ISLAMABAD: Acknowledging the absence of local aviation and airline leadership capable of transforming Pakistan International Airlines (PIA), modernising its operations, and restoring profitability and professionalism, the airline has appointed former Ethiopian Airlines Group CEO Tewolde Gebremariam as its Chief Executive Officer.
The landmark appointment is aimed at spearheading PIA’s post-privatisation turnaround and re-establishing the national carrier as a competitive international airline.
Tewolde is credited with transforming Ethiopian Airlines into Africa’s largest carrier by expanding its international network and strengthening Addis Ababa’s position as a major aviation hub.
The appointment comes after the completion of the first phase of PIA’s privatisation, under which management control was transferred to a consortium led by Arif Habib Corporation following the fulfilment of all conditions under the Share Purchase and Subscription Agreement (SPSA).
Under the first closing, the consortium paid Rs10 billion to the government as sale proceeds and injected Rs80 billion into the airline to improve its financial position, modernise the fleet, expand its route network and enhance operational performance.
Overall, the consortium has committed Rs180 billion, including Rs55 billion for acquiring a 75 percent stake in PIA and Rs125 billion in fresh investment to support the airline’s long-term revival.
The second closing is scheduled within 12 months, during which the consortium will inject an additional Rs45 billion into PIA. It has also exercised its option to acquire the remaining 25 percent stake for another Rs45 billion, subject to the terms of the SPSA.
Tewolde’s appointment is expected to play a key role in implementing the new owners’ strategy to restore PIA’s operational efficiency and strengthen its position in regional and international aviation markets.
Tewolde Gebremariam | Selected As New PIA CEO
