Capital A Berhad (Capital A), the parent company of AirAsia, has taken a major step toward expanding its global footprint after signing a Letter of Intent (LOI) with the Kingdom of Bahrain’s Ministry of Transportation and Telecommunications. The agreement explores establishing Bahrain as AirAsia’s Middle East hub, paving the way for a long-term partnership that aims to strengthen connectivity between the Association of Southeast Asian Nations (ASEAN) and one of the fastest-growing aviation regions in the world.
The LOI outlines a comprehensive framework for cooperation between Capital A and Bahrain, encompassing airline operations, logistics, aircraft maintenance, and talent development. This strategic collaboration positions Bahrain as a bridge linking ASEAN countries to the Middle East, Europe, and beyond — supporting the Group’s vision of becoming a truly multi-hub global aviation network.
Under the agreement, AirAsia plans to explore launching flights from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain over the next five years. These routes will include onward connectivity to Europe and the United States. Capital A is also considering establishing a Bahrain-based Air Operator’s Certificate (AOC) that would enable the operation of narrowbody aircraft serving key destinations across the Middle East, Central Asia, Africa, and Europe.
By 2030, AirAsia expects to operate more than 25 daily flights through Bahrain, carrying over 20 million passengers and contributing an estimated BHD 3 billion (USD 8 billion) to Bahrain’s economy. The initiative is projected to support over 100,000 jobs across various sectors, while a multi-year training program will develop local talent for pilot, crew, engineering, and ground operations roles. In its first year alone, over 1,000 Bahraini nationals are expected to be hired as part of the partnership’s economic advancement goals.
In addition to aviation operations, Capital A’s Maintenance, Repair, and Overhaul (MRO) subsidiary, Asia Digital Engineering (ADE), is set to establish a state-of-the-art facility in Bahrain. The planned complex will include hangars and workshops capable of servicing both narrowbody and widebody aircraft from Airbus and Boeing. The facility aims to become a regional center of engineering excellence by offering advanced training for Bahraini aviation professionals and ensuring efficient aircraft turnaround times for local and regional airlines.
Teleport, Capital A’s logistics arm, will also play a crucial role in the initiative. It plans to use Bahrain as its primary gateway to expand beyond Asia, deploying dedicated freighters to enhance connectivity across the Middle East, Europe, Africa, and the Commonwealth of Independent States (CIS). This move will strengthen international e-commerce and cargo flows, positioning Bahrain as a logistics hub for cross-regional trade.
The announcement follows Capital A’s recent milestone of completing all requirements for the disposal of its aviation business — allowing the formation of a unified AirAsia Group as a multi-hub, low-cost carrier network. With AirAsia focusing on airline expansion and Capital A developing its travel and digital ecosystem, the two entities are poised to accelerate growth, unlock new markets, and build a more connected future across continents.