Sepang, Malaysia: Malaysia Aviation Group (MAG), the parent of Malaysia Airlines, has signed a Sale and Purchase Agreement with Airbus on 1 October 2026 to acquire Sepang Aircraft Engineering (SAE), in a proposed transaction aimed at expanding its aircraft maintenance, repair and overhaul capabilities and growing third-party revenue.
The transaction value has not been disclosed. The deal is targeted for completion in 2027, but remains subject to customary conditions, including approval from the Civil Aviation Authority of Malaysia (CAAM). MAG said it will work with SAE, CAAM and other stakeholders to obtain the necessary approvals before completion.
The proposed acquisition forms part of MAG’s Long-Term Business Plan 3.0 and is intended to strengthen the group’s engineering and maintenance capabilities, broaden its integrated aviation-services portfolio and increase revenue from third-party customers. AviTrader reported that MAG President and Group CEO Captain Nasaruddin A. Bakar said the transaction reflects the group’s focus on disciplined investment in businesses that strengthen its core operations, diversify revenue and support long-term growth.
SAE is expected to complement the existing capabilities of MAB Engineering, particularly in Airbus A320 maintenance, aircraft painting and specialised component repair. Nasaruddin said: “SAE further complements MAB Engineering’s existing capabilities through its A320 expertise, dedicated paint hangar and specialised component repair services.”
Nasaruddin said the combined capabilities would help MAG capture opportunities in the growing MRO market and support Malaysia’s ambition to develop into a leading regional aerospace hub. The group also said the acquisition would enable it to provide a broader range of MRO services to existing and new third-party customers across Southeast Asia and other markets.
MAG said the strategy would also leverage Malaysia’s engineering skills and cost competitiveness. The planned acquisition therefore links SAE’s existing specialist maintenance capabilities with MAG’s broader engineering operation as the group seeks to expand its MRO business and diversify revenue beyond its core airline operations.
The agreement announced on 1 October 2026 represents the proposed transfer of the MRO business to MAG, with regulatory approval and other customary closing conditions still outstanding.
