Aerospace giant Airbus is testing a prototype self-piloted flying car.

Airbus has formed an Urban Air Mobility division to explore concepts including individual air transport vehicles and a helicopter-style vehicle to carry multiple riders.

The company envision a future in which people could book the vehicle using an app, similar to current car-sharing schemes.

Tests are planned for the end of this year.

“One hundred years ago, urban transport went underground, now we have the technological wherewithal to go above ground,” Airbus CEO Tom Enders said at the DLD digital tech conference in Munich.

“We are in an experimentation phase, we take this development very seriously.”

He said there were two clear benefits – combating congestion in our ever-growing cities, while also reducing costs for city infrastructure.

“With flying, you don't need to pour billions into concrete bridges and roads,” Mr Enders said.

Enders said Airbus – currently the world's largest maker of commercial helicopters – was eager to make the most of autonomous driving and artificial intelligence technologies, aiming to usher in the era of flying cars.

“If we ignore these developments, we will be pushed out of important segments of the business,” he said.

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