India eyes Southeast Asia flight deals as Gulf conflict narrows travel zones

New Delhi: India is set to commence talks with Southeast Asian nations including Thailand, Vietnam and Indonesia to increase flights, as the West Asia conflict has narrowed expansion opportunities for Indian carriers.

International flying rights are granted on a bilateral, reciprocal basis by governments and airlines cannot deploy more capacity than allowed.

The decision to initiate government-level discussions was made at an inter-ministerial meeting in March, officials aware of the development said. India's civil aviation authority will now begin talks with its counterparts in those countries and airlines.

Indian airlines are hit hard by the West Asia conflict as multiple major airports in the region are either shut or operating with heavily curtailed capacity. The region is a critical one for airlines like IndiGo, Air India and SpiceJet, as around 40% of their international capacity is deployed there.

"Due to the situation in the Gulf, Indian carriers will be unable to deploy their planes this summer season. As the peak summer holiday season approaches, passengers will have more options to fly to Southeast Asia. More flights will keep fares in check," a government official said.


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Southeast Asia has emerged as a top tourist destination for Indians over the last few years, with multiple countries in the region easing visa regulations for Indian visitors.

The travel demand is so high that airlines from both sides have either exhausted or are close to exhausting the allotted seat quota, despite an increase in the numbers over the last two years.

A new agreement signed last year allows airlines from India and Indonesia to deploy 9,000 seats per week from each side, connecting Jakarta and Denpasar (Bali) with Delhi, Mumbai, Chennai, Bengaluru and Hyderabad.

India and Vietnam signed a similar pact earlier, raising the number of flights from each country to 42 a week from 28. With Thailand, the capacity was increased by 43% to 14,000 seats per week for both sides.

Under the National Civil Aviation Policy, bilateral expansion talks can begin only once the utilisation of the approved capacity from the Indian side reaches 80%.

Airport operator Adani Group has been lobbying the government to grant additional flying rights to foreign airlines in a bid to boost traffic at its airports. The group that owns eight airports in India including Mumbai is investing billions of dollars to upgrade terminals and runways.

"In the short term, growth in Indian aviation is constrained by bilateral agreements," Adani Airports chief executive Arun Bansal said at a panel discussion at an air show in Hyderabad in January. "For India to become a hub, we need an open skies approach."


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Travel industry executives said Southeast Asia is emerging as the biggest beneficiary of disruption in the Gulf and on European routes, as large supply has disappeared with Gulf carriers like Emirates, Etihad and Qatar cutting flights. For Indians, Southeast Asia offers stable connectivity, shorter travel times and better overall value for money.

"Demand for Southeast Asia remains strong, and any increase in flight capacity will help ease capacity constraints. Additional flights will stabilise pricing to some extent and improve availability, making these destinations more accessible for Indian travellers," said Bharat Malik, senior vice-president, Air and Hotel Business, at travel services provider Yatra Online.