Key Takeaways
- Tewolde Gebremariam, former Ethiopian Airlines CEO, has been selected as the new CEO of Pakistan International Airlines (PIA).
- The appointment is subject to mandatory security clearances before formal announcement.
- The first phase of PIA’s privatization was completed with a consortium led by Arif Habib Corporation acquiring 75% stake and injecting Rs. 80 billion into the airline.
Pakistan International Airlines (PIA) has appointed Tewolde Gebremariam, former Chief Executive Officer of Ethiopian Airlines, as its new CEO. The selection is contingent upon mandatory security clearances before a formal announcement can be made, according to officials familiar with the matter.
Tewolde’s appointment comes after the completion of the first phase of PIA's privatization process, which transferred management control to a consortium led by Arif Habib Corporation following the fulfillment of all conditions stipulated in the Share Purchase and Subscription Agreement (SPSA).
During his tenure at Ethiopian Airlines, Tewolde oversaw the carrier’s transformation into Africa’s largest airline. His experience and track record make him an ideal candidate to steer PIA through its current challenges.
As part of the first closing, the consortium paid Rs. 10 billion to the government for the acquisition and injected Rs. 80 billion into PIA to strengthen its finances. The total commitment from the consortium stands at Rs. 180 billion, including Rs. 55 billion for purchasing a 75% stake in the airline and Rs. 125 billion in fresh capital.
The second phase of the privatization process is expected within the next 12 months, during which the consortium will inject an additional Rs. 45 billion into PIA. It has also exercised its option to acquire the remaining 25% stake for an additional Rs. 45 billion, subject to the terms of the SPSA.
Tewolde’s appointment is seen as a strategic move by PIA to leverage his extensive experience in aviation management and revitalize the struggling national carrier. His proven ability to transform airlines into profitable entities could be crucial for PIA's future growth and success.
