Chongqing - On September 26, Chongqing Municipality launched an action program to reform low-altitude airspace management and enhance the low-altitude economy. The initiative introduces new pricing and settlement rules for airspace resources, marking a significant advance in China's low-altitude sector.

A Low-altitude aircraft is showcased in Yuzhong District, Chongqing. (Photo/Yin Shiyu)

The low-altitude economy involves economic activities within airspace below 1,000 meters, extendable up to 3,000 meters, using vertical take-off aircraft and drones as carriers.

The action program aims to establish a comprehensive infrastructure for low-altitude economic development using BeiDou satellite applications. Chongqing plans to create a digital air traffic control model, develop essential hardware and software, and implement an integrated air traffic management system with data sharing while exploring pricing and settlement rules for airspace.

Chongqing's plan is unique among local government initiatives, including airspace element charges, prompting industry discussions. Analysts suggest pricing and settlement for airspace elements could shape future low-altitude management policies.

In high-altitude civil aviation, airlines globally pay for airspace usage through landing, take-off, and air traffic control fees, according to an industry representative. These fees reflect infrastructure investment costs.

In China, the military currently manages airspace, impacting revenue distribution. However, the government is considering reforms for low-altitude airspace management. On November 8, 2023, the Civil Aviation Administration (CAA) released a draft stating that airspace users should pay usage guarantee fees as per regulations.

Local governments are seen as pivotal players in developing the low-altitude economy. Many state-owned enterprises have already invested in building low-altitude take-off and landing sites, regulatory systems, and other infrastructure. 

"If local governments have built the infrastructure and designed flight paths, they will likely propose a new revenue distribution plan for airspace use," an industry insider commented.

Industry experts suggest that the revenue-sharing model for low-altitude airspace resources could mimic that of high-altitude airspace, emphasizing a balance between investment and returns.

Additionally, Chongqing's program plans to innovate the management mechanisms for low-altitude flight service stations. A multi-tiered management system involving city, district (county) levels will be implemented, with a "1 + N + X" layout: 1 Class A flight service station, N Class B flight service stations, and X low-altitude communication and surveillance base stations. 

The initiative aims to integrate with CAA's Integrated Management Platform of Civil Unmanned Aerial Vehicle (UOM) to establish a unified low-altitude flight management system, ensuring citywide coverage and efficient flight application management.

Furthermore, Chongqing is set to develop the urban air transportation industry by encouraging the use of helicopters and electric vertical take-off and landing aircraft (eVTOLs) for air commuting, business travel, and other low-altitude services. The city aims to explore a "mountain form" urban air traffic management model and establish technical standards and systems to support this growth.

In Chongqing Liangjiang New Area, a newlywed couple walks hand in hand toward a helicopter, ready to embark on a romantic low-altitude flight. (Photo/Zhang Jinhui)

By 2025, Chongqing plans to advance low-altitude airspace management by completing infrastructure for economic development with BeiDou support, building over 200 take-off points, and achieving full coverage across all districts and counties. Low-altitude aircraft numbers will grow by 15%, flights by 20%, and over 10 billion yuan (about USD 1.43 billion) in new investments are expected.