India has long been a major destination for Aussies, due in no small part to the important VFR (visiting friends and relatives) market. But now the country is linked more closely than ever to Australia, at least in terms of air connectivity.
New data from Flight Centre Travel Group’s (FCTG) Corporate Traveller division shows flight capacity to the world’s most populous nation from Australia is up a whopping 346 per cent over pre-pandemic levels, representing the highest post-COVID gain of any country.
According to Corporate Traveller, India’s economic ties with Australia have helped fuel growth, but tourism and VFR travel have also chipped in, with a new codeshare deal between Air India and Virgin Australia the latest boost to connectivity.
But India isn’t the only Asian destination that’s grown significantly in recent years.
More Asia
FCTG data reveals that flight capacity between Australia and Vietnam has also risen a massive 263 per cent over pre-pandemic levels.
According to Corporate Traveller, Vietnam is one of Australia’s fastest-growing trade partners (thanks to a 10 per cent rise in bilateral trade), but like India, it too has a large VFR market and has also risen in popularity among tourists, as evidenced by the arrival, and subsequent growth, of leisure carrier Vietjet Down Under.
Elsewhere in Asia, Aussie-South Korea capacity has increased by 153 per cent since 2019, while Indonesia and Singapore seats ex-Australia have risen an impressive 128 per cent and 107 per cent, respectively.
This capacity growth compares favourably to the international average, which currently sits at 103 per cent of pre-pandemic levels.
Business bookings
However, it’s not just overall seats that are climbing.
Corporate Traveller reports a 45 per cent year-on-year increase in international business class bookings for the second half of 2024.
Most notably, premium travel to Hong Kong grew 60 per cent, with China close behind at 57 per cent. The latter’s 30-day visa-free policy, introduced in late 2024, is also helping extend average trip durations.
FCTG figures show India, Vietnam, South Korea and Indonesia were all among the top 20 international destinations for Australian business travellers in 2024, while Singapore, the Philippines, Hong Kong and China were among the top 10.
ASEAN ascending
Corporate Traveller Global Managing Director Tom Walley says the pivot to Asia, “highlights how airlines are racing to keep pace with the popularity in Australia-Asia business”.
“Direct routes are increasing, codeshare agreements are multiplying, and we’re seeing renewed demand for premium cabins, as carriers boost seat capacity to keep pace with intensifying trade ties and the renewed emphasis on face-to-face engagement across the region,” he remarked.
Notably, two-way trade between Australia and ASEAN nations has hit $192.9 billion annually, Corporate Traveller reports, which surpasses trade with both the US and EU. And this could rise further still, with US-China tensions potentially driving more Aussie organisations to pivot toward Southeast Asia.
“Australian companies are capitalising on direct flights, improved frequency and better route networks across Asia,” Walley stated.
“Bilateral trade figures with India, Vietnam and other ASEAN economies are going up, and we see a clear link between stronger commercial ties and airlines prioritising the Australia-Asia corridor.”
And theoretically, more flight capacity entering the market should put downward pressure on airfares for all.
