Malaysia Aviation Group (MAG) has signed a sale and purchase agreement with Airbus to acquire Sepang Aircraft Engineering (SAE), currently a wholly owned subsidiary of the Airbus Group.
The deal, announced on October 1, 2026, forms part of MAG’s Long-Term Business Plan 3.0 (LTBP 3.0).
The group is aiming to strengthen its engineering and maintenance capabilities, broaden its integrated aviation services, and grow revenue from third-party customers.
The financial terms of the transaction were not disclosed.
A targeted bet on MRO growth
MAG President and Group Chief Executive Officer Captain Nasaruddin A. Bakar said the acquisition comes after a difficult year for the aviation industry, marked by a shifting global environment and volatile fuel prices.
He said the group is prioritizing disciplined investments in areas with a clear path to long-term value, focusing on opportunities that reinforce its core businesses and diversify revenue.
“The proposed acquisition reflects this approach,” he said, adding that it builds on MAG’s existing engineering and maintenance base and positions the group to capture opportunities in a growing maintenance, repair and overhaul (MRO) market.
Adding Airbus-trained capabilities to MAB Engineering as Malaysia eyes aerospace hub status
According to MAG, SAE will complement the capabilities of its MRO arm, MAB Engineering. SAE brings Airbus A320 expertise, a dedicated paint hangar and specialized component repair services, along with technical, operational and quality standards developed under Airbus ownership.
The combined capabilities are expected to allow MAG to offer a wider range of MRO services to existing and new third-party customers in ASEAN and beyond.
Nasaruddin also pointed to Malaysia’s cost-to-skill advantage and engineering expertise as factors that support the country’s ambition to become a leading regional aerospace hub.
Regulatory approval and 2027 completion target
MAG said the transaction is subject to customary conditions precedent, including approval from the Civil Aviation Authority of Malaysia (CAAM).
The group plans to work with SAE, CAAM and other stakeholders to secure the required approvals, with completion targeted for 2027.