From August 19th, two flights a day will operate between Ngurah Rai International Airport and Perth Airport.
AirAsia Indonesia chief executive officer Bapak Dharmadi said he expected the new route to be in demand owing to Bali's popularity among Australian holidaymakers.
"With its unique culture, spectacular beaches, water sports activities, Bali needs no introduction to them," he commented.
Mr Dharmadi added that many Indonesians were likely to book tickets on the flights thanks to a large number of the country's students choosing to go to university in Australia.
Perth will become the first Australian city that AirAsia flies to, while it is the fourth route to take from Bali following the launch of flights to Bangkok, Kuala Lumpur and Singapore.
Recent figures revealed that the number of Australian tourists booking flights to Bali rose by almost 25 percent in the first quarter of this year compared to the same period in 2008, from 57,647 to 71,970.
AirAsia recently introduced its Pick A Seat product, which offers passengers assigned seating options.
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