Flying taxis prepare for lift-off in China as first companies gain key licence
China greenlights first commercial autonomous passenger drones for urban tours, signaling push into $207B low-altitude economy by 2025.
China has taken a major step towards creating a commercial flying taxi industry, after regulators granted the country’s first-ever approvals for two companies to operate autonomous passenger drones.
The two companies – Nasdaq-listed EHang Holdings and Hefei Hey Airlines – obtained air operator certificates from the Civil Aviation Administration of China (CAAC) on Saturday, according to state-run news agency Xinhua.
The move means that both companies are cleared to use unmanned aerial vehicles to offer commercial passenger services, including urban sightseeing tours.
The air operator certificate was the final regulatory hurdle both companies’ passenger drones needed to clear before being put into operation, given that they had already obtained the type certificate, production certificate and airworthiness certificate, according to a report by Citic Securities.
“We reckon that low-altitude tourism will be the beginning of this new business,” the report stated. “EHang’s urban sightseeing tours can accelerate the development of the industry.”
Beijing has taken a series of steps in recent months to accelerate the development of the low-altitude economy, which includes technologies ranging from delivery drones to blimps and flying cars.
China’s leaders have identified the sector as a crucial emerging industry and driver of economic growth, with Premier Li Qiang naming the low-altitude economy alongside biomanufacturing, quantum computing, embodied artificial intelligence and 6G mobile networks during his speech to the National People’s Congress in early March.
“The low-altitude economy is a new growth driver, and it will be an important engine to push the high-speed development of China’s economy,” said Cheng Bolin, vice-president of the low-altitude unit at the China Information Association, at an industry conference on March 28.
China’s low-altitude economy is predicted to be worth 1.5 trillion yuan (US$207 billion) by 2025 and could grow to reach 2.5 trillion yuan by 2035, according to a report by research group Hurun, citing data from the CAAC.
Key players in the Chinese market include specialist start-ups such as EHang and Feihang Aviation, as well as traditional car makers like Xpeng and Geely. They are also locked in competition with global multinationals such as Boeing, Airbus and Brazilian firm Embraer.
“Looking ahead, as policies supporting the low-altitude economy continue to roll out, the competition in this sector is set to intensify,” Hurun said in its report.
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