AirAsia Charts a New Course as Bahrain Becomes the Gateway Linking Asean to the Middle East

(NEWS) MANAMA, 2025-Nov-3 — /Travel PR News/ — Capital A Berhad, the parent company of AirAsia, has signed a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to explore the establishment of Bahrain as AirAsia’s first Middle East hub — a move that could significantly reshape regional connectivity between Southeast Asia and the Gulf, according to their announcement. The collaboration outlines a long-term vision to position Bahrain as a bridge between Asean and the Middle East, strengthening links in aviation, logistics, and talent development while expanding opportunities for trade and tourism.

The LOI, signed in Manama, sets a foundation for comprehensive cooperation covering new airline operations, maintenance and repair services, cargo and logistics, and workforce training. If realized, the partnership would see AirAsia launch new routes from Malaysia, Thailand, Indonesia, and the Philippines to Bahrain over the next five years, with onward links to Europe and the United States.

Tony Fernandes, CEO of Capital A, called the initiative “a game-changer,” describing it as a key step in AirAsia’s evolution from a regional low-cost carrier to a global aviation network. He said Bahrain’s strategic location makes it an ideal gateway to the Middle East, adding that the collaboration reflects AirAsia’s mission of making air travel more accessible across emerging markets. By 2030, the airline group expects to operate over 25 daily flights to and from Bahrain, carrying more than 20 million passengers within five years and contributing around BHD 3 billion (USD 8 billion) to the local economy.

Bahrain’s Minister of Transportation and Telecommunications, H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, said the partnership aligns with the Kingdom’s Economic Vision 2030, which aims to diversify its economy and enhance its role as a regional logistics and tourism hub. He emphasized that the cooperation with Capital A will not only strengthen Bahrain’s position as a connector between Asia, the Middle East, Europe, Africa, and the United States but also support the creation of high-skilled jobs and long-term economic growth.

Beyond airline operations, the agreement will involve Capital A’s other divisions. Asia Digital Engineering (ADE), the Group’s maintenance, repair, and overhaul arm, plans to establish a major facility in Bahrain to service both narrowbody and widebody aircraft, providing hands-on training to Bahraini engineers and technicians. Meanwhile, Teleport, Capital A’s logistics arm, will expand its operations beyond Asia for the first time, basing dedicated freighters in Bahrain to enhance cargo connectivity across the Middle East, Europe, Africa, and Central Asia.

The partnership builds on Capital A’s ongoing restructuring, which consolidates all AirAsia aviation entities under one umbrella, transforming the airline into a multi-hub, low-cost network carrier. With AirAsia focused on international expansion and Capital A developing its broader travel and digital ecosystem, the agreement marks a new phase of growth — one that could redefine the movement of people and goods between Asia and the Middle East.