You know the financial crisis has gotten bad when investment bankers are forced to give up their paid business and first class seats.

Merrill Lynch & Co., UBS AG and JPMorgan & Chase Co. are telling senior bankers in Asia to fly coach on short-haul flights and reduce non-essential travel as they step up cost cuts, officials at the firms said.

UBS advised bankers this month to travel economy class for flights of up to five hours, two officials at the biggest Swiss bank said, asking not to be identified because it’s an internal policy. Merrill employees have been told to travel economy for flights of as much as three hours since mid-September, two executives at the firm said.
…
JPMorgan, the biggest U.S. bank, has requested senior bankers fly economy on flights of less than three hours since late August, said an official who declined to be identified.

But before you throw that pity party, remember that business class is still fair game on long haul flights. Plus, they can always use their upgrades…

More seriously, you have to wonder what this will do for the airlines who have relied on paid business and first class to make real money. With all the real estate the premium offerings take up on board, and with a shrinking customer base, what’s the future of the front of the plane?…

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Lufthansa doesn’t just have a lounge for their first-class passengers in Frankfurt. They have a separate terminal.

Many describe it as the best airport lounge in the world. Private baths. Sit-down dining. Dozens of complimentary single-malt scotches. Bellhop service for your bags. As a final luxury, you’re chauffeured to your flight in a Porsche Cayenne or Mercedes S-Class.

To get into the First Class Terminal, you have to be an “HON” member of Lufthansa’s Miles & More program (600,000 qualifying miles over two years) or flying on a Lufthansa first class ticket that day.

And remember: Award tickets count! Using your miles for an over-the-top experience like this is a good move, in my book. Sure, you could get from point A to point B in coach, too, with fewer miles, but for a few thousand more miles, you could be flying in real style.

I’ve mentioned it before on this blog, but thanks to Gary Leff’s recent post on the subject, we now have a video tour as well. Watch it below.

Want more lounge porn? Have another video. For those who understand German, or who just want more visuals of the first-class terminal, here’s a news report:

Still can’t get enough? Browse the photo gallery here.

Related:
- How to lounge in airports
- Don’t overpay for lounge access. Not even for the Amazing Beer Machine.

Next thing to worry about in flight: Ozone
Like “sick building syndrome,” you can now start worrying about the plane’s air. But not because of the germs. It’s the ozone. Not holes in the ozone layer, either, but ozone levels in the cabin. Most interestingly, narrow-body flights are more prone than wide-body planes to higher ozone levels. Yet another reason to love the jumbos.

Korean Air shows off its Airbus A380 interiors
Singapore Airlines may be the first airline to fly the A380 mega-uber-hyper-super-jumbo-jet (and tickets are finally on sale for Sydney-Singapore flights, which start October 25, by the way), but you can get a photo tour of Korean Air’s A380. Lavender??! Who’s their interior designer? Yuck! (Thanks, Jeff!)

First class fare sale… if you’re traveling tomorrow
I know that airlines like to put out the e-fares and net-savers for weekend travel, but this offer from United struck me as odd. First class fares are on sale for travel on Saturday, September 15 only. Fly there in first, fly back in coach, savor the difference? Fares are less than regular paid first, but the bulk of fares are for really short flights where paying cash money for first class is bonkers.

Business class fare sales to Europe
All-business class L’Avion is flying Newark to Paris for $1398 roundtrip, pre-tax. Maxjet is doing London to New York or DC for $998, also roundtrip, also pre-tax. Both are through the end of 2007, but not every date may be available. (Thanks, Michelle!)

More dangerous shirts
I don’t know what to make of this. “Your liver is evil. It must be punished.” Har har har. But Continental Airlines wasn’t laughing when they kept Edna and Frank Taylor from getting onboard, because of that shirt. What’s with this “What Not to Wear” airline trend?

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JetBlue goes Euro! Not to Europe, but the airline is considering a European-style premium cabin. It’s buried in an article about jetBlue’s pending introduction of refundable fares — another big change for the company. (Though it’s something which most other airlines have had for years, to appeal to business travelers, jetBlue has consciously avoided refundable fares until now.) So what will a jetBlue first class cabin look like?

[CEO] Neeleman today also said JetBlue is “experimenting with the idea” of a “virtual first class,” which would give higher-yielding travelers access to window and aisle seats between empty middle seats, particularly on Mondays, Tuesdays and Wednesdays–when business travelers take to the skies and load factors are historically lower.

All that’s missing is the adjustable armrests that you find at the front of intra-European “business class.” (I use quotation marks, because airlines like Lufthansa and Air France really just give you the same damn seat, with a slightly better snack, wider armrests, and an empty middle seat, when you buy business class. Americans may complain about their domestic “first class” travel experience, but the seat is still a heckuvalot nicer than anything you’ll find within Europe.

Transatlantic rift? Pfft. Sounds like the US and Europe are moving closer together after all. Creating a premium cabin is in line with what I predicted for jetBlue a while back. Their de facto premium economy section was a first step.

Creating a sub-cabin like this, in combination with refundable fares, would make jetBlue very appealing for many business travelers. Though the live TV could be distracting…

Related:
- JetBlue increases legroom, creates de facto premium section
- JetBlue introduces premium economy cabin after all

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Downgraded: Lavender
Update: The controversial and lame American Airlines website for women got a minor redesign, as Meg at the Consumerist noticed. See the before-and-after screenshots above. The criticism must have gotten to them. Gone is the lavender flight search box, though it’s still a dumbed-down version with fewer options than the main search page. Is this progress?

Upgraded: US Airways, Downgraded: Southwestern temperance
The booze is back in the Land of Enchantment! US Airways is once again serving alcoholic drinks on flights to and from New Mexico. Recall that they got busted for serving liquor without a license. Tipple with impunity.

Downgraded: Late night arrivals at Detroit; Upgraded: Odds of a PBOR
It happened again. Passengers were stuck on a plane for hours, bathrooms had no water, etc. A late-arriving Spirit Airlines flight from Cancun couldn’t be processed after landing (at 11 p.m.), because Homeland Security’s Customs/Immigration agents had gone home for the night. It took until 4 a.m. the next day for passengers to be let out. Update: Or the plane landed early! And Customs’ computers were down. And passengers left the plane at 12:30 a.m., if you believe Customs. Or later, depending on who’s telling the story.

Upgraded: Lufthansa first class seating
No preview images yet, but Lufthansa is upgrading their first class cabins, beginning with winter 2008. The new seats were meant to debut with the A380, but given the delivery delays, they’re just rolling them out anyway.

Upgraded, potentially: Baggage screening
Assuming the bill survives a veto threat from President Bush, airports across America could receive new equipment that supposedly screens baggage faster and more accurately than previous versions. Why the veto threat? The bill also contains a provision permitting TSA agents to unionize.

Downgraded: Flights from LAX
United Airlines and Los Angeles World Airports are having a spat about the rent. United says the rent hike is a violation of the lease agreement, but until the dust settles, they’re charging passengers who board a flight at LAX an extra $10 to cover the difference, even though the actual costs to the airline are allegedly a lot less. Now Delta and US Airways have followed suit and raised fares out of LAX by the same $10. Lovely.

Upgraded: Baltimore!
Layover at BWI? Grab a glass of wine at the newest branch of Vino Volo, the chain of in-airport wine bars. Other locations include Washington Dulles, Sacramento, and Seattle. (Via Jaunted)

In today’s New York Sun, Phil Wahba has a piece on US Airways’ decision to start advertising on the tray tables in first class.

The airline has had ads on the trays in coach for some time now, but this is the most brazen incursion of advertising into the premium cabins.

“A lot of people will think placing ads in first class is déclassé,” Mr. Ashley, who logged 75,000 miles traveling the world last year, said. “I think it signals that US Airways is not trying to position its firstclass travel as a premium product.”

Gee that Mr. Ashley who’s quoted in the article sure makes a lot of sense!…

In particular, I’d follow up to say that US Airways has thrown in the towel on selling seats in first class. If you’re crassly making the cabin a billboard, then you’re implicitly admitting that the first class cabin is only appealing to upgraders. Upgraders are all freeloaders in the airline’s eyes, so why try to make them feel relaxed? Go on and make ‘em stare at an ad for Bose.

But 30% of US Airways passengers still pay for the privilege. I don’t know how this compares to other airlines, and I’m sure it varies tremendously by route. But if you’ve been a paying passenger in US’ first class, then you’ve just been thrown under the bus.

I’ve seen advertising in subtler forms before — free samples of mints or gum on the meal tray, for example. (I got a coupon for gum with the meal once on United, which was tacky, too.)

The US Airways spokesperson is quoted in the article as favorably comparing his airline to European low-cost carriers, who place ads all over the plane, making it a “flying subway.” Presumably he is referring to Ryanair, EasyJet, etc. But what kind of comparison is that? None of those airlines have first class.

From the sound of it, US Airways may not have a first class anymore, either.

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