Ethiopian Airlines former CEO Tewolde Gebremariam has been appointed as the new chief executive officer of Pakistan International Airlines (PIA), according to two officials, as the newly privatized carrier moves to revive its operations.
Under Tewolde, Ethiopian Airlines became the largest carrier in Africa and connected cities across the continent through its transit hub in Addis Ababa.
His appointment is seen as a boost for the Arif Habib Group led consortium, which took over the struggling national carrier after its privatization in December following losses of more than $2.8 billion over the years.
A well placed PIA official confirmed that Tewolde has been selected to lead the airline, though a formal announcement will not be made until his security clearances are completed. Arab News reached out to Arif Habib, chairman of the Arif Habib Group, for comment but received no response.
A major PIA shareholder also confirmed the appointment, describing Tewolde as a highly capable executive with a strong record of turning around struggling airlines.
The move comes more than a week after Pakistan announced the first closing of the divestment of the Pakistan International Airlines Corporation Limited through privatization, transferring management control to the Arif Habib led consortium after all conditions under the Share Purchase and Subscription Agreement were met.
Under the first closing, the consortium paid Rs10 billion ($36 million) to the government as sale proceeds and injected Rs80 billion ($288 million) into PIACL as fresh equity. The funds are meant to strengthen the airlines finances, support fleet expansion and modernization, expand its route network, and improve operational performance and customer service.
The bidding process, held on December 23, resulted in a total investment commitment from the consortium of Rs180 billion ($643 million).
Of this, Rs55 billion ($197 million) will go to the Pakistani government for the sale of PIA, while Rs125 billion ($449 million) will be injected into the airline to support its long term transformation, according to the Privatization Commission.
The second closing is scheduled to take place within 12 months of the first, in line with the terms of the agreement, under which the consortium has committed to invest a further Rs45 billion ($161 million) into PIACL.
The consortium has also expressed intent to exercise its call option to acquire the remaining 25 percent of PIACL shares for an additional Rs45 billion ($161 million) payment to the government.
