The government signed a letter of intent with executives from both companies to test air taxis in and around the Bavarian city, Bloomberg reports. The trial is designed to counter congestion on the roads of Germany's cities and to give a boost to its tech industry.
"Flying taxis aren't a vision any longer, they can take us off into a new dimension of mobility," German Transport Minister Andreas Scheuer said in a statement. "They're a huge opportunity for companies and young startups that already develop this technology very concretely and successfully."
Neither Audi nor Airbus immediately responded to requests for comment.
The companies, along with the Volkswagen-owned design company Italdesign, showed off a dronelike flying taxi/electric city car combo.
The pairing -- known as "Pop.Up Next" -- consists of a vertical take-off and landing (VTOL) quadcopter module and a two-door city car pod. Both are electric and fully autonomous.