Transforming our skies — how drones and electric Vertical Take Off Taxis could boost the economy by £45 billion

On 18 March 2024, the Department of Transport published its “Future of Flight Action Plan”, providing a road map as to how drones and Electric Vertical take-off and landing (eVTOL’s) could boost the economy by £45 billion by the end of this decade. We examine the action plan and consider the attendant increase in liability risks for operators.

The action plan

The strategic focus of the action plan is centered around drones and eVTOL’s, citing a number of examples on how, by working in partnership with the Civil Aviation Authority (CAA) and industry, it could prove to be transformational:

• Using drones to deliver mail/medicine to remote areas.
• Urban Air Taxis reducing traffic congestion and pollution.
• Tackling crime — the plan references the current use of drones by West Midlands Police to tackle violent crime and anti-social behaviour.
• Improving NHS efficiency whilst cutting carbon emissions.
• Improving regional air mobility.
• Managing our national infrastructure more efficiently — for example using drones to conduct rail safety
  checks thereby reducing service delays.
• Connecting Scotland’s highlands and islands.

Currently, UK air space is regulated and governed by the Civil Aviation Authority (CAA). Under the “Drone and Model Aircraft Code” published in October 2019, commercial and private operators are required to be registered and in possession of both flyer and operator registration. Drones are not permitted to fly higher than 400 metres above the ground and operators must at all times maintain a visual line of sight with the drone.

The Government, in conjunction with the CAA, confirmed in this action plan that they will allow drones to be operated in non-segregated airspace Beyond the Visual Line Of Sight (BVLOS). This will lead to regular drone deliveries by the end of 2027.

They intend for eVTOL vehicles to carry out a first piloted taxi flight by 2026, leading to regular passenger and cargo flights by 2028. These flights will be crewed initially, but are expected to eventually be able to fly autonomously. NATS recently carried out simulations in Hampshire to test how drones can be integrated alongside other air traffic. New technology developed by NATS will mean that direct voice communication between air traffic control and drone operators will only be required in an emergency.

We examined in our previous article; “Drones – Transformational for Retail and Logistics with a headache for insurers” how Amazon is to expand its drone delivery service into the UK and Italy by the end of this year and how in conurbations such as London where traffic density is high, drones could be cost effective for “last urban mile” deliveries. 

Commentary

The proposals do seem (on paper at least) to strike the right balance between innovation, security, safety and cutting carbon emissions. Whether they lead to a boost of £45 billion to our economy by the end of this decade is less clear. Those boosts, if they materialise, would come from lowering costs and increasing productivity primarily in agriculture, water, energy, transport, logistics and public sectors. There is a lot of work to be done before such significant impacts might be seen on UK productivity.

We caution that increased drone and eVTOL usage will of course increase the probability of operator error, collisions and mechanical or equipment malfunctions leading to personal injury and inevitable litigation. Concerns regarding safety, noise and privacy also remain at the forefront of discussions. Even so, the Future of Flight Plan opens up opportunities for brokers and insurers, particularly in the public liability sector of insurance. A brave new world indeed!