BAHRAIN: AirAsia Reaffirms Bahrain Plans as Parliament to Vote on Low-Cost Airline Proposal

MANAMA, Bahrain

• The Bahraini Parliament will vote on Tuesday, 3 November, on a proposal by MP Mohammed Al Olaiwi to establish a new low-cost airline in partnership with private investors. The motion aims to cut fares, open routes not served by Gulf Air and draw more transit and tourist traffic through Bahrain International Airport, with the government sharing costs rather than funding the carrier alone.
• Al Olaiwi said the airline would complement Gulf Air by targeting price-sensitive, high-volume markets the national carrier does not cover. He argued cheaper flights from Bahrain could pull passengers from the wider Gulf and neighbouring countries, supporting hotels, restaurants and other tourism businesses while creating jobs in maintenance, handling, catering and training.
• The Transportation and Telecommunications Ministry has pointed to its existing agreement with AirAsia as the route to more traffic and cheaper options. It is working with Gulf Air on flights to and from Bahrain and coordinating with the Tourism Ministry, Bahrain Airport Company and private firms to increase visitor numbers.
• AirAsia on 1 November reaffirmed its long-term commitment to Bahrain as its Middle East hub linking Asean with the Gulf, Europe and Australia, appointing a board for AirAsia Bahrain ahead of the parliamentary vote. The board is chaired by Dr Serra Kirdar, with Dato’ Fam Lee Ee as vice-chairman. Other non-executive directors are Dr Faisal Khalid Kanoo, Nawaf Al Zayani, Akram Safa, Lord Ahmad of Wimbledon and Tan Sri Jamaludin Ibrahim.
• Capital A chief executive Tony Fernandes said geopolitical conditions had forced adjustments to the original timeline but that the commitment to Bahrain was unchanged. He targeted the start of AirAsia passenger flights to Bahrain by March 2027, conditions permitting. Asia Digital Engineering plans to develop MRO capabilities in the kingdom, while Teleport has operated twice-weekly freighter services into Bahrain since February 2026 and is scaling up with larger aircraft. Fernandes noted the group had received Bahrain’s Golden License.
• The board appointment follows the November 2025 letter of intent between Capital A and the Ministry of Transportation and Telecommunications. Under the LoI, AirAsia is exploring flights from Malaysia, Thailand, the Philippines and Indonesia to Bahrain with onward western connections, and is evaluating a Bahraini Air Operator Certificate for narrow-body services to the Middle East, Central Asia, Africa and Europe.
• AirAsia has projected more than 25 daily flights through Bahrain by 2030 and more than 20 million passengers over five years, with an estimated BHD 3 billion (USD 8 billion) economic contribution and support for more than 100,000 jobs. Transport Minister Sheikh Abdulla Al Khalifa has described the partnership as aligned with Bahrain’s Economic Vision 2030.
• Bahrain has already seen a homegrown budget carrier come and go. Bahrain Air was founded in 2007 as a closed Bahraini Shareholding Company B.S.C (C) and was the first privately owned national carrier in the kingdom.
• Although it launched on 1 February 2008 as a low-cost airline, it later shifted to a full-service model by early 2010. It operated A319s and A320s on routes across the Middle East, Africa and South Asia, serving up to 17 destinations including Dubai, Doha, Kuwait, Jeddah, Mumbai, Dhaka, and Addis Ababa. It was chaired by Shaikh Mohammed bin Abdulla Al Khalifa.
• It ceased operations on 12 February 2013 after declaring bankruptcy and entering voluntary liquidation citing unsustainable losses incurred as a result of intercommunal violence in 2011. In its final year, Bahrain Air publicly accused the then Minister of Transportation — who also headed Gulf Air’s restructuring committee — of a conflict of interest after its routes and frequencies were cut by up to 30 percent without notice. This, the airline said, left it unable to continue.

Sources:

• AirAsia Newsroom
• Al Ayam
• The National
• Reuters