Capital A Berhad has signed a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to explore establishing Bahrain as AirAsia’s Middle East hub, marking the start of a long-term partnership to bridge Asean and one of the world’s fastest-growing aviation regions.

The LOI outlines a framework for collaboration across airline operations, logistics, maintenance, and talent development, reflecting a shared ambition to deepen aviation and economic ties between Bahrain and Asean.

Tony Fernandes, CEO of Capital A, described the partnership as a “game-changer” that aligns with the group’s global expansion plans. “With Bahrain as our launchpad, AirAsia is set to redefine low-cost aviation once again. By 2030, we expect to operate over 25 daily flights between Bahrain and our Asean megahubs, carrying more than 20 million passengers over the next five years,” he said.

H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Bahrain’s Minister of Transportation & Telecommunications, said the partnership advances the Kingdom’s Economic Vision 2030 by strengthening its role as a tourism and logistics hub linking Asia, the Middle East, Europe, Africa, and the United States.

Under the agreement, AirAsia will explore launching new routes from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain, with onward connectivity to Europe and the U.S. Capital A’s subsidiaries, Asia Digital Engineering (ADE) and Teleport, will establish regional bases in Bahrain to expand MRO and logistics capabilities.

The initiative is expected to support over 100,000 jobs and contribute an estimated BHD 3 billion (USD 8 billion) to Bahrain’s economy by 2030.

Learn more about Capital A’s strategic expansion into the Middle East and how Bahrain is shaping the future of global aviation.