The Low-altitude economy, a new era of economic activity, is gaining traction. As a growing sector of the digital economy, it focuses on exploiting and facilitating commercial opportunities and operations in airspace, which is up to 1,000 meters above ground. This space can be utilised for a range of applications, primarily due to advancements in drone technology, urban air mobility (such as air taxis), and other unmanned aerial vehicles ("UAVs"). The low-altitude economy presents many opportunities, but as with all things new and/or digital, also comes with risks that need to be appreciated and mitigated.
The low-altitude economy takes advantage of the vertical airspace that has been traditionally unused by conventional aviation. This has enabled businesses to utilise drone technologies and to provide a new range of services:
- Drone-based delivery services: Using UAVs to transport goods, especially in remote areas.
- Aerial data collection: Drones equipped with cameras and sensors can be used for surveying, mapping, and monitoring for agricultural, construction, and environmental operations.
- Urban air mobility: Providing passenger drones and air taxis for travel in urban areas.
- Security solutions: Drone detection systems and radar technologies can be used for surveillance and security purposes.
- Emergency Response: Drones can be deployed for search and rescue missions, disaster assessments, and delivery of emergency supplies.
In order to reap the benefits of the low-altitude economy, businesses will have to navigate a complex legal framework that touches on aviation law, privacy, cybersecurity, and AI regulation. Some legal considerations include:
- Civil Aviation Regulations: In the South African context, all drones and remotely piloted aircraft operations are governed by the South African Civil Aviation Regulations, 2011, regulated by the South African Civil Aviation Authority ("SACAA").
- Unclear Jurisdiction: The legal status of low altitude airspace (typically below 120 metres) can be ambiguous, with overlapping authority between national aviation regulators, local governments, and private landowners. This could result in conflicts between municipal bylaws and civil aviation rules.
- Nuisance: The use of drones and UAT over private property may result in disputes over drone trespasses, noise, drone traffic and aerial nuisance and may trigger conflicts and litigation.
- Privacy and Data Protection: Aerial surveillance and data collection using drones will likely trigger data protection laws, and the processing of personal information through the use of drone technologies must comply with data protection laws.
- Liability and Insurance: The expansion of low-altitude activity creates liability gaps as companies will have to figure out where the fault lies between operators, software vendors, and manufacturers when operating in the air.
- Cybersecurity Threats: Drones, UAVs and other technologies used can create vulnerabilities for hacking or jamming flight control systems as well as unauthorised remote control, which could lead to data breaches or loss of control
- AI Regulation: Organisations deploying AI-driven drones or related technologies must stay abreast of evolving legal requirements on AI, both domestically and internationally. This includes not only technical compliance but also broader considerations of ethics, transparency, and accountability.
The low-altitude economy and the increased use of unmanned autonomous vehicles offer opportunities in transportation and logistics, communications infrastructure, data, and security. To capitalise on the low altitude economy, businesses will need to implement robust policy frameworks that are capable of ensuring safety, scalability, and integration into existing environment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
