Pakistan International Airlines (PIA) has selected former Ethiopian Airlines Chief Executive Officer Tewolde Gebremariam as its new Chief Executive Officer (CEO).
According to officials of the PIA, the appointment is subject to mandatory security clearances before it is formally announced.
Tewolde is regarded as one of the aviation industry’s most experienced executives, having overseen the transformation of Ethiopian Airlines into Africa’s largest carrier during his tenure.
His appointment comes after the completion of the first phase of PIA’s privatisation, under which management control of the national airline was transferred to a consortium led by Arif Habib Corporation after all conditions of the Share Purchase and Subscription Agreement (SPSA) were met.
As part of the initial transaction, the consortium paid Rs10 billion to the government for the acquisition and injected Rs80 billion into PIA to strengthen the airline’s financial position.
Overall, the consortium has committed Rs180 billion, including Rs55 billion for the purchase of a 75% stake in the airline and Rs125 billion in fresh capital.
The second phase of the deal is expected to be completed within the next 12 months, during which the consortium plans to inject an additional Rs45 billion into PIA. It has also exercised its option to acquire the remaining 25% stake for another Rs45 billion, subject to the terms of the agreement.
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