83 FR 18734 - Notification to UAS Operators Proposing To Engage in Air Transportation

DEPARTMENT OF TRANSPORTATION
Office of the Secretary

Federal Register Volume 83, Issue 83 (April 30, 2018)

This document sets forth the procedure to seek an air taxi operator exemption to hold economic authority from the Department of Transportation (DOT or Department) for companies proposing to engage in certain air transportation operations with unmanned aircraft systems (UAS).

[Federal Register Volume 83, Number 83 (Monday, April 30, 2018)]
[Rules and Regulations]
[Pages 18734-18735]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09057]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Parts 205 and 298


Notification to UAS Operators Proposing To Engage in Air 
Transportation

AGENCY: Office of the Secretary (OST), Department of Transportation 
(DOT).

ACTION: Notification of procedures.

-----------------------------------------------------------------------

SUMMARY: This document sets forth the procedure to seek an air taxi 
operator exemption to hold economic authority from the Department of 
Transportation (DOT or Department) for companies proposing to engage in 
certain air transportation operations with unmanned aircraft systems 
(UAS).

DATES: April 30, 2018.

FOR FURTHER INFORMATION CONTACT: Lauralyn Remo, Chief, Air Carrier 
Fitness Division (202) 366-5347, 1200 New Jersey Ave. SE, Washington, 
DC 20590.

SUPPLEMENTARY INFORMATION: In order to engage directly or indirectly in 
air transportation,\1\ a citizen of the United

[[Page 18735]]

States \2\ is required to hold economic authority from the Department 
pursuant to 49 U.S.C. 41101, either in the form of a ``certificate of 
public convenience and necessity'' or in the form of an exemption from 
the certificate requirement. This authority is separate and distinct 
from any safety authority required by the Federal Aviation 
Administration (FAA).
---------------------------------------------------------------------------

    \1\ ``Air transportation'' means foreign air transportation, 
interstate air transportation, or the transportation of mail by 
aircraft. Interstate air transportation includes the transportation 
of property by aircraft for compensation across state, 
international, or U.S. territorial boundaries, or wholly within a 
U.S. territory or the District of Columbia, or between islands in 
the State of Hawaii; or the transportation of more than a de minimis 
volume of property moving as part of a continuous journey when any 
portion of the journey is conducted by aircraft. The assessment of 
whether property transported wholly within one state is more than a 
de minimis amount or is part of a continuous journey thereby 
constituting ``air transportation'' is specific to the facts and 
circumstances of each operation. 49 U.S.C. 40102(a)(5) and 14 CFR 
298.2.
    \2\ A ``citizen of the United States'' includes a corporation 
organized in the United States that (1) meets certain specified 
standards regarding the citizenship of its president, officers and 
directors, and holders of its voting interest and (2) is under the 
actual control of citizens of the United States. 49 U.S.C. 
40102(a)(15).
---------------------------------------------------------------------------

    Companies proposing to operate UAS to engage in air transportation, 
including the delivery of goods for compensation, must first obtain 
certificate or exemption authority from the Department prior to 
engaging in the air transportation. The Department intends to use its 
existing regulatory procedures for processing UAS operators' requests 
for economic authority. The Department's regulation in 14 CFR part 298 
(part 298) provides an exemption to air taxi operators from the 
certificate requirements of 49 U.S.C. 41101, provided that, among other 
things, the air carrier is a citizen of the United States as defined in 
49 U.S.C. 40102(a)(15), maintains liability insurance required by part 
205 of our rules (14 CFR part 205), and registers with the 
Department.\3\ The exemption authority conferred by part 298 is not 
available to air carriers that operate ``large'' aircraft.\4\ For UAS 
operators looking to transport goods for compensation, an exemption 
under part 298 is an appropriate form of economic authority. The 
Department will consider whether granting the exemption is appropriate 
based on the specific facts and circumstances of each proposed 
operation.
---------------------------------------------------------------------------

    \3\ See 14 CFR 298.3, 298.11, and 298.24.
    \4\ Large aircraft means any aircraft originally designed to 
have a maximum passenger capacity of more than 60 seats or a maximum 
payload capacity of more than 18,000 pounds (See 14 CFR 298.2).
---------------------------------------------------------------------------

    To become an air taxi operator, operators must submit a 
registration application (OST Form 4507) and a current aircraft 
liability insurance certificate (OST Form 6410).\5\ A stamped OST Form 
4507 with an effective date will be sent to the operator as 
confirmation of its approved air taxi registration with the Department. 
Initial registrations must be mailed along with the required filing 
fee.\6\ Air taxis located in the State of Alaska must submit their OST 
Form 4507 and OST Form 6410 to Federal Aviation Administration, Alaskan 
Regional Headquarters, AAL-231, 222 West 7th Ave., Box 14, Anchorage, 
Alaska 99513. All other air taxis must submit their OST Form 4507 and 
OST Form 6410 to Federal Aviation Administration, AFS-200, Rm. 831, 800 
Independence Ave. SW, Washington, DC 20591. Amendments may be filed 
electronically at [email protected]. Additional instruction 
material concerning air taxi registration can also be found in the 
FAA's air taxi guidance handbook, ``How to Become an On-Demand Air 
Carrier Operator.''
---------------------------------------------------------------------------

    \5\ Copies of both forms can be found at: https://www.faa.gov/about/office_org/headquarters_offices/avs/offices/afx/afs/afs200/afs260/exemptions/.
    \6\ Filing fee information is available at the above link and on 
OST Form 4507.

    Signed in Washington, DC, on April 24, 2018.
Joel Szabat,
Deputy Assistant Secretary for Aviation and International Affairs.
[FR Doc. 2018-09057 Filed 4-27-18; 8:45 am]
 BILLING CODE 4910-9X-P