Economic development in Southeast Asia and South Pacific has boosted air traffic growth in the region during the 1980s and 1990s, on both domestic and international routes. Several airlines based in the region, such as Singapore Airlines, Thai Airways and Qantas, are among the world’s largest. The region’s hub airports are ranked among the busiest in the world. The chapter provides an overview on the development of air transport markets in selected countries in Southeast Asia and South Pacific as well as their major carriers. Indonesia is a nation of islands, thus an efficient air transport system is vital for the country to stay economically, socially, and politically unified. Political instability, coupled with economic difficulties, largely hampered the tourism industry in Philippines during the 1980s. Given its small market base, Singapore relies on air traffic from other countries such as Indonesia, Malaysia, China and Japan, to sustain its aviation industry. Tourist traffic is an important component of Singapore’s air traffic.