Move to advance global expansion plans
Sepang, Malaysia headquartered Capital A Berhad recently signed a Letter of Intent (LOI) with the Ministry of Transportation and Telecommunications to explore establishing Bahrain as AirAsia’s Middle East hub, marking the beginning of a long-term partnership to build a major bridge between Asean and one of the world’s fastest-growing aviation regions.
The LOI sets out a comprehensive framework for deeper aviation and economic cooperation between Capital A and Bahrain, with a shared ambition to open new inroads between the Kingdom and the Asean region. It outlines multi-faceted collaboration across future airline operations, cargo and logistics, maintenance capabilities and talent development.
Game changer
“This partnership is 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,” affirmed Tony Fernandes, CEO, Capital A.
“The future of travel is multi-hub, seamless and borderless. By 2030, in addition to potentially operating a Bahrain-based AOC, we expect to operate over 25 daily flights between Bahrain and our Asean megahubs, 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,” he added.
“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 GDP,” asserted HE Dr. Shaikh Abdulla Bin Ahmed Al Khalifa, Minister of Transportation & Telecommunications, Kingdom of Bahrain.
Exploring flights
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.
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.
Asia Digital Engineering (ADE), Capital A’s Maintenance, Repair and Overhaul (MRO) arm, plans to establish a significant presence in Bahrain by constructing a state-of-the art facility including hangars and workshops which can service both narrow and wide body aircraft.
Primary gateway
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.
This partnership announcement follows Capital A’s recent milestone that saw all conditions for the disposal of its aviation business met, clearing the way for the formation of one AirAsia Group as a multi-hub low-cost network carrier.
With AirAsia Group focused on global airline expansion and Capital A growing a complementary travel and digital ecosystem, both entities are now aligned to accelerate growth, unlock new markets, and deliver a more connected future for guests and partners worldwide, a press communication concluded.
