Malaysia Aviation Group (MAG), parent of Malaysia Airlines, has agreed to acquire Sepang Aircraft Engineering (SAE) from Airbus, the Malaysian group announced on Thursday. The value was not disclosed and the transaction is expected to close in 2027, subject to regulatory approvals.
SAE operates about 50,000 square meters of facilities with two hangars and capacity for up to eight A320-family aircraft at the same time. Its activities include heavy maintenance, modifications, aircraft painting, engineering and component repair.
MAG said the acquisition will add A320 expertise, painting and specialized component capabilities to MAB Engineering. The group also plans to expand maintenance work for airlines outside its own portfolio.
The transaction reverses a process that began in 2011, when Airbus acquired 40% of SAE, four years after the Malaysian company was established.
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Airbus bought the remaining shares in 2017 and described SAE as an important element of its strategy to expand commercial aircraft services in Asia-Pacific. Nine years later, the manufacturer is selling the entire business back to a Malaysian company.
SAE remains active in the third-party market. In September, it secured a 12-year contract with Cebu Pacific for maintenance and end-of-lease checks on seven A320-family aircraft from 2027.
The sale also comes in a region where Airbus expects strong demand for aviation services. The manufacturer estimates the Asia-Pacific market will grow 5.2% annually and reach US$138.7 billion by 2044.
Airbus retains other service activities in the region, including parts, engineering, training and Flight Hour Services. Malaysia Airlines itself recently extended an Airbus support agreement for its A330ceo fleet.
