Air India mulls launching premium economy class

According to a report by PTI, Air India may look at introducing a separate cabin product on its flights — premium economy — to tap the growing demand for this segment of travel in its bid to maximise revenue. Currently, the Tata-SIA-promoted full-service airline, Vistara is the only domestic carrier that offers premium economy on its flights, besides business and economy class.

Changing passenger preferences have necessitated exploration of more options for travel. Premium economy is positioned between economy and business class, with a different fare and services structure. It is important to mention here that the concept was first introduced by Taiwanese carrier, Eva Air in 1991, and since then airlines world over have rolled out this new cabin class, one after another. Premium economy fares are on average 60 per cent lower than the business class and almost 60 per cent higher than normal economy travel. (Source: PTI)

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