This document describes the preliminary Concept of Operations for “Demand and Capacity Balancing” of drone operations within an urban environment. It provides a guideline for how U-space designated airspace shall be managed from the planning phase up until the execution of drone flights. This process is supported by an extensive literature study and background information on the operational environment in which it takes place. Given the novel nature of drone operations in a civilian setting, several parallels of the proposed solution and the existing air traffic management environment are provided. Finally, the document highlights several relevant research areas which the DACUS project will address.