The Ministry of Transportation and Telecommunications has signed a letter of intent with Capital A Berhad, the parent company of AirAsia, during the Gateway Gulf Investment Forum 2025 forum to establish a regional aviation and logistics hub in the Kingdom of Bahrain. The initiative aims to strengthen Bahrain’s position as a strategic gateway connecting the ASEAN region with the Middle East and to support the Kingdom’s vision to become a global aviation centre.
Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Minister of Transportation and Telecommunications, said that the letter of intent with Capital A reflects Bahrain’s commitment to reinforcing its status as an international hub for aviation and logistics. He noted that the partnership will expand economic cooperation, open new investment opportunities, and represent a key step in consolidating Bahrain’s position as a leading regional centre for aviation and logistics, in line with the Bahrain Economic Vision 2030.
The agreement includes the gradual launch of flights from Malaysia, Thailand, the Philippines, and Indonesia to Bahrain over the next five years, with plans for subsequent connections to Europe and the United States. Capital A is also exploring the establishment of an Air Operator Certificate (AOC) in Bahrain to operate narrow-body aircraft serving Eastern Europe, Africa, Central Asia, and key Middle Eastern markets.
Dr. Shaikh Abdulla bin Ahmed highlighted that Bahrain will support this initiative by granting fifth and seventh freedom air traffic rights to AirAsia and Teleport, further enhancing regional and global connectivity and attracting additional investment in the aviation and logistics sectors.
By 2030, AirAsia is expected to operate over 25 daily flights through Bahrain, transporting more than 17 million passengers annually and creating over 100,000 jobs within the aviation and related services ecosystem, including 1,000 positions during the first year of operations. The initiative is projected to contribute approximately BHD 3 billion to the national economy.
Tony Fernandes, Chief Executive Officer of Capital A, said the partnership with Bahrain marks a significant milestone in the company’s global expansion. He added that Bahrain will serve as a strategic platform for the Middle East, connecting the Kingdom to AirAsia’s ASEAN network and supporting the company’s mission to make travel more accessible and enjoyable.
Fernandes noted that establishing an AOC and linking it to the company’s major hubs will create new routes for passenger and trade movement and offer tangible opportunities for growth and innovation in both regions.
Capital A will also strengthen collaboration in air connectivity, logistics, engineering, and national talent development.
The company’s logistics arm, Teleport, will establish its regional hub in Bahrain, while Asia Digital Engineering (ADE) will set up a maintenance facility to support the growing regional fleet. These initiatives will run alongside programmes to train and employ Bahraini professionals in aviation, engineering, air services, and ground operations.
Last Updated Date: 04-11-2025
