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			 The potential partnerships between the Federal Aviation 
			Administration and industry would be a milestone in developing 
			unmanned aircraft that could be used for a variety of business 
			applications such as delivering packages, monitoring crops or 
			inspecting energy transmission pipelines. 
 It also raises the likelihood that beyond-visual-line-of-sight 
			(BVLOS) technology will ultimately be accepted by new commercial 
			drone regulations that the FAA is working to finalize within the 
			next two years.
 
 The proposed FAA rules unveiled in February would lift the current 
			near-ban on commercial drones. But the proposals, as written, still 
			would not allow for advanced operations such as package delivery 
			services championed by e-commerce company Amazon.com <AMZN.O> 
			because they require drones to remain within an operators visual 
			line of sight as a safety measure.
 
 However, while the FAA works to finalize regulations, companies can 
			win agency approval to use commercial drones on a case by case 
			basis. Up to now, the agency has not approved drones capable of 
			flying beyond an operator’s line of sight.
 
 
			
			 
			Beyond-line-of-sight operations use on-board cameras to enable an 
			operator to make course changes to avoid obstacles, including other 
			aircraft.
 
 The FAA's consideration of BVLOS operations comes amid intense 
			pressure from Congress and companies who say the technology, 
			originally developed for the military, is already being used in 
			other countries. Failure to adopt the technology, they argue, could 
			stifle the nascent U.S. market for commercial drones.
 
 The agency has heard from lobbyists representing a broad industrial 
			base ranging from aerospace manufacturers Boeing Co <BA.N>, Airbus 
			Group <AIR.PA> and Lockheed Martin Corp <LMT.N>, high-tech firms 
			Intel Corp <INTC.O> and iRobot Corp <IRBT.O> to the national gas 
			pipeline and agriculture industries.
 
 In an announcement that could come as early as next week, the FAA is 
			expected to set out plans for partnering with industry on commercial 
			BVLOS operations, according to the people familiar with the matter. 
			The agency would seek to limit safety risks by allowing flights only 
			under restricted conditions, such as uninhabited agricultural land 
			in remote locations.
 
 A FAA spokeswoman declined to comment.
 
 Sources said the new operations could be similar to BVLOS flights 
			that the University of Alaska has been conducting over the past five 
			years in remote regions above the Arctic Circle, where unmanned 
			aerial systems are used with FAA approval to map sea ice, monitor 
			marine life and inspect oil and gas installations.
 
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			The partnerships would be the latest among several FAA moves in 
			recent months to ease restrictions on commercial drones in the 
			United States.
 In April, the FAA loosened its requirement for outdoor testing to 
			occur at designated test sites, by granting Amazon approval to test 
			drones outdoors at a company-owned site. Amazon, other companies and 
			drone industry groups have also used a public comment period on the 
			proposed regulations to urge the agency to allow drones to fly 
			beyond line of sight.
 
 "BVLOS technology has matured to the point that BVLOS operations are 
			now permitted in some of other countries... where operations have 
			been conducted for years, with high levels of safety," commented the 
			Small UAV Coalition, whose members include Amazon, Google Inc 
			<GOOGL.O>, and smaller drone companies.
 
 The coalition asked FAA to permit certain BVLOS operations "in the 
			relatively near term", rather than waiting for the proposed rules to 
			be finalized over the next two years.
 
 "The agency is likely to receive requests from small UAS operators 
			seeking to conduct (beyond line of sight) operations ... long before 
			the rule is finalized," Amazon said last week in a comment to the 
			FAA.
 
 But the Air Line Pilots Association, which opposes beyond line of 
			sight operations because of safety reasons, said such operations 
			would come with "unacceptable risk."
 
 "The use of an on-board camera cannot replace the awareness provided 
			by direct observation by the operator/pilot or designated visual 
			observer."
 
 (Reporting by David Morgan, Editing by Soyoung Kim and Diane Craft)
 
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