Small unmanned aircraft systems (so-called drones) are widely used in various applications and drone traffic will increase as the field of drone operations becomes varied. Increased traffic will involve more conflicts between drones, and mid-air collisions can occur even when conflicts are mitigated by detect and avoid (DAA). This paper proposes a methodology for assessment of third-party risk due to mid-air collisions between drones. Third-party risk is calculated using the probability of failure, population density, shelter effect, etc. As a worst-case scenario, the proposed model is applied for the analysis of third-party risk in a central business district in a metropolitan city. The results show that third-party risk is not acceptable for the given traffic situation. So, several methods are discussed to improve third-party risk. In conclusion, third-party risk can be improved to satisfy the target level of safety using an appropriate location of intersection, a parachute, or a high standard for DAA. The results from this paper can be used as references for certificates of operation or mitigation devices for drones.
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