Malaysia Aviation Group (MAG) has signed an agreement with Airbus to acquire Sepang Aircraft Engineering (SAE), an Airbus Group subsidiary, as it seeks to expand its MRO business and increase third-party revenue.
The proposed acquisition is part of MAG’s Long-Term Business Plan 3.0 and is aimed at strengthening the group’s engineering capabilities and expanding its integrated aviation services portfolio.
MAG President and Group Chief Executive Officer Captain Nasaruddin A. Bakar said the deal reflected the group’s focus on disciplined investment in businesses that can strengthen its core operations, diversify revenue and support long-term growth.
SAE will complement the existing capabilities of MAB Engineering, particularly in Airbus A320 maintenance, aircraft painting and specialised component repairs, MAG said.
The acquisition would allow MAG to offer a broader range of MRO services to existing and new third-party customers in Southeast Asia and other markets, while leveraging Malaysia’s engineering skills and cost competitiveness, the group said.
“SAE further complements MAB Engineering’s existing capabilities through its A320 expertise, dedicated paint hangar and specialised component repair services,” Nasaruddin said.
He said the combined capabilities would help MAG capture opportunities in the growing MRO market and support Malaysia’s ambition to develop into a leading regional aerospace hub.
The transaction remains subject to customary conditions, including approval from the Civil Aviation Authority of Malaysia (CAAM).
MAG said it would work with SAE, CAAM and other stakeholders to secure the necessary approvals, with completion targeted for 2027.
