The US Federal Aviation Administration (FAA) has authorized Alphabet's drone-based delivery division, Wing, and Zipline to conduct commercial drone flights without visual observers in Dallas, Texas. This is the first such approval in US aviation.

These companies will use Unmanned Aircraft System Traffic Management (UTM) technology to manage airspace, ensure safety, coordinate flight routes, and avoid crewed aircraft.

Initial beyond-visual-line-of-sight (BVLOS) flights are set to begin in August, with further authorizations expected soon in the Dallas area.

Analyst QuickTake: Wing and Zipline are prominent drone-based delivery services in the last-mile delivery automation space, with both launching commercial drone-based delivery operations. Wing was the first in the industry to receive the FAA’s approval for commercial drone-based deliveries in April 2019, while Zipline was the fourth to obtain the same approval in July 2020. Today’s development further reflects the FAA's evolving approach to integrating drones into commercial aviation, with future regulations more likely to support wider-scale drone operations.