📋 Tender Overview
The signing between the CEO of Capital A, Tony Fernandes, and H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Minister of Transportation & Telecommunications, Kingdom of Bahrain, emphasizes the great potential of this partnership and Bahrains role as a strategic hub in AirAsias global network.
MANAMA, November 3, 2025 -- Capital A Berhad (Capital A), the parent company of the AirAsia group, today signed a Letter of Intent (LOI) with the Ministry of Transportation and Telecommunications of the Kingdom of Bahrain to explore the possibility of the country becoming one of AirAsias operational centers in the Middle East. This marks the initial step of a long-term partnership to strengthen connectivity between Southeast Asia and the rapidly developing aviation sector in the region. This LOI establishes a comprehensive framework to enhance cooperation in aviation and the economy between Capital A and Bahrain, with the shared goal of opening broader access between the Kingdom of Bahrain and the ASEAN region. The points of cooperation include plans for collaboration in various sectors, including future airline operations, cargo and logistics, aircraft maintenance facility development, as well as talent nurturing and development. Tony Fernandes, CEO of Capital A, stated: This partnership is an important step for us. With the restructuring process of the airline business nearly complete, Capital A and AirAsia are entering a new chapter to drive global growth, and Bahrain will be a strategic starting point for our expansion in the Middle East. AirAsia was built with a spirit of innovation, and we continue to bring updates to the low-cost airline service model. We have pioneered the development of airline operations outside Malaysia and successfully expanded our presence in key ASEAN markets such as Thailand, Indonesia, the Philippines, and Cambodia. Our presence in Bahrain is a continuation of that innovative spirit, while also opening opportunities to develop new models to realize the mission of Now Everyone Can Fly. This is reflected in the various collaboration potentials we are exploring through this partnership. The future of travel will be increasingly connected through a multi-hub model, more connected/unobstructed, and borderless. By 2030, in addition to the potential operation of an AOC based in Bahrain, we are targeting more than 25 daily flights between Bahrain and our main hubs in the ASEAN region, with projections to serve over 20 million passengers in the next five years. This initiative is expected to encourage travel flows, trade, talent development, and broader cargo services, not only between major capitals but also towards rapidly developing secondary cities as new economic growth centers. H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Minister of Transportation & Telecommunications, Kingdom of Bahrain, said: Bahrains efforts to drive economic transformation in line with Economic Vision 2030 receive an additional boost through this partnership with Capital A and AirAsia. This initiative further strengthens Bahrains position as a tourism and logistics hub in the Middle East, as well as reinforcing its role as a strategic link between Asia, the Middle East, Europe, Africa, and the United States. This cooperation opens opportunities for both leisure and business travelers, while also creating specialist job opportunities for Bahrains highly educated workforce, and contributing positively to the countrys economic growth. Under this LOI, AirAsia will explore opening flights from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain in the next five years, with further connectivity to Europe and the United States. The group will also evaluate the establishment of an Air Operator Certificate (AOC) based in Bahrain to operate narrow-body aircraft to major cities in the Middle East, Central Asia, Africa, and Europe. By 2030, AirAsia aims to operate more than 25 daily flights through Bahrain, with projections to serve over 20 million passengers in the next five years and contribute around BHD 3 billion (USD 8 billion) to Bahrains economy. This expansion is expected to support over 100,000 jobs in the aviation ecosystem and related services. Development programs over the coming years will be prepared to train and employ Bahraini citizens in various fields, including pilots, cabin crew, engineering, and ground roles, with a target of over 1,000 recruitments in the first year to support Bahrains economic development agenda. Asia Digital Engineering (ADE), the Maintenance, Repair and Overhaul (MRO) unit of Capital A, plans to strengthen its presence in Bahrain by building modern facilities that include hangars and workshops to service both narrow and wide-body aircraft. This facility will also support local talent development through advanced training programs for Airbus and Boeing fleets, setting new standards in efficiency and driving faster MRO turnaround times in the region. This initiative will help local and regional airlines enhance fleet availability and operational efficiency, thus opening additional revenue opportunities. The construction of this facility also reaffirms ADEs commitment to making Bahrain a center of aviation engineering excellence in the Middle East. Capital As logistics unit, Teleport, will position Bahrain as a key gateway for expansion outside Asia for the first time, with plans to place a dedicated cargo fleet in the Kingdom of Bahrain to strengthen connectivity to the Middle East, Europe, Africa, and the CIS (Commonwealth of Independent States/former Soviet Union) region. This strategic move will enable Teleport to expand its international network and enhance e-commerce flows between Asia, the Middle East, and other regions. The announcement of this partnership comes after a significant achievement by Capital A recently, where all requirements for the separation of the airline business have been met. This paves the way for the formation of a single AirAsia G
