First-class cabins lose luster as business beds match comfort for less

With fully reclining business berths introduced this year by Air France-KLM Group, the corporate cabins of top operators in Europe, Asia and the Middle East now all offer an experience comparable to that available in first for almost two decades. Among carriers that see limited demand for luxury seats are American Airlines, which is removing them from close to 50 jets, Deutsche Lufthansa AG, where 1 billion euros ($1.3 billion) is being spent upgrading business class as capacity in first is cut 30 percent, and even top-end Gulf carrier Qatar Airways Ltd. Others are being bolder, with Abu Dhabi's Etihad Airways PJSC adding private suites styled as "The Residence" with a double bed, living area and shower for $20,000 one-way to London. "The post-recession economy is keenly aware of the cost of travel and airlines will only put first on aircraft where it's economically justified," said Henry Harteveldt, founder of Atmosphere Research Group, a travel advisory firm. Those carriers pondering the future of first-class travel are following in the footsteps of U.K. billionaire Richard Branson's Virgin Atlantic Airways Ltd., which abandoned the traditional three-class long-haul seating plan in the 1980s.

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