businesses by connecting them with qualified operators. Major enterprises expect safety, compliance, professionalism, and a proven track record. An organized business is a sign of professionalism and reduced risk.

Our insurance partner Transport Risk Management understands this and provide discounts to Skyward customers.

If you already have a 333 and civil COA that allows things beyond the new rules, work with the FAA. While most of the activities allowed by the 333 exemptions that we have surveyed are also allowed in Part 107, some will still require an exemption or certificate from the FAA. A good example of this is the grant of an exemption allowing UAS flights at night to Industrial Skyworks.

If you believe this might apply to your organization, contact the FAA Emerging Technologies Team at [email protected]. If you have a Civil COA beyond the Blanket COA, you should also contact the FAA if you have questions about the impact of Part 107.

Going beyond Part 107

If you want to do more than what’s in the rules, you’ll need to work with the FAA. From operating on FAA test ranges, to managing our own 333, to working on advanced projects with the FAA, and advising clients on cutting edge drone research & development, we’ve learned that safety, record keeping, and planning are essential elements of getting special approvals or certificates through the FAA.

If you are an enterprise looking to stay ahead through special projects, consider partnering with Skyward’s R&D Bootstrap Program. We have limited slots available for special projects. Get in touch at [email protected].



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