AirAsia to launch new routes to Riyadh and Dammam, alongside increased flight frequencies between Kuala Lumpur and Jeddah
Capital A Berhad, the parent company of Malaysian low-cost carrier AirAsia, has announced an ambitious expansion into Saudi Arabia, marking a significant milestone in its Middle East growth strategy.
In a press statement, Capital A says that this move will see AirAsia launch new routes to Riyadh and Dammam, alongside increased flight frequencies between Kuala Lumpur and Jeddah.
The statement adds that the group is also exploring potential new connections from Bangkok and Jakarta to Riyadh, aiming to strengthen Middle East-ASEAN connectivity.
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According to the statement, Capital A plans to introduce its entire business ecosystem to the Kingdom, including Teleport, its rapidly growing logistics arm, Asia Digital Engineering (ADE), which provides comprehensive aircraft maintenance and engineering services; and AirAsia Move, a digital travel platform offering seamless end-to-end booking solutions.
The statement adds that the announcement follows talks between Capital A’s leadership including CEO Tony Fernandes and Tassapon Bijleveld and Saudi officials from the Ministry of Investment, General Authority of Civil Aviation (GACA) and the Ministry of Transport. The discussions centred around strategic partnerships across airline connectivity, Red Sea tourism development initiatives and potential collaborations in logistics and aircraft engineering services.
Tony Fernandes
“I am absolutely blown away by what is 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 is the motivation and mindset of the Saudi people that moved me. There is 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,” says Fernandes.
“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 are excited to embark on from logistics to aircraft engineering; we are ready to grow with our brothers and sisters in Saudi Arabia,” he adds.
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The statement says that the teleport aims to collaborate with Saudi logistics hubs and free trade zones, establishing efficient cargo corridors between ASEAN and the Middle East.
The statement adds that leveraging AirAsia’s cargo capacity, the partnership could position Saudi Arabia as a key trans-shipment point for goods moving between Asia, Europe and Africa, directly supporting Vision 2030’s goal of making the Kingdom a global logistics hub.
Moreover, ADE will explore opportunities to support Saudi Arabia’s fast-growing aircraft maintenance, repair, and overhaul (MRO) sector. Plans include setting up line maintenance facilities at major Saudi airports, training local talent and sharing best practices in cost-efficient, high-quality MRO services.
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