Watch out Dubai, Bahrain’s about to get busy! Capital A, the parent company of AirAsia, has just signed a Letter of Intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications, setting the wheels in motion for the island nation to become AirAsia’s Middle East hub.
This is big news. Really big. This deal could make Bahrain the new heartbeat of low-cost aviation in the region — connecting the ASEAN powerhouse network with Europe, Africa, and the US via one seriously strategic Gulf hub.

This partnership is a game-changer
That’s straight from the man himself, Tony Fernandes, CEO of Capital A.
“With our aviation restructuring soon to be complete,” he said, “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.”
And let’s face it, disruption is AirAsia’s favourite sport. The airline built its empire by democratising travel across ASEAN, growing beyond Malaysia into Thailand, Indonesia, the Philippines and Cambodia. Now, it’s ready to take that “Now Everyone Can Fly” spirit to new frontiers.
By 2030, AirAsia expects to operate 25 daily flights between Bahrain and its ASEAN mega-hubs, moving 20 million passengers and contributing around BHD 3 billion (USD 8 billion) to Bahrain’s economy. Not too shabby for a start-up with wings.
Bahrain: small island, big ambitions
For Bahrain, this partnership is another golden feather in its diversification cap.
Dr. Shaikh Al Khalifa, the country’s Minister of Transportation & Telecommunications, said the agreement “reinforces Bahrain as a tourism and logistics hub in the Middle East, linking Asia, the Middle East, Europe, Africa and the US.”
This means more planes, more people, more prosperity. The deal also supports Bahrain’s Economic Vision 2030, creating over 100,000 jobs across the aviation and services ecosystem. The first wave includes 1,000 new hires in the first year, from pilots and engineers to ground crew, all part of a major talent development programme to boost local expertise.

A whole new playground for planes
But it’s not just about flying passengers. Capital A’s other aviation arms are joining the party too.
Asia Digital Engineering (ADE), Capital A’s maintenance, repair and overhaul (MRO) division, will set up a state-of-the-art facility in Bahrain, complete with hangars and workshops for both narrow and wide-body aircraft.
The goal is to make Bahrain a centre of engineering excellence, delivering some of the fastest aircraft turnaround times in the Middle East and training a new generation of Bahraini aviation specialists in Airbus and Boeing maintenance.
Meanwhile, Teleport, Capital A’s logistics arm, will be using Bahrain as its gateway beyond Asia. Dedicated freighters will soon connect the Middle East with Europe, Africa and Central Asia, supercharging regional e-commerce and cargo flows.
Tony Fernandes said, “The future of travel is multi-hub, seamless and borderless.” And this new Bahrain base is proof of that vision. AirAsia isn’t just spreading its wings, it’s building bridges between continents, economies and people who never thought they’d be this connected.
