Malaysia Oversight

Capital A inks deal to make Bahrain AirAsia's Middle East base

By NST in November 3, 2025 – Reading time 2 minute
Capital A inks deal to make Bahrain AirAsia's Middle East base


KUALA LUMPUR: Capital A Bhd has signed a Letter of Intent (LoI) with Transportation and Telecommunications Ministry to establish Bahrain as AirAsia’s Middle East hub.

The LoI sets out a comprehensive framework for deeper aviation and economic cooperation between Capital A and Bahrain, with plans to open new inroads between the kingdom and Asean.

Capital A chief executive officer Tan Seri Tony Fernandes described the partnership as a “game-changer”.

“With our aviation restructuring soon to be complete, both Capital A and AirAsia are stepping into another bold and disruptive chapter of global growth, and Bahrain will be a powerful launchpad for us in the Middle East,” he said.

He added that the company expects to operate over 25 daily flights between Bahrain and Asean megahubs by 2030, carrying over 20 million passengers over the next five years.

“There will be new flows of people, trade, talent and cargo, not just between major capitals but into fast-growing secondary and emerging cities where real economic expansion happens,” said Fernandes.

Capital A’s logistics arm Teleport will position Bahrain as the primary gateway to expand beyond Asia for the first time, with plans to base dedicated freighters in the kingdom to strengthen connectivity for the Middle East, Europe, Africa and the CIS.

Bahrain’s Transportation and Telecommunications Minister Dr Shaikh Abdulla Ahmed Al Khalifa said the partnership reinforces Bahrain as a tourism and logistics hub in the Middle East.

” The partnership model opens opportunities for both leisure and business travelers. At the same time we create specialised jobs for our highly educated Bahraini workforce and give a further boost to the country’s gross domestic product,” he added.

Under the LoI, AirAsia will explore launching flights from Malaysia, Thailand, the Philippines and Indonesia to Bahrain over the next five years, with onward connectivity to Europe and the United States.

The group will also evaluate the establishment of a Bahrain-based AOC to operate narrowbody aircraft into key cities in the Middle East, Central Asia, Africa and Europe.

This expansion is expected to support over 100,000 jobs across the aviation and services ecosystem.

A multi-year talent development programme will train and employ Bahraini nationals across pilot, crew, engineering and ground roles, with over 1,000 hires targeted in the first year to support Bahrain’s economic advancement agenda.

© New Straits Times Press (M) Bhd



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