Malaysia Aviation Group (MAG) has entered into a Sale and Purchase Agreement with Airbus to acquire Sepang Aircraft Engineering (SAE), a subsidiary of the Airbus Group. This strategic move, announced on 1 October 2026, is part of MAG’s Long-Term Business Plan 3.0, aimed at enhancing its engineering and maintenance capabilities and expanding its aviation services portfolio.
The acquisition is expected to strengthen Malaysia’s position as a regional aerospace hub by 2027, pending regulatory approvals. Captain Nasaruddin A. Bakar, President and Group CEO of MAG, highlighted the importance of this acquisition amidst a challenging year for the aviation industry. He stated, “We remain focused on making disciplined investments in areas where we see a clear pathway to sustainable value creation.”
SAE’s expertise in A320 maintenance, along with its dedicated paint hangar and specialised component repair services, will complement MAB Engineering’s existing capabilities. This will enable MAG to offer a wider range of maintenance, repair, and overhaul (MRO) solutions to both existing and new third-party customers across ASEAN and beyond.
The transaction is subject to approval from the Civil Aviation Authority of Malaysia, with MAG working closely with SAE and other stakeholders to ensure a smooth transition. This acquisition is seen as a significant step in supporting Malaysia’s ambition to become a leading regional aerospace hub, leveraging the country’s competitive cost-to-skill advantage and established engineering expertise.
