Television and stage hypnotist Paul McKenna always flies first class or Concorde on his frequent business trips to New York: "It's worth paying the extra couple of thousand pounds because you arrive refreshed, and that gives you a much better result when you've got to go straight to a meeting," he says. "It's also nice to be sure of a quiet environment. If you're well-known, you are much less likely to be harassed and bothered by other passengers if you're up at the front. The food's much better there - it can be appaling in economy - and the choice of movies is fantastic. And, of course, the seats are comfortable. My favourite carriers are American Airlines, British Airways and Virgin. If I feel like spending lots of money, I fly with BA because it's so opulent. I love American because it's so classy, and if I can't get on either of those I go with Virgin, because the pricing is so good for what they offer."

Air France may have pipped British Airways to the post with the introduction of 180 degree sleeper bed seats, but BA set new standards in January 1997 with its innovative private cabin concept, forcing the other airlines to catch up. This included an all single-seat configuration, a six-foot six-inch bed seat, partitions for privacy, a jump seat for a visitor, a 45-title video library, a-la-carte dining and lounges. Now the list of carriers with bed seats includes Air France, British Airways, Qantas, Air New Zealand, Singapore Airlines, Japan Airlines, All Nipon Airlines, Korean Airlines and Lufthansa. American Airlines will introduce them on their new 777s in 1999 as part of their $400 million upgrade, of which $268 million is being spent on seats alone, across all three cabins. United Airlines and their First Suites will also be installed in 1999 in their 777's
For extra space, Air New Zealand has removed four seats from the first class cabin on its 747s flying the Auckland and Sydney to London routes. Some, such as Lufthansa, offer nightshirts, bed linen and a partition between seats. On most of these upgraded cabins, power points for laptops, telephones, video libraries, bed linen, sleepwear and dedicated check-in and lounges are now standard. Singapore Airlines has already upgraded nine of its 36-strong fleet of 747-400 Mega-Top craft with fully reclining Slumberette beds, complete with 22 video channels and 10 Nintendo games.

Air New Zealand and Qantas have recruited celebrity chefs Peter Gordon of London's Sugar Club and Sydney's Neil Perry of the Rockpool restaurant to add some fusion spice to their in-flight menus.

While some airlines tempt flyers with fatter seats and wider aisles, others believe the way forward is the combined business-first product. Steadfastly clinging to this format are Continental, Delta, Air Canada, Alitalia, and Virgin. "We have no plans for a discrete first class product," says Virgin's Updesh Kapur.

For passengers such as motor racing legend Stirling Moss, Virgin's Upper Class and the other business/first services are the perfect solution. "For business trips you get exceptionally good value flying with Continental or Virgin," he says. "I get all the comfort and service of first class and I arrive feeling fresh and unfatigued. When I fly for business it's usually in connection with a promotion for motor racing or television, and I negotiate my travel along with my fee. If I were to insist on travelling in first class proper, my fee would have to reflect the extra cost. I'm in a much better position to negotiate if I go Upper Class. BA's First is as good as anybody's, but I just can't justify the cost. The round-trip fare to New York from Heathrow is £2,518 when flying in Upper Class on the Virgin-Continental code-share, compared with £5,392 for BA's First Class."

In the final analysis, enough connoisseurs still want first class for it to be viable, and the airlines are prepared to make them pay heavily. First class fares out of Britain have shot up 8% this year, according to the latest European Corporate Travel Index which is produced quarterly by American Express. Everyone has been following BA's benchmark, depending on their market position. A BA flight to Tokyo from London cost £6,174 in 1997; this year it's been bumped up to £6,550. But enough passengers are still opting to pay. "We have six services to New York daily and depending on the season, most of their first class cabins will be full," confirms Chris Allin, British Airways' First Class brand manager. "With so many flights, you can still get a seat at quite short notice, but we only upgrade now if the business class section of the plane is full. I'd estimate that two thirds of those in first are paying full fare these days."

By contrast, economy prices have inched up only 2%, but the strong pound and weak currencies of Asia and Australia have left British first class passengers with several money-saving options. Mile for mile, fares are highest out of the UK at the moment, so smart travel agents can issue a one-way ticket out of London and then buy the return half in Australia or Asia. For example, a first class round trip to Malaysia from London would cost £5,000, but a return ticket to London bought in Kuala Lumpur would only be £2,500-£3,000. Similar savings can be made when flying from America to Australia and the Far East. Many European airlines don't fly directly out of London to Australia, but do run services from there back to Europe with easy connections to Britain.

The industry is deregulated in Australia, so airlines can discount heavily. And don't forget that a round-the-world first class fare out of London is £5,049, compared with Sydney point-to-point for £5,733. Also, as air fares in general are cheaper from continental Europe than Britain, and especially from Italy, another possibility is to make an inexpensive hop over to, say, Rome or Frankfurt, and start your long-haul journey from there.

Historically the business class of US carriers such as United, Delta and American has not quite equalled the European product and some travel agents are authorised to upgrade business passengers to first class on flights out of Britain. Having a loyalty card helps, and big companies can negotiate bulk upgrades. Many airlines, including Emirates and Air France, are offering limousine pick-up and two-for-one deals, with limited availability, so it always pays to check what extras are available. All Nippon and JAL offer the biggest range of incentives, with £300-£400 worth of extra treats with first class tickets, including duty-free and Harrods vouchers, half-price hotels and valet parking.

With the first mutterings of depression already being heard, agents believe discounting may soon become a feature of first class once again. Indeed, according to Sue Moore, BA's general manager for brand management, insufficient demand means that some routes may no longer offer first class at all. "We are currently reviewing the need to have first on all routes," she says.

What does BA have up its sleeve for passengers at the front of the plane once the millennium is here? "We're developing a new wash bag," its spokesman reveals, exclusively. The carrier is redesigning the pillows and duvets, too. It is also, more practically, now concentrating on ground services, with baggage check-in at Paddington for the Heathrow Express from next year. Limousines are being considered, along with new lounge concepts such as cafe bars, spa areas and libraries.