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Posted: Apr 07, 2026
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India Eyes Southeast Asia Flights as Gulf Chaos Redirects Growth

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India plans to hold talks with Thailand, Vietnam, and Indonesia to increase flight capacity, as the war in the Gulf makes it harder for Indian airlines to expand in West Asia.

The move is meant to give airlines more room to grow in markets where demand from Indian travelers is already strong.

India is looking for new growth markets

Indian airlines still want to expand internationally, but they cannot do that freely on every route. Many international services are controlled by bilateral air service agreements, which limit how many flights or seats airlines can operate between two countries.

That is why India is now focusing on Southeast Asia. By increasing flight rights with Thailand, Vietnam, and Indonesia, the government could open more space for airlines to grow at a time when Gulf routes are under pressure.

Southeast Asia is a natural alternative

Indian demand for Southeast Asia is already strong. Thailand is one of the most popular international destinations for Indian travelers, while Vietnam and Indonesia have also been pulling in more visitors from India.

These markets are attractive for airlines because they combine strong leisure demand with relatively short flight times.

The Gulf crisis is reshaping airline strategy across Asia

That pressure is not limited to India. Elsewhere in Asia, airlines are also adjusting their strategy as the Middle East conflict raises fuel costs and makes regional planning less predictable.

That broader pattern was visible when Korean Air moved into emergency management mode as the fuel shock spread across Asia, showing that the crisis is affecting not just individual routes, but how carriers across the region think about growth, costs, and network risk.

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