Malaysia Aviation Group to acquire Airbus-owned Sepang Aircraft Engineering

Malaysia Aviation Group announced a sale and purchase agreement to buy Sepang Aircraft Engineering Sdn Bhd from Airbus, with the transaction expected to close in 2027 subject to regulatory clearance. The acquisition aligns with MAG's Long-Term Business Plan 3.0, which seeks to strengthen engineering and maintenance services and increase third-party revenue. Sepang Aircraft Engineering has been winning regional work, including a 12-year maintenance contract with Cebu Pacific for seven A320 aircraft, to be performed at its 50,000-square-metre facility at Kuala Lumpur International Airport.

MAG President and Group CEO Nasaruddin A Bakar said the purchase will allow the group to offer a wider range of MRO solutions across ASEAN and beyond, leveraging Malaysia's cost-to-skill advantage. The combined entity will also incorporate a dedicated paint hangar and component-repair capabilities. MAG will continue to work with the Civil Aviation Authority of Malaysia and other stakeholders to secure the necessary approvals.