(Yicai) Nov. 27 -- A local state-owned enterprise in Pingyin, Shandong province has been awarded China’s first county-level franchise to run a low-altitude economy aviation business after making a CNY924 million (USD127.3 million) investment.

Shandong Jinyu General Aviation, wholly owned by Pingyin’s finance bureau, acquired the 30-year franchise rights, according to a recent announcement by the Jinan Public Resources Trading Center. Jinyu was set up on the same day that the project tender was unveiled earlier this month.

Yicai tried to contact the Pingyin County Development and Reform Bureau, the project’s tendering authority, for more details about the franchise but the calls went unanswered.

Low-altitude aviation encompasses leisure and business activities that use airspace below 1,000 meters, such as helicopter rides, drone services, hot air ballooning, paragliding, aerial photography, as well as urban transport and logistics.

Encouraged by the central government, many local authorities have issued action plans to develop the low-altitude economy this year. Many have led efforts through state-owned firms to develop related infrastructure and flight service platforms, aiming to attract private capital.

Airspace routes in major cities have greater value, making it more difficult for county-level cities to commercialize and achieve profitability in the low-altitude economy, said Luo Jun, executive director of the China Low-Altitude Economic Alliance.

But Pingyin has tourism potential as ‘China’s Rose Capital’ is known for its high-quality blooms. The county is about 60 kilometers from downtown Jinan, the provincial capital, and about 70 km from Mount Tai, one of China's Five Great Mountains and a UNESCO World Heritage Site.

Pingyin already has two Class B airports, which are smaller for regional flights, agricultural aviation, and emergency rescues. One of them will be expanded in an effort to join China's third batch of testing bases for civil unmanned aviation, under a local government plan released last month.

Editors: Tang Shihua, Emmi Laine