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Impact of FAA Rules on sUAS Business - Drone Analyst

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Slides for sUSB Expo 2014 - Economic impact of FAA rules on small unmanned aerial systems (sUAS) operations from the business perspective

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Impact of FAA Rules on sUAS Business - Drone Analyst

  1. 1. IMPACT OF FAA RULES ON SMALL UAS BUSINESS Survey Research Results Economic impact of FAA rules on small unmanned aerial systems (sUAS) operations from the business perspective For sUSB Expo May 8, 2014 Prepared by: Colin Snow
  2. 2. 2| About this study This study details the existing state of sUAS operators, identifies business sentiment and micro-economic issues, and assesses their importance for future FAA regulations 297qualifiedrespondents 90%fromtheU.S. 59% 35% 6% Owners & employees Experts Other 59% fromdronebusinesses Copyright 2014 – Drone Analyst | Not for Distribution
  3. 3. 3| Survey Results: Business Impact Market development FavorableRegulations Market disintegration UnfavorableRegulations CurrentPolicies Market uncertainty Copyright 2014 – Drone Analyst | Not for Distribution
  4. 4. 4| Key Insights Understanding of current FAA rules varies widely Responses to each of the individual questions are analyzed in the Detailed Findings, which are contained in the Complete Research Report. Companies operate anyway Aerial photography and cinema dominate service offerings Few operators employ commercial liability insurance Favorable rules will create economic growth insight insight insight insight insight Unfavorable rules will kill the market ONE TWO THREE FOUR FIVE SIX Copyright 2014 – Drone Analyst | Not for Distribution
  5. 5. 5| Under current policies.. This has led to a shadow economy and has many companies on the sidelines. Source: Drone Analyst 71% 47% 30% say the FAA does not regulateClass G air space. ..there is market uncertainly. of companies operate anyway and most have bee doing so for two or more years. say rules are unclear and half say ‘very’ unclear. Copyright 2014 – Drone Analyst | Not for Distribution
  6. 6. 6| Under favorable rules.. Almost all businesses that are on the sidelines would start operation immediately and begin hiring. Source: Drone Analyst 65% 49% 42% would hire two or more employees. ..there is economic growth. projected three year CAGR with the largest growth for businesses who make under $1 million. would start a business immediately. Copyright 2014 – Drone Analyst | Not for Distribution
  7. 7. 7| Favorable rules.. 8% 8% 10% 10% 13% 14% 22% 29% 36% 40% 53% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% FAR Part 21.25 Restricted Category certificate Commercial pilot license None Private pilot license Class 2 medical certificate Certificate of Authorization or Waiver (COA) Private pilot ground school Maintenance records for my aircraft Serial number traceability for the aircraft and critical… Aircraft-specific operational proficiency test Self-declaration: intent, aircraft, general location, and use Agreement to operational guidelines for self-regulation ..if morethan 50% Copyright 2014 – Drone Analyst | Not for Distribution
  8. 8. 8| Under unfavorable rules businesses would.. 61% 39% Kill plans Not kill plans We conclude the overall market for sUAS would basically die if unfavorable regulations come into being. All the positive economic impacts like revenue, job creation, and tax base creation would not be realized. Source: Drone Analyst Copyright 2014 – Drone Analyst | Not for Distribution
  9. 9. 9| Unfavorable rules.. 7% 11% 12% 22% 24% 27% 42% 51% 54% 57% 65% 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% Agreement to operational guidelines for self-regulation Self-declaration of intent, aircraft, general location, and… None / Does not apply Serial number traceability for the aircraft and critical… Aircraft-specific operational proficiency test Maintenance records for my aircraft Private pilot ground school Class 2 medical certificate A Part 21.25 Restricted Category certificate A Certificate of Authorization or Waiver (COA) Private pilot license Commercial pilot license ..if morethan 50% Copyright 2014 – Drone Analyst | Not for Distribution
  10. 10. 10| Recommendations to FAA 1. Acknowledge that the current regulatory void has left businesses either sitting on the sidelines or operating in the absence of appropriate safety guidelines. 2. Concede that the recreational community has proven that community-based safety programming is effective in managing a growing level of activity. 3. Grant the April 9, 2014, request by the AUVSI and AMA and the 31 other organizations to expedite the rulemaking process for UAS operations in the U.S. airspace and allow the limited use of small UAS for commercial purposes before the final rulemaking is completed. 4. Make good on the February 6, 2007, Policy Statement advisory pledge here to: ".. [create] a different category of unmanned vehicles that may be defined by the operator’s visual line of sight and are also small and slow enough to adequately mitigate hazards to other aircraft and persons on the ground." 5. Abide by the Regulatory Flexibility Act and balance the safety goals of regulations with the needs and capabilities of small businesses and other small entities providing sUAS services Copyright 2014 – Drone Analyst | Not for Distribution
  11. 11. 11| Recommendations to manufacturers and operators 1. Educate yourself. As this study shows, too many business owners and operators do not understand current rules or advisories. See my website for links to the most relevant ones. 2. Regulate yourself. Start by adopting standards for your aircraft and users. A good place to start is with the seven standards released by ASTM International Committee F38 on Unmanned Aircraft Systems. 3. Collaborate. Form a working relationship with the organizations that have already put in place operational guidelines such as AMA, RCAPA, and PARCAP. 4. Find your public voice. Actively examine and then voice your opinion when an FAA notice of proposed rulemaking (NPRM) about UAS is made public. Also, don't assume that AUVSI is speaking on your behalf and in your favor even though it may seem so. 5. Buy insurance. There are aviation insurance contracts which have no Federal Aviation Regulation (FAR) exclusions. Copyright 2014 – Drone Analyst | Not for Distribution
  12. 12. 12| Research Reports More data and analysis are available: Summary Report $95 Complete Report $1,995 - Print Copy $1,995 - Single User PDF $2,995 - Site License PDF $3,995 - Enterprise License PDF http://droneanalyst.com/purchase-research/ 9detailedfindings 15data charts You canpurchase a report tomatch your business needs Copyright 2014 – Drone Analyst | Not for Distribution
  13. 13. Appendix Additionalslides: Serviceproviders
  14. 14. 14| Service providers 13% 2% 2% 2% 3% 3% 4% 5% 5% 5% 8% 11% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% All Others Construction Scientific Research Utilities First Responder Service (Police, Fire, or Medical) Data Aggregation or Analytic Services Consulting Cinematography / Movie / TV Education and Training Mapping / Topography / Geospacial / Photogrammetry Agriculture / Farming Services Sales of sUAS aircraft and/or technology Aerial Photography and/or Video 41%combined Copyright 2014 – Drone Analyst | Not for Distribution
  15. 15. 15| ©2014 DroneAnalyst. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of Drone Analyst. Drone Analyst products and services mentioned herein as well as their respective logos are trademarks of Drone Analyst. These materials are provided by Done Analyst for informational purposes only, without representation or warranty of any kind, and Drone Analyst shall not be liable for errors or omissions with respect to the materials. In particular, Drone Analyst has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and Drone Analyst strategy and possible future developments, products, and/or research directions are all subject to change and may be changed by Drone Analyst at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, research notes, or web content. Copyright 2014 – Drone Analyst | Not for Distribution

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