Capital A CEO Tony Fernandes (left) and Abdulla bin Ahmed Al Khalifa, Bahrain’s minister of transportation and telecommunications.
Capital A, the parent company of AirAsia, has signed a letter of intent (LOI) with Bahrain’s Transportation and Telecommunications Ministry to explore establishing Bahrain as a Middle Eastern hub.
The preliminary agreement outlines broad cooperation on airline operations, cargo, logistics, MRO and workforce development, and includes a feasibility study into launching a Bahrain-based air operator certificate (AOC) capable of serving destinations across the Middle East, Central Asia, Africa and Europe.
“Both Capital A and AirAsia are stepping into another bold and disruptive chapter of global growth, and Bahrain will be a powerful launchpad for us in the Middle East,” Capital A CEO Tony Fernandes says.
Under the LOI, AirAsia will explore new routes from Malaysia, Thailand, the Philippines and Indonesia to Bahrain over the next five years, with onward connectivity to Europe and the U.S. Fernandes suggests the group could ultimately operate 25 daily flights via Bahrain by 2030.
The group projects that more than 20 million passengers could travel via Bahrain over a five-year period—although these volumes would represent a substantial leap from AirAsia’s currently limited presence in the Middle East. According to OAG Schedules Analyser data, AirAsia X currently only serves Saudi Arabia, flying from Kuala Lumpur to Jeddah and Medina, while Thai AirAsia X will add Bangkok Don Mueang-Riyadh in December.
Capital A also expects the partnership to underpin other non-airline investments. Its MRO arm, Asia Digital Engineering, plans to establish a facility in the kingdom capable of servicing both narrowbody and widebody aircraft. The company says the site will include hangars and workshops and “aim to deliver the fastest MRO turnaround times in the region,” supported by advanced training programs for Bahraini technicians.
Additionally, Teleport, Capital A’s logistics subsidiary, intends to base freighters in Bahrain to build a new cargo gateway beyond Asia.
The new Bahrain initiative appears to broaden—or potentially recalibrate—Capital A’s Middle East ambitions. In May, the group announced a push into Saudi Arabia as a key Middle East growth priority. Plans included new AirAsia routes to Riyadh and Dammam, as well as increased Kuala Lumpur-Jeddah frequencies.
Related Content
