Capital A, the parent company of Malaysian low-cost airline group AirAsia, has announced the signing of a Letter of Intent (LOI) with the Kingdom of Bahrain. The deal will see the parties promote the Middle Eastern country as a leading aviation, logistics, and engineering center in the region.
A statement issued by the parties said that the LOI is “expected to further enhance Bahrain’s role as a central link among Asia, Europe, and other developing areas, thereby making it easier for travel, trade, and talent to move globally.”
With ambitions to develop Bahrain as a major international aviation hub, focusing on the development of airline operations, cargo logistics, maintenance and engineering services, and talent development in the region, the deal will be cemented by the partnership, with Capital A bringing its expertise as the owner of one of the world’s largest low-cost airline groups.
As part of the agreement, AirAsia plans to significantly increase its operations in Bahrain, to establish a multi-hub low-cost network that will connect the Kingdom with key destinations across Asia, the Middle East, and Europe.
Capital A’s commitment to establishing Bahrain as a pivotal aviation hub is said to be rooted in its vision “to create a seamless travel experience” between emerging markets and established destinations worldwide. The partnership will see AirAsia launch new flights from Southeast Asia, including Malaysia, Thailand, Indonesia, and the Philippines, through its regional subsidiary airlines.
The view is that passengers would then be able to connect through Bahrain International Airport (BAH) to points in Europe, Africa, and the United States with flag carrier, Gulf Air.
As AirAsia transitions from being Asia-centric to a multi-hub budget airline model, the new hub being set up at Bahrain will play an important role in broadening the carrier’s global footprint, connecting more travelers between its hubs in Asia with emerging markets in Central Asia, Africa, and the Middle East. By 2030, the airline plans to operate more than 25 daily flights from Bahrain, carrying over 20 million passengers annually and significantly contributing to the region’s economy.
Tourism is to be given a boost
With Bahrain’s government actively supporting this initiative, the partnership is expected to boost tourism and business travel in the region, just as Etihad, Qatar Airways, and Emirates have done in their countries, and Saudia and Riyadh Air are doing in theirs.
The collaboration also opens the door for increased tourism flows from the Southeast Asia region, capitalizing on Bahrain’s strategic location at the crossroads between the East and the West. This expansion of air routes and logistical capabilities will also enhance Bahrain’s tourism infrastructure, drawing more visitors from around the world, as well as boosting the national economy.
The deal also includes cargo activities
But the plans with Capital A are not just limited to passenger services. The parties will also aim to enhance Bahrain’s role in freight logistics, with Capital A’s logistics arm, Teleport, positioning the Kingdom as a key gateway for expanding e-commerce flows and cargo connectivity between Asia, the Middle East, and Europe.
Additionally, a key element of this new partnership is the development of a state-of-the-art Maintenance, Repair, and Overhaul (MRO) facility in Bahrain, led by Capital A’s Digital Engineering (ADE) subsidiary. According to the company, the new MRO facility will support both narrow-body and wide-body aircraft, providing “advanced training programs and cutting-edge technology to train Bahrain’s local workforce in aviation engineering and aircraft maintenance.”
This development will not only elevate Bahrain as a center of engineering excellence but also contribute to the Kingdom’s workforce development, with plans to hire over 1,000 local Bahraini nationals in the first year. This aligns with Bahrain’s long-term Economic Vision 2030, which focuses on diversifying the economy and creating high-skilled jobs for the growing population.
