Bastille’s Story | Vision for Low-Altitude Economy : Air Taxis and Drone Control Towers

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.

Ukraine fired more than 400 drones toward Moscow in its latest major attack on the Russian capital, the city’s mayor said Monday.

The blitz came hours after Russia bombarded Kyiv and other Ukrainian cities with ballistic missiles in a relentless cycle of tit-for-tat strikes that make a settlement to end Moscow’s more than 4-year-old all-out invasion appear a distant possibility.

Ukrainian President Volodymyr Zelenskyy, meanwhile, said he would hold “key talks” Monday as he tries to defuse a domestic political crisis, after last week’s government reshuffle exposed a deep split between the military’s old guard and young innovators over how to fight the war.

Zelenskyy needs to reassure Ukrainians that sacrificing 35-year-old Mykhailo Fedorov as defense minister and keeping faith with 60-year-old Soviet-trained Gen. Oleksandr Syrskyi as armed forces chief won’t derail the fight against Russia.

Days of street protests in favor of Fedorov and against Syrskyi followed Zelenskyy's move.

Moscow Mayor Sergei Sobyanin said over 400 Ukrainian drones were sent toward the Russian capital from late Sunday until early Monday, with most downed far from the city and 85 intercepted near it.

Moscow regional Gov. Andrei Vorobyov said 10 people were wounded by Ukrainian drones, while several residential buildings and civilian infrastructure facilities were damaged.

The attack started a fire at the Yuzhnye Vrata industrial park, about 30 kilometers (18 miles) south of Moscow, according to Yevgeniya Khrustaleva, the head of the Domodedovo area of the Moscow region.

The Astra news outlet reported the assault also caused a fire at an oil depot in Podolsk, about 20 kilometers (12 miles) south of Moscow, but there was no official confirmation of the strike.

Ukrainian forces hit logistics facilities and an oil depot in the Moscow region, Zelenskyy said, adding that Kyiv's forces hit two vessels belonging to Russia’s so-called shadow fleet transporting sanctioned oil and four dry cargo ships in the Black Sea.

A drone struck a passenger bus in Shebekino in Russia’s Belgorod region bordering Ukraine, killing five people — four women and a boy — and injuring 23 others, according to acting Gov. Alexander Shuvayev.

It was not possible to independently verify either side's claims.

Ukraine’s long-range drone technology has evolved during the war, posing a problem for Russia, whose huge land mass is hard to protect fully. Kyiv’s forces have aimed especially at Russian oil facilities, causing fuel shortages and embarrassing Russian President Vladimir Putin.

In May, the Russian Defense Ministry said air defenses downed 1,054 Ukrainian drones in a 24-hour period.

As Kyiv pleads with foreign partners to supply it with sophisticated interceptors that can counter Russian ballistic missiles, which are much harder to stop than drones or cruise missiles, Moscow’s forces have sought to take advantage of the weaknesses in Ukraine’s air defenses.

Ballistic missiles fly faster than the speed of sound and can reach Kyiv in minutes, giving air defenses little time to react and civilians to reach shelter.

Russia has stepped up its use of ballistic missiles recently. Ukrainian officials said Sunday that Moscow's bombardment killed at least six people and wounded dozens.

“Russian forces have launched more ballistic missiles against Ukraine thus far in July than Russia reportedly produces each month,” the Institute for the Study of War, a Washington-based think tank, said late Sunday.

“Russia appears to be dipping into its stockpiles to continue increasing the number of ballistic missiles it launches against Ukraine, as these missiles have a higher success rate than drones and cruise missiles,” it noted.

Ukraine’s air force said Russia fired two missiles and 94 long-range drones at Ukraine overnight. It said air defenses jammed or intercepted 81 drones, while nine drones and a missile caused damage at nine locations.

Russia’s Defense Ministry said Monday its forces struck fuel tanks in the southern Ukrainian port of Odesa overnight.

A Russian strike on Pavlohrad in Ukraine’s central Dnipropetrovsk region injured 13 people, according to military administration head Oleksandr Hanzha. Eleven people were hospitalized, including a 13-year-old girl, he added.

Ukraine’s Sea Ports Authority said a cargo vessel under the flag of the West African country of Guinea Bissau was hit by Russian forces on Sunday shortly after it left the port of Odesa, killing 10 of its crew, including five sailors from Syria. Eight people were rescued from the ship, which was carrying Ukrainian corn, it added.

Syria’s General Authority for Borders and Customs said it “strongly condemns the repeated attacks targeting commercial vessels with Syrian sailors and crews aboard in Ukrainian ports and nearby maritime areas in the Black Sea, and the resulting deaths and injuries among Syrian sailors.”

The Syrian statement did not mention Russia. Moscow has built relations with the new Syrian government since former President Bashar Assad was ousted in December 2024 in a rebel offensive led by now-interim President Ahmad al-Sharaa.

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AP reporter Abby Sewell in Beirut contributed.

Follow the AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine

In this photo provided by the Ukrainian Emergency Service, firefighters put out a fire following a Russian air attack in Pavlohrad, Dnipropetrovsk region, Ukraine, Monday, July 20, 2026. (Ukrainian Emergency Service via AP)

In this photo provided by the Ukrainian Emergency Service, firefighters put out a fire in a residential building following a Russian air attack in Pavlohrad, Dnipropetrovsk region, Ukraine, Monday, July 20, 2026. (Ukrainian Emergency Service via AP)

In this photo provided by the Ukrainian Emergency Service, a residential building is seen in fire following a Russian air attack in Kramatorsk, Donetsk region, Ukraine, Monday, July 20, 2026. (Ukrainian Emergency Service via AP)

Residents look at their ruined home following a Russian air guided bomb strike in Zaporizhzhia, Ukraine, Sunday, July 19, 2026. (AP Photo/Kateryna Klochko)

People gather to denounce President Volodymyr Zelenskyy's decision to dismiss Defense Minister Mykhailo Fedorov after six months in the post, Kyiv, Ukraine, Sunday, July 19, 2026. (AP Photo/Dan Bashakov)

Residents look at their ruined home following a Russian air guided bomb strike in Zaporizhzhia, Ukraine, Sunday, July 19, 2026. (AP Photo/Kateryna Klochko)