Startups

The FAA Is Deciding If Planesharing Apps Are Legal

Comment

Image Credits:

The Federal Aviation Administration is formally deliberating on whether amateur pilots can use apps and websites to trade extra seats on flights they’ve planned in exchange for gas money. Amateur pilots aren’t allowed to profit from flying passengers, but several startups like Flytenow have set up private plane ridesharing sites, akin to Zimride for the sky.

Now, one startup called AirPooler has submitted an official request for legal interpretation to clear up the grey area, and confirms the FAA is expected to take a stance within its traditional 120 day window to respond. Until then, AirPooler has ceased listing flights on its site. The FAA didn’t return a request for comment, which is somewhat expected as I’m told it’s unlikely to discuss details of on-going deliberations.

screen-shot-2014-04-02-at-1-46-00-pm

AirPooler‘s attorney Rebecca MacPherson, who is highly qualified to comment since she was the former FAA assistant chief counsel, tells me “This is an issue that the FAA is very uncomfortable with because they’re worried about abuses. They’re looking at what restraints they could put on the response to make sure there’s a minimum number of bad actors in the marketplace.”

The FAA has historically prohibited private pilots from acting like taxis out of concern for safety. Commercial pilots and their planes are held to stricter “common carriage” safety standards because they’re so viscerally taking other people’s lives in their hands. Pilots typically only use word of mouth or other low-tech means of asking around if anyone wants to fly with them. There’s just too much risk of corner-cutting if they’re allowed to chase profits.

screen-shot-2014-04-02-at-1-45-19-pmYet flying is expensive. Gas for a short flight for recreation or to improve a pilot’s skills can cost hundreds of dollars. That prohibits many from the hobby. This is why the FAA does permit amateur pilots to find passengers and have them pay a maximum of their pro-rata share of the gas, oil, airport expenditures, and rental fees. If those came out to be $500 in total, the passenger could pay a maximum of $250, and the pilot has to pay a minimum of his pro-rata share — $250. The big rule here, though, is that pilots have to be planning to take the flight whether or not they get any additional passengers. They can’t set up flights at the request of or just to meet the demand of passengers.

This law gave rise to startups like AirPooler and Flytenow that want to make flying affordable for pilots, while giving others a fast, fun, reasonably priced way to travel that cuts down on total carbon emissions. Still, when I covered AirPooler, many readers said they were terrified of the idea of planesharing, especially the prospect of rookie pilots carrying passengers. You can see our intrepid writer Sarah Buhr actually go up with Flytenow in the video below.

MacPherson says regulators “certainly have some legitimate concerns that these kinds of operations [like AirPooler] would require a little more oversight than they’re used to giving the general aviation community.” She was hopeful that the FAA will preserve the planesharing ability, but make it officially legal for pilots to list extra seats on flights they were planning on sites like AirPooler, and allow companies that facilitate the connection to earn a cut of the passenger’s contribution. In the example above, if AirPooler took its 20 percent, the pilot would pay $250, while the passenger would pay the pilot $200 and AirPooler $50.

“I did comprehensive research of everything the agency has said in this area, and I would be really surprised if they came out and said ‘no you can’t do it’…I don’t think there’s any evidence to support that position” MacPherson speculated to me, though obviously she’s partial to AirPooler’s side.

02300

She does predict at least three significant caveats if the FAA does approve planesharing.

  • Flights listed with open seats have to actually be flown, whether or not passengers sign up. If someone repeatedly sets up flights and then cancels them for lack of interest, the FAA will come after them
  • Pilots won’t be able to set up an unlimited number of flights. Most pilots fly a handful of times a month at most, and less experienced pilots fly even less. Listing too many flights will warrant FAA investigation
  • Professional private plane pilots won’t be able to this use this system in their off-hours to drum up business. Big commercial pilots will probably be fine, but planesharing can’t be used to promote for-profit flying otherwise it could be seen as a way to skirt commercial regulation.

unnamed1If the FAA policed these issues, it could mitigate risks while democratizing access to both being a pilot and traveling via private plane. If it lets planesharers run amok, we could see inexperienced pilots cramming in too many flights that are beyond their skill level, which could have fatal results. At least the incentives are aligned, as the only people who want planes falling out of the sky less than the FAA are those on board.

More TechCrunch

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Well,…

Startups Weekly: Drama at Techstars. Drama in AI. Drama everywhere.

Last year’s investor dreams of a strong 2024 IPO pipeline have faded, if not fully disappeared, as we approach the halfway point of the year. 2024 delivered four venture-backed tech…

From Plaid to Figma, here are the startups that are likely — or definitely — not having IPOs this year

Federal safety regulators have discovered nine more incidents that raise questions about the safety of Waymo’s self-driving vehicles operating in Phoenix and San Francisco.  The National Highway Traffic Safety Administration…

Feds add nine more incidents to Waymo robotaxi investigation

Terra One’s pitch deck has a few wins, but also a few misses. Here’s how to fix that.

Pitch Deck Teardown: Terra One’s $7.5M Seed deck

Chinasa T. Okolo researches AI policy and governance in the Global South.

Women in AI: Chinasa T. Okolo researches AI’s impact on the Global South

TechCrunch Disrupt takes place on October 28–30 in San Francisco. While the event is a few months away, the deadline to secure your early-bird tickets and save up to $800…

Disrupt 2024 early-bird tickets fly away next Friday

Another week, and another round of crazy cash injections and valuations emerged from the AI realm. DeepL, an AI language translation startup, raised $300 million on a $2 billion valuation;…

Big tech companies are plowing money into AI startups, which could help them dodge antitrust concerns

If raised, this new fund, the firm’s third, would be its largest to date.

Harlem Capital is raising a $150 million fund

About half a million patients have been notified so far, but the number of affected individuals is likely far higher.

US pharma giant Cencora says Americans’ health information stolen in data breach

Attention, tech enthusiasts and startup supporters! The final countdown is here: Today is the last day to cast your vote for the TechCrunch Disrupt 2024 Audience Choice program. Voting closes…

Last day to vote for TC Disrupt 2024 Audience Choice program

Featured Article

Signal’s Meredith Whittaker on the Telegram security clash and the ‘edge lords’ at OpenAI 

Among other things, Whittaker is concerned about the concentration of power in the five main social media platforms.

11 hours ago
Signal’s Meredith Whittaker on the Telegram security clash and the ‘edge lords’ at OpenAI 

Lucid Motors is laying off about 400 employees, or roughly 6% of its workforce, as part of a restructuring ahead of the launch of its first electric SUV later this…

Lucid Motors slashes 400 jobs ahead of crucial SUV launch

Google is investing nearly $350 million in Flipkart, becoming the latest high-profile name to back the Walmart-owned Indian e-commerce startup. The Android-maker will also provide Flipkart with cloud offerings as…

Google invests $350 million in Indian e-commerce giant Flipkart

A Jio Financial unit plans to purchase customer premises equipment and telecom gear worth $4.32 billion from Reliance Retail.

Jio Financial unit to buy $4.32B of telecom gear from Reliance Retail

Foursquare, the location-focused outfit that in 2020 merged with Factual, another location-focused outfit, is joining the parade of companies to make cuts to one of its biggest cost centers –…

Foursquare just laid off 105 employees

“Running with scissors is a cardio exercise that can increase your heart rate and require concentration and focus,” says Google’s new AI search feature. “Some say it can also improve…

Using memes, social media users have become red teams for half-baked AI features

The European Space Agency selected two companies on Wednesday to advance designs of a cargo spacecraft that could establish the continent’s first sovereign access to space.  The two awardees, major…

ESA prepares for the post-ISS era, selects The Exploration Company, Thales Alenia to develop cargo spacecraft

Expressable is a platform that offers one-on-one virtual sessions with speech language pathologists.

Expressable brings speech therapy into the home

The French Secretary of State for the Digital Economy as of this year, Marina Ferrari, revealed this year’s laureates during VivaTech week in Paris. According to its promoters, this fifth…

The biggest French startups in 2024 according to the French government

Spotify is notifying customers who purchased its Car Thing product that the devices will stop working after December 9, 2024. The company discontinued the device back in July 2022, but…

Spotify to shut off Car Thing for good, leading users to demand refunds

Elon Musk’s X is preparing to make “likes” private on the social network, in a change that could potentially confuse users over the difference between something they’ve favorited and something…

X should bring back stars, not hide ‘likes’

The FCC has proposed a $6 million fine for the scammer who used voice-cloning tech to impersonate President Biden in a series of illegal robocalls during a New Hampshire primary…

$6M fine for robocaller who used AI to clone Biden’s voice

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Is it…

Tesla lobbies for Elon and Kia taps into the GenAI hype

Crowdaa is an app that allows non-developers to easily create and release apps on the mobile store. 

App developer Crowdaa raises €1.2M and plans a US expansion

Back in 2019, Canva, the wildly successful design tool, introduced what the company was calling an enterprise product, but in reality it was more geared toward teams than fulfilling true…

Canva launches a proper enterprise product — and they mean it this time

TechCrunch Disrupt 2024 isn’t just an event for innovation; it’s a platform where your voice matters. With the Disrupt 2024 Audience Choice Program, you have the power to shape the…

2 days left to vote for Disrupt Audience Choice

The United States Department of Justice and 30 state attorneys general filed a lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, for alleged monopolistic practices. Live Nation and…

Ticketmaster antitrust lawsuit could give new hope to ticketing startups

The U.K. will shortly get its own rulebook for Big Tech, after peers in the House of Lords agreed Thursday afternoon to pass the Digital Markets, Competition and Consumer bill…

‘Pro-competition’ rules for Big Tech make it through UK’s pre-election wash-up

Spotify’s addition of its AI DJ feature, which introduces personalized song selections to users, was the company’s first step into an AI future. Now, Spotify is developing an alternative version…

Spotify experiments with an AI DJ that speaks Spanish

Call Arc can help answer immediate and small questions, according to the company. 

Arc Search’s new Call Arc feature lets you ask questions by ‘making a phone call’