AirPooler, Flytenow not operating legally: FAA

[WASHINGTON] The trend in sharing services that was popularised by Uber Technologies Inc and Airbnb Inc will take longer to gain a foothold in the world of aviation, if at all. The US Federal Aviation Administration (FAA) has reviewed its rules and determined that AirPooler Inc and Flytenow Inc, which connect pilots with passengers willing to split fuel costs and other travel expenses, are not operating legally.

The decisionis a barrier to extending the so-called sharing economy into air travel. Car-hailing service Uber and room-rental firm Airbnb have faced similar legal hurdles as traditional industry competitors - and the legacy rules that apply to them - confront technological changes in the way customers seek to use and pay for day-to-day services. AirPooler CEO Steve Lewis said: "It's much more than a fad for the shared economy because you have all these assets around that are being underutilised."

Investors including Goldman Sachs Group and Google Ventures are pouring cash into the market for sharing apps, including those that let users order taxis and cars or share rides. Uber raised US$1.2 billion in funding in June, giving it a value of US$17 billion. Airbnb was valued at about US$10 billion after its last round of fundraising.