Capital A To Expand Into Saudi Arabia With New Aviation And Logistics Ventures

BusinessToday

07-05-2025

Capital A Bhd today unveiled plans to expand its operations into Saudi Arabia as part of a broader Middle East growth strategy. The Group aims to introduce new AirAsia routes to Riyadh and Dammam, while also increasing flight frequencies to Jeddah from Kuala Lumpur. Additionally, it is exploring new connections from Bangkok and Jakarta to Riyadh, further enhancing connectivity between the ASEAN region and the Middle East.
Beyond expanding its airline services, Capital A plans to introduce its entire business ecosystem to Saudi Arabia, including Teleport, its growing logistics arm, Asia Digital Engineering (ADE), which provides aircraft maintenance services, and AirAsia MOVE, a digital travel platform offering end-to-end travel booking solutions.
The announcement follows high-level discussions between Capital A's leadership team, including CEO Tony Fernandes and Tassapon Bijleveld, CEO of AirAsia Thailand, and Saudi officials from the Ministry of Investment, General Authority of Civil Aviation (GACA), and the Ministry of Transport. These discussions focused on potential strategic partnerships in airline connectivity, Red Sea tourism development, and logistics and aircraft engineering services.
Tony Fernandes commented on the opportunities in Saudi Arabia, saying, 'The cultural shift, the transformation in people's lives, and the scale of ambition is truly mind-blowing. The energy is infectious, and we're excited to grow with our brothers and sisters in Saudi Arabia.'
He also highlighted the potential of the new Riyadh route, forecasting it to serve nearly one million two-way passengers by 2026 and over seven million by 2030, reflecting strong demand for connectivity between ASEAN and the Gulf region.
As part of its logistics focus, Teleport plans to collaborate with Saudi logistics hubs and free trade zones to establish efficient cargo corridors, aiming to support Saudi Arabia's Vision 2030 goals of becoming a global logistics hub. AirAsia's extensive belly cargo capacity will support this effort, helping to position the Kingdom as a transshipment point for goods moving between Asia, Europe, and Africa.
Additionally, ADE aims to support the Kingdom's rapidly growing aircraft maintenance sector by potentially setting up line maintenance facilities at key airports, training local talent in aviation engineering, and sharing best practices in maintenance, repair, and overhaul (MRO) services.
Saudi Arabia has now become a top priority market for Capital A, following its successful expansion into India and China. The Kingdom's Vision 2030 is transforming it into a global tourism and logistics hub, offering significant opportunities for Capital A's multi-vertical business model to contribute to this growth.
Further updates on route launches, operational timelines, and ecosystem collaborations are expected to be announced in the near future. Related