New FAA rule charts a path for deployment of air taxis, advanced mobility aircraft

On October 22, 2024, the Federal Aviation Administration (FAA) issued a long-awaited final rule providing new and amended regulations and standards to govern powered vertical-takeoff and -landing, low-speed aircraft. FAA’s rule refers to this new and emerging category of aircraft collectively as “powered-lift.” The final regulations – the first for a new aircraft category in almost 80 years – will take effect 60 days after they are published in the Federal Register.

The rule marks a significant milestone in FAA’s ongoing efforts to integrate powered-lift and advanced air mobility operations into the national airspace system (NAS). The regulations promulgated by the new rule revise FAA’s training, certification, and operating requirements to reflect the different challenges, designs, and operational environments associated with powered-lift aircraft. Additionally, the rule includes a ten-year Special Federal Aviation Regulation (SFAR), which supplements existing regulations and customizes requirements and operational rules for powered-lift aircraft to accommodate their diverse designs and potential applications. The SFAR is intended to encourage accelerated integration of powered-lift aircraft in the short term, while allowing FAA a decade to gather and evaluate technological and operational data that will guide the development of future regulations.

This alert provides a high-level summary of significant components of the rule and offers a few preliminary observations about its potential effects on the commercialization of powered-lift transportation and other rapidly developing air transportation technologies in the US.[1]

Overview of the new regulations

FAA envisions the use of powered-lift aircraft in a wide range of future operations in both urban and rural settings, including various passenger and cargo transportation applications, emergency response, and more. Accordingly, the final rule is designed to accommodate diverse potential uses, designs, and operational environments of such aircraft, primarily through the use of performance-based operational standards. This approach is intended to allow safe development and deployment of powered lift while avoiding unnecessary regulatory burdens. The final rule also establishes requirements for pilot certification and training and amends existing regulations to facilitate the safe integration of powered-lift into the NAS.

Here’s a general summary of some of the significant new and revised regulations included in the final rule:

• Introduction of new aircraft category: Approves powered-lift as a new category of aircraft for operation in the NAS, using existing certification requirements with adjustments to address their novel features and technology.
  
  
• Aircraft certification: Confirms that FAA will evaluate powered-lift as a special class, pursuant to 14 CFR § 21.17(b), in type-certification evaluations. This allows FAA to separately consider each aircraft’s unique design characteristics to ensure selected airworthiness criteria are appropriate to its design, intended operations, and safety. Proposed airworthiness criteria for each powered-lift will be published in the Federal Register.
  
  
• Operational standards: Addresses operational safety risks of powered-lift by extending, where appropriate, certain operational rules that currently apply to airplanes, helicopters, and rotorcraft, to now include powered-lift. This includes changing provisions of Parts 43 (Maintenance, Preventive Maintenance), 91 (General Operating and Flight Rules), 97 (Standard Instrument Procedures), 135 (Commuter and On-Demand Operations), and 136 (Commercial Air Tours). The operating requirements for powered-lift are largely performance-based and reflect input and data provided by the industry and commenters during the rulemaking process.
  
  
• Powered-lift pilot certification standards: Creates several options for powered-lift certification for pilots, including using a single flight control that can be shared by the instructor and the student; using simulators for training and solo experience; and allowing potential deviation authority for future technologies that are validated by FAA. These multiple pathways to certification are intended to offer flexibility and cost-effective training solutions for pilots.
  
  The rules do not establish classes within the category of powered-lift aircraft. This reflects the agency’s determination that there is too much variation within powered-lift (eg, configurations, unique inceptors, diversified flight controls, and distinctive operating characteristics) to establish common training requirements that could apply to all aircraft within the group. FAA further notes it does not presently have sufficient operational data to create classes based on common characteristics. Accordingly, the final rule requires pilots to be type-rated for each specific powered-lift aircraft they operate. As FAA develops more knowledge and experience with powered-lift, it is possible the agency might revise or refine this or other areas of the regulations.
  
  
• Powered-lift pilot training requirements: Aligns training and qualification requirements for powered-lift pilots with those for airplane and rotorcraft pilots, and provides additional training and certification flexibility to Part 135 operators to meet the practical test requirements for powered-lift ratings. Notably, FAA adopts an alternate framework to allow flight training in a powered-with-single-functioning flight control and a single-pilot station, unlike the dual controls mandated for other aircraft being used for flight instruction and practical tests.
  
  
• Standards applicable for powered-lift instructors, training centers: Harmonizes the standards for instructors and simulators for powered-lift and rotorcraft training centers (Part 142), to ensure consistent and high-quality training for powered-lift pilots.

Industry reaction and what comes next

The nascent “air taxi” industry has largely welcomed the new rule, commending FAA for its action. Michael Robbins, president and CEO of the Association for Uncrewed Systems International, stated that the rule marks “a critical step forward in enabling the [electric vertical take-off and landing]-segment of the Advanced Air Mobility industry to launch and scale.”

FAA’s final rule on powered-lift is a significant milestone in the regulatory journey toward the broader goal of advanced air mobility (AAM). AAM aims to revolutionize urban and regional transportation by integrating new and innovative aircraft – including powered-lift – into the NAS. FAA’s vision for AAM was outlined, in part, in the agency’s 2023 blueprint for operation of Urban Air Mobility vehicles. Powered-lift appears poised to play an important role in urban air mobility and AAM. However, further rulemaking will be necessary to effectively integrate various emerging aircraft and technologies (including uncrewed aircraft and systems, or “drones”) into the NAS.

Recently, congressional leaders and industry groups have criticized FAA for delaying initiation of a rulemaking to create regulations allowing operation of unmanned aerial vehicles without a visual observer. Beyond visual line of sight (BVLOS) operations are important to enable continued growth of the commercial drone industry. The FAA Reauthorization Act, enacted in May 2024, directed FAA to commence a rulemaking for BVLOS drone operations by mid-September 2024. FAA now indicates that a notice of proposed rulemaking regarding this subject will likely issue in early 2025. DLA Piper will continue to monitor this and related regulatory developments.

Conclusion

"Powered-lift" is the first completely new category of civil aircraft introduced to federal regulations since helicopters were introduced in the 1940s. Currently, there are no type-certificated powered-lift aircraft in civil operations; however, several applicants are seeking type certificates for such aircraft. Several industry participants have announced plans to deploy powered-lift aircraft under the new regulations in 2025. Successful integration and commercial deployment of powered-lift aircraft could have far-reaching effects on the aviation industry and transportation of passengers and some freight, particularly for urban and regional air mobility uses.

DLA Piper’s transportation regulatory practice has extensive experience with transportation regulation, compliance, licensing, and enforcement matters, in the US and internationally. Should you have any questions or concerns regarding the potential effect of the final rule on your business or interests, please contact any of the authors or your usual DLA Piper contact.

[1] The lengthy new rule (preamble alone is more than 700 pages) covers a number of subjects affecting a range of transportation and aviation interests, and a detailed review of the rule is beyond the scope of this alert.