**MANAMA **— Capital A Berhad (“Capital A” or “the Group”) today signed a Letter of Intent (LOI) with the Ministry of Transportation and Telecommunications to explore establishing Bahrain as AirAsia’s Middle East hub, marking the beginning of a long-term partnership to build a major bridge between Asean and one of the world’s fastest-growing aviation regions.

The LOI sets out a comprehensive framework for deeper aviation and economic cooperation between Capital A and Bahrain, with a shared ambition to open new inroads between the Kingdom and the Asean region. It outlines multi-faceted collaboration across future airline operations, cargo and logistics, maintenance capabilities and talent development.

**Tony Fernandes, CEO of Capital A, **said: “This partnership is a game-changer. 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.

“AirAsia has been built on innovation, and we continue to redefine the low-cost aviation model. 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. Bahrain continues AirAsia’s innovative and pioneering spirit of creating new models to carry on our mission of ‘Now Everyone Can Fly’, and this is reflected in the areas we are exploring with this partnership.”

“The future of travel is multi-hub, seamless and borderless. 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. There will be 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.”

**H.E. Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Minister of Transportation & Telecommunications, Kingdom of Bahrain **said, “The ambition of Bahrain to diversify the economy according to Economic Vision 2030 gets another boost from this partnership with

Capital A and AirAsia. It 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. The partnership model opens opportunities for both leisure and business travelers. At the same time we create specialised jobs for our highly educated Bahraini workforce and give a further boost to the country’s GDP.

Under the LOI, **AirAsia **will explore launching flights from Malaysia, Thailand, the Philippines and Indonesia to Bahrain over the next five years, with onward connectivity to Europe and the United States. The Group will also evaluate the establishment of a Bahrain-based AOC to operate narrowbody aircraft into key cities in the Middle East, Central Asia, Africa and Europe. By 2030, AirAsia expects to operate more than 25 daily flights via Bahrain, carrying over 20 million passengers over the next five years and contributing an estimated BHD 3 billion (USD 8 billion) to Bahrain’s economy.

This expansion is expected to support over 100,000 jobs across the aviation and services ecosystem. A multi-year talent development programme will train and employ Bahraini nationals across pilot, crew, engineering and ground roles, with over 1,000 hires targeted in the first year to support Bahrain’s economic advancement agenda.

**Asia Digital Engineering (ADE), **Capital A’s Maintenance, Repair and Overhaul (MRO) arm, plans to establish a significant presence in Bahrain by constructing a state-of-the art facility including hangars and workshops which can service both narrow and wide body aircraft. This facility will empower local Bahraini talent through advanced training programmes for both Airbus and Boeing fleet, setting a new benchmark for efficiency and aiming to deliver the fastest MRO turnaround times in the region. This will enable local and regional airlines to maximise aircraft uptime and unlock additional revenue opportunities. The establishment of this facility marks ADE’s commitment to make Bahrain a true centre of engineering excellence in the Middle East.

**Capital A’s logistics arm, Teleport, **will position Bahrain as the primary gateway to expand beyond Asia for the first time, with plans to base dedicated freighters in the Kingdom to strengthen connectivity for the Middle East, Europe, Africa and the CIS. This strategic move will enable Teleport to expand its international network, and facilitate greater e-commerce flows between Asia, the Middle East and beyond.

This partnership announcement follows Capital A’s recent milestone that saw all conditions for the disposal of its aviation business met, clearing the way for the formation of one AirAsia Group as a multi-hub low-cost network carrier. With AirAsia Group focused on global airline expansion and Capital A growing a complementary travel and digital ecosystem, both entities are now aligned to accelerate growth, unlock new markets, and deliver a more connected future for guests and partners worldwide.