Malaysia Airlines. Photo: Lukas Wunderlich / Shutterstock Malaysia Aviation Group (MAG) has signed a Sale and Purchase Agreement with Airbus to acquire Sepang Aircraft Engineering (SAE), an Airbus Group subsidiary specializing in aircraft maintenance and engineering services.
The proposed acquisition is part of MAG’s Long-Term Business Plan 3.0 and is aimed at strengthening the group’s maintenance, repair and overhaul (MRO) capabilities while increasing revenue from third-party customers.
SAE would complement the existing capabilities of MAB Engineering, particularly through its expertise with the Airbus A320 family, dedicated aircraft paint hangar and specialized component repair services.
MAG President and Group CEO Captain Nasaruddin A. Bakar said the acquisition reflects the group’s approach of making targeted investments in areas that can strengthen its core businesses and diversify revenue.
According to MAG, combining SAE with MAB Engineering would allow the group to offer a broader range of MRO services to existing and new customers across ASEAN and other international markets.
The acquisition would also support Malaysia’s efforts to develop its aerospace sector and strengthen its position as a regional aviation and MRO hub. MAG said it plans to use Malaysia’s existing engineering expertise and cost-to-skill advantages as part of that strategy.
The transaction has not yet been completed and it is subject to customary conditions, including approval from the Civil Aviation Authority of Malaysia (CAAM).
MAG said it will work with SAE, CAAM and other stakeholders to secure the required approvals, with completion of the acquisition targeted for 2027.
On September 29, Malaysia Airlines announced it would expand its codeshare partnership with China Southern Airlines, adding five more routes between Kuala Lumpur and major Chinese cities from October 25, 2026.
The expanded agreement will cover flights connecting Kuala Lumpur with Shenzhen, Changsha, Xiamen, Chengdu and Zhengzhou. Malaysia Airlines said the move will bring all Kuala Lumpur-related routes operated by the two airlines between Malaysia and China under the codeshare partnership.
The expanded cooperation is designed to give passengers more options when traveling between the two countries, with greater flexibility and additional connection opportunities across the airlines’ networks.
The partnership will also improve access to several of China’s major economic and commercial centers, while supporting travel for tourism and business between Malaysia and China.