AirAsia Indonesia eyeing South Indian cities for direct flights to cash in on demand summer vacation

Summer vacation is just around the corner, and most families have already begun their travel plans to their favourite tourist hotspots. Interestingly, most tourists opt for overseas destinations, especially in Southeast Asia, due to ease of travel, accessibility, hassle-free visa and beautiful tourist spots. One such destination that has gained huge popularity among Indian tourists is Indonesia.

Interestingly India as emerged as Indonesia’s fastest-growing tourism markets, with over 700,000 Indian travellers visiting the Southeast Asian nation in 2023.

Eyeing this huge demand from India, AirAsia Indonesia is all set to cash in on its share of the pie. This expansion is bound to enhance connectivity, offering more choices for travelers between the two countries. According to sources, AirAsia Indonesia is exploring direct flights from certain key Indian cities. Of these, three cities are from South India – namely Bengaluru, Chennai, and Hyderabad. Sources have claimed that the airline is eyeing these cities as its initial destinations due to strong passenger demand and their proximity to Indonesia. Mumbai is also a potential route, depending on operational feasibility.

The reason behind the selection of these cities is obvious - Bengaluru is a major aviation hub with increasing international traffic, while Chennai is a key gateway to Southeast Asia with high tourism and business demand, and Hyderabad is a growing outbound travel market to Southeast Asia.

Tourist hotspots in Indonesia

Jakarta is considered the most crucial hub for business and leisure travel, while Bali continues to attract Indian tourists in huge numbers. So initial focus on the routes is expected to be from Jakarta and Bali. Bali, which is known for its scenic beaches, rich cultural heritage, and budget-friendly offerings and the top choice for travellers. Other Indonesian cities like Jakarta, Yogyakarta, and Lombok are also increasingly attracting Indian travelers.

Expanding bilateral ties

India and Indonesia recently inked a new bilateral agreement, hence, there is a huge scope for route expansion on these routes, offering Indian tourists affordable options for travel. This updated agreement removes the previous restrictions on weekly flights and instead introduces a more flexible seat-based capacity system. Under this arrangement, airlines can now offer up to 9,000 one-way seats per week, translating to approximately 50 weekly flights between the two countries. This change paves the way for a surge in direct flights, making travel more convenient for business and leisure travelers alike.

A huge gap in the market

Despite the growing demand, direct flight options between India and Indonesia are limited. As of now only Air India and IndiGo serve the Indonesian destinations of Jakarta and Bali but the existing flights do not meet the rising passenger demand. Hence most tourists opt for connecting flights through Singapore and Malaysia. AirAsia Indonesia’s strategic entry in these viable routes could remedy this situation, not only by enhancing tourism but also by facilitating greater business exchanges between India and Indonesia.

Fleet and future route options

AirAsia Indonesia operates a fleet of A320-200 narrowbody aircraft ideal for short-haul travel. Currently, the airline has 31 A320-200s, with an additional 69 on order. These narrowbody aircraft are suited for short to medium-haul travel like Jakarta-Bengaluru, Chennai and Mumbai.

If launched, these routes would mark a significant milestone for AirAsia Indonesia, as no Indonesian airline has previously operated direct flights to India. Experts believe this move will strengthen tourism, trade, and cultural exchanges between the two nations.