KARACHI- Pakistan International Airlines (PK) has moved to install a new ceo as the recently privatized carrier prepares for a full operational reset. Two officials said on Saturday that PIA has selected Tewolde Gebremariam, the former head of Ethiopian Airlines (ET), as its next chief executive officer.
Tewolde built Ethiopian Airlines into Africa’s largest carrier during his tenure, connecting cities across the continent through its transit hub at Addis Ababa Bole International Airport (ADD). His arrival could strengthen the Arif Habib Group-led consortium’s bid to revive PIA, which the Pakistani government privatized in December after the airline accumulated more than $2.8 billion in losses.
Why the Consortium Turned to Tewolde Gebremariam
The selection points to a turnaround-first strategy. Tewolde’s record at Ethiopian Airlines centers on network expansion and hub development, two areas where PIA has lost ground over the past decade.
Arab News, which reported the development, contacted Arif Habib, chairman of the Arif Habib Group, but he did not respond. A well-placed PIA official confirmed that Tewolde has been selected to lead the airline.
The official said PIA would not announce his name until all security clearances are completed. The official requested anonymity because he was not authorized to speak to the media.
A major PIA shareholder separately confirmed the hiring. The shareholder described Tewolde as a highly capable executive with a track record of turnarounds, and also declined to be named.
Inside the Pakistan International Airlines Privatization Deal
The appointment comes more than a week after Pakistan announced the first closing of the divestment of Pakistan International Airlines Corporation Limited (PIACL). Management control transferred to the consortium led by Arif Habib Corporation after all conditions under the Share Purchase and Subscription Agreement (SPSA) were satisfied.
Under the first closing, the consortium paid Rs10 billion ($36 million) to the government as sale proceeds. It also injected Rs80 billion ($288 million) into PIACL as fresh equity.
That equity is earmarked to strengthen the airline’s financial position, support fleet expansion and modernization, expand the route network, and improve operational performance and customer service.
Total Investment Commitment and Payment Structure
The bidding process took place on December 23. It produced a total investment commitment of Rs180 billion ($643 million) from the consortium, according to the Privatization Commission.
Of that amount, Rs55 billion ($197 million) goes to the Pakistani government for the sale of PIA. The remaining Rs125 billion ($449 million) is to be injected into the airline to fund its long-term transformation and restore the national carrier to its former standing.
What Happens at the Second Closing
The second closing is scheduled within 12 months of the first closing, in line with the terms of the SPSA. At that stage, the consortium has committed to invest a further Rs45 billion ($161 million) into PIACL.
The consortium has also signaled its intent to acquire the remaining 25 percent of PIACL shares. It would exercise this as a call option under the SPSA, requiring an additional payment of Rs45 billion ($161 million) to the government.
The Task Ahead for PIA’s New Leadership
PIA enters this phase with fresh capital, private management control, and a defined investment timeline. The airline’s losses of more than $2.8 billion set the scale of the financial repair required.
Tewolde’s mandate will center on rebuilding route capacity, modernizing the fleet, and lifting service standards, the same priorities the consortium attached to its equity injection. His formal announcement remains pending until security clearances conclude.
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