Malaysia Aviation Group (MAG) will acquire Sepang Aircraft Engineering (SAE), an Airbus subsidiary. MAG has signed a share purchase agreement with Airbus.
The move is part of MAG’s long-term business plan, “LTBP 3.0,” and aims to strengthen its maintenance and engineering capabilities, expand its aviation services business, and increase third-party revenue.
Sepang Aircraft Engineering was established in 2007. Airbus acquired a partial stake in 2011 before making it a wholly owned subsidiary in 2017. It has two hangars with a total area of approximately 50,000 square meters. The company specializes in maintenance for Airbus A320-family aircraft and offers a dedicated paint hangar and component repair services. Its customers include airlines in Southeast Asia operating single-aisle aircraft.
“This acquisition will enable us to capture opportunities in the growing MRO market and establish a structure to meet increasing third-party demand,” said MAG Group Managing Director and Group CEO Izham Ismail. “By leveraging Malaysia’s cost and technical advantages, as well as its established engineering expertise, we will support the country’s goal of becoming a leading aerospace hub in the region.”
The transaction is subject to the fulfillment of conditions precedent, including approval by the Civil Aviation Authority of Malaysia (CAAM), and is targeted for completion in 2027.
