Former Ethiopian Airlines chief to lead national carrier’s post-privatisation restructuring and growth strategy
ISLAMABAD: Pakistan International Airlines (PIA) has appointed former Ethiopian Airlines chief executive Tewolde Gebremariam as its new CEO, as the recently privatised national carrier seeks to revive operations, improve efficiency and restore profitability, according to officials familiar with the matter.
Two officials confirmed on Saturday that Tewolde, who transformed Ethiopian Airlines into Africa’s largest airline during his tenure, has been selected as the PIA new CEO following the airline’s acquisition by a consortium led by the Arif Habib Group.
A senior PIA official said the airline would formally announce the appointment after all mandatory security clearances had been completed.
“PIA will not announce his name until all the security clearances are completed,” the official said, requesting anonymity because he was not authorised to speak publicly.
A major shareholder of PIA also confirmed the appointment, describing Tewolde as an experienced aviation executive with a strong track record of corporate turnarounds.
“He has been hired. He is a very capable person and has done a lot of turnarounds,” the shareholder said.
Proven Record at Ethiopian Airlines
Tewolde is widely recognised for transforming Ethiopian Airlines into Africa’s largest and one of its most profitable carriers, significantly expanding its international route network through its Addis Ababa hub while strengthening operational efficiency and global competitiveness.
Industry analysts believe his experience in managing large-scale airline expansion and restructuring could play a crucial role in PIA’s revival.
Appointment Follows PIA Privatisation
The appointment comes shortly after Pakistan completed the first phase of PIA’s privatisation, transferring management control of Pakistan International Airlines Corporation Limited (PIACL) to the Arif Habib-led consortium under the Share Purchase and Subscription Agreement (SPSA).
Under the first phase of the transaction, the consortium paid Rs10 billion to the government as the initial sale consideration and injected Rs80 billion into PIACL as fresh equity to strengthen the airline’s financial position, modernise its fleet, expand international operations and improve customer services.
The consortium’s total investment commitment stands at Rs180 billion, including Rs55 billion for acquiring the airline and Rs125 billion earmarked for long-term restructuring and operational improvements.
Long-Term Restructuring Plan
The privatisation process reached a key milestone after the successful completion of the first transaction, following the government’s efforts to reform the loss-making national carrier, which had accumulated losses exceeding $2.8 billion over several years.
Under the privatisation agreement, the second closing is scheduled within 12 months of the first transaction, during which the consortium will inject an additional Rs45 billion into PIACL.
The consortium has also exercised its intention to acquire the remaining 25% stake in the airline through a call option included in the SPSA, involving an additional payment of Rs45 billion to the government.
The appointment of the PIA new CEO is expected to strengthen confidence in the airline’s restructuring programme as management focuses on restoring financial sustainability, improving operational efficiency, expanding international connectivity and rebuilding PIA’s position in regional and global aviation markets.