Kuala Lumpur, May 8 - Capital A, the parent company of AirAsia, has unveiled ambitious plans to expand its operations into Saudi Arabia, marking a significant step in its Middle East growth strategy. The initiative, announced on May 7, 2025, begins with the introduction of new AirAsia routes from Kuala Lumpur to Riyadh and Dammam, alongside increased flight frequencies to Jeddah. This move underscores Saudi Arabia’s emergence as a priority market for Capital A, following its successful expansions in India and China, and aligns with the kingdom’s Vision 2030, which aims to transform Saudi Arabia into a global tourism and logistics hub.
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The new routes to Riyadh and Dammam are expected to enhance connectivity between Southeast Asia and the Gulf region, catering to a growing demand for travel, particularly for religious and business purposes. Capital A anticipates that the Kuala Lumpur–Riyadh route alone will serve nearly one million two-way passengers by 2026, with projections reaching over seven million by 2030. This optimism is driven by the limited current nonstop options between Malaysia and Saudi Arabia, where Malaysia Airlines and Saudia dominate with approximately 14,600 two-way weekly seats, a figure set to triple during the Hajj season. AirAsia’s low-cost model is poised to capture a significant share of this market, offering affordable fares to a broader demographic. The company is also exploring additional routes from Bangkok and Jakarta to Riyadh, further strengthening ASEAN–Middle East air links.
Beyond aviation, Capital A’s expansion encompasses its entire business ecosystem, integrating logistics, digital travel services, and aircraft maintenance. Teleport, Capital A’s logistics arm, plans to collaborate with Saudi logistics hubs and free trade zones to establish efficient cargo corridors. Leveraging AirAsia’s extensive belly cargo capacity, these partnerships aim to position Saudi Arabia as a key transshipment point for goods moving between Asia, Europe, and Africa, supporting Vision 2030’s goal of establishing the kingdom as a global logistics hub. Meanwhile, Asia Digital Engineering (ADE) will explore opportunities to support Saudi Arabia’s burgeoning aircraft maintenance, repair, and overhaul sector. Potential initiatives include setting up maintenance facilities at major Saudi airports and training local aviation engineers, contributing to a self-sustaining aviation ecosystem. AirAsia MOVE, the group’s digital travel platform, will offer seamless end-to-end booking solutions, enhancing the travel experience for visitors to the kingdom.
This multifaceted expansion follows high-level discussions between Capital A executives and Saudi officials from the Ministry of Investment, the General Authority of Civil Aviation, and the Ministry of Transport. The initiative aligns with Saudi Arabia’s broader ambitions under Vision 2030, which targets 300 million annual air passengers and 150 million tourists by 2030. By integrating aviation, logistics, and digital services, Capital A is positioning itself as a key partner in the kingdom’s transformation, with further details on route schedules and operational timelines to be announced soon.