A New Star in Making
As an economic concept, the low-altitude economy aims to utilise the unique resources of low-altitude airspace in a bid to develop general aviation or civilian non-airline flight, and energise the related industries from the sky to the ground.
The concept of low-altitude economy was first proposed by China, providing a theoretical contribution to the development of global general aviation. A common understanding is that low-altitude airspace is an equally important economic resource and engine of productivity as land and marine resources. Expanding low-altitude business will help China to fully develop its general aviation.
With innovative technology and products in general aviation, new types of aircraft, such as electric vertical take-off and landing (eVTOL) vehicles or flying cars, have emerged, all of which are designed for urban air mobility (UAM) and further stimulating people’s imagination for future development. By utilising such products and models in urban low-altitude airspace, we can solve the problem of urban and intercity traffic congestion.
As traffic jams are a global challenge, the proposal since its inception has attracted widespread attention from across the world. Home to many big cities, China is expected to have a great demand for UAM.
Industrial development
More than being just an economic concept, the low-altitude economy is also a developing industry. Moreover, from an industrial point of view, it not only relates to the traditional general aviation, but involves a broader range of industries and business fields.
General aviation is the main industrial component of the low-altitude economy, which involves construction of airports, vertiports, ground support facilities, and monitoring and flight service systems. It also intersects with other sections of the industrial chain, such as artificial intelligence, new energy, and aerospace satellite, and develops in collaboration with those emerging industries.
Based on general aviation technology, new products and innovative applications, the UAM has much room for development. By integrating with ground traffic systems, it will revolutionise urban transportation and integrate the low-altitude economy into urban development. As it continues to develop, it will spur a wide range of applications and form a unique economic model related to the sky and the ground.
A multi-layer flight network can meet the needs of different flying activities by utilising the resources of low-altitude airspace. For example, it can be used in private flights, business flights, short-distance air transportation, urban air traffic, air emergency rescues, official and public service flights, aviation sports, sightseeing, and flight entertainment.
To ensure smooth take offs and landings, more ground infrastructure needs to be built to complete the whole industry chain. Such facilities include airports, vertiports, aviation parks, aviation towns, drone bases, flight camps, and aviation cultural tourism parks.
Supporting policies
In recent years, many developed countries have increased their focus on the innovative development of general aviation. The US Congress passed the Advanced Air Mobility Coordination and Leadership Act in 2021, in which relevant government departments were urged to establish an interagency to promote the advanced air mobility. The European Union also launched the Horizon Europe programme in 2020 to support UAM-related projects and enterprises.
In China, the low-altitude economy was proposed as a new growth engine to foster emerging industries in the annual government work report released in March 2024.
The Communist Party of China said at the third Plenary Session of its 20th Central Committee in July 2024 that it will further integrate reform of the transportation system, and develop general aviation and the low-altitude economy.
In December 2023, relevant aviation departments solicited public feedback on draft regulations on the administration of airspace, which made institutional arrangements for the opening and utilisation of low-altitude airspace.
In addition to government plans, many regions in China have also focused on developing their local low-altitude economy and making policies based on their region. For example, in China’s southern economic hub of Shenzhen, the government has issued many supportive policies to promote the building of a low-altitude economy centre. At present, it has developed nearly 100 commercial trial routes for drone cargo flights in the city.
The Guangdong-Hong Kong-Macao Greater Bay Area, where Shenzhen is located, is one of the most congested areas in China. By combining air and ground transportation, the UAM will be able to provide innovative solutions to address urban and intercity traffic problems.
Although traditional general aviation in China still lags behind developed Western countries, the rapid advancement of its drone industry has placed the low-altitude economy at the forefront globally.
China’s leading drone technology has laid a foundation for the development of eVTOL and UAM. At present, there are over 30 eVTOL enterprises in China, among which more than 10 have received millions of dollars from the capital market. Companies, such as EHang, Autoflight and Aerofugia, rank among the top companies of the global eVTOL industry.
China is also leading the way in airworthiness management. Over the past two years, the Civil Aviation Administration of China issued the Type Certificate (TC), Production Certificate, and Airworthiness Certificate for the manned eVTOL EH216-S produced by EHang, which is the first eVTOL to receive three certifications in the world. In 2024, the administration issued a TC for a logistics eVTOL developed by Autoflight.
With the utilisation of low-altitude airspace and improvement of the operation systems in the future, China’s low-altitude economy is expected to enter a period of multi-tiered development, showing a trend of integration of operation, manufacturing and services. It will also become a driving engine for the investment and construction of infrastructure, such as general airports, vertiports, monitoring and flight service systems, as well as the development of businesses supporting aviation, such as finance and insurance, aviation-themed cultural exhibitions, and scientific education, turning aviation into an industry worth trillions of dollars.
The author is Director of General Aviation Industry Research Centre, Beihang University
