Capital A Partners with Bahrain to Establish Aviation Hub

Capital A Berhad has signed a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications, aiming to establish Bahrain as AirAsia’s Middle East hub. This partnership is poised to significantly enhance connectivity between the ASEAN region and one of the fastest-growing aviation markets globally. The agreement was formalized on November 3, 2025, marking a strategic move to foster deeper aviation and economic ties.

The LOI outlines a comprehensive framework for collaboration across various sectors, including airline operations, cargo logistics, maintenance capabilities, and talent development. Tony Fernandes, CEO of Capital A, emphasized the transformative potential of this partnership, stating, “Bahrain will be a powerful launchpad for us in the Middle East.” He noted that AirAsia’s innovative spirit aligns with Bahrain’s ambitions, creating new opportunities for travel and commerce.

H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Bahrain’s Minister of Transportation and Telecommunications, welcomed the partnership as a boost to the country’s Economic Vision 2030. He remarked that this collaboration positions Bahrain as a crucial tourism and logistics hub, linking key regions including Asia, Europe, Africa, and the United States. The partnership aims to create jobs for the local workforce while contributing to Bahrain’s GDP.

Under the LOI, AirAsia plans to launch flights from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain over the next five years. The airline expects to operate more than 25 daily flights via Bahrain, potentially carrying over 20 million passengers, and contributing an estimated BHD 3 billion (USD 8 billion) to the Bahraini economy. This expansion is projected to support over 100,000 jobs across the aviation and services sectors.

In addition to expanding air travel, the partnership includes a multi-year talent development program aimed at training and employing Bahraini nationals in various roles, including pilots and engineering positions. The initial target is to hire over 1,000 locals in the first year.

Asia Digital Engineering, Capital A’s Maintenance, Repair and Overhaul (MRO) arm, plans to establish a state-of-the-art facility in Bahrain. This facility will service both narrow and wide-body aircraft, providing advanced training programs for local talent on Airbus and Boeing fleets. The initiative aims to set new benchmarks for efficiency in aircraft maintenance, enhancing the capabilities of local and regional airlines.

Moreover, Capital A’s logistics division, Teleport, intends to position Bahrain as a strategic gateway for expanding its operations beyond Asia. Plans include deploying dedicated freighters in the Kingdom to strengthen connections with the Middle East, Europe, Africa, and the CIS. This strategic initiative is expected to facilitate greater e-commerce flows between these regions.

This partnership announcement follows Capital A’s recent achievement of meeting all conditions for the disposal of its aviation business, paving the way for the formation of a unified AirAsia Group. With a focus on global expansion and a complementary travel and digital ecosystem, both entities are set to accelerate growth and unlock new markets.

As the aviation landscape evolves, this collaboration positions Bahrain as a significant player in the Middle East’s aviation sector, fostering economic growth and enhanced connectivity for travelers and businesses alike.