For its Airbus 380s, Malaysian Air considers premium-economy class
Malaysian Airline System Bhd., the national carrier, may introduce “premium economy” seats in its double-decker Airbus SAS A380s as tighter corporate travel budgets damp demand for business-class seating. “A premium-economy cabin in our A380s would provide another option for our passengers,” Amin Khan, the carrier’s senior general manager for network and revenue management, said in an e-mailed reply to Bloomberg questions. It would serve “those organizations that maintain economy-class travel policy for their employees, even after the recession.”
The carrier may include premiumeconomy class in its six on-order A380s to lure travelers seeking more comfort than is available in coach at prices lower than in business class. Corporate travelers forced to fly coach during the recession may never return to business-class cabins, as companies seek permanent reductions in spending on travel, the International Air Transport Association said last month.
Passenger yield, or the average price a traveler pays to fly one kilometer, won’t return to pre-crisis levels “just yet” even though business travel has begun to recover, Amin said. “During the recession we observed a shift down from business to economy,” he said.
Malaysian Air may spend 460 million ringgit ($136 million) to furnish its A380s, the Edge Financial Daily reported in January, citing a circular to shareholders.
The carrier gained as much as 8.2 percent to 2.25 ringgit as of 1:15 p.m. in Kuala Lumpur trading. Of 16 analysts tracked by Bloomberg data over the past 12 months, two recommended investors buy the stock, eight had “sell” ratings, while the remainder said hold. (Bloomberg)



