Amazon receives FAA approval to begin testing new drone delivery in Arizona

According to Zhitong Finance APP, Amazon (AMZN.US) announced on Tuesday that it has received regulatory approval to begin flying a smaller, quieter delivery drone, marking the latest move in the company's long-standing push for this futuristic project. The company launched a new drone called MK30 in November 2022. At that time, the company stated that, among other changes, the MK30 could fly in light rain and had a range twice that of earlier models. Amazon stated that the approval from the Federal Aviation Administration (FAA) includes permission for the MK30 to fly at greater distances and beyond the pilot's line of sight. The agency granted a similar exemption to Amazon's Prime Air program in May, but it was limited to routes in College Station, Texas, which is one of the cities where the agency has been conducting tests. In addition to the FAA's approval, Prime Air's regulatory affairs director, Matt McCardle, stated that the company will begin drone deliveries near Phoenix, Arizona, on Tuesday. In April, Amazon announced plans to launch its drone business in the city of Tolleson, west of Phoenix, after shutting down an earlier testing site in Rockford, California. The company plans to deploy drones near its warehouse in Tolleson, hoping to integrate Prime Air more closely into its existing logistics network and further accelerate delivery speeds. An FAA spokesperson stated that the agency approved Amazon for beyond-visual-line-of-sight delivery in Tolleson on October 31. It is understood that Amazon founder Jeff Bezos first unveiled this ambitious service plan more than a decade ago, stating that it could be launched and operational within five years. Despite Amazon investing billions of dollars in the plan, progress has been slow. Prime Air has faced regulatory hurdles, missed deadlines, and underwent layoffs last year, while the company's CEO Andy Jassy has been aggressively cutting costs. The program has also lost some key executives, including its main contact with the FAA and its founding leader. Amazon has hired former Boeing (BA.US) executive David Carbon to manage the business. In cities where drone delivery is being trialed, the company has also faced opposition from some residents. According to previous reports, residents of College Station complained about high noise levels, prompting the city's mayor to mention these concerns in a letter to the FAA. In response, Amazon executives told residents that the company would identify a new drone delivery launch site by October 2025. Amazon is not the only company trying to advance drone delivery. Competitors in this field include Wing, a subsidiary of Google (GOOGL.US), United Parcel Service (UPS.US), Walmart (WMT.US), and numerous startups such as Zipline and Matternet