State of the Drone Industry

Agenda

• About us

• Current recreational & commercial regulatory state

• Commercial Industry Insights

• Phoenix drone advocacy group

About Me

• Doug Andriuk

• Former Air Force Pilot

• Chief of Requirements for blue and

white USAF aircraft

• Designed risk management program for USAF VIP operations

• Spent 21 years staying out of drones

Regulatory EnvelopeRecreational and Commercial

Recreational use: What are the rules?

• FAA:• Quite liberal, but be careful

• Drone registration for recreation?• Reactionary – but slight incident prevention value

• Federal agencies• National Park Ban

• Forest fires

• US

• Local Laws:• Wide ranging public laws that don’t address drones specifically, but apply to

drones

FAA “DO’s” for Model Aircraft

• Do fly a model aircraft/UAS at the local model aircraft club

• Do take lessons and learn to fly safely

• Do contact the airport or control tower when flying within 5 miles of the airport

• Do fly a model aircraft for personal enjoyment

FAA “DON’TS” for Model Aircraft

• Don't fly near manned aircraft

• Don't fly beyond line of sight of the operator

• Don't fly an aircraft weighing more than 55 lbs. unless it's certified by an aeromodelling community-based organization

• Don't fly contrary to your aeromodelling community-based safety guidelines

• Don't fly model aircraft for payment or commercial purposes

AMA Guidelines• Model aircraft will not be flown:

• In a careless or reckless manner.

• At a location where model aircraft activities are prohibited.

• Model aircraft pilots will: • Yield the right of way to all human-carrying aircraft.

• See and avoid all aircraft and a spotter must be used when appropriate.

• Not fly higher than approximately 400 feet above ground level within three (3) miles of an airport without notifying the airport operator.

• Not interfere with operations and traffic patterns at any airport, heliport or seaplane base except where there is a mixed use agreement.

• Not exceed a takeoff weight, including fuel, of 55 pounds unless in compliance with the AMA Large Model Airplane program. (AMA Document 520-A.)

• Ensure the aircraft is identified with the name and address or AMA number of the owner on the inside or affixed to the outside of the model aircraft. (This does not apply to model aircraft flown indoors.) (g) Not operate aircraft with metal-blade propellers or with gaseous boosts except for helicopters operated under the provisions of AMA Document #555.

• Not operate model aircraft while under the influence of alcohol or while using any drug that could adversely affect the pilot’s ability to safely control the model.

• Not operate model aircraft carrying pyrotechnic devices that explode or burn, or any device which propels a projectile or drops any object that creates a hazard to persons or property.

Know before you fly guidance

• Follow community-based safety guidelines, as developed by organizations such as the Academy of Model Aeronautics (AMA).

• Fly no higher than 400 feet and remain below any surrounding obstacles when possible.

• Keep your sUAS in eyesight at all times, and use an observer to assist if needed.

• Remain well clear of and do not interfere with manned aircraft operations, and you must see and avoid other aircraft and obstacles at all times.

• Do not intentionally fly over unprotected persons or moving vehicles, and remain at least 25 feet away from individuals and vulnerable property.

• Contact the airport or control tower before flying within five miles of an airport.

• Do not fly in adverse weather conditions such as in high winds or reduced visibility.

• Do not fly under the influence of alcohol or drugs.

• Ensure the operating environment is safe and that the operator is competent and proficient in the operation of the sUAS.

• Do not fly near or over sensitive infrastructure or property such as power stations, water treatment facilities, correctionalfacilities, heavily traveled roadways, government facilities, etc.

• Check and follow all local laws and ordinances before flying over private property.

• Do not conduct surveillance or photograph persons in areas where there is an expectation of privacy without the individual’s permission (see AMA’s privacy policy).

AirMap.IO – Local Airport Map

Class B Airspace

www.phxdug.org

Local Government Regualtions

• Very grey area

• Privacy

• Endangerment

• RC aircraft guidance

• City of Phoenix only

• 20 years old

City of Phoenix

Phx regulations – written 20 years ago

• 24-49 Remote control aircraft.

• No person may fly any remote controlled or self-propelled aircraft, including, but not limited to, radio controlled or control line model airplanes, helicopters, and gliders, in a park or preserve except in parks designated by the Director or designee in flying sites that meet the requirements of Subsection C of this Section.

• In parks designated for operation of remote control aircraft, the Academy of Model Aeronautics (AMA) Safety Code is to be observed in flying radio-controlled or control line model airplanes, helicopters, and gliders. Persons flying radio controlled or control line model airplanes, helicopters, and gliders shall follow AMA guidelines and produce a current Academy of Model Aeronautics membershipcard. Only one remote control aircraft may be flown at a time.

• Flying sites shall at all times remain unobstructed and a safe distance away from other park users. Dimensions of flying sites shall be no less than 400 feet on all sides. For purposes of this Section, "unobstructed" means an open park area that is level and free of trees, structures, and fences, and that is fully accessible for the retrieval of launched aircraft.

• Children younger than 16 years of age shall be accompanied by an adult when flying model aircraft in City parks.

• Model aircraft that exceed any of the specifications listed below may only be flown in City parks or preserves where there is a specifically developed model aircraft flying site with spectator control fencing, established runways, flight pads or flying circles, and safety barriers for the protection of pilots and callers.

• Fueled radio controlled model airplanes with an engine size of .20 cubic inches, wingspan of 60 inches, or weight of 3 pounds.

• Electric powered radio controlled model airplanes with a wingspan of 80 inches or weight of 3 pounds.

• Radio controlled helicopters with a main blade diameter of 40 inches or a weight of 3 pounds.

• Radio controlled gliders with a wingspan of 80 inches or weight of 3 pounds.

• Control line model airplanes with a single engine size of .25 cubic inches.

Press Coverage

• Drone “Ban”

• Drone “crash”

• Drone “fines”

• Drones at the white house

• Drone privacy

• Drone sales, est 1M this Christmas

Recreational Usage

• 1,000,000 drones to be sold this holiday season

• Grey guidance for obvious usage areas - parks

Commercial Drone Regulations

• 2,134 Petitions for exemption granted

• Process takes 90-120 days

• Biggest hurdle is company operations manual followed by use statement

• Advised that plagiarism is encouraged

• Do not set precedent if you want a quickly approved (90 day) petition

• Comes with blanket 200’ COA

• Must register drone with N number

• 20-30 days

• Once approved, gives access to NOTAM filing website

333 Rules….

• Much more stringent regulation for commercial ops

• 500’ separation between drone and any person, vessel or structure not affiliated

with the operation

• Ag and mining are the big winners

• Must have a pilot’s license of some type

• 400 AGL, Visual Line of Sight, Spotter

• Record keeping

• Newly designated operations and maintenance inspectors at FSDO

• Amendment process is broken (>180 days)

Now the fun stuff:

Commercial Drone Industry

“A solution looking for a problem”

“Hot” Applications

• Agriculture

• Crop monitoring

• Seeding drones

• Insect killing

• Crop dusting

• Surveying

• Geomatics

• Insurance

• Real Estate

• Photography

• Inspection

• Insurance adjusting

• Marketing

• Emergency Services

• Missing person

• Fire Detection

• Poachers

• News Reporting

• Accident reporting

• Time lapse weather

• Delivery

• Medical Prescriptions

• Mail, Package

• Defibrillators

• Construction

• Safety

• Site awareness

• Industrial Inspection

• Power Line monitoring

• Flare Stack

• Cell Tower

• Bridge

• Building

• Entertainment

• Drone racing

• Jousting

• Drone circus

• Marketing

The Forecast…

Gartner Hype Cycle

DRONES

Some concepts

• Incremental benefits

• Real-Estate listings adding drone videos

• Improves an existing product slightly

• Radical/Disruptive Benefits

• Topographical maps via drone

• Eliminates previous methods with significant change

• 90% improvement in efficiency

• Revolutionary

• Create new markets where none existed before

• iPad

The Technology Adoption Curve

0 1-2 3-5 6-10 10-15 15-20

Innovators Early

majority

Late

majorityLaggards

Years

Early

adopters

2.3% 16%34% 34%13.6%

The chasm

Customers want technology

and performance

Customers want solutions and convenience

Technology Push-Market Pull

Research and Development

Production Marketing Need?

Research and Development

Production MarketingExpressed

Market need

Technology Push

Market Pull (demand pull)

Innovation Risk

Technology risk:

Will it work?

Marketplace risk: Will they want it?

Routine and

minor

incremental

fundamental

Radical

Production innovation

What you offer

Business model Innovation

How you go to market

Evidence of the shift from Push to Pull

• Rise in “white papers” proclaiming benefits

• Tailored systems that deliver on a task

• Ex: Cell tower inspection - Prenav

Power line inspection – DJI style

Commercial UAS Adoption

• Technology still evolving

• Numerous failures in radical/disruptive markets

• AG follow through – How does a farmer implement the data?

• Cell Tower Inspection – First generation products failed

• Value proposition – Construction applications

• FAA regulatory environment

• Tight envelope hampering commercialization

• 20-60 day COA for non-blanket ops

• Massive backlogs on amendments

• NPRM is an incremental step forward

• Large companies (google, amazon) getting traction towards objectives

Phoenix UAS Advocacy Group

Purpose

• Get in front of next incident before it happens

• Bring together Phoenix area stakeholders (recreational and commercial operators, retailers, FAA, local government, etc) to tackle local issues

• Park usage

• Federal/State/City expectations and coordination

• Provide a voice to the media