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Amazon Introduces Prime Air

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PUAD524- Public Budgeting
Fall 2014
Vanessa Weatherington

“Amazon asks permission for drone flights”
Julian Hattem

As Amazon’s customer base grows the company is seeking to launch a faster way to deliver packages, drone flights. Amazon recently asked permission from the Federal Aviation Administration (FAA) to test drones in their regulated airspace to determine the next course of action for their new delivery method “Amazon Prime Air”. Hattem believes this is a sign that the company has every intention to move forward with the new delivery plans as they have also hired lobbyists to spread the word about the initiative. “Amazon Prime Air”, is said to have the ability to deliver packages in 30 minutes or less, a huge difference from the company’s current fastest shipping time of overnight. Customers will see their packages zipping through the air as they make their way to the doorstep. The vast majority, 85 percent, of Amazon’s shipments consists of items weighing 5 pounds or less, making drone deliveries even more desirable.

This issue of the commercial use of drones’ impacts federal, state and local budgets in a variety of ways. As stated in the article the FAA is under pressure to move quickly on making these decisions as companies are eager to put their plans to action. The FAA, a federally run agency, will be required to reform and institute new policies surrounding the commercial use of drones. This requires the utilization of federal dollars to fund additional manpower to work on instituting new regulations and drone testing. The federal government is also impacted in that additional staff will need to be hired and trained to manage the increased airspace traffic. As mentioned in chapter 15 of the textbook, Intergovernmental Relations: Structural and Fiscal Features of the Intergovernmental System, the United States alone includes over 89,000 local

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