Winning Bid Shows What Airspace Might Cost in China’s Low-Altitude Economy
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A state-owned aviation company has won the right in the eastern city of Jinan to provide services for a government-supported segment of the economy being built on the promise of drone-delivered packages and sightseeing tours on flying cars.
Shandong Jinyu General Aviation Co. Ltd. bid 924 million yuan ($127 million) for the 30-year rights to operate services like flight training and aerial logistics in the low-altitude airspace of Pingyin county in the Shandong provincial capital, according to a notice published Tuesday by the Jinan Public Resources Trading Center.
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- Jinyu General Aviation secured a 30-year, $127 million contract to operate services like flight training and aerial logistics using low-altitude airspace in Jinan, China.
- The deal aligns with China's push to grow the "low-altitude economy," including drones and flying cars, supported by government strategy and relaxed airspace regulations.
- The contract signifies how local governments might monetize airspace rights while boosting local state-owned companies' financial capacities for future technological advancements.
- Shandong Jinyu General Aviation Co. Ltd.
- Shandong Jinyu General Aviation Co. Ltd. is a state-owned company based in Jinan, China. It won a 30-year contract for operating services in the low-altitude airspace of Pingyin county for 924 million yuan ($127 million). The company, owned by Pingyin county’s finance bureau, was established on November 5. It will operate services like flight training and aerial logistics, and may benefit financially by partnering with other companies wanting to operate in the area.
- Xintian Zhixing (Tianjin) Aviation Technology Co. Ltd.
- Xintian Zhixing (Tianjin) Aviation Technology Co. Ltd. is a startup whose founder, Ding Yuanyuan, commented on the high cost of the 924 million yuan airspace usage fee over 30 years, suggesting it could be seen as an airspace usage fee. Ding highlighted that profit margins in the general aviation industry typically range from 5% to 10%, making the fee high for a young company.
- October 2023：
- Four government ministries issued a plan to start trialing eVTOL aircraft for commercial use by the following year
- November 2023：
- A draft version of China's Regulations on Airspace Management, which includes a provision requiring users to pay for airspace usage, was issued
- December 2023：
- The Chinese central government opened two bands of low-altitude airspace to drones, helicopters, and eVTOL aircraft
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