The news that Air Astana, the Kazakh airline, is strengthening its presence in India by launching a new direct connection between Almaty and Mumbai from April demonstrates the strengths and variety of intra-Asia-Pacific airfreight.
Since entering the Indian market in 2004, the airline has continuously expanded its offering and currently flies nine times a week from Almaty to Delhi, with additional frequencies during the summer months.
“India is one of the world’s largest high-growth economies, which is why we are very pleased to add this dynamic metropolis to our route network,” said Peter Foster, CEO of Air Astana.
The major intra-Asia-Pacific airfreight lanes connect key manufacturing, logistics and consumption hubs across the region. These routes facilitate the movement of high-value goods such as electronics, semiconductors, pharmaceuticals and e-commerce shipments.
It is no surprise that some of the most important intra-Asia-Pacific air cargo lanes are to and from China. This is partly as a result of the recent shift of manufacturing from China to Vietnam, Thailand and Malaysia that has increased airfreight demand on these routes.
With the current tariff tassel between China and the United States, more manufacturers, likely users of airfreight, will move to the south-east Asian countries to sidestep the handicaps placed on their trade to the American market.
Another Asian country’s investments in the south-east Asian region is also driving a growing airfreight traffic lane. Japanese investment in Asian manufacturing hubs is also fuelling airfreight activity across the region.
In the belly or on the main-deck
The Asia-Pacific region covers approximately 22% of the global land area which translates to around 2.8 billion hectares of land surface area; encompassing a vast territory stretching from the borders of China-Mongolia to the southern tip of Australia and New Zealand.
Included in the area are some of the most important manufacturing locations in the world, creating output in the electronics, textiles, machinery and automotive parts, e-commerce and pharma. These can be prime customers for airfreight. Sea lanes exist across the region but offer no competition to the aircraft in terms of speed.
Singapore’s role as a regional logistics hub, complementing Hong Kong’s position as a major transhipment hub, allow domestic, regional traffic to connect the manufacturing locations easily and conveniently.
Southeast Asia is a growing destination for India’s growing e-commerce sector, industrial expansion and pharma producers. The airfreight market between India and Asia has grown significantly as India’s strategic location makes it a key logistics hub, while Southeast Asia – particularly countries like Singapore, Malaysia, Thailand Vietnam, and Indonesia – is both a manufacturing powerhouse and a growing consumer market for Indian products.
India stands as the world’s leading supplier of generic pharmaceuticals, meeting the surging demand across Asia. Nations like Indonesia, Vietnam, Thailand and Malaysia rely heavily on Indian medicines to sustain their healthcare sectors.
The country is also emerging as a crucial player in electronics and IT hardware exports, shipping semiconductors, mobile components, and IT equipment to Asian markets. Vietnam and Malaysia, key manufacturing hubs for global tech giants, absorb a significant share of these exports.
E-commerce is another booming sector, with cross-border trade between India and Singapore, Malaysia, Thailand and Indonesia expanding rapidly. Giants like Amazon, Flipkart, Shopee and Lazada fuel the rising demand for express cargo and airfreight services.
In the automotive sector, India exports critical components, tyres, and two-wheeler parts to Thailand, Vietnam, and Indonesia, strengthening their vehicle production industries.
Additionally, India supplies textiles, fresh produce and seafood to ASEAN (Association of Southeast Asian Nations) countries, with Singapore serving as a key redistribution hub for perishables.
Hurdles to success
However, the air cargo trade between India and Southeast Asia faces several hurdles that limit its full potential. Limited direct freighter capacity remains a key issue, as most shipments rely on passenger flights for belly cargo. The absence of dedicated freighter services forces much of the airfreight traffic to transit through hubs like Singapore and Hong Kong, adding to costs and transit times.
Infrastructure bottlenecks at Indian airports further compound the problem, with persistent delays and inefficiencies in cargo handling, despite ongoing modernisation efforts. Regulatory barriers and customs delays create additional obstacles, as inconsistent clearance procedures across Southeast Asian nations result in unpredictable processing times, slowing trade flows.
Moreover, cost remains a significant deterrent. While airfreight is essential for high-value or time-sensitive shipments, maritime transport dominates India-ASEAN trade due to its lower cost structure. Finally, competition from China continues to be a challenge, as many Southeast Asian countries still favour Chinese suppliers due to established supply chains, extensive logistics networks and shorter delivery times. Addressing these issues is crucial for strengthening India’s air cargo connectivity with the region.
Evolving rapidly
The intra-Asia-Pacific airfreight market is evolving rapidly, driven by shifting trade patterns, industrial expansion and the rise of e-commerce. India’s growing role as a key logistics hub strengthens its air cargo links with Southeast Asia, facilitating trade in pharmaceuticals, electronics, automotive components, and perishables. However, challenges such as limited direct freighter capacity, infrastructure bottlenecks and high costs hinder its full potential. As manufacturing continues to diversify away from China and investment flows into Southeast Asia increase, airfreight demand will rise. Addressing logistical inefficiencies and regulatory barriers will be crucial in unlocking new growth opportunities and enhancing regional connectivity.
