Bali has become a major battleground for Australia’s largest airlines, with Qantas and Virgin Australia both seeking additional flights to the Indonesian island.
More than 1.6 million Australians flew to Bali in 2025, making the Indonesian destination the top international travel choice for Australian travellers.
Now, both airlines are competing for additional flight capacity that could increase the number of seats available between Australia and Indonesia.
5,000 Additional Seats Per Week Are Up for Grabs
A recent bilateral agreement between Australia and Indonesia provides Australian airlines with an additional allocation of 5,000 seats per week on flights between the two countries.
Indonesian airlines, including Garuda Indonesia, have access to a separate allocation of the same size.
Australian airlines are competing for 5,000 additional seats per week between Australia and Indonesia.
Qantas Makes Its Bid
Earlier in October, Qantas lodged a bid for just over 4,500 of the additional 5,000 seats available each week.
The airline has outlined plans for a major expansion of its Indonesian network, including the proposed launch of direct Brisbane-Bali and Perth-Jakarta services.
Qantas also wants to increase Melbourne-Jakarta flights to a daily service.
The airline has also indicated that Jetstar could potentially operate flights between Western Sydney Airport and Bali.
Virgin Australia Responds With a Bigger Request
Virgin Australia has now submitted its own request, seeking 5,086 additional seats per week in each direction between Australia and Indonesia.
Because the total Australian allocation is limited to 5,000 additional seats per week, Virgin will not receive the entire amount it has requested.
Qantas also cannot receive its original request in full. The final allocation will therefore have to be determined by Australia’s International Air Services Commission.
Virgin Wants More Perth-Bali Flights
Virgin Australia is emphasizing its current share of the Australia-Indonesia bilateral capacity, noting that it currently holds approximately 20 percent of the capacity available to Australian airlines.
One of the airline’s main proposals is to launch double-daily Perth-Bali flights, with the possibility of operating as many as 17 flights per week on the route.
Virgin also wants to increase services from Sydney, Melbourne, and Brisbane to Bali.
Virgin Australia’s proposed Bali expansion includes:
Perth-Bali: potentially up to 17 flights per week
Melbourne-Bali: potentially up to 17 flights per week
Brisbane-Bali: potentially up to 10 flights per week
Sydney-Bali: additional weekly services
The Final Allocation Will Be Smaller
Neither airline is expected to receive the full amount requested.
Australia’s International Air Services Commission will decide how the available 5,000 additional seats are divided between the competing airlines.
The final result could potentially favor a more balanced expansion, allowing Virgin Australia to strengthen its Perth-Bali operation while also providing some additional capacity to Qantas.
Why Bali Is So Important to Australian Airlines
The competition reflects the enormous popularity of Bali among Australian travellers.
With more than 1.6 million Australians travelling to Bali during 2025, the island represents one of the most important international leisure markets for Australian airlines.
Additional flights would provide airlines with an opportunity to compete for this established demand while giving travellers more choices in terms of airline, schedule, departure city, and potentially airfare.
Western Sydney Could Become Part of the Bali Network
Qantas has also raised the possibility of Jetstar connecting Western Sydney Airport directly with Bali.
If approved, such a service could provide a new option for travellers in Sydney’s western suburbs while adding another airport to Bali’s growing Australian tourism network.
Qantas has also linked its proposed expansion to the broader trade and business relationship between Australia and Indonesia.
More Flights Could Strengthen Bali Tourism
More direct flights generally make a destination easier to access, particularly for short holidays and repeat visitors.
Additional services from Perth, Sydney, Melbourne, Brisbane, and potentially Western Sydney could distribute Australian visitor demand across more routes while making Bali accessible to a wider range of travellers.
Increased air capacity could also benefit accommodation providers, restaurants, transportation companies, tour operators, and other businesses that depend on international visitors.
Best Bali Real Estate Perspective
Australia’s continued investment in Bali air connectivity is another indication of how important the Australian market remains to Bali’s tourism economy.
For Bali’s property market, international accessibility is an important part of the broader tourism ecosystem. Australians represent a major visitor market, and convenient direct air connections help support the flow of tourists, long-term visitors, retirees, and people who regularly travel between Australia and Bali.
If additional flights are approved, areas that are already popular with Australian visitors could benefit from stronger connectivity and continued tourism demand. Perth is particularly relevant because of its close geographic relationship with Bali, while increased services from Melbourne, Sydney, Brisbane, and Western Sydney could further expand the visitor base.
This does not mean that additional flights automatically translate into higher property values. Property performance still depends on location, accessibility within Bali, surrounding development, tourism demand, property quality, and the long-term character of the area.
However, continued competition among major airlines to add Bali services is a positive sign for the island’s position as a major international tourism destination.
What This Could Mean for Bali
The competition between Qantas and Virgin Australia demonstrates the strength of the Australian market for Bali.
With both airlines seeking additional capacity and Qantas also considering new routes through Jetstar, Bali could see further growth in its already extensive Australian air network.
The final decision by Australia’s International Air Services Commission will determine how those additional seats are distributed, but the competition itself highlights the continuing importance of Bali to Australian travellers.
Bali remains one of Australia’s most important international holiday destinations, and both Qantas and Virgin Australia want to expand their presence on the island.
With only 5,000 additional seats per week available to Australian airlines, the final allocation will likely result in a compromise between the two carriers. Regardless of how the seats are divided, additional air capacity could strengthen the connection between Australia and Bali and provide another boost to the island’s tourism economy.
