Malaysia Aviation Group (MAG) has announced plans to acquire Sepang Aircraft Engineering (SAE), currently a wholly owned subsidiary of the Airbus Group.

By signing a Sale and Purchas Agreement (SPA) with Airbus, MAG is making progress in its long-term business plan by expanding maintenance and engineering capabilities.

Other goals of the acquisition include:

• Growing the company’s integrated aviation services portfolio
• Accelerating growth of third-party revenue

The acquisition still needs approval from the Civil Aviation Authority of Malaysia (CAAM) and to fulfill all customary Conditions Precedent.

MAG President and Group Chief Executive Officer Captain Nasaruddin A. Bakar said:

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.