AirAsia X Sticks to Bahrain Hub – Istanbul is Plan B

AirAsia X has reaffirmed its commitment to launch operations from Bahrain and develop it as a hub between Asia and Europe. Despite uncertainties over the Iran conflict, the low-cost carrier reiterates that it will start a seasonal service on June 26 between Kuala Lumpur, Bahrain and London Gatwick “with optimism that the conditions in the region will normalise by then.”

In case Bahrain is not available in late June, AirAsia X can execute plan B. It is working on a plan to relocate temporarily to Istanbul. This could include a partnership with another airline. “The Group has proactively reallocated capacity towards stronger-performing and higher-yielding routes, such as Almaty (Kazakhstan), Tashkent (Uzbekistan) and Istanbul (Turkey), to capture displaced demand, whilst also exploring opportunities to further develop our key domestic hub in Senai, Johor Bahru”, the airline said on Monday at a press event in Sepang to outline its strategic plans.

Bahrain is mainly served by its home carrier Gulf Air, which, under new CEO Martin Gauss is embarking on its own growth strategy with more aircraft and an expanded network. The airport has no home-based low-cost carrier and has been dwarfed in size and capacity by its nearby competitors in Doha (Qatar), Riyadh and Dammam (Saudi Arabia), and Dubai and Abu Dhabi (UAE). Since February 28, all activities have been suspended as the airspace was closed following the war against Iran.

Defining step
AirAsia founder Tony Fernandes disclosed last November that he eyes Bahrain as a hub to serve his needs. His holding company, Capital A, signed a letter of intent with the country’s Ministry of Transportation in November. Just two weeks before the Iran conflict broke out, the carrier announced its intention to a disciplined and gradual ramp up of services at Bahrain International Airport and make it a base for AirAsia X. On February 11, Fernades called the initiative “a defining step in the next phase of AAX’s growth.”

He added: “Bahrain as our strategic aviation hub allows us to connect Asia with the Middle East and Europe more effectively while creating a scalable platform for future growth. Beyond the airline, this partnership strengthens the broader aviation ecosystem, enabling Capital A businesses such as cargo and MRO services to scale alongside AAX. Today, Teleport marks an important milestone as its first flight arrives in Bahrain, following its recent $50 million capital raise – a move that will help position the Kingdom as a key aviation and logistics hub in the region. Looking ahead, we will deepen partnerships with airports, tourism authorities and industry stakeholders to unlock new demand corridors. We are building a growth engine that balances connectivity, commercial performance and operational resilience, while staying true to our value proposition of affordable long-haul travel.”

Challenging environment
The outcome of the Iran crisis is everybody’s guess, although the sharp rise in jet fuel costs is a fact for all airlines. AirAsia X has been forced to add a one-off fuel surcharge, resulting in higher ticket prices that might impact demand. According to Group CEO Bo Lingam, demand remains strong for now: “While we are operating in an increasingly challenging environment, we are seeing strong demand across our Asean destinations, which demonstrates the resilience of our network and the growing appetite for regional travel. This reinforces our focus on Kuala Lumpur as a key aviation hub and its position as a global low-cost carrier (LCC) megahub, connecting travellers seamlessly and affordably across the region.”

At the same time, AirAsia X is “optimising” the network. “We are reallocating capacity to stronger-performing routes and leveraging our Fly-Thru connectivity via Kuala Lumpur and Bangkok to capture demand efficiently”, Bo Lingam said. “We are also actively negotiating with our key partners and stakeholders to contain costs across our operations. As we progressively reactivate our full fleet, our unit cost will improve, and the strengthening ASEAN currencies also act as a natural buffer against USD-denominated expenses.”

The Kuala Lumpur-Bahrain-London Gatwick service will be operated by an Airbus A330-900 as a seasonal route from June 26 until November 30. If possible, the flight departs Kuala Lumpur at 10 pm. After a 1,5 hour stop-over, it departs Bahrain between 2 and 2.25 am local time for a 7.05 to 7.25 am arrival at Gatwick. The flight out of London departs at 10.25 am local and departs Bahrain around 9 pm local time after a two-hour stopover.

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Richard Schuurman

Richard Schuurman is a freelance aviation reporter since 2016 and covers commercial aviation and the aerospace industry. He has contributed before to AirInsight between 2018-2024.

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