Kuala Lumpur: Capital A Bhd Wednesday announced plans to expand into Saudi Arabia, with new AirAsia routes to Riyadh and Dammam and more Kuala Lumpur-Jeddah flights, marking a key step in its Middle East growth strategy.
In a statement today, the airline group said it is also exploring potential connections from Bangkok and Jakarta to Riyadh, part of a broader ambition to boost Middle East-Asean connectivity.
Capital A Chief Executive Officer Tan Sri Tony Fernandes said the new Riyadh route is projected to serve nearly one million two-way passengers by 2026 and more than seven million by 2030, reflecting strong demand for enhanced Asean-Gulf region connectivity.
“We have so many projects we’re excited to embark on, ranging from logistics to aircraft engineering; we’re ready to grow with our brothers and sisters in Saudi Arabia,” he said.
Beyond airline operations, the group plans to bring its broader business ecosystem to the Kingdom, including its logistics arm Teleport, aircraft maintenance and engineering services provider Asia Digital Engineering (ADE), and its digital travel platform AirAsia MOVE.
As part of its logistics strategy, Capital A said Teleport aims to collaborate with Saudi logistics hubs and free trade zones to establish efficient cargo corridors between Asean and the Middle East, enabling faster and more cost-effective movement of goods, including e-commerce.
“With AirAsia’s extensive belly cargo capacity and network reach, the partnership could help position Saudi Arabia as a key regional transhipment point for goods moving between Asia, Europe, and Africa, supporting the Kingdom’s Vision 2030 goals of becoming a global logistics hub,” it said.
Meanwhile, ADE will explore opportunities to collaborate with Saudi aviation stakeholders to support the Kingdom’s rapidly growing aircraft maintenance, repair and overhaul (MRO) sector.
The group said this may include setting up line maintenance facilities at key Saudi airports, training and upskilling local talent in aviation engineering, and sharing best practices in cost-efficient, high-quality MRO services.
“With exponential growth in airline operations across the region, ADE aims to contribute to the development of a robust and self-sustaining aviation support ecosystem in Saudi Arabia,” it added.
