Malaysia Airlines may launch premium economy service: CEO

The airline, which introduced a new business-class seat last week, will make a decision in “a couple of months”, chief executive Christoph Mueller told Reuters, speaking on the sidelines of an industry event in Bali.
“We are very happy with business class demand, and this gives us the opportunity to increase the revenue per passenger in the economy class. The target passenger is in economy class, and you don’t want to cannibalise the business class,” Mueller said. The airline is seeking recovery after suffering huge damage to its brand after flight MH370, carrying 239 passengers and crew, disappeared in March last year. In July 2014, Malaysia Airlines Flight 17 was shot down over rebel-held territory in eastern Ukraine, and all 298 aboard were killed.
Mueller, an experienced industry executive, was hired to push through restructuring at MAS in May after Malaysian national investment firm Khazanah took it private late last year as part of a 6-billion-ringgit (Bt49 billion) programme that also cut the airline’s workforce by a third.
“We have to prove every quarter that we are on track, and only against the delivery of certain targets is the funding provided,” said Mueller, referring to progress in his efforts to turn the company around.