Low-cost airline AirAsia plans major Middle East hub; 25 daily flights by 2030

Dubai: AirAsia is exploring establishing Bahrain as its Middle East aviation hub in a major expansion that could see the budget carrier operate more than 25 daily flights through the kingdom by 2030.

Capital A Berhad, AirAsia's parent company, signed a Letter of Intent with Bahrain's Ministry of Transportation and Telecommunications on Sunday to develop what CEO Tony Fernandes called "a game-changer" partnership.

"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," Fernandes said.

The Malaysian, all-Airbus low-cost carrier plans to launch flights from Malaysia, Thailand, the Philippines and Indonesia to Bahrain over the next five years, with onward connectivity to Europe and the United States.

AirAsia will also evaluate establishing a Bahrain-based Air Operator Certificate to operate narrowbody aircraft into key cities across the Middle East, Central Asia, Africa and Europe.

"By 2030, in addition to potentially operating a Bahrain-based AOC, we expect to operate over 25 daily flights between Bahrain and our Asean megahubs, carrying over 20 million passengers over the next five years," Fernandes said.

The expansion is projected to contribute BHD 3 billion ($8 billion) to Bahrain's economy and support over 100,000 jobs across the aviation and services ecosystem.

AirAsia, founded in 2001 and headquartered in Malaysia, is one of Asia's largest low-cost carriers. The carrier has expanded beyond its Malaysian home base to establish successful operations across the Asean region, including Thailand, Indonesia, the Philippines and Cambodia.

During a media interview in June with Dubai Eye, Fernandes said the airline had shortlisted four airports for its Middle East expansion, including Saudi Arabia and Ras Al Khaimah, and that he has no intention of looking at Sharjah or Dubai.

Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Bahrain’s Minister of Transportation and Telecommunications, said the partnership "reinforces Bahrain as a tourism and logistics hub in the Middle East, enhancing its position as a strategic connector linking Asia, the Middle East, Europe, Africa and the United States."

A multi-year talent development programme will train Bahraini nationals for pilot, crew, engineering and ground roles, with over 1,000 hires targeted in the first year.

Asia Digital Engineering, Capital A's maintenance arm, plans to construct a state-of-the-art facility in Bahrain with hangars capable of servicing both narrowbody and widebody aircraft. The facility aims to deliver the fastest maintenance turnaround times in the region.

Capital A's logistics arm, Teleport, will also position Bahrain as its primary gateway for expansion beyond Asia, with plans to base dedicated freighters in the kingdom to strengthen connectivity for e-commerce flows between Asia, the Middle East and beyond.

"The future of travel is multi-hub, seamless and borderless," Fernandes said, adding that the expansion would create "new flows of people, trade, talent and cargo, not just between major capitals but into fast-growing secondary and emerging cities where real economic expansion happens."