Google Wins First FAA Approval for Regular Drone Delivery of Consumer Items - WSJ

Alphabet Inc.’s Wing Aviation unit has received the first U.S. authorization to operate a fleet of unmanned aircraft for consumer-goods deliveries, a move that could jump-start various companies’ commercial drone services nationwide.

The Federal Aviation Administration’s decision represents a regulatory coup for Wing in a budding, fiercely competitive industry. Amazon.com Inc. and other companies are vying for similar approvals to transport food and small consumer goods to residential customers.

Industry officials in the past have said it was likely to take until 2020 or 2021 for the FAA to implement wide-ranging drone rules establishing a framework for package deliveries.

Because Tuesday’s green light currently covers only a rural area around Blacksburg, Va., it doesn’t resolve longstanding industry hurdles including security concerns about widespread drone operations, or current restrictions on commercial drone flights over populated areas.

By giving its approval to Wing, which was created in Google’s technology incubator and is now owned by the tech giant, the FAA is signaling its determination to approve so-called air-carrier certifications even before a full regulatory framework is in place, according to industry officials. The agency is building on lessons learned from pilot programs championed by the Transportation Department and White House aides.

Wing previously conducted experimental flights to deliver food, at no charge to customers, in the same area of Virginia, in conjunction with Virginia Polytechnic Institute and State University, commonly known as Virginia Tech, and other partners.

The FAA’s nod means Wing now will be able to establish a fledgling business, charge for deliveries and assess how commercial factors—in addition to technical issues—will influence what it does in the future. Wing will be able to apply to start similar operations elsewhere.

The company is expected to survey residents and local businesses about the types of food, medicines and other goods that might be carried exclusively during daylight hours. Under terms of the approval, unmanned aircraft will travel over longer distances than are now typically permitted for carrying payloads, and are envisioned to fly beyond the visual sight of operators—issues at the heart of delivering goods and packages directly to consumers. Wing also is expected to devise additional ways to allay privacy concerns, which aren’t covered by federal regulations but have sparked a flurry of state and local proposals or rules.

Its success so far in persuading the FAA promises to provide a template for other drone-delivery proposals.

Tuesday’s move highlights efforts by the industry—working with U.S. aviation regulators—to capitalize on overseas momentum for drone deliveries. From Singapore to Australia to Iceland to Switzerland, national authorities are moving faster than the FAA in authorizing routine commercial-drone flights and setting up new air-traffic control systems to facilitate their growth.

Wing, for example, is building on experience gained in Australia, where after thousands of test flights it recently received approval to start limited commercial deliveries. The company has developed a hybrid drone, able to take off vertically like a helicopter but with separate propeller-driven engines enabling it to fly like a plane. The drones are flown by human pilots on the ground.

Industry leaders have argued that further regulatory delays by the FAA threaten to curtail U.S. job expansion and could result in companies focusing more of their growth initiatives in other countries.

“This is an important step forward for the safe testing and integration of drones into our economy,” Transportation Secretary Elaine Chao said in a statement. “Safety continues to be our number one priority as this technology continues to develop and realize its full potential.”

The approval, in effect, will permit Wing in coming months to operate as something akin to a traditional small charter or cargo carrier, featuring specific pilot training, approved safety systems, mandatory collection of incident data and other safeguards.

Until it implements a wide-ranging regulatory framework for drones, the FAA has encouraged companies to seek approvals under existing rules, a process that often involves applying for waivers or exemptions. Such applications typically cost more, take longer and require a greater degree of technical expertise than many startup drone operators are able to invest.

Write to Andy Pasztor at andy.pasztor@wsj.com

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