Pakistan International Airlines (PIA) has selected former Ethiopian Airlines chief Tewolde Gebremariam as its new chief executive officer, according to officials familiar with the matter. The appointment comes as the national carrier begins a new chapter following its privatization and aims to restore its financial and operational strength.
The development follows the transfer of PIA’s management control to a consortium led by Arif Habib Corporation, marking a significant milestone in the airline’s long-awaited privatization process.
Former Ethiopian Airlines Chief Selected to Lead PIA
Officials confirmed that Tewolde Gebremariam has been chosen to head Pakistan’s national airline. However, they said the appointment will be announced only after all required security clearances are completed.
A senior PIA official said, “The PIA would not announce his name until all the security clearances are not completed.”
Another shareholder associated with the airline also confirmed the decision.
“He (Tewolde) has been hired. He is a very capable person and has done a lot of turnarounds,” the shareholder said.
The appointment is widely viewed as an important step in PIA’s restructuring plan because Tewolde previously led Ethiopian Airlines through years of expansion and transformation.
Tewolde Led Ethiopian Airlines’ Growth
During his tenure, Ethiopian Airlines developed into Africa’s largest airline and significantly expanded its international network.
The carrier strengthened its position by connecting cities across Africa through its Addis Ababa hub while increasing its presence in global aviation markets.
Industry observers believe that experience could prove valuable as PIA works to improve its operations, expand its route network and rebuild passenger confidence.
Privatization Marks a New Beginning
The leadership change comes shortly after Pakistan completed the first phase of PIA’s privatization.
Under the first closing, the consortium led by Arif Habib Corporation acquired management control after fulfilling all conditions outlined in the Share Purchase and Subscription Agreement (SPSA).
As part of the agreement, the consortium paid Rs10 billion to the government as sale proceeds.
In addition, it injected Rs80 billion into PIACL as fresh equity.
The investment will strengthen the airline’s financial position. It will also support fleet expansion, modernization, route development and improved customer services.
Long-Term Investment Plan for PIA
The privatization agreement outlines a total investment commitment of Rs180 billion.
Under the arrangement, Rs55 billion will be paid to the government for acquiring PIA.
Meanwhile, Rs125 billion will be invested directly into the airline to support its long-term transformation and operational revival.
Officials expect these funds to help modernize aircraft, improve services and enhance overall efficiency.
Second Phase Scheduled Within One Year
The second closing is expected within 12 months of the first phase.
Under the SPSA, the consortium has committed to invest another Rs45 billion into PIACL.
It has also exercised its intention to purchase the remaining 25 percent shares under the call option provided in the agreement.
The additional acquisition would require another Rs45 billion payment to the government.
Focus Turns to PIA’s Future
PIA has struggled with financial losses for years. However, the airline is now entering a new phase under private management.
The appointment of an internationally experienced aviation executive, combined with fresh investment, signals the consortium’s commitment to rebuilding the airline.
All attention will now focus on whether the new leadership can improve operational performance, modernize the fleet and restore PIA’s reputation in regional and international aviation.
