Malaysia Aviation Group to acquire Sepang Aircraft Engineering from Airbus

[KUALA LUMPUR] Malaysia Aviation Group (MAG) has agreed to acquire Sepang Aircraft Engineering (SAE) from Airbus, expanding its maintenance capabilities as it seeks to grow revenue from servicing other airlines.

The Malaysia Airlines owner said on Thursday (Oct 1) it had signed a sale and purchase agreement for the Airbus-owned company.

Completion is targeted for 2027, subject to customary conditions, including approval from the Civil Aviation Authority of Malaysia.

The purchase price, however, was not disclosed.

The proposed acquisition forms part of MAG’s Long-Term Business Plan 3.0, which aims to strengthen its engineering and maintenance operations, broaden its integrated aviation services portfolio and increase third-party revenue.

Headquartered in Kuala Lumpur, SAE operates as a specialised maintenance, repair and overhaul (MRO) service provider for commercial aircraft, particularly the Airbus A320 family, Airbus A330 and ATR turboprop aircraft.

If the deal is approved, it will complement MAB Engineering, the MRO arm of MAG, through its Airbus A320 expertise, dedicated paint hangar and specialised component repair services, said MAG, adding that the combined strength will enable MAG to offer a broader range of services to existing and new customers across Asean and beyond.

MAG president and group CEO Nasaruddin Bakar said the investment comes amid a challenging year for aviation, with a changing global environment and volatile fuel prices putting pressure on the sector.

“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,” he said.

SEE ALSO

Malaysia’s aircraft servicing sector is taking off, but can it move up the value chain?

Malaysian Airlines pilots clear drug checks, cabin crew to be tested next

Malaysia launches plan for commercial cargo and passenger drone services by 2030

Airlines’ carbon offsetting scheme is at least a US$1.6 billion opportunity for Asean: report

SIA Engineering opens base maintenance facility in Subang; sees ‘strong potential’ in Malaysian aerospace sector

More

The acquisition would build on MAG’s established engineering operations, positioning it to capture opportunities in the growing MRO market and meet increasing demand from third-party customers, Nasaruddin added.

MAG also aims to leverage Malaysia’s engineering expertise and competitive costs to support the country’s ambition to become a leading regional aerospace hub.

The group said it would work with SAE, the aviation regulator and other stakeholders to secure the necessary approvals and facilitate completion of the transaction.