MAG buys SAE from Airbus to expand MRO business

Malaysia Aviation Group (MAG) has acquired Sepang Aircraft Engineering Sdn Bhd (SAE) from Airbus for an undisclosed amount. This purchase strengthens MAG's position in the maintenance, repair and overhaul (MRO) sector as they aim to meet increasing demand for third-party services. The sale and purchase agreement was signed between MAG and Airbus, with the transaction set to be completed by 2027, pending usual conditions including approval from the Civil Aviation Authority of Malaysia (CAAM).

This acquisition aligns with MAG's Long-Term Business Plan 3.0, as they seek to bolster engineering and maintenance capabilities, broaden their aviation services portfolio, and generate additional revenue streams. SAE has recently secured a 12-year contract with Philippine carrier Cebu Pacific for maintenance and end-of-lease checks on seven A320 aircraft, which will be executed at SAE's 50,000 sq m facility at Kuala Lumpur International Airport between 2027 and 2028.

SAE's expertise in Airbus A320 aircraft, along with a dedicated paint hangar and specialized component repair services, complements MAG's MAB Engineering's existing capabilities, enabling the group to offer a more extensive range of MRO solutions and cater to a larger number of third-party customers across Southeast Asia and beyond.

This strategic acquisition also leverages Malaysia's cost-to-skill advantage and well-established engineering expertise, supporting the nation's goal to become a leading regional aerospace hub. MAG continues to collaborate with SAE, CAAM, and other stakeholders to ensure the necessary approvals are obtained, facilitating the completion of the transaction in 2027.