Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has announced its intention to acquire Sepang Aircraft Engineering (SAE), an Airbus-owned maintenance facility, following a binding agreement signed on October 1, 2026. This strategic move aims to bolster MAG's aircraft maintenance, repair, and overhaul (MRO) capabilities and diversify revenue streams through increased third-party services.
The transaction, expected to close in 2027 subject to regulatory approvals from the Civil Aviation Authority of Malaysia and other conditions, signals MAG's commitment to expanding its footprint in the aerospace sector. The company plans to leverage SAE's expertise in Airbus A320 maintenance, aircraft painting, and specialized component repair to enhance its service offerings across Southeast Asia and beyond.
The move is in line with MAG's Long-Term Business Plan 3.0, which emphasizes expanding engineering capabilities and positioning Malaysia as a regional aerospace hub. MAG President and Group CEO Captain Nasaruddin A. Bakar stated that this acquisition reflects disciplined investment aimed at supporting long-term growth and redefining the group's role in the aerospace industry. The integration of SAE will support MAG’s ambition to develop comprehensive MRO services, ultimately strengthening Malaysia’s standing in regional aviation development.
