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Recent development in drone delivery commercialization in Canada

By Kathryn McCulloch, Alessandro Bozzelli, and Caitlin Choi
January 17, 2018
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On December 15, 2017, Toronto-based technology company Drone Delivery Canada (DDC) announced that Transport Canada has accepted the company’s declaration of compliance for the X1000 Sparrow (Sparrow). The Sparrow is a cargo delivery drone, and the first of its kind to be accepted under Transport Canada’s program for compliant unmanned aircraft systems (UAS). The news represents a step forward in the provision of commercial drone delivery services in Canada.

As reported in an earlier blog post, DDC has plans in motion to launch the first commercial drone delivery service in Canada. Currently in its test phase, the pilot program will deliver food, mail and medical supplies via drones to the remote Moose Cree First Nation Community situated in Northern Ontario.

A Special Flight Operations Certificate (SFOC) is required to operate a drone that weighs more than 35 kg, or is used for work or research, unless exempt under Transport Canada rules. A compliant UAS, or drone, is the first of three regulatory components to Transport Canada’s UAS compliance program, and mandatory for a SFOC. DDC expects to obtain the balance of the three approvals for becoming a Transport Canada compliant UAS operator in early 2018.

“Achieving Compliant UAV Status is the first of three very critical steps in DDC achieving its Compliant Operator Status Certificate. We anticipate obtaining the balance of the approvals in early Q1 2018,” said Tony Di Benedetto, CEO of DDC.

A compliant UAS is also the first requirement for permission to conduct “beyond visual line-of-sight” (BVLOS) operations. BVLOS capabilities are essential for the commercialization of drone delivery, as it allows an operator to pilot a drone beyond its visual range.

During recent research and development flights, according to DDC, the Sparrow has demonstrated a history of safe operation in some of the harshest environmental conditions in Canada’s northern regions. According to MacLean’s, the Sparrow is capable of carrying approximately 4.5 kg of goods on a 10 km trip, in around five minutes.

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Kathryn McCulloch

About Kathryn McCulloch

Kathryn's clients range from Fortune 500 and multi-national corporations to start-up companies and individuals. With a strategic focus on reaching early resolution to claims, Kathryn looks to achieve timely resolution of disputes through alternative dispute resolution tools, including formal and informal mediation. Kathryn’s key areas of practice and knowledge include aviation, drone (RPAS) regulation, banking, estates, commercial leasing and oppression actions.

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Alessandro Bozzelli

About Alessandro Bozzelli

Alessandro is a senior associate in Dentons' Banking and Finance group. His practice involves representing both borrowers and lenders in various banking matters and commercial transactions as well as representing clients in insolvency, restructuring and related commercial litigation.

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Caitlin Choi

About Caitlin Choi

Caitlin is an associate in the Media, Entertainment and Sports and Corporate groups at Dentons.

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