Capital A Berhad has announced the signing of a Letter of Intent with Bahrain's Ministry of Transportation and Telecommunications to explore establishing Bahrain as a hub for AirAsia in the Middle East. This strategic partnership aims to connect ASEAN countries with growing aviation markets in the Middle East, Africa, and Europe through new flight routes and operational bases.
The agreement outlines plans for launching flights from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain over the next five years, with potential development of a Bahrain-based AirAsia operational certificate (AOC). By 2030, AirAsia expects to operate more than 25 daily flights from Bahrain, facilitating the movement of over 20 million passengers and contributing significantly to Bahrain's economy by around USD 8 billion.
Enhancements in aviation and logistics infrastructure
Alongside route expansion, Asia Digital Engineering (ADE), the maintenance, repair, and overhaul arm of Capital A, intends to establish a state-of-the-art aircraft service facility in Bahrain. The facility will provide services for narrow and wide-body aircraft, leveraging advanced training programs for Airbus and Boeing fleets to position Bahrain as a regional engineering hub.
Additionally, Capital A's logistics division, Teleport, plans to set up dedicated freighter operations in Bahrain to strengthen freight connectivity with Asia, Europe, and Africa. The partnership also emphasizes talent development, with a targeted recruitment of Bahraini nationals across various aviation roles to support the new operations and economic diversification goals articulated in Bahrain's Vision 2030.
"This partnership is a game-changer," said Tony Fernandes, CEO of Capital A. "Bahrain will serve as a powerful launchpad for our Middle East ambitions, enabling seamless travel and economic integration between ASEAN and the region."
Minister Shaikh Abdulla bin Ahmed Al Khalifa of Bahrain highlighted the strategic importance of the partnership in diversifying Bahrain's economy, boosting tourism, logistics, and creating employment opportunities which align with the country's Vision 2030 development plan.
