AirAsia has signed a preliminary agreement to establish a Middle East hub in Bahrain, a significant step in its ambition to build a global low-cost airline network. The Malaysian carrier group’s founder, Tony Fernandes, confirmed the deal, which involves a letter of intent between his company, Capital A Bhd, and Bahrain’s transport ministry.
A Strategic Launchpad in the Gulf
The new hub is positioned to connect AirAsia’s extensive network in Asia with destinations across Europe, Africa, and the wider Middle East. “Bahrain will be a powerful launchpad for us in the Middle East,” Fernandes stated, highlighting the country’s strategic location.
For its part, Bahrain views the partnership as a reinforcement of its status as a key logistical and aviation connector. The agreement supports a broader regional vision for transport and tourism, similar to how the Cruise Arabia Alliance expands as Saudi Arabia, Qatar join to boost Gulf tourism. The budget carrier aims to operate more than 25 daily flights from Bahrain by 2030.
Operational Goals and Licensing
As part of the agreement, AirAsia will explore obtaining a local airline operating licence. This would allow it to launch flights directly from Bahrain to new markets in Central Asia and beyond. The plan relies on connecting passengers between Asia and Europe using its fleet of long-range Airbus A321XLR aircraft.
This move is part of a broader effort to strengthen the airline’s presence in the Middle East. Earlier this year, Saudi Arabia’s sovereign wealth fund invested approximately $100 million in an AirAsia fundraising round, signalling growing financial ties to the region. This follows a wider trend of international firms growing their local footprint, as seen with how Arctech expands Jeddah factory as it strengthens solar partnerships.
Fleet Expansion and Network Growth
The establishment of a Gulf hub is critical to AirAsia’s long-term growth strategy. The company plans to more than double its fleet from the current 255 aircraft to 600 planes within the next decade. During the same period, it aims to increase its destinations from 143 to 175. This expansion is designed to rebuild momentum after several years of losses induced by the global pandemic.
The partnership also aligns with Bahrain’s national strategy to develop its aviation and logistics sectors. The country’s flag carrier is on a mission to return to profitability and recently placed a significant order with Boeing for up to 18 widebody jets, underscoring the kingdom’s commitment to becoming a premier aviation hub.
