Pakistan International Airlines Hires Ex-Ethiopian Chief as New CEO

Pakistan International Airlines (PK) has selected Tewolde Gebremariam, the former chief executive of Ethiopian Airlines, as its new chief executive officer. Two officials confirmed the decision on Saturday, though the airline will not make a formal announcement until Gebremariam completes mandatory security clearances. The appointment lands weeks after Pakistan finished the first stage of privatizing the long-struggling state carrier.

Karachi-based officials say the pick reflects a deliberate strategy by PIA’s new owners, an Arif Habib Group-led consortium, to import proven turnaround experience rather than promote from within. Gebremariam spent nearly four decades at Ethiopian Airlines, eventually leading it into becoming Africa’s largest carrier. His selection follows Pakistan’s transfer of PIA’s management control to private hands in December, after the airline had piled up more than $2.8 billion in losses.

Who is Tewolde Gebremariam

Gebremariam joined Ethiopian Airlines in the 1980s as a traffic officer and worked his way up through cargo operations, regional management, and sales before becoming chief operating officer. He was named group chief executive officer in 2011, a role he held while the airline expanded its route network and built Addis Ababa into one of Africa’s busiest connecting hubs. His work later earned him African CEO of the Year and multiple Airline Strategy Awards, and he now serves as senior strategic advisor at Delta Air Lines alongside running his own consultancy, TGM Advisory Services.

A major PIA shareholder, speaking anonymously to Arab News, called Gebremariam “a very capable person” who has “done a lot of turnarounds.” That assessment lines up with how Ethiopian Airlines industry watchers have long described his tenure there, crediting him with expanding the carrier’s global footprint well beyond what its home market alone could support.

How PIA’s Privatization Set up this Appointment

The hiring comes directly out of Pakistan’s push to exit airline ownership. According to Arab News, the Privatization Commission announced the first closing of PIA’s divestment after the Arif Habib-led consortium satisfied every condition in the Share Purchase and Subscription Agreement. As part of that first closing, the consortium paid Rs10 billion ($36 million) to the government for its stake and injected a further Rs80 billion ($288 million) into the airline as fresh equity.

That capital is earmarked for specific fixes rather than general operating costs. It is meant to strengthen PIA’s finances, support fleet expansion and modernization, and expand the airline’s route network, according to the Privatization Commission. The bidding process that selected Arif Habib’s consortium took place on December 23 and produced a total investment commitment of Rs180 billion ($643 million) across the full transaction.

What PIA’s New Owners are Investing to Fix the Airline

The financial structure runs in stages rather than a single payout. Of the total Rs180 billion commitment, Rs55 billion ($197 million) goes to the Pakistani government as payment for the airline itself, while Rs125 billion ($449 million) is set aside for the carrier’s long-term transformation. A second closing is due within 12 months of the first, under which the consortium has committed to inject a further Rs45 billion ($161 million) into PIA.

The consortium has also signaled its intent to exercise a call option for the remaining 25 percent of PIA’s shares, which would require an additional Rs45 billion ($161 million) payment to the government. Together, these commitments point to a buyer planning to hold and rebuild the airline over several years rather than flip it quickly. PIA officials say the incoming CEO’s job will be to turn that capital into operational results.

Comparing PIA’s Revival Plan with Ethiopian Airlines’ Rise

PIA’s new owners are explicitly betting that Gebremariam can repeat what he did in Addis Ababa. Ethiopian Airlines was not always Africa’s dominant carrier. Under his leadership, it expanded its network aggressively, added long-haul Boeing 787 Dreamliners to its fleet, and turned Addis Ababa Bole International Airport (ADD) into a genuine connecting hub between Africa, Asia, and the Middle East. As recently as this year, Ethiopian Airlines Group CEO Mesfin Tasew confirmed an order for nine additional Boeing 787-9 Dreamliners to keep extending that long-haul reach.

PIA’s starting point looks very different. Where Ethiopian expanded from a position of relative stability, PIA is beginning its turnaround after years of accumulated debt, fleet age, and reputational damage tied to past safety and management controversies. Pakistan Observer, reporting on Gebremariam’s expected hire, noted that the airline was once considered one of Asia’s premier carriers before “years of financial challenges and operational decline eroded its standing.” The comparison underscores why PIA’s owners see international turnaround experience as more valuable than local familiarity.

PIA’s Recent Operational Challenges

The scale of the task became visible again just months before the CEO search concluded. In November, PIA aircraft engineers represented by the Society of Aircraft Engineers of Pakistan withheld airworthiness clearances, grounding dozens of flights at major hubs including Karachi’s Jinnah International Airport (KHI) and Islamabad International Airport. PIA management characterized the action as an illegal work stoppage aimed at disrupting the privatization process, while the engineers’ association said it was enforcing mandatory safety protocols.

The airline eventually restored operations using alternative engineering teams, but the episode illustrated the labor and operational friction the new ownership still has to manage alongside its financial rebuild. A separate constitutional petition challenging the privatization itself was also filed in the Lahore High Court, adding legal uncertainty to a process the government has treated as largely settled. Gebremariam’s incoming role will require navigating these disputes even as he works to expand PIA’s international network and modernize its aircraft.