Capital A Eyes Bahrain as Middle East Hub, Fuels Global Expansion

Capital A CEO Tony Fernandes and H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Bahrain’s Minister of Transportation and Telecommunications, formalized the partnership, highlighting its immense potential.

Capital A Eyes Bahrain as Middle East Hub, Fuels Global Expansion

By Bing Jabadan – TheNationWeek.Com | November 4, 2025

MANAMA, Bahrain – Capital A Berhad (“Capital A”) has signed a letter of intent (LOI) with the Kingdom of Bahrain in a move to establish the nation as AirAsia’s Middle East hub.

The signing of the LOI signifies a strategic alliance aimed at bridging Southeast Asian nations with one of the world’s fastest-growing aviation regions.

The LOI outlines a comprehensive framework for collaboration between Capital A and Bahrain, focusing on the following:

Airline Operations:

• Launching flights from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain, with connections to Europe and the US.

Cargo and Logistics:

• Positioning Bahrain as a primary gateway for Teleport, Capital A’s logistics arm, to expand beyond Asia.

Maintenance, Repair, and Overhaul:

• Establishing a state-of-the-art Asia Digital Engineering facility to service both narrow and wide-body aircraft.

Talent Development:

• Implementing a multi-year program to train and employ Bahraini nationals in aviation roles.

Fernandes emphasized the transformative nature of the partnership, saying, “the agreement is a game-changer.”

“Bahrain will be a powerful launchpad for us in the Middle East as we enter another bold chapter of global growth,” he said.

The partnership aims to operate over 25 daily flights via Bahrain by 2030, transporting over 20 million passengers in five years and contributing an estimated US $8 billion to Bahrain’s economy.

H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa declared that “the partnership reinforces Bahrain as a tourism and logistics hub, enhancing its position as a strategic connector linking Asia, the Middle East, Europe, Africa, and the United States.”

The ADE MRO facility will empower local talent through advanced training programs, delivering the fastest turnaround times in the region.

Teleport plans to base dedicated freighters in Bahrain to strengthen connectivity for the Middle East, Europe, Africa, and the CIS.

The announcement followed Capital A’s recent milestone of meeting all conditions for the disposal of its aviation business, paving the way for the formation of one AirAsia Group as a multi-hub low-cost network carrier.