Malaysia Aviation Group (MAG) has signed a Sale and Purchase Agreement (SPA) with Airbus to acquire Sepang Aircraft Engineering (SAE), a wholly owned subsidiary of Airbus Group. The proposed acquisition marks a strategic milestone under MAG’s Long-Term Business Plan 3.0 (LTBP 3.0), aimed at strengthening its engineering and maintenance capabilities, expanding its integrated aviation services portfolio and increasing third-party revenue.
Captain Nasaruddin A. Bakar, President and Group Chief Executive Officer of MAG, said the aviation industry continues to face challenges from global uncertainties and volatile fuel prices. He noted that the group remains focused on disciplined investments that support sustainable value creation, strengthen core businesses, diversify revenue streams and advance its long-term growth objectives.
The proposed acquisition is expected to build on MAG’s existing maintenance, repair and overhaul (MRO) capabilities while positioning the group to capitalise on growing market demand. SAE brings expertise in Airbus A320 aircraft, a dedicated paint hangar and specialised component repair services, complementing the existing capabilities of MAB Engineering.
According to MAG, combining the strengths of SAE and MAB Engineering will enable the group to provide a wider range of MRO solutions to existing and new third-party customers across the Association of Southeast Asian Nations (ASEAN) region and beyond. The move is also expected to support the group’s efforts to expand its presence in the regional aviation services market.
The acquisition aligns with Malaysia’s ambition to establish itself as a leading regional aerospace hub. MAG plans to leverage the country’s cost-to-skill advantage and established engineering expertise to strengthen its competitive position while contributing to the development of the national aviation ecosystem.
The transaction remains subject to customary conditions precedent, including approval from the Civil Aviation Authority of Malaysia (CAAM). MAG said it will continue working with SAE, CAAM and other relevant stakeholders to progress the proposed acquisition, with further steps dependent on the completion of the required conditions.