AirAsia Signs Letter of Intent to Establish an Operations Hub in Bahrain and Advance its Global Expansion Plans
Capital A Berhad has signed a Letter of Intent (LOI) with the Ministry of Transportation and Telecommunications of Bahrain, with the aim of establishing an AirAsia operations hub in the Kingdom for the Middle East. This agreement marks the beginning of a strategic collaboration intended to strengthen ties between the ASEAN (Association of Southeast Asian Nations) region and one of the world’s fastest-growing aviation markets.
The LOI establishes a comprehensive framework for cooperation in key areas such as air operations, logistics, maintenance, and talent development, with the goal of consolidating a global expansion platform for Capital A and AirAsia.
Tony Fernandes, CEO of Capital A, described the partnership as a “game changer” in the company’s transformation process. With the restructuring of its air business in its final phase, the group is preparing for a new stage of disruptive growth, positioning Bahrain as a strategic starting point in the Middle East.
Fernandes highlighted that AirAsia has been a pioneer in innovative low-cost aviation models, expanding from Malaysia to Thailand, Indonesia, the Philippines, and Cambodia. The move into Bahrain continues this vision, with plans to operate more than 25 daily flights between the Kingdom and major ASEAN hubs by 2030, mobilizing over 20 million passengers within five years.
→ AirAsia X Returns to Europe in November: Non-Stop Flights Between Kuala Lumpur and Istanbul
Air Connectivity and Economic Development
The Minister of Transportation and Telecommunications of Bahrain, H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, emphasized that this alliance boosts the country’s economic diversification in line with its Economic Vision 2030. The initiative reinforces Bahrain’s role as a tourism and logistics hub, connecting Asia, the Middle East, Europe, Africa, and the United States.
In addition to flights from Malaysia, Thailand, the Philippines, and Indonesia, AirAsia will evaluate the creation of an Air Operator Certificate (AOC) based in Bahrain to operate narrow-body aircraft to key cities in the Middle East, Central Asia, Africa, and Europe. This expansion could generate an estimated economic impact of BHD 3 billion (USD 8 billion) for Bahrain.
Talent Development and Job Creation
The project envisages the creation of over 100,000 jobs within the aviation and services ecosystem. In its first year, the hiring of more than 1,000 Bahraini citizens is anticipated for roles as pilots, cabin crew, engineers, and ground operations staff, as part of a multi-year technical training program.
State-of-the-Art Engineering with Asia Digital Engineering
Asia Digital Engineering (ADE), the Maintenance, Repair, and Overhaul (MRO) division of Capital A, will establish a state-of-the-art facility in Bahrain. The complex will include hangars and workshops for Airbus and Boeing aircraft, aiming to offer the fastest turnaround times in the region.
This infrastructure will enable the training of local talent in advanced technologies, positioning Bahrain as a regional benchmark for technical excellence and operational efficiency.
Teleport: A Logistics Gateway to New Markets
Teleport, the logistics unit of Capital A, will make Bahrain its primary gateway outside of Asia. The deployment of dedicated cargo aircraft in the Kingdom is planned to strengthen connectivity with the Middle East, Europe, Africa, and the Commonwealth of Independent States (CIS).
This strategic move will allow Teleport to expand its international network and facilitate e-commerce flow between Asia and new emerging markets.
Consolidation of AirAsia Group
This announcement comes after the fulfillment of all conditions for the sale of Capital A’s air business, enabling the creation of a unified AirAsia Group as a multi-hub low-cost network operator. While AirAsia focuses on the global expansion of its air operations, Capital A drives a complementary digital and travel ecosystem, aligning its efforts to open new markets and offer a more connected experience to its customers and partners.
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