FAA Bans Planesharing Startups

Comment

There will be no “ZimRide for airplanes”, according to an FAA ruling released today that prohibits private pilots from publicly offering seats on their planes in exchange for gas money, including via startups like AirPooler and Flytenow. The decision strikes a blow to the sharing economy, and comes in response to AirPooler formally requesting a clarification of the gray area it was operating in. Banning this form of planesharing (like ridesharing for aircraft) could keep people safe by preventing them from hopping in with rookie pilots. However, it will also make it more expensive for pilots to fly since they can’t share costs, reduce travel options for passengers, and kill off an entire category of startups.

AirPooler plans to ask for a clarification of the ruling, as it’s based on an unofficial draft for a 1963 proposal for planesharing, rather than the 1964 regulation that said pilots can privately ask if passengers want to join them and split costs if pilots paid their pro-rata share, we’re already planning the flight, and met some other restrictions.

Until now, the practice was often organized through word of mouth or bulletin boards at airfields but that will now be illegal. The new FAA ruling deems any kind of cost-sharing as compensation for the private pilots, whether they use old school means or a website to list their seats. It’s currently illegal to compensate private pilots unless they get a tough-to-attain certificate from the government to operate as an air carrier. Many private pilots lack this license so listing open seats on sites like AirPooler and Flytenow or via other low-tech methods for flights they planned to take won’t be permitted.

IMG_3792.PNG

The core part of the ruling from the FAA states “We conclude that, with regard to pilots using the AirPooler website, all four elements of common carriage are present. By posting specific flights to the AirPooler website, a pilot participating in the
AirPooler service would be holding out to transport persons or property from place to place for compensation or hire. Although the pilots participating in the AirPooler website have chosen the destination, they are holding out to the public to transport
passengers for compensation in the form of a reduction of the operating expenses, they would have paid for the flight.”

AirPooler CEO Steve Lewis writes to me in response that “While the FAA’s decision is confusing, it’s also stalling the opportunity for private enterprise and government to work together to foster innovation in the sharing economy. It’s a big disappointment for hundreds of thousands of pilots and for everyday travelers. Pilots, who have always loved to ride-share but found it difficult to arrange, were looking forward to taking advantage of modern sharing technology to offer seats as a way of defraying costs.”

Though there’s a slim chance AirPooler could get the ruling reversed on a technicality, for now there shall be no ridesharing in the sky.

More TechCrunch

Google has found a way to bring a variation of its clever “Circle to Search” gesture to iPhone users. The new interaction, launched in January, allows Android users to search…

Google brings a variation on ‘Circle to Search’ to iPhone users

A new sculpture going live on Wednesday in the Flatiron South Public Plaza in New York is not your typical artwork. It combines technology, sociology, anthropology and art to let…

Always-on video portal lets people in NYC and Dublin interact in real time

Apple’s iPad event had a lot to like. New iPads with new chips and new sizes, a new Apple Pencil, and even some software updates. If you are a big…

TechCrunch Minute: When did iPads get as expensive as MacBooks?

Autonomous, AI-based players are coming to a gaming experience near you, and a new startup, Altera, is joining the fray to build this new guard of AI agents. The company announced…

Bye-bye bots: Altera’s game-playing AI agents get backing from Eric Schmidt

Google DeepMind has taken the wraps off a new version of AlphaFold, their transformative machine learning model that predicts the shape and behavior of proteins. AlphaFold 3 is not only…

Google DeepMind debuts huge AlphaFold update and free proteomics-as-a-service web app

Uber plans to deliver more perks to Uber One members, like member-exclusive events, in a bid to gain more revenue through subscriptions.  “You will see more member-exclusives coming up where…

Uber promises member exclusives as Uber One passes $1B run-rate

We’ve all seen them. The inspector with a clipboard, walking around a building, ticking off the last time the fire extinguishers were checked, or if all the lights are working.…

Checkfirst raises $1.5M pre-seed to apply AI to remote inspections and audits

Close to a decade ago, brothers Aviv and Matteo Shapira co-founded a company, Replay, that created a video format for 360-degree replays — the sorts of replays that have become…

Controversial drone company Xtend leans into defense with new $40 million round

Usually, when something starts to rot, it gets pitched in the trash. But Joanne Rodriguez wants to turn the concept of rot on its head by growing fungus on trash…

Mycocycle uses mushrooms to upcycle old tires and construction waste

Monzo has raised another £150 million ($190 million), as the challenger bank looks to expand its presence internationally — particularly in the U.S. The new round comes just two months…

UK challenger bank Monzo nabs another $190M as US expansion beckons

iRobot has announced the successor to longtime CEO, Colin Angle. Gary Cohen, who previous held chief executive role at Timex and Qualitor Automotive, will be heading up the company, marking a major…

iRobot names former Timex head Gary Cohen as CEO

Reddit — now a publicly-traded company with more scrutiny on revenue growth — is putting a big focus on boosting its international audience, starting with francophones. In their first-ever earnings…

Reddit tests automatic, whole-site translation into French using LLM-based AI

Mushrooms continue to be a big area for alternative proteins. Canada-based Maia Farms recently raised $1.7 million to develop a blend of mushroom and plant-based protein using biomass fermentation. There’s…

Meati Foods bites into another $100M amid growth to 7,000 retail locations

Cleaning the outside of buildings is a dirty job, and it’s also dangerous. Lucid Bots came on the scene in 2018 with its Sherpa line of drones to clean windows…

Lucid Bots secures $9M for drones to clean more than your windows

High interest rates and financial pressures make it more important than ever for finance teams to have a better handle on their cash flow, and several startups are hoping to…

Israeli startup Panax raises a $10M Series A for its AI-driven cash flow management platform

The European Union has deepened the investigation of Elon Musk-owned social network, X, that it opened back in December under the bloc’s online governance and content moderation rulebook, the Digital Services Act…

EU grills Elon Musk’s X about content moderation and deepfake risks

For the founders of Atlan, a data governance startup, data has always been at the heart of what they do, even before they launched the company. In fact, co-founders Prukalpa…

Atlan scores $105M for its data control plane, as LLMs boost importance of data

It is estimated that about 2 billion people, especially those in lower and middle-income countries, lack access to quality and affordable essential medicines. The situation is exacerbated by low-quality or even killer…

Axmed raises $2M from Founderful to streamline drug supply chains in underserved markets

For decades, the Global Positioning System (GPS) has maintained a de facto monopoly on positioning, navigation and timing, because it’s cheap and already integrated into billions of devices around the…

Xona Space Systems closes $19M Series A to build out ultra-accurate GPS alternative

Bankruptcy lawyers representing customers impacted by the dramatic crash of cryptocurrency exchange FTX 17 months ago say that the vast majority of victims will receive their money back — plus interest. The…

FTX crypto fraud victims to get their money back — plus interest

On Wednesday, Google launched its digital wallet in India with local integrations, nearly two years after the app was relaunched as a digital wallet platform in the U.S. As TechCrunch exclusively reported last month,…

Google Wallet is now available in India

Bluesky has launched a new product roadmap for the coming months. The decentralized social network said on Tuesday that it is planning to introduce direct messages, support for videos, improved…

Bluesky to add DMs, video support and in-app custom feed curation

Samsung Medison, a medical device unit of Samsung Electronics that specializes in developing diagnostic imaging devices, said on Wednesday it plans to acquire Sonio, a Paris-based startup that makes AI-powered software…

Samsung Medison to acquire French AI ultrasound startup Sonio for $92.7M

Kyle Kuzma is a lot of things. He’s a forward for the Washington Wizards NBA team and a 2020 NBA champion. He’s also a style icon — depending on who…

NBA champion Kyle Kuzma looks to bring his team mentality to Scrum Ventures

Ofcom is cracking down on Instagram, YouTube and 150,000 other web services to improve child safety online. A new Children’s Safety Code from the U.K. Internet regulator will push tech…

Ofcom to push for better age verification, filters and 40 other checks in new online child safety code

Lipids are fatty, waxy or oily compounds that typically come in the form of fats and oils. As a result, they are heavily used in the production of beauty products,…

After a $20M Series A funding, Germany’s Insempra plans eco-friendly lipid production

Tesla CEO Elon Musk has said that lidar sensors are a “crutch” for autonomous vehicles. But his company has bought so many from Luminar that Tesla is now the lidar…

Tesla is Luminar’s largest lidar customer

U.S. realty trust giant Brandywine Realty Trust has confirmed a cyberattack that resulted in the theft of data from its network. In a filing with regulators on Tuesday, the Philadelphia-based…

Brandywine Realty Trust says data stolen in ransomware attack

Rivian lost $1.45 billion in the first quarter, showing that its recent company-wide cost-cutting measures have a ways to go before it can approach profitability. The EV-maker brought in $1.2…

Rivian loses $1.45B as cost-cutting measures continue

Meta is rolling out an expanded set of generative AI tools for advertisers, after first announcing a set of AI features last October. Now, instead of only being able to…

Meta’s AI tools for advertisers can now create full new images, not just new backgrounds