In a major move aimed at reviving the national carrier following its recent privatization, Pakistan International Airlines (PIA) has selected Tewolde Gebremariam, the highly regarded former CEO of Ethiopian Airlines Group, as its new Chief Executive Officer.
The appointment, which is currently pending final security clearances before an official announcement, signals a serious intent by the newly privatized airline’s management to implement an ambitious turnaround strategy.
Here is what you need to know about the new leadership and the future of PIA under its new ownership.
Who is Tewolde Gebremariam?
Tewolde Gebremariam is widely respected as a seasoned aviation executive with a strong track record of turning around struggling airlines.
- African Aviation Giant: During his tenure at Ethiopian Airlines, Gebremariam transformed the company into Africa’s largest and most successful carrier.
- Hub Development: Under his leadership, he successfully expanded Ethiopian Airlines’ international network, turning Addis Ababa into a major, highly connected transit hub for the entire African continent.
Industry experts believe that Gebremariam’s strategic vision is exactly what is needed to restore PIA’s operational efficiency, combat years of heavy losses, and strengthen its position in both regional and international aviation markets.
The Privatization of PIA
The selection of the new CEO comes shortly after the completion of the first phase of PIA’s landmark privatization process.
- Transfer of Control: Management control of the airline was recently transferred to a consortium led by the Arif Habib Group after satisfying all conditions under the Share Purchase and Subscription Agreement (SPSA).
- The Deal: The Arif Habib-led consortium emerged as the winning bidder last year, offering Rs135 billion for a 75% stake in PIA—a figure 35% above the government’s reference price.
- Full Privatization: The consortium has also moved to acquire the government’s remaining 25% stake, paving the way for full privatization of the loss-making carrier.
Massive Fresh Investments
To ensure Gebremariam has the resources needed to succeed, the new owners are injecting massive capital into the airline.
- Under the first closing, the consortium injected Rs80 billion into the airline as fresh equity.
- This fresh investment is earmarked to improve the airline’s financial standing, expand its route network, and most importantly, modernize its aging fleet.
- The consortium plans to grow PIA’s operational fleet from its current size to 38 aircraft.
- Overall, the total investment commitment by the consortium stands at Rs180 billion.
With massive financial backing and a proven leader at the helm, the upcoming years will be critical in determining if the Arif Habib consortium can successfully restore PIA to its former glory.