FAA releases draft rules for beyond visual line of sight drone operations

DENVER - The Federal Aviation Administration (FAA) has released draft regulations establishing a framework for Beyond Visual Line of Sight (BVLOS) operations for uncrewed aircraft systems, according to a statement from XTI Aerospace (NASDAQ:XTIA), a vertical takeoff and landing aircraft technology company currently valued at $36 million. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though it faces challenges with rapid cash burn.

The Notice of Proposed Rulemaking, also known as Part 108, responds to the Administration’s June 6, 2025, Executive Order to advance American drone capabilities. The proposed regulations would allow drones weighing up to 1,320 pounds to operate beyond visual line of sight without traditional airworthiness certificates.

The draft rules also introduce third-party Automated Data Service Providers to manage traffic and situational awareness between crewed and uncrewed aircraft.

"The release of Part 108 is a turning point that will accelerate the Vertical Economy," said Scott Pomeroy, Chairman and CEO of XTI Aerospace, in the press release. The company’s stock has shown significant volatility, with InvestingPro analysis indicating a 97% decline over the past year, though it has demonstrated strong returns in the recent quarter.

The regulatory framework aims to enable commercial applications including infrastructure inspection, precision agriculture, emergency response, and last-mile delivery services.

The Transportation Security Administration is simultaneously developing security measures through personnel vetting and operator program requirements.

The FAA developed the proposed rules using data from waivers, pilot programs, and industry partnerships. The draft regulations will undergo a public comment period before finalization.

XTI Aerospace, which develops vertical takeoff and landing aircraft technology, stated it plans to participate in the public comment process for the proposed regulations. While currently trading below its InvestingPro Fair Value, analysts anticipate sales challenges ahead, with forecasts pointing to a revenue decline in the current year. Discover 12 additional exclusive insights about XTIA with an InvestingPro subscription.

In other recent news, XTI Aerospace has reported several significant developments. The company completed a public offering, fully exercising the over-allotment option, resulting in the sale of 10,514,000 shares and gross proceeds of approximately $18.4 million. Additionally, XTI Aerospace has made strides in its certification process with the Federal Aviation Administration (FAA) for its TriFan 600 aircraft. The company conducted a flight-focused technical familiarization meeting and a propulsion systems review with the FAA, both crucial steps toward obtaining certification for the TriFan 600. In a strategic move, XTI Aerospace has partnered with design firm IDEO to enhance the design experience of its TriFan 600 and future vertical takeoff and landing aircraft. Moreover, XTI Aerospace settled an arbitration case with Chardan Capital Markets without any financial payments, following a favorable court ruling. These recent developments reflect XTI Aerospace’s ongoing efforts to advance its aircraft technology and strengthen its financial position.

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