Air India Moves to Capitalize on India-Australia Ties

Skift Take
Full-service airline Air India is strengthening its international network. On Monday, the airline announced a new codeshare agreement with Virgin Australia. The move is expected to boost connectivity between India and Australia, the airline said in a statement.
The codeshare agreement will cover Virgin Australia flights to 16 destinations in Australia and New Zealand, including Adelaide, Byron Bay, Brisbane, Canberra, Melbourne, Sydney, Perth, and Queenstown. Air India’s distinctive AI flight code will be added to Virgin Australia flights operating to these destinations.
Air India currently operates 14 weekly flights between India and Australia. The agreement will allow passengers to fly from Delhi to Sydney or Melbourne on an Air India-operated flight and then connect on Virgin Australia flights on a single ticket.
India-Australia Ties: Air India already has a partnership with Australia-based Qantas Airways.
Air India intends to increase its share in this segment. “Australia is one of Air India’s most important international markets,” said Nipun Aggarwal, chief commercial officer.
Skift had earlier quoted Aggarwal talking about an integrated operation between Air India and Air India Express. He had said Air India would focus on premium traffic and full-service operations across international and metro markets, while Air India Express would concentrate on short-haul markets and point-to-point domestic routes.
Last March, budget carrier IndiGo also extended its codeshare partnership with Qantas and announced 11 new destinations.
India is a key source market for Australia. In November, a delegation from Tourism Australia visited India along with 15 CEOs from the Australian tourism industry to ramp up its efforts in India. The tourism board had said that India was among the fastest growing inbound markets for Australia and amongst the first markets to recover to pre-Covid levels.
According to Tourism Australia data, in the 12 months ending November 2024, 434,000 Indians visited the country, up 12% year-on-year. India was also the fifth-largest source market in number of tourists as well as tourism spending.
In order to boost tourism from India, Tourism Australia also announced a three-year partnership with Air India during its India visit.
Indian Tourists to Turkey Up 20%
The number of Indian travelers to Turkey increased by over 20% in 2024 compared to 2023. In a statement, the Turkiye Tourism Board said that the Indian source market emerged as a strong growth driver for the country.
Last year, a total of over 62 million tourists visited Turkey, a rise of nearly 10% year-on-year. “While Russia, Germany, and the United Kingdom remained Turkey's top three source markets, other emerging markets demonstrated notable growth alongside India,” the tourism board said.
It attributed this surge from India to better air connectivity, along with growing popularity among Indian wedding planners and MICE (meetings, incentives, conferences, and exhibitions) organizers. It also said that Turkey’s efforts, including introduction of specialized experiences catering to Indian preferences, have aided in the growth of tourism from India.
Flydubai on GoFirst
Dubai government-owned low-cost airline Flydubai is looking to organically grow its network in India. India has always been a very important market for the airline.
However, it is not currently discussing any ventures in the region with other airlines, the airline was cited as saying by Indian news agency PTI.
The clarification has come amid media reports that said that flydubai is working with Nishant Pitti’s Busy Bee Airways to potentially buy assets of grounded airline GoFirst. However, Pitti, who is also the co-founder of online travel agency EaseMyTrip, said on Monday that no such discussions are taking place at the moment.
Vietnam to Relax Visa Rules for Indians
Vietnam is considering a new visa policy for Indian tourists, according to Consul General of Vietnam in Mumbai Le Quang Bien. The diplomat noted that most South Asian nations currently allow Indian tourists a visa on arrival.
However, Vietnam issues e-visas for travelers. He said that the government is now considering changing the rules for entry of tourists from India and other countries.
“There is a lot of potential for tourism from India to Vietnam. The two countries have a very strong bilateral relationship. We value tourists from India, the number of which is increasing,” Bien said.
Meanwhile, Vietnamese destination Da Nang is also focusing on Indians to grow its tourism. Da Nang Tourism Promotion Center deputy director Huynh Thi Huong Lan said that India is a key player in the region’s tourism growth plans. Lan added that the destination is adapting to the tastes and expectations of Indians to attract more tourists.
Thomas Cook Partners With Sabah in Malaysia
Travel services company Thomas Cook India and its group company SOTC Travel have said it would work to increase Sabah’s visibility in India to boost tourism to the Malaysian state. The travel company has partnered with Sabah Tourism Board in Malaysia.
As part of the collaboration, multiple initiatives will be undertaken, including organizing educational and training programs, dispersing knowledge about Sabah as a destination, holding familiarization trips, and more. Sabah and Thomas Cook are targeting Indian metro cities, mini-metros, as well as Tier-2 and 3 markets.
Bagdogra Airport to Undergo Major Expansion
Bagdogra airport in West Bengal is set to undergo a major expansion. In the first phase, the airport will get a new terminal spanning over 70,000 square meters, with an additional 50,000 square meters in the second phase. Airports Authority of India (AAI) is looking to increase capacity and improve air connectivity at the airport through this expansion.
Bagdogra airport is a key gateway into the Northeast region of India. As the government is focusing on growing travel to the region, the airport is struggling to keep up with increasing passenger traffic. The new terminal is expected to be 10 times the size of the existing one, and is likely to make the airport better positioned for domestic and international traffic.