Capital A has signed a Letter of Intent (LOI) with Bahrain's Ministry of Transportation and Telecommunications to explore establishing a Middle East hub for its aviation, logistics, and MRO businesses at Bahrain International.

Under the terms of the LOI, AirAsia Aviation Group will evaluate launching flights to the state from its bases in Malaysia, Thailand, the Philippines, and Indonesia over the next five years, when it projects operating over 25 daily flights to the kingdom.

The plan also includes assessing the feasibility of a Bahraini air operator's certificate (AOC) to operate narrowbody aircraft to destinations in the Middle East, Central Asia, Africa, and Europe.

According to ch-aviation schedules data, AirAsia X currently serves Jeddah International as its sole Middle Eastern destination. It is scheduled to launch flights to Istanbul Sabiha Gökcen on November 14 and Madinah on December 18. Meanwhile, Thai AirAsia X plans to inaugurate services to Riyadh on December 2.

Capital A has previously outlined plans to become a “low-cost narrowbody network carrier” by establishing virtual hubs in Europe, the Middle East, and Japan. The strategy would enable flights to the east and west coasts of the United States with as little as two stops from its megahubs in Kuala Lumpur International and Bangkok Don Mueang.

The shift in fleet strategy will see the group transition away from widebody aircraft to focus on the A321-200NX and upcoming A321-200NY(XLR) types, the latter committed to in July 2025. AirAsia has cancelled its A330-900N orders and plans to phase out its A330-300 fleet by 2031.

Meanwhile, maintenance arm Asia Digital Engineering plans to open an MRO facility in Bahrain for both narrowbody and widebody aircraft, while its logistics unit, Teleport, will base dedicated freighters there to expand links with Europe, Africa, and Central Asia.

The initiative follows Capital A's confirmation that all conditions for the transfer of its airline business to AirAsia X have been met, which will allow for the creation of a unified AirAsia Group by the end of December.