Mumbai is the third city to have such an offering from Lufthansa, after Delhi and Bengaluru.
The new cabin class on the Mumbai-Frankfurt-Mumbai route is being introduced from September 23 while the same for Mumbai-Munich-Mumbai sector would be launched from September 25, Lufthansa said in a statement.
It also said that passengers can avail an upgrade to higher class by paying an additional fee. The premium economy passengers can also access business class lounge facilities at a nominal cost.
"Mumbai is India's financial and corporate hub and a very important market for Lufthansa. We are very pleased to introduce our latest offering -- the premium economy class in Mumbai, after Bangalore and Delhi," airline Director for South Asia Wolfgang Will said.
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"The premium economy offering will be ideal for leisure travelers with higher budget and for business travelers with constrained budgets," he said.
The German carrier services Mumbai-Frankfurt route with a Boeing 747-400 aircraft while Mumbai-Munich is operated with Airbus A330-300 planes.
Lufthansa would, however, offer a total of 216 seats in its A330-300 for Mumbai-Munich route which include eight first class seats besides 42 in business, 21 in premium economy and remaining 145 in economy class, it said.
As a special gesture for its customers, Lufthansa has also offered inaugural fare of Rs 69,000 on its Mumbai-Frankfurt route, the statement said.