Capital A charts bold epansion into Saudi Arabia to boost connectivity
KUALA LUMPUR: Capital A Bhd is embarking on a strategic expansion into Saudi Arabia, starting with new flight routes and extending into logistics, digital travel services, and aircraft engineering.
The group's Middle East growth initiative will commence with direct services to Riyadh and Dammam, along with increased flight frequencies on the Kuala Lumpur–Jeddah route.
As part of its broader ambition to enhance connectivity between ASEAN and the Middle East, the low-cost carrier is also assessing potential new routes from Bangkok and Jakarta to Riyadh.
Beyond aviation, the expansion will bring Capital A's key subsidiaries to Saudi Arabia, including its logistics arm Teleport, maintenance, repair, and overhaul (MRO) provider Asia Digital Engineering (ADE), and its digital travel platform AirAsia MOVE.
The announcement follows high-level meetings between Capital A leadership—led by CEO Tony Fernandes and AirAsia Thailand CEO Tassapon Bijleveld—and Saudi government representatives, including the Investment Ministry, the General Authority of Civil Aviation (GACA) and the Transport Ministry.
Discussions covered airline connectivity, Red Sea tourism initiatives, and potential partnerships in logistics and engineering services.
Fernandes said Saudi Arabia's dynamic spirit and bold national vision align perfectly with Capital A's growth philosophy, making Saudi Arabia a natural partner for the group's next phase of regional expansion.
"There's a real drive to build something big, especially the breathtaking Red Sea development, which I must say is one of the most ambitious tourism and infrastructure projects in the world. The scale of it is truly inspiring, and that energy is infectious," he said in a statement.
He projected that the new Riyadh route alone could serve nearly one million two-way passengers by 2026, scaling to over seven million by 2030, highlighting strong regional travel demand.
Teleport aims to tap into Saudi Arabia's logistics hubs and free trade zones to establish efficient cargo corridors between Asean and the Middle East.
With AirAsia's extensive network and belly cargo capacity, the venture could support Saudi Arabia's Vision 2030 goal of becoming a global logistics hub by facilitating the flow of goods between Asia, Europe and Africa.
Meanwhile, ADE will explore opportunities to support the country's fast-growing aviation MRO sector, potentially establishing line maintenance facilities at key Saudi airports and helping train local talent in aircraft engineering.
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