American package delivery company UPS has become the first company to get the green light from the government to operate a drone airline. According to the Federal Aviation Administration, drones used by delivery companies will also need government evaluation, much like commercial airlines.

The airline certificate lets UPS fly drones carrying more than 55 pounds, “but we’re not comfortable we have the hardware for that yet,” Price said in an interview.

Operations will be limited to campus-like settings because FAA has not yet written regulations to allow commercial drone flights over populated areas. Price said UPS is eyeing “hundreds” of such sites in the U.S., including hospitals, colleges and office buildings.

However, UPS still faces severe restrictions before it can run a large commercial operation with drones.