MAG buys Airbus' SAE to expand MRO business

KUALA LUMPUR: Malaysia Aviation Group Bhd (MAG) is buying Sepang Aircraft Engineering Sdn Bhd (SAE) from Airbus SE for an undisclosed sum.

The acquisition gives the national aviation group a larger foothold in the maintenance, repair and overhaul (MRO) market at a time when the Airbus wholly-owned company is securing new regional work.

MAG yesterday said it had signed a sales and purchase agreement with Airbus.

The deal is targeted for completion next year, subject to customary conditions, including approval from the Civil Aviation Authority of Malaysia (CAAM).

The acquisition forms part of MAG's Long-Term Business Plan 3.0, with the group looking to strengthen its engineering and maintenance capabilities, expand its aviation services portfolio and grow third-party revenue.

The timing comes as SAE continues to secure contracts from regional airlines.

Last week, SAE secured a 12-year contract with Philippine carrier Cebu Pacific covering maintenance and end-of-lease checks for seven Airbus A320 aircraft.

The MRO work will be carried out at SAE's 50,000 square metre facility at Kuala Lumpur International Airport between 2027 and 2028.

SAE has also previously carried out heavy maintenance, ad hoc end-of-lease checks, engine changes and skin panel replacement work for Cebu Pacific.

MAG president and group chief executive officer Captain Nasaruddin A. Bakar said the acquisition would position the group to capture opportunities in the growing MRO market and meet rising third-party demand.

He said the deal would leverage Malaysia's cost-to-skill advantage and established engineering expertise, supporting the country's ambition to become a leading regional aerospace hub.

SAE complements MAB Engineering Services Sdn Bhd's existing capabilities through its A320 expertise, dedicated paint hangar and specialised component repair services.