#Bahrain #Manama #AirAsia #Capital A

Capital A Explores Bahrain as a Hub for Aviation, Engineering, and Logistics

On November 3, 2025, Capital A Berhad, widely recognized for its innovative approach in the aviation industry, took a significant step by signing a Letter of Intent (LOI) with the Ministry of Transportation and Telecommunications of Bahrain. This pivotal agreement marks the beginning of a strategic partnership aimed at positioning Bahrain as a crucial aviation and logistics hub in the Middle East to facilitate the company's ambitious global expansion plans.

This LOI establishes a comprehensive framework that fosters deep collaboration between Capital A and Bahrain. The primary aim is to unlock new routes and enhance connectivity between the Kingdom of Bahrain and the ASEAN region, particularly as Bahrain emerges as one of the fastest-growing aviation landscapes globally.

Tony Fernandes, CEO of Capital A, highlighted the significance of this partnership, stating, 'This collaboration represents a critical turning point for us. With the imminent completion of our restructuring in aviation, both Capital A and AirAsia are entering a bold phase of global growth, and Bahrain will serve as a powerful launchpad for us in the region.' He elaborated that AirAsia is committed to innovation and continuously redefines low-cost aviation models. The company has successfully expanded beyond its roots in Malaysia into key ASEAN markets such as Thailand, Indonesia, the Philippines, and Cambodia. Bahrain aligns perfectly with AirAsia’s mission of making flying accessible to all.

'Looking ahead, the future of travel is multi-hub, seamless, and boundless,' Fernandes continued. By 2030, AirAsia plans to operate over 25 daily flights connecting Bahrain with its ASEAN megahubs and anticipates accommodating over 20 million passengers in the next five years. This transformative approach will not only facilitate the movement of people and commerce but also establish connections with second-tier and emerging cities that are experiencing genuine economic growth.

S.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Bahrain's Minister of Transportation and Telecommunications, expressed enthusiasm about this partnership's potential to further diversify the country's economy in line with its Economic Vision 2030. He emphasized how it bolsters Bahrain’s status as a logistics and tourism center and reinforces its role as a strategic nexus connecting Asia, the Middle East, Europe, Africa, and the United States. This collaboration presents new opportunities not only for holiday travelers but also for business executives, while generating specialized job roles for Bahrain’s skilled workforce, further boosting the nation’s GDP.

As part of the agreement, AirAsia is set to explore launching flights from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain, with planned connections to Europe and the United States within the next five years. Capital A also aims to establish an Air Operator's Certificate (AOC) in Bahrain, allowing narrow-body aircraft operations to vital cities across the Middle East, Central Asia, Africa, and Europe. This ambitious approach is estimated to contribute approximately 3 billion BHD (around 8 billion USD) towards Bahrain's economy and create over 100,000 jobs in the aviation and service sectors.

The talent development programs planned within the scope of the agreement aim to prepare Bahraini nationals for roles including pilots, cabin crew, engineers, and ground personnel. In the first year alone, it is expected that over 1,000 new positions will be created to further Bahrain's economic development objectives.

Asia Digital Engineering (ADE), Capital A's maintenance, repair, and overhaul (MRO) division, has plans to build a significant presence in Bahrain by establishing a state-of-the-art facility with hangars and workshops, allowing for the maintenance of both narrow-body and wide-body aircraft. This endeavor will involve extensive training programs for local talents on fleet operations for Airbus and Boeing, setting new benchmarks for efficiency and targeting the quickest MRO turnaround times in the region, enabling local and regional airlines to maximize their aircraft availability and generate additional revenue streams.

Furthermore, Capital A’s logistics arm, Teleport, aims to position Bahrain as a key gateway for its initial expansion beyond Asia. The plan includes basing dedicated freight aircraft in Bahrain to improve connectivity with the Middle East, Europe, Africa, and the CIS. This strategic move is intended to expand Teleport's international network and boost e-commerce traffic between Asia and the regions beyond.

This partnership announcement comes on the heels of a significant milestone achieved by Capital A, which culminated in the fulfillment of all conditions concerning its aviation business divestiture. This achievement paves the way for the establishment of AirAsia as a multi-hub low-cost network carrier focused on global expansion, while Capital A develops a complementary travel and digital ecosystem. Both entities are well-positioned to accelerate growth, explore new markets, and provide guests and partners worldwide with a more integrated future.

With Bahrain emerging as a focal point for air travel and logistics, the collaboration between Capital A and Bahrain is set to reshape the aviation landscape in the region, promising vast opportunities for economic development and connectivity as they advance together into the future.