In July 2018, Urban Aeronautics created a new subsidiary called Metro Skyways to handle the commercialization of its CityHawk aircraft for urban air mobility. The program is based on the Fancraft lift fan technology that the Israeli group has been developing since 2003 for unmanned aircraft applications. At the time, the company said that a first flight was projected to happen in either 2021 or 2022. It is unclear what timeline has been set for type certification and service entry.

Partners in the CityHawk program include RADA Electronics Industries (navigation systems and sensors), CertCenterCanada (flight test and development work), Safran (powerplant), HyPoint (hydrogen fuel cells), and Kearfott Corp. (navigation and guidance systems). Initially, the aircraft's power will come from a pair of Safran turboshaft engines. Longer term plans call for the power source to be replaced by compressed hydrogen fuel cells. MetroSkyways argues that battery-sourced electrical power is too inefficient for urban air mobility needs.

On June 11, 2020, Urban Aeronautics announced an agreement with HyPoint to provide hydrogen fuel cell technology for its planned CityHawk VTOL aircraft. The Israeli company believes that by late 2022 or early in 2023 it may be ready to fly a full-scale prototype, with a view to a hydrogen-powered version of the six-seat design entering service between 2028 and 2030.

The CityHawk is based on Urban Aeronautics’ Cormorant unmanned aircraft, which is intended for cargo-carrying and a variety of aerial applications. A full-scale Cormorant technology demonstrator is already being flight tested and the company is evaluating whether the design’s payload bay can be adapted to make room for passengers and for the addition of a second engine.  Both aircraft are powered by a pair of Safran’s Arriel 2N turboshafts, which drive Urban Aeronautics’ patented Fancraft ducted fan propulsion system.

The hydrogen-powered version of the CityHawk is expected to have a range of around 125 miles (including 20 minutes of fuel reserves). The hybrid version is expected to be able to fly up to around 175 miles.  

On January 5, 2021, Urban Aeronautics reached an agreement with U.S.-based Hatzolah Air Ambulance Group to supply four CityHawk VTOL aircraft to be used for emergency medical services (EMS), although no confirmed purchase price has been specified. This follows an announcement some five months earlier, where the company signed a memorandum of understanding with Hatzolah to evolve some of its CityHawk's for future EMS applications.

In July 2021, Urban Aeronautics revealed to FutureFlight that it will prioritize the development of a hydrogen-based propulsion system for the CityHawk, building on its partnership with fuel cell developer HyPoint. The company also unveiled a significant redesign of the fuselage, which promises improved aerodynamic performance. It has recently concluded a series of flight trials with the existing technology demonstrator.

In September 2021, Urban Aeronautics raised $10 million towards its goal of $100 million to fund CityHawk. Investors include American emergency medical transportation group Besadno, Israeli retailer Talcar Corp., and a Brazilian private investor.

In November 2021, Universal Avionics agreed to supply flight deck technology including its ClearVision enhanced flight vision system and its Aperture advanced video management device for the CityHawk.