Malaysia Aviation Group to acquire Airbus' Sepang MRO unit

Dhaka: 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 the European planemaker, as per a release from the Kuala Lumpur-based airline group on October 1.

The deal forms part of MAG's Long-Term Business Plan 3.0 (LTBP 3.0). Through the acquisition, the group aims to strengthen its engineering and maintenance capabilities, broaden its integrated aviation services portfolio, and speed up growth in third-party revenue.

SAE will complement the existing capabilities of MAB Engineering, MAG's maintenance arm. The Airbus subsidiary brings A320 expertise, a dedicated paint hangar, and specialized component repair services.

MAG President and Group Chief Executive Officer Captain Nasaruddin A. Bakar said the aviation industry has endured a challenging year, with volatile fuel prices putting heavy pressure on carriers. He said the group remains focused on disciplined investments that diversify revenue and support long-term growth.

According to the group, the combined strengths will allow it to offer a wider range of maintenance, repair, and overhaul (MRO) solutions to existing and new third-party customers across Southeast Asia and beyond.

MAG also said it intends to leverage Malaysia's competitive cost-to-skill advantage and established engineering expertise. This, it noted, would support the country's ambition to become a leading regional aerospace hub.

The transaction remains subject to customary conditions precedent, including approval from the Civil Aviation Authority of Malaysia (CAAM).

MAG said it will work closely with SAE, CAAM, and other relevant stakeholders to secure the necessary approvals. The airline group is targeting completion of the deal in 2027.