Nov. 3, Manama (BNA): During the Gateway Gulf Investment Forum 2025, the Ministry of Transportation and Telecommunications and Capital A Berhad, the parent company of AirAsia, signed a letter of intent to create a regional aviation and logistics center in the Kingdom of Bahrain. The program seeks to promote Bahrain’s goal of becoming a global aviation hub and to solidify Bahrain’s position as a key gateway linking the ASEAN area with the Middle East.
Transportation Ministry signs Letter of Intent with Capital A Berhad
The letter of intent with Capital A, according to Transportation and Telecommunications Minister Dr. Shaikh Abdulla bin Ahmed Al Khalifa, demonstrates Bahrain’s dedication to enhancing its standing as a global center for aviation and logistics. In keeping with the Bahrain Economic Vision 2030, he stated that the relationship will increase economic cooperation, provide new investment opportunities, and be a crucial step in solidifying Bahrain’s standing as a major regional hub for aviation and logistics.
Over the next five years, flights from Malaysia, Thailand, the Philippines, and Indonesia will gradually begin operating to Bahrain as part of the deal; connections to Europe and the US will follow. In order to operate narrow-body aircraft serving Eastern Europe, Africa, Central Asia, and important Middle Eastern markets, Capital A is also looking into establishing an Air Operator Certificate (AOC) in Bahrain.
Dr. Shaikh Abdulla bin Ahmed emphasized that Bahrain will support this plan by giving AirAsia and Teleport fifth and seventh freedom air traffic rights. This will further improve regional and global connectivity and draw in more investment in the aviation and logistics industries.
It is anticipated that by 2030, AirAsia will run more than 25 daily flights through Bahrain, carrying over 17 million passengers annually and generating over 100,000 employment in the aviation and related services sector, including 1,000 jobs in the first year of operation. It is estimated that the program will boost the country’s GDP by about BHD 3 billion.
According to Capital A CEO Tony Fernandes, the alliance with Bahrain represents a critical turning point in the business’s international growth. Bahrain will act as a key platform for the Middle East, he continued, linking the Kingdom to AirAsia’s ASEAN network and advancing the company’s goal of improving travel accessibility and enjoyment.
According to Fernandes, setting up an AOC and connecting it to the company’s main hubs will open up new commerce and passenger lines and provide real chances for development and innovation in both areas.
Additionally, Capital A will improve cooperation in engineering, national talent development, logistics, and air connectivity.
Asia Digital Engineering (ADE) will set up a maintenance facility to support the expanding regional fleet, and Teleport, the company’s logistics division, will establish its regional hub in Bahrain. Programs to train and hire Bahraini experts in aviation, engineering, air services, and ground operations will coexist with these projects.
