Capital A chief executive officer Tan Sri Tony Fernandes
AirAsia is poised to sign a deal with Bahrain to set up a Middle East hub in the Gulf country, according to people familiar with the matter, strengthening the airline’s international presence.
Tan Sri Tony Fernandes, the Malaysian carrier group’s founder, is set to announce the agreement as soon as Monday at an investor forum in Bahrain, said the people, asking not to be identified as the talks are private.
Bahrain officials did not immediately respond to a request for comment, while AirAsia declined to comment.
The move aims to strengthen the Malaysian carrier’s ties to the Middle East. Saudi Arabia’s sovereign wealth fund played the single biggest role in an AirAsia fund raising earlier this year, investing about $100 million, as the airline sought funds to reboot its growth ambitions after years of Covid-induced losses.
AirAsia Group plans to have a fleet of 600 planes in 10 years, significantly more than the 255 aircraft in service now. The company plans to expand destinations it serves from 143 to 175 in the same period.
Bahrain is working to grow its position as an aviation and logistics hub to better compete with its neighbors, the United Arab Emirates and Qatar. The country’s national carrier has been on a mission to become profitable and expand its fleet, placing an order with Boeing Co. for as many as 18 widebody jets during a meeting in Washington between Bahrain Crown Prince Salman bin Hamad Al Khalifa and US President Donald Trump in July. - Bloomberg
