Capital A Berhad, the parent company of AirAsia, has signed a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to evaluate Bahrain as its Middle East hub.
The agreement outlines plans for cooperation in aviation, logistics, maintenance and talent development as part of Capital A’s global expansion strategy.
The partnership could see Bahrain emerge as a key base for AirAsia’s operations linking Southeast Asia with the Middle East, Europe and Africa.
Under the LOI, AirAsia will explore launching flights from Malaysia, Thailand, the Philippines and Indonesia to Bahrain over the next five years, alongside the potential establishment of a Bahrain-based Air Operator’s Certificate to serve cities across the region.
Tony Fernandes, Chief Executive Officer of Capital A, said the move represented a pivotal stage in the group’s international growth plans. “This partnership is a game-changer. With our restructuring nearly complete, Bahrain will be a powerful launchpad for AirAsia in the Middle East,” he said.
“By 2030, we expect to operate more than 25 daily flights between Bahrain and our ASEAN hubs, carrying over 20 million passengers in five years and connecting emerging cities across continents.”
Bahrain’s Minister of Transportation and Telecommunications, Dr Shaikh Abdulla bin Ahmed Al Khalifa, said the partnership aligns with the kingdom’s Economic Vision 2030 to diversify its economy. “This initiative enhances Bahrain’s position as a tourism and logistics hub connecting Asia, the Middle East, Europe, Africa and the United States. It will create specialised jobs for our highly skilled workforce and add significantly to the country’s GDP,” he said.
The collaboration also includes plans for Asia Digital Engineering, Capital A’s maintenance, repair and overhaul division, to establish a major facility in Bahrain with hangars and workshops capable of servicing both Airbus and Boeing fleets. The complex will train Bahraini engineers and technicians and target industry-leading turnaround times for aircraft maintenance.
Capital A’s logistics arm, Teleport, will base dedicated freighters in Bahrain to expand cargo operations across the Middle East, Europe, Africa and Central Asia, making the kingdom a key logistics gateway beyond Asia.
Capital A said the partnership reflects its strategy of building a multi-hub, low-cost carrier network supported by a global travel and digital ecosystem, positioning Bahrain as a cornerstone of its next phase of international expansion.
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