CAPITAL A Bhd., which operates Malaysian budget airline AirAsia, is setting up Bahrain as its Middle East (ME) hub, part of a five-year plan to open new long-haul routes from Southeast Asia, including the Philippines.
“This partnership is a game-changer,” Capital A Chief Executive Officer Tony Fernandes said in a statement on Tuesday. “With our aviation restructuring soon to be complete, both Capital A and AirAsia are stepping into another bold and disruptive chapter of global growth, and Bahrain will be a powerful launchpad for us in the Middle East.”
Capital A signed a letter of intent with Bahrain’s Ministry of Transportation and Telecommunications to explore creating a base for AirAsia in the Gulf nation. The deal marks the start of a long-term partnership aimed at linking Southeast Asia and the Middle East.
The deal includes cooperation in areas such as aviation operations, cargo and logistics, aircraft maintenance and talent development. It will also study potential routes connecting Bahrain with the Philippines, Malaysia, Thailand and Cambodia, expanding access to Europe and the US.
The group is considering a Bahrain-based airline operating narrowbody aircraft to key destinations across the Middle East, Central Asia, Africa and Europe. By 2030, AirAsia expects to operate more than 25 daily flights through Bahrain, targeting more than 20 million passengers in five years.
“AirAsia has been built on innovation, and we continue to redefine the low-cost aviation model,” Mr. Fernandes said. “We pioneered the establishment of airlines beyond our home base in Malaysia, expanding successfully into our ASEAN strongholds across Thailand, Indonesia, the Philippines and Cambodia.”
The Bahrain expansion follows Capital A’s broader fleet growth strategy. In July, AirAsia said it plans to acquire 150 new aircraft, with as many as 20 slated for its Philippine unit, Philippines AirAsia, Inc., over the next five years.
AirAsia Philippines earlier said it was evaluating potential new hubs outside Manila, including Bohol, Clark and Cebu. The carrier expects to fly more than seven million passengers this year after carrying more than three million in the first half. — Ashley Erika O. Jose
