Air corridors are an integral part of the advanced air mobility infrastructure. They are the virtual highways in the sky for transportation of people and cargo in the controlled airspace at an altitude of around 1000 ft. to 2000 ft. above the ground level. This paper presents fundamental insights into the design of air corridors with high operational efficiency as well as zero collisions. It begins with the definitions of air cube, skylane or track, intersection, vertiport, gate, and air corridor. Then, a multi-layered air corridor model is proposed. Traffic at intersections is analyzed in detail with examples of vehicles turning in different directions. The concept of capacity of an air corridor is introduced along with the nature of distribution of locations of vehicles in the air corridor and collision probability inside the corridor are discussed. Finally, the results of simulations of traffic flows are presented.