The SAR Government is pushing forward the development of the low-altitude economy. In the second phase of the "Sandbox X", some companies have applied to pilot manned electric vertical takeoff and landing (eVTOL) aircraft, also known as "air taxis", and are pending for the SAR Government to formulate relevant legislation. In addition, there are also applications to establish an air traffic control system (UTM) to further promote the development of the low-altitude economy.
From left to right: Chairman of Owowww Alan Wan, Head of Engineering Services of Cyberport Dr Eddie Lock, Business Development Director of KC Smart Mobility Newton Ng. Photo by Bastillepost
The current application of drones mainly focuses on inspection and cleaning, for example, using drones to clean the outer walls and inspect the wires and railways. Last year, 38 testing projects were listed in the first phase of the low-altitude economy sandbox, with 32 having been implemented. According to the Civil Aviation Department (CAD)... 20 of the implemented projects are now more mature and low-risk, which are not used in high traffic areas, including the infrastructure examination and walls cleaning, and enter constant actual operation phase.
The next phase involves testing drones cross-border logistics, manned mission and UTM (Unmanned Aircraft System Traffic Management). The “Sandbox X” project, launched by the SAR Government on December 24 last year, focuses on five key applications including these.
Cyberport provides testing fields for both “Sandbox” and “Sandbox X” projects, Kwoon Chung Bus (00306) has applied for this low-altitude economy Sandbox X project with its eVTOL project.
Newton Ng, Business Development Director of KC Smart Mobility Company, tells Bastillepost that Kwoon Chung has reached cooperation with Mainland drones manufacturer EHang (Nasdaq: EH) to promote eVTOL (Electric Vertical Take-off and Landing) in Hong Kong, which is a new electricity driven vertical aircraft without runway often referred as Air-taxi or Air-car. EHang has completed the first manned flight in Indonesia in the middle of 2025, its flagship product EH216-S also gained multiple permissions from CAAC.
Business Development Director of KC Smart Mobility Newton Ng. Photo by Bastillepost
Newton Ng says that EHang manned aircraft has been tested in the Mainland for many times, but it needed a fixed point test due to Hong Kong’s unique situation like the high building density. “We hope we can bring new technology and new travelling mode via eVTOL, ” says Newton.
When talking about the application of “Sandbox X”, Newton notes that although the drone cannot ride passengers currently, he hopes drones can really complete manned missions in the future to give citizens confidence. He also points out that eVTOL still needs to meet mant requirements in security and commercialization as a new traffic tool, and that details of commercialization, including security examination roles, technicians operation certificate and traffic rules for drones, should be ruled by laws.
EHang completed its first manned flight in Indonesia last year. Photo from EHang official website.
Owowww creative, a company performing drone shows at Victoria Harbor, is also going to apply for the “Sandbox X” project. Last year, Owowww reached cooperation with Chu Kong Shipping Enterprises to use its Nansha bounded warehouse to develop cross-border logistics. Owowww also successfully developed the stable operation to do large-scale ensemble rises and falls performance on the ship and safe performance of drones carrying fireworks.
Provided by Owowww Creative
As for the “Sandbox X” project that Owowww is applying for, Chairman of Owowww Alan Wan introduces three applied projects including UTM, eVTOL and cross-border logistics. While conventional aircraft require instructions from airport air traffic control towers, the UTM can understand the air traffic control towers of drones and is responsible for managing drone traffic.
Chairman of Owowww Creative Alan Wan. Photo by Bastillepost
Dr Eddie Lock, Head of Engineering Services of Cyberport, which is the field partner of low-altitude economy “Sandbox X” project, states that the most common problem discovered during the test of first round low-altitude economy “Sandbox” is the lack of a well-developed UTM. “We have spent so much energy managing the drone airport to make sure there is no interference nearby. However, the management will be much more difficult once the drones fly into the sky, ” he says.
Dr Eddie Lock, Head of Engineering Services of Cyberport
“If UTM is well developed, we can make good use of three-dimension space to sharply increase low-altitude economy benefits, which means that multiple drones can fly in one airspace,” says Dr Eddie Lock, “that is why we need to develop UTM in the “Sandbox X” project.”
Cyberport provides suitable drones airport and equipped infrastructures, including charging and communication systems, for participating companies during the “Sandbox” and “Sandbox X”. According to Eddie, Cyberport has widely cooperated with CAD and Hong Kong Observatory, while CAD is mainly responsible for airspace management during the test, Hong Kong Observatory has the most advanced meteorological monitoring instrument to provide real-time data for participating companies to empower the tests.
Alan Wan from Owowww expresses his hope for the government to accelerate legislation to regulate eVTOL industry. As for the healthy development of the industry, he advises the government to fund an industrial fund, or cooperate with insurance companies to provide insurance service for infrastructure and operation of the industry. “In this way, the company cost can be cut down,” he says.
