Part 108 UAS | What to REALLY think about before & when it gets here
- nernst03
- Jun 24
- 6 min read
Co-Authored by Nate Ernst, Bill Daggett, and Dan Fuller
With the long-anticipated FAA Part 108 rule on the horizon, the commercial UAS industry stands on the brink of a defining evolution. For years, operators, investors, and enterprise adopters have eyed the promise of scalable drone operations with cautious optimism. Part 108 represents the clearest signal yet that the U.S. regulatory framework is maturing—and with it, the ability to unlock transformative use cases in logistics, infrastructure, security, emergency response, and beyond.
“Part 108 is not just a green light, it's a yellow one, flashing rapidly. When the light does finally turn green, no one is sure what the framework will look like.”
As leading experts in aviation and UAS technology, we bring different lenses to what Part 108 will mean for industry—and more importantly, what decision-makers need to be thinking about now to position for success.
The Operational Reality Check & Competence Gap
The excitement around Part 108 is justified. We’re finally seeing a regulatory pathway for Beyond Visual Line of Sight (BVLOS) operations, centralized fleet control, and integration of autonomous systems into the National Airspace (NAS). But with this capability comes a sobering reality: operational maturity is no longer optional.
When comparing the operational thresholds of Part 107 drone operators to manned aircraft pilots, the disparity in required expertise and accountability is striking. The Part 107 exam, which is often deemed elementary, does not hold a candle to the rigorous training, skill validation, and practical endorsements demanded of manned pilots. While the simplicity of the Part 107 framework has opened doors for thousands of operators, it has also exposed glaring shortcomings in aviation competence within the National Airspace (NAS).
Despite the exponential growth in daily UAS operations under Part 107, the industry has managed to avoid catastrophic incidents—an outcome that feels almost miraculous given the lax standards. Illegal infractions are alarmingly common, yet direct accountability remains scarce. It often appears as though the enforcement mechanisms for Part 107 violations are either underutilized or ineffective.
For Part 107 operators aspiring to transition into Part 108, the message is clear: the status quo will no longer suffice. Success in Part 108 operations will demand a dramatic shift in operational competence. Operators must embrace the aviation discipline that has long been the cornerstone of manned flight. This includes respect for regulatory frameworks, mastery of complex mission planning, and a deep understanding of risk mitigation strategies.
Becoming a competent Part 108 operator won’t simply be about scaling up technology and fleet size—it will be about leveling up as professionals within the aviation community. The stakes are higher, the oversight more stringent, and the margin for error significantly smaller. Those who fail to adopt this mindset risk being left behind as industry races toward maturity.
Until now, many UAS programs have been siloed, experimental, or lightly regulated under Part 107. Part 108 changes that. It demands a level of airspace discipline, procedural rigor, and safety assurance that’s been standard in manned aviation for decades.
The margin for error will shrink significantly. Companies that don't approach UAS operations with the same seriousness and structure as traditional aviation will find themselves either grounded or liable—or both.
The Market Moves Ahead Fast
One area that is rarely brought up in conversations around the passage of Part 108 is the potential impact on the investment landscape. Investors, both institutional and individuals, are becoming more intelligent in their understanding of UAS technology and realistic revenue models. From an investment perspective, Part 108 might be the catalyst the market has been waiting for. It brings one of things that capital markets like most: regulatory clarity and consistency. In turn, that provides predictable business models, something the investment community has long demanded but rarely found in drone startups.
Part 108 will:
Validate BVLOS-enabling technology stacks (sensors, C2 links, autonomy, DAA)
Create new demand for UAS operators and service providers
Open the door for infrastructure-heavy applications that are severely (and somewhat arbitrarily) limited in the current regulatory environment (e.g., linear inspections, drone delivery, border surveillance)
But the floodgates won’t open evenly. The capital will flow toward:
Companies with repeatable, scalable operations
Startups with deep compliance strategies and experienced leadership
Established aerospace players who are ready to bridge the regulatory gap
Part 108 creates a two-tiered market: those who can operate under the new rule—and those who cannot. That line will become a sharp divider in how investment is allocated and who becomes acquisition targets in the coming 3–5 years. To put it simply, we expect fewer checks to be written, but the amount of those checks to be greater.
Risk, Responsibility, and Readiness
BVLOS Part 108 will elevate the legal, insurance, and organizational stakes of commercial drone operations from what Part107 experiences have been. With the increased risk and complexities of flying BVLOS (and whatever else Part108 may enable), it’s clear that operators are going to have to elevate their game. This is the next evolution. Those of us that have been in the industry for a long time remember the shift the industry experienced moving from recreational RC and drone flyers to 333 Exemptions and then Part 107 commercial operations. The mindset and expectations are shifting toward aviation structures and maturity. Part 108 is going to be the next step. Those that operate the more complicated and increased risk flights will need to make organizational changes in order to stay in business.
Here's what companies need to prepare for:
New roles and functions: To build and sustain the rigor likely required, some organizations may need to restructure - investing in Chief UAS Officers, Flight Safety Managers, and Compliance Officers dedicated to UAS operations. Also, potential new pilot ratings and certifications will add complexity to operational management.
Insurance implications: Underwriters will expect robust safety cases, operator training, and verified airworthiness data. Standard general liability won't cut it. Having discussed this with several insurance brokers recently, the expectation is that current policies will continue to function, but as the risk increases, so will the expectations to gain coverage. Think aviation-grade coverage. This will drive corporate structure changes internally to meet insurance requirements. To obtain aviation-grade coverage the operation needs to be built on aviation standards, training programs, audit cycles, operator certification, equipment maintenance programs, OEM specifications and standards, etc etc.
Contractual liabilities: As Part 108 opens the door for drone-as-a-service providers, expect more complex SLAs, risk-sharing agreements, pass downs and third-party liability clauses to be part of regular programs. The increased risk that BVLOS brings must be managed, and the system operator needs to be prepared to negotiate and manage.
There will be multiple approaches taken, especially in the first few years of rollout. One would expect that leveraging existing, trusted certifications may provide a risk reduction and ‘stamp of approval’ that could bring added benefit and/or assurance.
Put simply: you’re now an air operator, not just a drone user. That changes the game for legal exposure, reputational risk, and required operational governance. This may allow the strategic business leader to create a moat around their market.
Final Thoughts – The Double-Edged Sword of Part 108
Part 108 is both an unlock and inflection point. It represents the most significant shift in the regulatory landscape for UAS in the U.S. to date, creating real opportunities for scale, integration, and economic impact.
But with great opportunity comes great opportunity, but also great liability. It’s a call for intentionality, professionalism, and investment in safety-first culture. The companies that treat this seriously will move fast—and legally—into the future. Those that don’t will be left behind or exposed to operational and financial consequences.
The message is clear: when Part 108 gets here, you’re either ready—or you’re not.
END
About the Authors:
Nate Ernst is the President of The Tactien Group, a strategic consultancy company with a focus on manned and unmanned operational strategy & execution. Tactien works to pragmatically disrupt aviation in the critical infrastructure sector.
Learn more about Tactien Group here: www.tactiengroup.com
Bill Daggett is the Founder & Managing Director of Delta Advisory Group, a leading voice in UAS investment strategy and aviation capital markets.
Learn more about Delta Advisory Group here: https://www.uas-insight.com/
Dan Fuller is Founder & President of Clarify Consulting, LLC, specializing in early-stage business growth, product/service innovation, and Go-To-Market strategy in the UAS sector.
Learn more about Clarify Consulting here: www.clarifyconsultingllc.com