The Importance of FAA Regulation in the Drone Industry

Why did the drone makers want the U.S. Federal Aviation Administration to regulate the drone industry?

1. To ensure safety, privacy, and responsible innovation

2. To learn from past airline industry experiences

Answer:

Drone makers seek FAA regulation to ensure safety, privacy, and responsible innovation, learning from past airline industry experiences where regulation provided stability, but deregulation introduced competitive markets with both positive and negative outcomes.

Drone makers have encouraged the U.S. Federal Aviation Administration (FAA) to regulate the drone industry in order to establish clear rules for operation, ensure public safety, and promote industry growth. The presence of regulation can provide a framework that promotes responsible use and innovation while addressing privacy and safety concerns.

With the regulation of air travel, history has shown us the importance of federal oversight for maintaining order and safety standards in aviation. The Civil Aeronautics Board (CAB) regulated the airline industry from 1938 to 1978, managing airfares, routes, and market entry, which led to a stable but competition-limited environment. However, the results of airline deregulation highlighted the potential for increased competition and lower prices, but also the challenges related to market instability and regulatory capture.

Regulatory bodies like the CAB and now the FAA play critical roles in the balance between regulation and deregulation. In the case of drones, makers seek to avoid a repeat of past challenges, where close industry involvement led to regulatory capture or regulations that stifle innovation. Proper FAA regulation of drones could prevent misuse, protect privacy, and allow for healthy competition and innovation within the industry.