This white paper—independently developed by Deloitte based on air travel data provided by OAG—examines how international and domestic commercial aviation networks have evolved, both quantitatively and qualitatively, before and after the COVID-19 pandemic.
Through a data-driven analysis of international and domestic airport pairs in Asia Pacific, we uncover the deep structural shifts in the regional fabric of air transport that have taken place over the past 12 years. Our findings complement the extensive commentary that already exists on the impact of COVID-19 on overall passenger and cargo traffic levels and the airline competitive landscape by focusing specifically on the stunning rebalancing of air connectivity from international to domestic and its implications for the Asia Pacific region.
We begin this report with an overview of connectivity at a regional level, focusing on changes to international and domestic networks, and a commentary on the balance between low-cost carrier (LCC) and full-service carrier (FSC) penetration. We then narrow our analysis to a sub-regional level, covering Southeast Asia, Northeast Asia, Central Asia, South Asia, and Southwest Pacific individually; as well as the top gainers and losers at the individual market level. Each sub-region presents unique dynamics, such as Northeast Asia’s muted international reopening, South Asia’s explosive domestic growth, and Central Asia’s emergence as a strategic connector.
We then turn to connectivity shortfalls and identify the region’s unserved international routes by measuring transfer traffic between behind and beyond destinations that lack a direct nonstop service. Lastly, we conclude with strategic recommendations for airport operators, airlines, and policymakers — outlining how stakeholders can adapt to the new network realities through smarter capacity planning, targeted partnerships, and stronger alignment of their policy frameworks.
Southeast Asia’s aviation industry is poised for robust growth, with its momentum fueled by a rising middle class and the region’s unique geography, which comprises numerous islands that make overland travel challenging.