Drones for tomorrow’s air Unmanned Conference – Venlo, NL – June 2017

Celine Hourcade Head, Cargo Transformation, IATA IATA – International Air Transport Association We represent, lead and serve the airline industry

Global trade association | 275 member airlines 400+ strategic partners | 1500 employees

Drones for tomorrow’s – Unmanned Cargo Aircraft Conference – 13 June 2017 We work for commercial aviation

 Passenger … and cargo  Traditional … and (not-so) new business models  Scheduled … and charter  Manned … and unmanned

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Today we live in the age of drones

Military Photography Fishery

Firefighting Recreation Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Impacting directly airline’s industry

Aircraft inspection Warehouse sorting Alternative aircraft

Specialized delivery Parcel delivery Passenger drones Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 The path towards integration

Work Area 1 Work Area 2 Work Area 3

Safety & Air Traffic Integrated Security Management Operations

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 1. Safety first

 Dialogue and collaboration with all players  Joint safety statements  Awareness and education campaigns

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 2. Air Traffic Management

 Unmanned Traffic Management - UTM  Established and new airspace structure . Capacity, efficiency . Regulations . Technology and spectrum (detect & avoid)  Concept of Operations . Costs and economic models

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 3. Integrated Operations

 IATA to investigate new operations . Cargo operations / as part of StB Cargo . operations  Joint work between Operations Committee and Cargo Committee

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017

Unmanned cargo aircraft – UCAs Large

- Long range / ultra-large payload

Ultra arge

L Long range / high payload Mid

SIZE Special delivery Small

parcel mall

S delivery

Ultra Short Short Medium Long Ultra Long DISTANCE Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Small parcels (even pizzas ) delivery

 Amazon, Postal operators, DHL, Domino’s…

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Matternet

 1 kg  20 km

 On-demand healthcare logistics

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Zipline

 1.5 kg  75 km (150 km round trip)

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Unmanned helicopter: UMS Skeldar V-200

 235 kg  90 km  VTOL

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Romaeris Corp

 250 kg  1800 km

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Dronamics’ Black Swan

 350 kg  Cheaper to own and operate  2500 km  Agile / on-demand cargo  Thin routes, e-commerce

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Singular Aircraft / Flyox I (soon to be operated by Astral Aerial)

 2000 kg  1200 km  Air transport of Oil and Gas equipment from the central logistics hub to the oilfields

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Natilus’ BWB 100 ton Freighter

 100 ton  12000 km  Amphibious

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Opportunities for airlines

 Create new business / revenues / ancillaries: last mile service integration, viable thin routes / irregular routes opening  Address new markets with infrastructure limitations  Secure big markets like e-commerce and pharma (time and temperature sensitive)  Reduce costs with cheaper aircraft to own and operate  Help achieve carbon footprint targets  Replace trucks (RFS) by drones (DFS)

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 “(I’d) like to switch our fleet to UAVs as soon as possible”

Fred Smith, Founder / CEO Fedex [Wired Magazine Interview, 2009]

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Open questions on cargo side

 Threats? Opportunities?  Substitution or new business activities?  Will we see drones everywhere for last-mile delivery? Urbanized areas? Rural / remote areas?  Is there a commercial market for large UAVs?  Are we talking about short, medium or long term adoption?

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 What has to be done next (for cargo)?

 Regulations (balancing safety and  Technologies innovation) . Safety & security (geo-fencing, collision . Safety avoidance, drone-to-drone . Security communication, drone integrity) . Air space navigation / air traffic . Aircraft design (payload, distance, management Take-off & landing, energy) . Liability issues . Carrying payload against remuneration . Noise not yet allowed in many jurisdictions. For . Sustainability how long?  Infrastructures  Market . Commercial opportunities / needs . / droneports . Costs / aircraft design . Delivery zones . Mindset . Trained operators . Public opinion / social acceptance

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 End goal

 Drones must be able to operate in controlled airspace like any other aircraft (OECD / ITF)  The industry needs to facilitate this new branch of aviation by developing standards to support safe, efficient, orderly, reliable, and sustainable high-frequency drone operations into the airspace system (IATA)

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 Help us build the right standards

 Network and influence  Make your voice heard  Be part of the solution

 Join our new UAV/Drone Strategic Partnership Program!

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017 1st IATA Drones event: 2 full days on UAVs

Early bird rate if you register before 23rd of June www.iata.org/events/Pages/drones-conference.aspx

Interested in attending, speaking, sponsoring? Contact me! [email protected]

Drones for tomorrow’s air cargo – Unmanned Cargo Aircraft Conference – 13 June 2017