White House Crash Could Set Drones Back

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drones - White House Crash Could Set Drones Back

The rise of commercial and consumer unmanned aerial vehicles (UAVs) – colloquially known as “drones” —    may be the next big thing in technology, but the nascent industry could face a setback in the wake of Monday morning’s crash of a small “quadcopter” drone on the White House grounds.

White House Crash Could Set Drones BackThe small recreational drone, which crashed on the White House grounds about 3 a.m. Monday, triggered a Secret Service lockdown of the executive mansion and an investigation.

About six hours after the event, a government employee who had been operating the drone recreationally called the Secret Service to report the event.

Although the President Barack Obama and first lady Michelle Obama were on a state visit to India, the drone crash made waves in Washington. In an interview with CNN on Tuesday, Obama called the incident part of a “broader problem.”

 “I’ve actually asked the FAA (Federal Aviation Administration) and a number of agencies to examine how we’re managing this new technology because the drone that landed in the White House you buy at Radio Shack.”

Obama, who has long supported the integration of UAVs into the national airspace because of the profound commercial benefits of the technology, demanded tougher regulations to ensure that commercial drones operate safely and without violating privacy.

The FAA is the lead agency for drone regulations because it is charged with regulating the National Airspace System (NAS). Prior to Monday’s crash, Congress had set a September 2015 deadline for the FAA to integrate UAVs into the national airspace, but was behind schedule because of complicated technical and regulatory obstacles.

“With the discovery of an unauthorized drone on the White House lawn, the eagle has crash-landed in Washington,” U.S. Sen. Chuck Schumer (D-NY), said. “There is no stronger sign that clear FAA guidelines for drones are needed.”

Why push to quickly integrate UAVs into the national airspace? The drone market is great for business.

Teal Group’s 2014 market study estimates that global UAV spending will nearly double over the next decade, from $6.4 billion annually to $11.5 billion, and total almost $91 billion over the next decade. That’s not chump change — and a market that large makes it difficult to ground UAVs until they are ready for prime time.

Although the FAA missed last month’s deadline to publish rules for integrating drones that weigh less than 55 pounds, the agency is hardly fiddling while drones crash and burn. The FAA is playing catch-up because drone technology has evolved far more quickly than anyone imagined. Obama compared UAV technology to the regulatory challenges posed in cyberspace.

And that’s not the only problem: the White House drone was flying in Washington’s restricted airspace — drones have violated “no-fly” areas like the Capitol and the Lincoln Memorial multiple times in recent months.

Additionally, there have been near-misses with commercial aircraft, and privacy concerns are moving front and center.

That said, 2014 was a good year for UAV lobbyists. In June, the FAA approved the first commercial UAV operations over land — BP plc (ADR)’s (NYSE:BP) use of an AeroVironment, Inc. (NASDAQ:AVAV) drone to monitor oilfields in Alaska.

The FAA also granted regulatory exemptions to six aerial photo and video production companies, the first step to allowing the film and television industry the use of unmanned aircraft systems (UAS) in the National Airspace System.

Transportation Secretary Anthony Foxx determined that the drones used in the proposed operations do not need an FAA-issued certificate of airworthiness because they “do not pose a threat to national airspace users or national security.”

The FAA’s emerging drone policy will require walking the tightrope of competing interests: regulating the national airspace, ensuring air safety and promoting commercial and civil aviation.

Congress ordered the agency to come up with a plan for safely integrating drones into the national airspace because of the lucrative business opportunities drones can provide. But the National Transportation Safety Board (NTSB) last November concluded the FAA had the authority to ban any drone flights in the national airspace.

The Bottom Line

Sooner or later, flocks of commercial drones will take flight — and the FAA will be under the gun to try to regulate the UAVs and their operators. The White House drone crash should please airlines and pilots who have long argued that drones must be held to the same safety regulations as other aircraft. Airlines already have reported incidents involving drones and the idea of colliding with a metal drone powered by a lithium ion battery is blood chilling for aviators.

The White House crash also raises terrorism concerns since even a small drone potentially could be weaponized for a chemical or biological attack. Privacy advocates, including the ACLU and Electronic Frontier Foundation, have long been worried about surveillance of private citizens.

Drones will take to the skies sooner rather than later — but regulators are likely to have trouble keeping policy ahead of drone technology.

As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/01/white-house-crash-could-set-drones-back/.

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