Federal Aviation Administration proposes $1.9 million fine against aerial-photography company SkyPan

The Wall Street Journal
By Jack Nicas
Oct. 6, 2015 12:49 p.m. ET

U.S. regulators proposed a record fine for alleged unauthorized drone flights as they intensify efforts to crack down on unmanned aircraft that they say are endangering U.S. skies.

The Federal Aviation Administration Tuesday proposed to fine SkyPan International Inc., a small Chicago-based aerial-photography firm, $1.9 million in connection with allegedly flying drones in restricted airspace above New York and Chicago 65 times from March 2012 through December 2014, including 43 flights near New York’s large airports. Previously, the FAA’s largest proposed penalty for unauthorized drone flights was an $18,700 fine issued recently. Companies can appeal proposed penalties to the agency.

“It does send a message that anyone operating in the airspace system needs to do it in a safe manner,” FAA Administrator Michael Huerta said in an interview. “If you’re flagrantly violating the rules, we will take enforcement action.”

Karl Brewick, SkyPan’s production coordinator, said the company had just received notice of the penalty and declined to comment.

The use of drones has surged in the U.S. in recent years as technological advancements have made them smaller, cheaper and easier to fly. The FAA has struggled to keep up as drones have flown close to manned aircraft and crashed in crowded areas, and even the White House lawn. The FAA requires that drones be kept below 400 feet and at least 5 miles from airports. In recent months, it has stepped up a public campaign to keep drone users away from high-profile events like the Super Bowl and the papal visit.

“With unmanned aircraft, a whole new class is coming in and these are people that may not have any previous flying experience or knowledge of flight rules.” Mr. Huerta said.

SkyPan sells aerial images to companies and cities for building, planning and marketing. Its website includes images and video of New York and Chicago, including for promotions for the city of Chicago.

Mr. Huerta said the FAA issued several warnings to SkyPan that its flights violated FAA rules “and they chose to disregard them.” He said SkyPan stopped violating the rules this year, and the FAA approved SkyPan to use drones commercially after it submitted a plan to mitigate risk.

Before 2014, the FAA effectively banned the commercial use of drones. The agency sent warnings—and in several cases, small fines—to companies that violated that rule. Late last year, the FAA began authorizing commercial drone flights, and has since authorized more than 1,740 companies. The FAA said it expects to finalize by next year rules that would pave the way for widespread commercial drone flights.

Original article can be found here:  http://www.wsj.com