Indian airlines are ramping up their operations in South East Asia to capture a larger share of outbound leisure travellers and transit traffic, with new routes and increased capacity planned for the coming months.
IndiGo, the country’s largest airline, is preparing to launch services to Bali from Mumbai and Delhi, in addition to its existing Bengaluru-Bali flights. Sources said the Mumbai flight will include a technical halt in Chennai, with regulatory approvals and slots under process.
Vistara was the first Indian carrier to launch a Delhi-Bali service in December 2023, a route now operated by Air India following the airline merger. The direct connections have driven significant tourist traffic, with India now ranking among the top three source markets for Bali.
Online travel platform Yatra.com reported a 30–35% rise in queries for South East Asian destinations compared with last summer. “Destinations such as Thailand, Vietnam and Indonesia (Bali) are seeing significant interest supported by improved airline connectivity. While demand has spiked, airfares have remained relatively stable influenced by capacity, fuel prices and competition,” said Bharatt Malik, senior vice president (flights and hotels business), Yatra.com.
Akasa Air, India’s newest carrier, will enter the regional market with flights to Phuket starting September 20 from Mumbai and October 1 from Bengaluru. “Forward bookings to Phuket have been extremely encouraging, reflecting both strong appetite for Thailand and growing preference for Akasa Air’s seamless and reliable travel experience,” said Praveen Iyer, chief commercial officer. The airline is also considering Vietnam and other South East Asian destinations.
Air India, meanwhile, is set to launch direct flights between Delhi and Manila next month, providing the first non-stop link between India and the Philippines. The route will also offer one-stop travel options to Europe.
According to aviation analytics firm Cirium, airlines will operate around 270 two-way flights daily between India and South East Asia in September, marking a 12% increase from last year. IndiGo, Thai Lion Air, and Vietnam Airlines are leading the growth in seat capacity.
Vietnam Airlines will further upgrade its India service by deploying wide-body Boeing 787s and Airbus A350s on the Ho Chi Minh City–Mumbai route from October 29. “This upgrade reflects our dedication to offering Indian travellers unparalleled comfort and convenience,” said Nguyen Trung Hieu, country manager, Vietnam Airlines.
Industry experts noted a shift in demand trends. “Earlier the Indian diaspora was seen as the key demand driver by airlines while launching new routes, and now outbound travellers are playing a significant part too. A case in point is destinations like Central Asia, Indonesia and Vietnam,” said an aviation source.
The expansion is also being driven by connecting traffic. Delhi airport recently reported a 500% rise in international transit passengers between Thailand and Central Asia, a growth aided by IndiGo’s flights to Almaty, Baku, Tbilisi, and Tashkent launched last year. Mumbai, Bengaluru, and Hyderabad airports are also benefitting as transit hubs, with flows linking South East Asia, West Asia, and beyond.
Akasa Air is positioning itself to capture more of this segment. “We are attracting connecting passengers on our international routes and see strong potential in building this further. Mumbai and Bengaluru, with their geographic advantage and growing global connectivity, provide us with a strategic platform to develop seamless transfer options, particularly for traffic flows between Gulf and South-East Asia,” Iyer added.
With airlines upgrading fleets, launching new routes, and tapping into both leisure and connecting traffic, South East Asia is emerging as a key battleground in Indian carriers’ international growth strategies.
