Flying taxis ready for takeoff as China approves first passenger drones

The two companies – Nasdaq-listed EHang Holdings and Hefei Hey Airlines – received air operator certificates from the Civil Aviation Administration of China (CAAC) on March 29, according to the South China Morning Post citing state-run news agency Xinhua. The licenses clear them to operate unmanned passenger aircraft for tourism and other commercial purposes.

"This milestone officially marks the launch of China’s human-carrying flight era in the low-altitude economy," EHang said in a statement.

Consumers can now purchase tickets for low-altitude tourism and urban sightseeing flights in Guangzhou and Hefei, the company added.

EHang passenger drone. Photo from Facebook

"Hovering flight includes hovering, circling, and return flights near the designated takeoff and landing zones," EHang explained. "The two certified operators are prepared to offer paid human-carrying tourism and flight experience services along designated routes."

EHang’s EH216-S aircraft, an electric vertical takeoff and landing vehicle powered by a solid-state battery, has been in development for over six years and first flew in the U.S. in 2020, as reported by New Atlas.

In November 2024, Saudi Arabia began testing EHang’s autonomous air taxi service for transporting Hajj pilgrims, according to Interesting Engineering.

The approvals signal China’s broader push to expand its "low-altitude economy," one of its fastest-growing sectors. The industry is projected to reach 1.5 trillion yuan (US$207 billion) by 2025 and could grow to 2.5 trillion yuan by 2035, according to a Hurun report citing CAAC data.