Drone Regulations: FAA Issues Largest Fine Ever To UAV Company For Illegal Flights

The Federal Aviation Administration may have loosened its regulations on drones last summer, but it’s still cracking down on those who violate the rules. The administration issued its largest civil penalty ever Tuesday to drone company SkyPan International.

The settlement agreement between the FAA and SkyPan will require the Chicago-based company to pay $200,000 for conducting 65 illegal drone flights in congested airspace over Chicago and New York City, the FAA said.

Beyond the civil penalty, SkyPan agreed to pay an additional $150,000 if it violates FAA regulations in the next year, and $150,000 more if it fails to comply with the terms of the settlement agreement.

Even with the looming threat of additional penalties, SkyPan managed to escape with considerably less of a penalty that was initially proposed by the FAA. When the regulatory body first proposed its actions against the drone company back in October 2015, it suggested a penalty of $1.9 million.

SkyPan, which advertises itself as an aerial imaging company that uses drones to capture images for developers and architects, will also work with the FAA to create three public service announcements over the next 12 months to help spread awareness about drone operator regulations.

The FAA’s penalty was issued for illegal flights conducted by SkyPan between 2012 and 2014, which it did without securing proper clearance from the administration. The flights were also done without proper communication tools and without being granted airworthiness certificates and registrations for the crafts.

SkyPan’s violations took place prior to the FAA implementing its new rules for commercial use. In August 2016, a new set of rules requiring the registration of drones and the acquisition of a pilot’s certificate were set in place. The administration also opened up the possibility of commercial drone use.

At CES 2017, the FAA announced it had seen a considerable influx of applications for drone pilot licenses, but also experienced an increase in the number of unauthorized drones spotted in sensitive areas like airports.