Capital A Signs LOI to Develop Middle East Aviation Hub in Bahrain

Capital A Signs LOI to Develop Middle East Aviation Hub in Bahrain

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5 months ago

Capital A, the parent company of AirAsia, has announced its plans to develop a new aviation hub in Bahrain through a signed Letter of Intent with the country's Ministry of Transportation and Telecommunications. This initiative aims to establish Bahrain International Airport as a major center for aviation, logistics, and maintenance activities, serving as a springboard for flights from Malaysia, Thailand, the Philippines, and Indonesia. Over the next five years, the airline group expects to operate more than 25 daily flights to Bahrain, subject to the successful approval of a Bahraini air operator's certificate.

The ongoing strategy involves expanding AirAsia's route network to include destinations across the Middle East, Central Asia, Africa, and Europe. Currently, AirAsia X offers flights to Jeddah International and plans to add new routes to Istanbul Sabiha Gökcen and Madinah later in the year. Thai AirAsia X is also set to launch a service to Riyadh in December. The company envisions a low-cost, narrowbody-focused network with virtual hubs in multiple regions, providing US-bound flights with minimal stops from key intercontinental hubs in Kuala Lumpur and Bangkok.

As part of its fleet modernization, Capital A is shifting away from widebody aircraft, canceling orders for the Airbus A330-900N and phasing out its A330-300 fleet by 2031. Instead, the group will focus on Airbus A321-200NX aircraft, with an upcoming A321-200XLR joining the fleet soon. Moreover, Asia Digital Engineering plans to open an MRO facility in Bahrain to support the maintenance needs of both narrowbody and widebody aircraft. The logistics arm, Teleport, will base dedicated freighter aircraft in Bahrain to expand regional connectivity.

Finally, Capital A has confirmed that all conditions for the transfer of its airline business to AirAsia X have been satisfied. This development will facilitate the formation of a unified AirAsia Group by the end of December 2025, enabling the company to consolidate its operations and strategic initiatives for expansion and fleet renewal.

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Airspace Times Team

Aviation Content Creator

Published: 05 Nov 2025

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