MAG buys Airbus' SAE to expand MRO business
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Malaysia Aviation Group Bhd (MAG) has acquired Sepang Aircraft Engineering Sdn Bhd (SAE) from Airbus SE, marked by an undisclosed payment. This acquisition bolsters MAG's presence in the maintenance, repair, and overhaul (MRO) sector. At the time of acquisition, Airbus SE is securing fresh regional contracts. MAG confirmed the signing of a sales and purchase agreement with Airbus SE, with the transaction slated for completion next year, contingent upon approvals, including approval from the Civil Aviation Authority of Malaysia (CAAM).
The purchase aligns with MAG's Long-Term Business Plan 3.0, aiming to bolster engineering and maintenance capabilities, broaden its aviation services portfolio, and increase third-party revenue. The timing coincides with SAE's ongoing contract acquisitions from regional airlines. Last week, SAE signed a 12-year contract with Philippine carrier Cebu Pacific for maintenance and end-of-lease checks on seven Airbus A320 aircraft.
This work will be conducted at SAE's 50,000 square meter facility at Kuala Lumpur International Airport from 2027 to 2028. SAE has previously executed heavy maintenance, ad hoc end-of-lease checks, engine changes, and skin panel replacements for Cebu Pacific.
MAG's President and Group CEO, Captain Nasaruddin A. Bakar, emphasized that the acquisition would enable the group to seize opportunities in the expanding MRO market and fulfill rising third-party demands. He highlighted the deal's leverage of Malaysia's cost-to-skill advantage and established engineering expertise, supporting the nation's aspiration to become a leading regional aerospace hub.
SAE's expertise in A320 services, a dedicated paint hangar, and specialized component repair complements MAG's existing MAB Engineering Services Sdn Bhd capabilities.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
