AirAsia's parent company Capital A has announced its plans to establish a Middle East hub in Bahrain, with plans for onward connections to Europe and the United States (US) by 2030.
AirAsia's parent company Capital A has announced its plans to establish a Middle East hub in Bahrain, with plans for onward connections to Europe and the United States (US) by 2030.
On November 3, Capital A reported it signed a Letter of Intent (LOI) with the Kingdom of Bahrain's Ministry of Transportation and Telecommunications to develop a “comprehensive framework” for deeper aviation and economic cooperation between the Malaysia-based Capital A and Bahrain. The LOI addresses collaboration across future airline operations, cargo and logistics, maintenance capabilities and talent development.
According to Capital A CEO Tony Fernandes, the plan for the new hub in Bahrain is in line with how it sees the future of air travel which he stated will be “multi-hub, seamless and borderless.” The group will explore launching flights from ASEAN countries with current AirAsia airline subsidiaries including Malaysia, Thailand, the Philippines, and Indonesia over the next five years, with onward connections to Europe and the US.
The establishment of a Bahrain-based AirAsia carrier will also be evaluated. If launched, AirAsia plans to use narrowbody aircraft from Bahrain to key cities in 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.
In addition to the plans to launch flights to Bahrain and a locally-based AirAsia carrier, Capital A stated it will also develop and launch the local presence of its Maintenance, Repair, and Overhaul (MRO) arm Asia Digital Engineering (ADE), and logistics arm Teleport.
With plans to base dedicated Teleport freighters in Bahrain, Capital A stated “this strategic move will enable Teleport to expand its international network, and facilitate greater e-commerce flows between Asia, the Middle East and beyond.”
His Excellency,Dr. Shaikh Abdulla bin Ahmed Al Khalifa, Minister of Transportation & Telecommunications, Kingdom of Bahrain added: “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.”
Capital A estimates the Bahrain-based operations of AirAsia is expected to generate over 100,000 jobs across the aviation and services ecosystem. A multi-year talent development program will train and employ Bahraini nationals to fill roles as pilots, crew, engineering and ground roles. The group aims to hire over 1,000 employees in Bahrain during the first year.
“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,” Capital A concluded.
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