FAA AND SKYPAN INTERNATIONAL, INC., REACH AGREEMENT ON UNMANNED AIRCRAFT ENFORCEMENT CASES
February 27, 2017
On January 17, 2017, the U.S. Department of Transportation’s Federal Aviation Administration (FAA) announced a comprehensive three-year settlement agreement with SkyPan International, Inc., of Chicago involving a $1.9 million civil penalty that the FAA proposed against SkyPan in October 2015, the largest civil penalty the FAA has proposed against a UAS operator. The agreement resolves enforcement cases that alleged the company operated unmanned aircraft (UAS) in congested airspace over New York City and Chicago, and violated airspace regulations and aircraft operating rules.
SkyPan conducts aerial panoramic photography operations above private property in urban areas. The SkyPan’s flights involved in the FAA settlement agreement were conducted before the FAA’s first rule for commercial UAS operations, commonly referred to as Part 107, went into effect in August 2016, and some were conducted before the FAA began to issue exemptions to authorize commercial UAS operations in September 2014 under the Section 333 process. SkyPan obtained a section 333 Exemption in 2015.
Under the terms of the agreement, SkyPan agreed to pay a $200,000 civil penalty and the FAA, in exchange, made no finding of violation. The company will pay an additional $150,000 if it violates Federal Aviation Regulations in the next year, and $150,000 more if it fails to comply with the terms of the settlement agreement. SkyPan also agreed to work with the FAA to release three public service announcements in the next 12 months to support the FAA’s public outreach campaigns that encourage drone operators to learn and comply with UAS regulations.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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