Capital A's Ambitious Move to Establish Bahrain as Aviation Hub in the Middle East
Capital A's Strategic Partnership with Bahrain
In a landmark initiative, Capital A Berhad has taken a significant step towards positioning Bahrain as a pivotal center for aviation, engineering, and logistics in the Middle East. This move is aimed at bolstering the company’s global expansion plans and enhancing air travel connectivity in the region.
On November 3, 2025, Capital A signed a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications, marking the beginning of a long-term partnership that aspires to create a vital link between the ASEAN region and one of the world’s fastest-growing aviation markets.
Tony Fernandes, the CEO of Capital A, described this partnership as a turning point, emphasizing that with the restructuring of their aviation operations nearing completion, both Capital A and AirAsia are ready to embark on a bold new chapter of global growth. Bahrain is highlighted as a powerful launchpad for their initiatives in the Middle East.
"AirAsia has always been about innovation. We are continually redefining the low-cost aviation model, having successfully expanded from our roots in Malaysia into the ASEAN markets of Thailand, Indonesia, the Philippines, and Cambodia. By partnering with Bahrain, we are continuing our pioneering spirit to create new pathways for our mission of ensuring 'Now everyone can fly,'" Fernandes stated.
The LOI outlines a comprehensive framework to enhance both aeronautical and economic cooperation between Capital A and Bahrain. The agreement articulates a multi-faceted collaboration encompassing airline operations, cargo transport and logistics, maintenance capabilities, and talent development.
As part of this ambitious plan, AirAsia is evaluating the launch of flights from key Asia-based nations—including Malaysia, Thailand, the Philippines, and Indonesia—to Bahrain within the next five years, with subsequent connections to Europe and the United States. The group is also exploring acquiring an Air Operator Certificate (AOC) based in Bahrain, enabling them to operate narrow-body aircraft to major cities across the Middle East, Central Asia, Africa, and Europe.
With a forward-looking approach, AirAsia anticipates managing over 25 daily flights from Bahrain and transporting more than 20 million passengers in the next five years, significantly contributing to Bahrain’s economy—an estimated $8 billion boost over that period.
Moreover, the expansion is projected to generate in excess of 100,000 jobs within the aviation and service sectors. A multi-year talent development program is also in the pipeline to train and employ Bahraini citizens in various roles, including pilots, crew, engineering, and ground staff, with an initial target of hiring over 1,000 individuals in the first year alone.
Additionally, Asia Digital Engineering (ADE), the maintenance, repair, and overhaul (MRO) division of Capital A, is working towards establishing a robust presence in Bahrain with plans to construct a state-of-the-art facility. This center will include hangars and workshops capable of servicing both narrow and wide-body aircraft. It aims to promote local Bahraini talent through advanced training programs focused on Airbus and Boeing fleets, setting a new standard for efficiency in the region's MRO services.
Furthermore, Teleport, Capital A’s logistics division, will position Bahrain as a primary gateway for its first expansion beyond Asia, with plans to establish dedicated air cargo bases in the Kingdom to enhance connectivity with the Middle East, Europe, Africa, and the CIS.
Minister of Transportation and Telecommunications, His Excellency Dr. Shaikh Abdulla bin Ahmed Al Khalifa, highlighted the significance of this partnership, stating that it aligns with Bahrain's Economic Vision 2030. He noted that this collaboration would not only bolster Bahrain's standing as a logistical and tourist hub in the Middle East but also solidify its role as a strategic connector across Asia, the Middle East, Europe, Africa, and the United States.
The partnership is expected to offer enhanced options for both leisure and business travelers while providing specialized job opportunities for Bahrain’s highly skilled workforce, propelling further economic growth.
In conclusion, the strategic alliance with Capital A marks a significant chapter in Bahrain’s economic development narrative, showcasing the Kingdom's readiness to embrace a more connected and prosperous future within the global aviation landscape.