Pune is a 4 hour journey from Mumbai and is a centre for education, IT development (feeding off the intellectual output of the education system), and manufacturing.
Mercedes manufacture in the Pune region and Volkswagen have/are about to start production there.
All congratulations to Lufthansa for spotting the niche and gaining the traffic rights, and PrivatAir seems to be the perfect partner to develop this specialist operation. This will be the first and currently the only long haul flight from PNQ.
I'm not disputing the merits of Pune as a business destination, but it's popular with tourists too. Why have business class only?