situation report

Apr 23, 2019 | 18:24 GMT

1 min read

U.S.: Aviation Authority Certifies Drone Delivery Subsidiary as Small Airline

What Happened: The U.S. Federal Aviation Administration has certified a subsidiary of Alphabet, Inc. as a small airline, paving the way for the company to start delivering packages via drone, Bloomberg reported April 23.

Why It Matters: Although operations are still prohibited in urban areas, the decision is a notable step toward allowing companies to make commercial drone deliveries. The use of drone technology in logistics is a key development in the diversification of logistics operations and supply chains.

Background: Domestic regulations have long represented a major roadblock to large-scale drone deliveries in the United States.

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