Capital A plans major expansion into Saudi Arabia operations

Capital A plans major expansion into Saudi Arabia operations

Capital A has shared its expansion plans into Saudi Arabia, starting with new routes for AirAsia and extending into logistics, engineering, and digital travel platforms. The company aims to grow its presence across different sectors, supporting Saudi Arabia’s Vision 2030 and increasing travel and cargo connections with Southeast Asia.

AirAsia will soon operate new flights to Riyadh and Dammam, with plans to add more flights to Jeddah from Kuala Lumpur. The company is also reviewing possible new routes to Riyadh from Bangkok and Jakarta. These developments are part of Capital A’s goal to build stronger connections between the Middle East and Southeast Asia.

Tony Fernandes, CEO of Capital A, shared his impression of the Kingdom’s progress. He said, “I am absolutely blown away by what’s happening in Saudi Arabia—the cultural shift, the transformation in people’s lives, and the sheer scale of ambition is truly mind-blowing. But more importantly, it’s the motivation and mindset of the Saudi people that moved me. 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.”

Capital A plans major expansion into Saudi Arabia operations

He added, “We believe the new Riyadh route is projected to serve close to one million two-way passengers by 2026 and more than seven million by 2030, reflecting strong demand for increased connectivity between Asean and the Gulf region. We have so many projects we’re excited to embark on from logistics to aircraft engineering; we’re ready to grow with them.”

Beyond air travel: expanding the entire business ecosystem

Capital A’s expansion goes beyond airline services. The group plans to bring its full business ecosystem to the Kingdom. This includes Teleport, which is its logistics division, Asia Digital Engineering (ADE), which offers aircraft maintenance and engineering services, and AirAsia MOVE, a platform for digital travel bookings.

Teleport will focus on working with logistics centers and free trade zones in Saudi Arabia. The goal is to build faster and more cost-efficient cargo corridors linking the Middle East and Southeast Asia. Using AirAsia’s cargo capacity and broad network, Teleport plans to help Saudi Arabia become a central transshipment hub for goods moving between Asia, Africa, and Europe. This aligns with the country’s Vision 2030 plans to improve its logistics position globally.

Asia Digital Engineering will also explore partnerships with Saudi aviation companies. These collaborations may include creating line maintenance operations at major airports, offering training for local engineers, and sharing practices that support affordable and reliable maintenance services. With the rise in airlines across the region, ADE hopes to play a role in supporting long-term growth in aircraft maintenance in Saudi Arabia.

Capital A plans major expansion into Saudi Arabia operations

Saudi Arabia named a priority market for Capital A

After building a strong presence in India and China, Capital A now considers Saudi Arabia a top market for future growth. Recent meetings between Capital A’s top executives—including Tony Fernandes and Tassapon Bijleveld, CEO of AirAsia Thailand—and officials from Saudi Arabia’s Ministry of Investment, Ministry of Transport, and General Authority of Civil Aviation, showed a shared interest in projects across travel, logistics, and aircraft services.

These talks focused on possible partnerships to support Red Sea tourism, improve air travel connections, and strengthen logistics and maintenance services in the Kingdom.

Capital A believes its multi-division approach fits well with Saudi Arabia’s ongoing transformation. The company plans to support the country’s efforts in creating better travel options, growing its economy, and improving services. More announcements about new flight schedules, project timelines, and partnership details will be shared soon.

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