Capital A Berhad has signed a Letter of Intent (LoI) with Bahrain’s Ministry of Transportation and Telecommunications to explore establishing the Middle Eastern kingdom as AirAsia’s regional hub — an expansion that could open new long-haul routes and cargo opportunities for the Philippines.
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.
A 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,” Capital A CEO Tony Fernandes said on Tuesday.
Fernandes said the deal also supports AirAsia’s push for innovation and regional growth, citing its success in Thailand, Indonesia, the Philippines and Cambodia.
Bahrain as key tourism, logistics hub
For H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Bahrain’s Minister of Transportation & Telecommunications, the partnership will boost Bahrain’s role as a key tourism and logistics hub. “At the same time, we create specialised jobs for our highly educated Bahraini workforce and give a further boost to the country’s GDP.”
By 2030, AirAsia expects to operate more than 25 daily flights via Bahrain, carrying over 20 million passengers and contributing an estimated BHD 3 billion, or approximately $8 billion, to Bahrain’s economy.
Capital A’s Maintenance, Repair and Overhaul arm, Asia Digital Engineering, also plans to build a major facility in Bahrain, while logistics arm Teleport will use Bahrain as its gateway to expand beyond Asia.
