China is set to launch flying taxis soon to boost its tourism sector. In a significant move, the country has approved two companies to operate autonomous passenger drones. The move will unlock the economic potential of China’s low-altitude airspace services, valued at $207 billion by 2025.
Two companies, Nasdaq-listed EHang Holdings and Hefei Hey Airlines, were granted the first-ever approval for the project, South China Morning Post (SCMP) reported on Monday. Both the companies have obtained air operator certificates from the Civil Aviation Administration of China (CAAC) last week. With this, they will be able to use unmanned aerial vehicles to offer commercial passenger services. The air operator certificate was the final regulatory step for both companies’ passenger drones, as they have acquired other necessary certificates.
EHang’s EH216-S eVTOL Operators Obtain Air Operator Certificates ✈️
EHang’s EH216-S eVTOL operators, EHang General Aviation and Heyi Aviation, have officially received China’s first-ever Air Operator Certificates (OC) for civil pilotless human-carrying aerial vehicles by the… pic.twitter.com/jqX74ETR8A
— EHang (@ehang) March 30, 2025
China-based journalist Li Zexin shared a video on the social media platform X, showcasing the potential of flying taxis. The clip shows passengers boarding the flying taxis, which soar over cities, offering urban sightseeing tours from the air.
China has officially entered the era of “flying taxis”.
2 Chinese companies have obtained the commercial operation certificate for autonomous passenger drones from CAAC.
China is at the forefront of the world’s 4th Industrial Revolution. pic.twitter.com/POFiLTs3I1
— Li Zexin (@XH_Lee23) March 31, 2025
The move is a part of China’s efforts to accelerate the development of its low-altitude economy. It refers to economic activities and industries centered around manned and unmanned aerial vehicles operating in low altitude airspace. The sector also includes low altitude delivery drones, which are rapidly gaining traction for their efficiency.
According to the SCMP report, China’s low-altitude economy is predicted to be worth US $207 billion by 2025. The sector, seen as a significant growth driver by Chinese leaders, could potentially reach 2.5 trillion yuan by 2035.
In a similar move recently, US-based Alef Aeronautics released footage of its flying car prototype, which successfully completed its vertical take off. The test showed the model successfully completing assessments on roads and other areas, marking a new era in the flying vehicles’ sector. The company already has about 3,200 pre-orders for one of its commercial models.
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