Pakistan International Airlines (PIA) has selected Tewolde Gebremariam, former CEO of Ethiopian Airlines, as its new chief executive to steer the national carrier’s revival following privatisation.
Seasoned Aviation Leader Joins PIA
Tewolde is credited with transforming Ethiopian Airlines into Africa’s largest carrier. He expanded its international network and strengthened Addis Ababa as a major aviation hub.
His appointment is pending mandatory security clearances before formal announcement. A senior PIA official and major shareholder described him as a strong choice with a proven turnaround track record.
Privatisation Injects Fresh Capital
The move follows the first phase of privatisation. Management control transferred to a consortium led by Arif Habib Corporation after meeting all conditions of the Share Purchase and Subscription Agreement (SPSA).
The consortium paid Rs10 billion to the government as sale proceeds. It injected Rs80 billion into PIA to improve finances, modernise the fleet, expand routes, and boost operations.
Strategic Revival Goals
Overall, the consortium committed Rs180 billion. This includes Rs55 billion for a 75% stake and Rs125 billion in fresh investment for long-term revival.
The second closing is due within 12 months, with an additional Rs45 billion injection planned. The consortium also holds an option to acquire the remaining 25% stake for another Rs45 billion.
Leadership Expected to Drive PIA’s Turnaround
Tewolde’s leadership is expected to drive operational efficiency and strengthen PIA’s position in regional and international markets. The appointment aligns with the new owners’ ambitious post-privatisation strategy.
Industry observers view this as a significant step towards restoring PIA’s competitiveness. Success at Ethiopian Airlines offers valuable lessons for fleet modernisation and network expansion in Pakistan’s aviation sector.
A New Chapter for Pakistan’s National Carrier
The appointment of an experienced global aviation executive, combined with significant private investment, marks a major milestone in PIA’s transformation. Stakeholders expect the airline’s restructuring, fleet expansion, and operational improvements to enhance service quality and strengthen its presence in regional and international markets.