Capital A Berhad (“Capital A”) has signed a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to explore establishing the kingdom as AirAsia’s Middle East hub, marking a strategic push to bridge Asean with one of the world’s fastest-growing aviation regions. The agreement lays the foundation for collaboration across airline operations, cargo and logistics, maintenance capabilities, and talent development.
Tony Fernandes, CEO of Capital A, described the move as a “game-changer,” highlighting plans to operate over 25 daily flights between Bahrain and Asean megahubs by 2030, carrying more than 20 million passengers over five years. Asia Digital Engineering (ADE) will set up a state-of-the-art MRO facility to service Airbus and Boeing aircraft, while Capital A’s logistics arm, Teleport, aims to expand Middle East, European, African, and CIS connectivity. The expansion is projected to contribute USD 8 billion to Bahrain’s economy and create over 100,000 jobs.
In Guwahati, the development is expected to enhance regional travel and trade. Improved international connectivity through Bahrain could open new routes for business and tourism, boost cargo and e-commerce flows, and strengthen Guwahati’s position as a key economic and aviation hub in Northeast India. H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa noted the partnership supports Bahrain’s Economic Vision 2030, reinforcing its role as a tourism, logistics, and aviation gateway connecting Asia, Europe, Africa, and the US.
