Etihad Cargo has partnered with LODD Autonomous to trial hybrid vertical take-off and landing (VTOL) aircraft for short-range, low-emission freight delivery in the UAE, reports Dubai's Logistics Middle East.

The collaboration will test the 'Hili' hybrid VTOL drone, which has a payload capacity of 250 kilograms and a range of over 700 kilometres. The aircraft is designed to complement traditional freighter fleets with its agility and low-emission profile.

The trials will assess the drone's efficiency, safety and suitability for point-to-point logistics across the UAE. Its vertical take-off and landing capabilities remove the need for runways, enabling faster deliveries between logistics hubs.

Etihad Cargo aims to evaluate the commercial viability of integrating such aircraft into its future operations, with the goal of enhancing last-mile delivery and operational resilience.

Cargo chief Stanislas Brun said the partnership reflects Etihad Cargo's ambition to modernise air mobility and improve domestic connectivity. He added the initiative could unlock smarter and more sustainable freight solutions.

LODD Autonomous, based in Abu Dhabi, develops AI-driven logistics technologies for sectors including e-commerce, healthcare and manufacturing. CEO Rashid Al Manai said the 'Hili' drone addresses gaps in middle-mile logistics.

Mr Al Manai noted that the aircraft's ability to create direct air corridors between warehouses is vital for time-sensitive cargo such as pharmaceuticals and industrial parts, where delays can cause major disruptions.

The partnership marks a step forward in regional logistics innovation, with the potential to reshape air freight through cleaner and more adaptive aerial systems.