Air rights are a vital resource for innovation and progress
Taking a birds eye view we can see how the land lies
Thank you to all my current readers and welcome to my new ones. I really appreciate all the support. Enjoy this weeks read. You can contact with me at SkyTrades.io, jonathan@skytrades.io or @droneevtol.
Who decides if drone delivery companies and air taxis can fly over your property, town and city?
The Government or their agencies?
Commercial drone delivery and air taxi companies?
We the people?
What’s Up in The Air?
The issue of navigable airspace has long been a subject of debate, particularly as it relates to property rights and state sovereignty.
As Donohue (2021) has astutely noted, while navigable airspace has served as a foundation for increased federal control, it cannot extend to the ground without encroaching upon property rights.
With the proliferation of drones and unmanned aerial vehicles (UAVs), the question of low altitude airspace has become increasingly pressing. The need to define clear demarcation lines has become paramount in order to maximise opportunities and ensure that property rights are not violated. Fortunately, defining airspace not only brings clarity to the matter, but it also unlocks the potential for this underutilised asset, similar to the manner in which Airbnb has unlocked the potential of underutilised housing.
Contrary to popular belief, the government or government agencies do not have ownership over the low altitude airspace above private property. The Federal Aviation Administration (FAA) does have jurisdiction over the safe operation of aircraft in the skies, a responsibility for which we are all appreciative. The FAA reports drone registrations are growing rapidly and there are currently over one million registered drones in the United States. 40% of these drones are being used for commercial purposes.
Commercial drone pilots must obtain a Remote Pilot Certificate and a Part 107 license from the FAA. The FAA's "Operations Over People" rules regulate where, when, and how commercial drones can fly. To better integrate drones into national airspace and increase safety, the FAA established rules for UAV Remote Identification. This new regulation mandates that drones must be remote ID compliant and that operators must have remote ID enabled vehicles. This change makes it possible to track drones and identify their owners.
While the FAA's rules may allow commercial UAV pilots to fly over property according to their remit, it is important to note that drone operators and UAV companies do not have blanket permission to fly in a property owner's airspace. Coupled with this the FAA do not have blanket permission to grant the use of someones property (air space) for UAVs to fly in.
According to the FAA, UAVs must obtain the permission of the airspace owner in order for UAVs to receive their limited 135 certificate from the FAA.
If the air space owners have not expressly given permission but the done companies are satisfying the FAAs requirements and have permission and are ‘allowed’ to fly, whats going on?
Property owners are the rightful owners of airspace above their properties. As Amazon, Walmart and aircraft manufacturers fly their UAVs over towns and homes to deliver goods and medicines, we must take care to protect property rights from erosion. It is also of paramount importance for the drone and UAV companies to have clarity and be part of the communities they are looking to serve and scale in.
Air rights owners must have a voice in the matter to ensure that their rights are not taken away. If this occurs, it may be impossible to regain them. We must be vigilant to ensure that property rights are protected as UAVs become increasingly prevalent in our skies. We are building a platform that allows municipalities, property owners, UAV companies and regulators the clarity they want at skytrades.io.
The power of the government through the use of eminent domain, to take private property and convert it into public use, is referred to as a taking. The Fifth Amendment provides that the government may only exercise this power if they provide just compensation to the property owners. - law.cornell
New Drone Delivery Entrants
ASL Aviation Holdings, a Dublin-based cargo airline that serves major global couriers such as Amazon, FedEx, and DHL, has announced plans to incorporate drone delivery services into its portfolio. They have been granted a provisional operator certificate for unmanned aircraft systems by the Irish Aviation Authority (IAA), allowing its drone delivery service, ASL Future Flight, to conduct commercial operations over short distances without the need for specific route authorization. The certification enables the company to use drones up to nearly 10 feet in diameter that can carry small packages weighing approximately 11 pounds, adhering to European Union aviation safety regulations.
This is an interesting development, but the owners of the air rights have had no say, yet. Under what legislation are the IAA taking private property and if they are not taking it, who is? A foreign government perhaps or the commercial operator?
The ASL CargoVision Forum which promotes all things aviation includes Dronamics, a developer of large unmanned aircraft and Drone Delivery Canada, which has autonomous helicopters. Other airlines, such as All Nippon Airways and Air Canada Cargo, have also ventured into drones, partnering with companies like Wingcopter and Drone Delivery Canada to offer innovative delivery services.
Flying Cars
Venkat Viswanathan, a professor at Carnegie Mellon University, believes that despite the skepticism surrounding the idea of flying cars, there is a "straight shot" from today's technology to the development of the necessary technologies to build them. He has worked with several next-generation battery companies and has concluded that aviation is "the most important problem that batteries can address."
Currently he is advising companies that produce electric vertical takeoff and landing aircraft (eVTOLs), and he will join the University of Michigan's aerospace engineering department to continue his battery research for electric aviation. This is important work, as the aviation industry's carbon emissions are projected to double between now and 2050, despite progress being made in other sectors to reduce emissions.
eVTOLs can replace gasoline-powered cars for trips covering miles, resulting in a clear energy efficiency argument that they reduce emissions.
Viswanathan says that we are close to a "Roadster" moment for aviation, where electric aviation will follow the same path as the auto industry did after the introduction of the Tesla Roadster showed there was demand for electric cars.
Unmanned Air Taxi
Wisk are taking a different approach to other electric Vertical Take Off and Landing vehicle (eVTOL) startups by building an autonomous passenger-carrying electric air taxi from scratch is the most efficient path to commercialisation. While competitors, including Archer Aviation, Beta Technologies, and Joby Aviation, are designing their aircraft with future autonomy in mind.
Yutko, Wisks CEO believes retrofitting a piloted system later will result in a less-efficient plane. To certify an autonomous eVTOL, Wisk are insisting that all aircraft systems are engineered to the same safety standards as commercial airliners, or ten-to-the-minus-nine, which goes beyond the FAA’s “safety continuum” approach. Despite the autonomous capabilities, the Wisk Generation 6 will have human supervisors monitoring them remotely from ground stations, making the entire ecosystem safer for everyone.
New Zealand Drone Delivery
New Zealand's Civil Aviation Authority (CAA) has imposed strict conditions on SkyDrop's drone delivery operations in Huntly, including limitations on flying at night or above 400ft (122m). SkyDrop is the first company in New Zealand to receive approval for regular drone deliveries from its Huntly hub, beginning with pizza. The drones operate autonomously, are monitored by a human controller, and are fitted with a parachute for safety. The CAA is satisfied with SkyDrop's purpose-built unmanned aircraft and bespoke risk-assessment process.
While the Waikato District Council has not received a resource consent application for land use involving drones, the mayor welcomes the new technology and its potential positive impact on the region. It is wonderful that the CAA have approved the drone delivery and the mayor is welcoming new technologies and transportation, once the air rights owners agree then this market should take off.
Regulatory Capture
Regulatory capture is the phenomenon in which regulatory agencies, originally created to protect the public interest, instead serve the interests of the regulated industry.
The aftermath of the 2008 financial crisis saw a wave of regulatory reforms aimed at preventing future crises. However, these regulations may have done more harm than good. In fact regulations have been shaped in favour of the incumbents and this stifles competition.
The financial regulations implemented after the crisis have contributed to fewer banks being given a license to operate. This can be seen as an example of regulatory capture as the incumbents are better equipped to navigate the regulatory landscape, making it harder for new players to enter the market. This lack of competition can lead to a stagnant market and lower innovation, ultimately harming consumers and leading to larger banking failures. With technology comes the ability to disrupt this and we are seeing new systems, financial tools and protocols to innovate and combat the incumbents. The interesting point to note is the less competition the incumbents have in finance, aviation or transport the more vulnerable they become to being out manoeuvred.
While regulations are essential for safeguarding consumers and mitigating systemic risks, policymakers must exercise vigilance. In addition to regulations, other tools such as competition policy can promote innovation and ensure that both new and established markets remain competitive.
Let's not forget that the absence of marketplaces like Uber or Airbnb, which was a very real possibility due to regulatory capture, would have had severe negative impacts for millions of drivers and hosts. We need to take action to prevent a similar scenario from happening in the drone and UAV industry, enabling efficient operations for all of us. Failure to act would hinder our ability to achieve groundbreaking innovations and block progress towards reducing traffic and pollution, as well as realising our ambition of flying cars.
To find out more about air rights and how they can work for you in our marketplace please contact me jonathan@skytrades.io
