Malaysia Aviation Group (MAG) has signed a Sale and Purchase Agreement (SPA) with Airbus to acquire Sepang Aircraft Engineering (SAE), strengthening its MRO capabilities and expanding its third-party engineering services across the region.
The proposed acquisition of SAE, currently a wholly owned subsidiary of Airbus, is part of MAG’s Long-Term Business Plan 3.0 (LTBP 3.0) and is intended to strengthen the Group’s engineering and maintenance operations while increasing third-party revenue.
SAE will complement the existing capabilities of MAB Engineering, adding expertise in Airbus A320 maintenance, aircraft painting and specialised component repair. The combination is expected to broaden MAG’s MRO portfolio and provide additional capacity to support airline customers across ASEAN and other markets.
SAE to expand MAG’s MRO portfolio
The acquisition would give MAG a larger platform from which to develop its third-party MRO business, combining SAE’s capabilities with MAB Engineering’s existing technical and maintenance infrastructure.
Captain Nasaruddin A. Bakar, President and Group Chief Executive Officer of MAG, said the transaction is intended to build on the Group’s existing engineering capabilities and capture opportunities from growing demand for third-party MRO services.
“It has been a challenging year for the aviation industry, with a constantly changing global environment, volatile fuel prices putting immense pressure on the sector, and challenges that have tested us in many ways. Against this backdrop, as we execute LTBP 3.0, we remain focused on making disciplined investments in areas where we see a clear pathway to sustainable value creation. This means being deliberate about where we deploy capital and prioritising opportunities that strengthen our core businesses, diversify revenue and support the Group’s long-term growth aspirations.
The proposed acquisition reflects this approach. It builds on our established engineering and maintenance foundations, positioning MAG to capture opportunities in the growing MRO market and meet increasing third-party demand. SAE further complements MAB Engineering’s existing capabilities through its A320 expertise, dedicated paint hangar and specialised component repair services, while building on the strong technical, operational and quality foundations developed under Airbus’ stewardship.
Together, these strengths will enable MAG to offer a broader suite of MRO solutions and better serve existing and new third-party customers across ASEAN and beyond. At the same time, we are leveraging Malaysia’s competitive cost-to-skill advantage and established engineering expertise to support the country’s accelerated ambition to become a leading regional aerospace hub – strengthening Malaysia’s position and driving the continued growth of the national aviation ecosystem.”
Transaction targeted for 2027
The transaction remains subject to customary Conditions Precedent, including approval from the Civil Aviation Authority of Malaysia (CAAM).
MAG will work with SAE, CAAM and other relevant stakeholders to complete the required approvals and transition process. Completion of the acquisition is targeted for 2027.
If completed, the transaction would bring SAE under MAG ownership and provide the Group with additional A320 maintenance, aircraft painting, and component repair capabilities as it seeks to grow its regional third-party MRO business.
