Malaysia Aviation Group To Buy Sepang Aircraft Engineering From Airbus

SINGAPORE—Malaysia Aviation Group (MAG), parent company of flag carrier Malaysia Airlines, has signed a sale and purchase agreement with Airbus to acquire Sepang Aircraft Engineering (SAE), an A320-family MRO provider in Kuala Lumpur.

The transaction value was not disclosed.

MAG said the acquisition is part of its Long-Term Business Plan 3.0, which calls for investment in its core businesses, revenue diversification and the strengthening of the group’s long-term growth prospects.

Although MAG does not operate the A320, the group said the acquisition will allow it to participate in the growing third-party MRO market.

The transaction is subject to approval from Malaysia's civil aviation authority, with MAG targeting completion in 2027.

Based at Kuala Lumpur International Airport (KUL), SAE operates a 50,000-m² (538,000-ft.²) facility with two hangars capable of accommodating eight narrowbody aircraft simultaneously. Its capabilities include line and base maintenance, lease-return checks, aircraft painting and cabin retrofits.

SAE also operates a radome repair center supporting the A320, A330, A350 and A380 families.

Over the past 12 months, SAE has secured A320-family MRO contracts with carriers in the region including Aircalin, Air India Express, Cebu Pacific Air and VietJet Air.