AirAsia is close to signing an agreement with the government of Bahrain to establish its first Middle East hub in the Gulf nation, according to people familiar with the discussions. The deal is expected to be unveiled as early as today (3 November 2025) by the airline’s founder, Tony Fernandes, at an investor forum in Bahrain.
While AirAsia declined to comment and Bahraini officials have yet to respond to inquiries, sources say the agreement will deepen the Malaysian carrier’s strategic footprint in the region, giving it access to key routes connecting Asia, Europe, and Africa.
The move comes as AirAsia rebuilds momentum after years of pandemic-related disruptions. Earlier this year, Saudi Arabia’s Public Investment Fund (PIF) invested about $100 million in AirAsia as part of a major fundraising round aimed at reviving the group’s growth ambitions. The investment also underscored growing financial links between the airline and the Middle East.
AirAsia Group has outlined ambitious expansion plans for the next decade, targeting a fleet of 600 aircraft (more than double its current 255 planes) and an increase in destinations from 143 to 175. The company is banking on surging regional travel demand, cost efficiency, and digital integration through its Super App platform to sustain its growth trajectory.
For Bahrain, the partnership aligns with its broader goal of positioning itself as a regional aviation and logistics hub. The country is seeking to enhance its competitiveness against larger Gulf rivals such as the United Arab Emirates and Qatar, which have long dominated Middle Eastern air travel.
If finalised, the AirAsia-Bahrain partnership would represent a major step in the airline’s strategy to establish a stronger global network and diversify beyond its core Southeast Asian markets, potentially opening a new growth chapter for the low-cost carrier.
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