FAA seeks record $1.9 million fine from drone company SkyPan

WASHINGTON – The Federal Aviation Administration will seek a record $1.9 million fine from a drone company that it says endangered safety by flying scores of flights over some of the country's most congested airspace over New York and Chicago.

The enforcement action Tuesday against SkyPan International Inc. of Chicago is the largest yet against a drone company. SkyPan, whose clients include Four Seasons, Ritz Carlton, Trump and Vornado, has 30 days to respond formally to the allegations. Karl Brewick, studio manager and production coordinator for the company, declined to comment Tuesday. He said the company had not reviewed the civil case.

The FAA charges SkyPan flew 65 unauthorized flights between March 21, 2012, and Dec. 15, 2014.  SkyPan lacked the proper certificate and registration for the flights, didn't have special permission from FAA or air-traffic control and the aircraft weren't equipped with equipment to signal their presence to other aircraft, the FAA said.  The drone industry is relatively new and the FAA has yet to fully develop comprehensive rules for how commercial drones will share the skies with passenger planes.

“Flying unmanned aircraft in violation of the Federal Aviation Regulations is illegal and can be dangerous,” FAA Administrator Michael Huerta said.

SkyPan applied on Dec. 22, 2014 for an FAA exemption to fly drones. The FAA approved the exemption on April 17 for use of an Align T Rex 700E F3C drone that weighs 19 pounds with payload. The approval allows the drone to fly up to 400 feet above ground and at least 500 feet away from people not associated with the flight, during the day and within sight of the operator or an observer.

In its application, SkyPan said it has been conducting aerial  photography above private property in urban areas for 27 years, using both full-size helicopters and remote-controlled helicopters. The flights are typically over dirt, grass or paved lots to show high-rise views that assist developers with design plans for new buildings, according to the application. The images have been used to sell or lease $55 billion of commercial and residential real estate since 1988, the application said.

SkyPan is proud of its robust record of protecting the public's safety, security and privacy," said the filing from lawyer Gregory Walden.

SkyPan says its drones "are ushering in a whole new world of aerial and panoramic photography," with 360-degree bird's-eye views. "The technology is ours – how to use it is up to you," the company says on its website featuring aerial pictures of New York and Chicago.

"