Amazon has lost a high-profile executive in its drone delivery unit who was the company's key liaison with federal regulators, CNBC has learned.
Sean Cassidy, Prime Air's director of safety, flight operations and regulatory affairs, announced his departure from the company last week in an internal memo to employees, a copy of which was seen by CNBC. Amazon hired Cassidy, a former Alaska Airlines pilot and vice president of the world's largest pilots union, in 2015 to oversee strategic partnerships in the drone program.
“This is my last day with Prime Air and with Amazon, so I would like to take a moment to pass on my heartfelt thanks to so many of my friends and colleagues here who have made this nearly nine-year journey such an amazing experience,” Cassidy wrote in the memo.
Cassidy oversaw much of Amazon's relationship with the Federal Aviation Administration as it tried to launch the ambitious drone delivery program, a pet project of Amazon founder Jeff Bezos. Bezos predicted a decade ago that a fleet of Amazon drones would take to the skies in about five years and drop packages on customers' doorsteps in 30 minutes or less. This vision has not materialized as quickly as Bezos had hoped.
Amazon did not immediately respond to a request for comment on Cassidy's departure.
In August 2020, Amazon received Part 135 certification from the FAA, allowing it to use drones to deliver packages, but with some restrictions. Last year, Amazon announced it would begin testing drone deliveries in two small markets in California and Texas.
But just as the program appeared to be expanding, Prime Air was hit by layoffs in January as part of broader job cuts at Amazon. The company also faced regulatory setbacks and struggled to meet delivery targets. In August, the unit lost two executives key to its operations, CNBC previously reported.
David Carbon, head of drone delivery at Amazon and a former Boeing executive, previously set an internal goal of making 10,000 deliveries between its two test sites in 2023.
Amazon said in October that its drones had “safely delivered hundreds of household items” in College Station, Texas, since December 2022, and that it had begun drone drug delivery in the area. The announcement did not say how many deliveries were made in Lockeford, California, the company's other testing site.
In late October, Amazon approved a key regulation when the FAA changed restrictions dictating where and how its drones can fly. Cassidy wrote to the FAA in July, urging the agency to allow Amazon to fly drones out of sight of a “visual observer,” or an employee who keeps an eye on the drone during flight to ensure it avoids danger. according to government filings. Cassidy said Prime Air spent years developing a “detection and avoidance system” for its MK27-2 drone that allows the vehicle to stay away from aircraft, people and pets, as well as static objects such as smokestacks, eliminating the need omitted for visual observers.
On Oct. 23, the FAA approved Amazon's request and relaxed restrictions on where the drones can operate, allowing the company to fly over streets and cars to complete a route if necessary. Some restrictions remain, such as rules prohibiting drones from flying over outdoor crowds and schools while in operation.
Since then, things haven't gone entirely smoothly. The National Transportation Safety Board is investigating a Nov. 10 crash at Amazon's drone testing site in Pendleton, Oregon, according to a federal accident report viewed by CNBC. The drone was “significantly” damaged in the incident, but no one was injured and there were no fires or explosions at the scene.
The NTSB said it is conducting a Class 4 investigation into the incident, which it said is more limited in scope compared to other investigations.
This comes after another incident at the Pendleton site in June, where a drone made an emergency landing in a field and was destroyed. Amazon said at the time it was testing its drone systems “to their limits and beyond” and had reported the incident to regulators.
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