Malaysia Airlines parent poised to acquire local Airbus MRO unit

Purchase of Sepang Aircraft Engineering, if approved, is expected to be completed in 2027.

Malaysia Aviation Group (MAG) is proposing to acquire Airbus subsidiary Sepang Aircraft Engineering, as it looks to shore up its MRO capabilities in the long term.

The parent company of national carrier Malaysia Airlines signed a sale-and-purchase agreement with Airbus on 1 October, paving the way for an eventual acquisition.

The transaction – financial details of which have not been publicly disclosed – is subject to regulatory clearance, including from Malaysia’s civil aviation regulator, but is expected to complete in 2027.

It is unclear for now if MAG will merge Sepang Aircraft Engineering into its existing MRO unit MAB Engineering, but group president Nasaruddin Bakar notes the former’s Airbus A320 MRO expertise complements MAB Engineering’s current capabilities.

Nasaruddin adds that the acquisition “builds on our established engineering and maintenance foundations, positioning MAG to capture opportunities in the growing MRO market and meet increasing third-party demand”.

Kuala Lumpur-based Sepang Aircraft Engineering was established in 2007, and became 100% owned by Airbus in 2017. Its current airline customers include Cebu Pacific, Vietjet and Philippine Airlines.

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