Mesa Air to Test Delivery Drones

"Mesa Air Group Inc. said it is planning to test home delivery of food and beverages via drones in Nevada by the end of the year, as it considers the potential for nationwide service.

The regional airline's move comes as big e-commerce players including Amazon.com Inc. and Alphabet Inc.'s Google unit as well as dozens of startups pursue drone delivery to household consumers. All face the challenge of securing regulatory approval and stirring consumer acceptance as demand for home delivery continues to boom.

Makers of new air transport technology such as drones and air taxis are joining with established aviation companies including airlines and helicopter operators to help secure backing from regulators.

They face similar challenges, notably how they can be operated safely over urban areas. Proponents maintain they are cheaper and more environmentally friendly than cars and taxis, even if routine consumer deliveries and rides remain years away.

"We don't know what's going to work and what's not," said Mesa Chief Executive Jonathan Ornstein.

Phoenix-based Mesa plans to start with four drones made by Flirtey Inc. of Reno, Nev., with options on an additional 500 over the next four years to expand the service in the U.S. and to New Zealand.

 

The four-rotor Flirtey Eagle electric drones fly autonomously. The company expects them to be operated from restaurants, lowering deliveries on a 60-foot line to consumers' doorsteps before returning to base.

 

U.S. regulators are developing rules to integrate commercial drones with existing airspace users such as aircraft. The biggest focus is on qualifying drones to fly commercially when operators can't see them. A unit of United Parcel Service Inc. is the only company so far to receive a license.

Mesa flies passengers on shorter routes on behalf of carriers including United Airlines Holdings Inc., but Mr. Ornstein said traffic growth has stalled. The company has diversified with all-cargo flights on jetliners and plans to operate air taxis and small, electric aircraft when the technology matures and regulators sign off.

Delivery drones are closer to fruition. Flirtey in 2015 made the first flight approved by the Federal Aviation Administration, which has also allowed pilot programs by Amazon and others.

Mr. Ornstein said the trial in less densely populated parts of Reno aims to provide the operational data to support a broader rollout across the country and overseas. A safe, operational record would also help lower some of the regulator's existing requirements, Mr. Ornstein said.

Flirtey's drones have a human-monitored camera to ensure that, for example, pizzas aren't lowered onto someone's head. The company hopes over time that this can be replaced by sensors, improving its labor-cost advantage over other delivery options.

 

Flirtey CEO Matthew Sweeny said the market sweet-spot is 10-minute deliveries in a 3-mile radius for its drones. The drones can carry up to 8 pounds, equivalent to four large pizzas. He said initial costs will be similar to conventional delivery modes but cheaper when they are scaled up.

 

Mr. Sweeny declined to identify potential food-service providers. He said Flirtey had conducted test flights to deliver packages in recent years with a Domino's Pizza franchisee in New Zealand and with a 7-Eleven Inc. store in Reno." [1]

 All those bicycle delivery people in big cities will be left without work

1. Business News: Mesa Air to Test Delivery Drones
Cameron, Doug.  Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 22 Oct 2021: B.6.