Chicago Firm Faces Record $1.9 Million Fine for Drone Flights

A Chicago company that flew drones over Chicago and New York faces a possible record-setting $1.9 million fine for putting drones into congested airspace without FAA permission.

The Federal Aviation Administration, calling the flights “reckless and dangerous,” proposed the fine on Tuesday for SkyPan International Inc., a high-end aerial photography firm, which initiated 65 unauthorized drone flights over Chicago and New York City from March 2012 to December 2014.

“These operations were illegal and not without risk,” the FAA said in a statement.

Such a fine would be a record. To date, the highest drone fine for an airspace violation was $18,700 against Xizmo Media, a New York video company.

“We have the safest airspace in the world, and everyone who uses it must understand and observe our comprehensive set of rules and regulations,” said FAA Administrator Michael Huerta.

Among its services, SkyPan captures full aerial views of development projects, including high-rise buildings. The images and videos are used on websites and in marketing materials.

“SkyPan has helped dozens of developers and their marketing partners successfully speed up their sales cycle by allowing people to see the actual views from any elevation of the project,” reads a statement on the company’s website.

Customers include the Trump Organization, Del Webb, Simon Properties, Wells Fargo, Ritz Carlton Residences and dozens of others.

SkyPan operated 43 flights in the New York Class B airspace without receiving an air traffic control clearance to access it, the FAA alleges. Additionally, the agency alleges the aircraft was not equipped with a two-way radio, transponder and altitude-reporting equipment. The FAA further alleges that on all 65 flights, the aircraft lacked an airworthiness certificate and effective registration, and SkyPan did not have a Certificate of Waiver or Authorization for the operations.

A SkyPan representative told reporters the company, which has 30 days to respond, has no comment.