In recent years, the drone (or remotely piloted aircraft system (RPAS)) industry has experienced rapid growth, particularly in commercial applications. As drones become integral to business operations, regulations must keep pace.
On April 1, 2025, the Canadian Aviation Regulations (CARs) were amended to address this new commercial reality. Such amendments include easing restrictions on Beyond Visual Line of Sight (BVLOS) operations and tightening rules around payload drops.
The following provides a summary of the key changes and their implications for drone operators, manufacturers and other industry stakeholders.
Flight Unseen
The most significant change aims to more easily permit BVLOS operations. Under the existing legislative regime, all BVLOS operations require a special flight operations certificate (SFOC) (see our previous bulletin for a discussion of the existing rules).
Under the new rules, which will enter into force on November 4, 2025, an SFOC is no longer required in respect of BVLOS Level 1 Complex Operations, which are:
1. Conducted in uncontrolled airspace, under 400 feet (ft.) above ground level
(a) In the case of drones with an operating weight (including payload) of:
(b) 25 kilograms (kg) or smaller, conducted over a sparsely populated area (from six to twenty-five persons per square kilometre (km2))
2. 150 kg or smaller, conducted at least one km away from a populated area (six or more persons per km2)
License and Registration, Please
In lieu of an SFOC for Level 1 Complex Operations, the amendments establish new licensing and certification requirements.
An operator must obtain an RPAS operator certificate (RPOC) from Transport Canada. The RPOC is analogous to the air operator certificates or private operator registration documents that are required by sophisticated operators of traditional aircraft.
To apply for an RPOC, the operator must provide basic organizational information (e.g., its legal name, any trade names, addresses and contact information), the name of an accountable executive, and a declaration that certain documentation and programming has been established. Specifically, the applicant must state that it has an operations manual, safety processes and a training program, in each case compliant with the regulations. This documentation, along with a maintenance control manual, must be maintained by the operator at all times and provided to Transport Canada upon request.
Importantly, RPOC applicants must also be “Canadian,” as such term is defined in the CARs.
On the pilot level, those in control of drones operating BVLOS will need a “Pilot Certificate – Level 1 Complex Operations.” To obtain such a license, pilots will need to complete at least 20 hours of ground school, pass an online exam and pass a flight review.
In addition, all drones over 250 grams must be registered with Transport Canada. This is a change from the current regime, which only required registration of drones with an operating weight of 25 kg and below.
Managing Manufacturers
The amendments also expand the existing declaration process for drone manufacturers. There is now a new review process for higher-risk operations, including Level 1 Complex Operations, called a “Pre-Validated Declaration.” Under the new voluntary process, manufacturers would determine which technical requirements their drones and supporting systems meet and whether they wish to declare such requirements to Transport Canada.
Drones would not be able to operate in such higher-risk operating environments unless the manufacturer makes either a Declaration or a Pre-Validated Declaration. In addition, the proposed regulations would require manufacturers to follow annual reporting requirements for Pre-Validated Declaration and service difficulty reporting requirements.
Pigs Can Fly (and Humans Can Soon)!
Another important development eases the restrictions on the transportation of living beings. Effective April 1, 2025, the prohibition on transporting living creatures was relaxed to a prohibition only on carrying persons.
This prohibition will be further relaxed effective November 4, 2025, from which date the carriage of humans on drones may be permitted if granted an SFOC. This change opens the door to growth in the advanced air mobility sector and would allow for the possibility of electric vertical take-off and landing (eVTOL) and air taxi operations.
Giving People Space
New restrictions also increase the minimum distance that VLOS operators must maintain with respect to drones between 25 and 150 kg from persons not involved in the operations. The minimum horizontal distance has increased to 500 ft. (from the previous limit of 100 ft.).
In addition, operation of drones at advertised events — an outdoor event advertised to the general public — is prohibited without an SFOC.
Prohibiting Payload Perils
Also noteworthy is a new restriction on hazardous payload drops. The prohibition restricts pilots from “creat[ing] a hazard to persons or property on the surface by dropping an object” from a drone in flight.
Additional guidance is expected from Transport Canada regarding what constitutes a “hazard.” Until such time, entities facilitating drone delivery operations and other operations that involve the dropping of objects from drones should be careful to ensure these actions are compliant with the updated rules.
Paying Up
As to be expected, the new provisions have given rise to new and updated fees and penalties. The new pre-validated declarations will carry a C$1,200 fee, and obtaining a RPOC will carry a fee of C$125. The fees for SFOCs have also been updated and can range from C$20 to C$2,000 depending on the complexity.
Administrative monetary penalties have also been added to promote compliance with the new provisions, and existing monetary penalties have been increased.
Conclusion
The updated drone regulations create both exciting opportunities and new challenges for businesses in the drone industry. By reducing barriers for certain BVLOS operations and easing restrictions on the transport of living beings, these changes open the door for significant innovation and growth. However, businesses must carefully navigate the new licensing, registration and operational requirements to ensure compliance and avoid potential penalties. As the drone industry continues to evolve, staying informed and adapting to regulatory changes will be essential for long-term success.
For more information, please contact the authors or any other member of our Aviation & Aerospace group.
