Business travel in economy just got more comfortable…on Air New Zealand flights.

Air New Zealand is the first airline carrier to offer lie-flat economy seating on its new Boeing 777-300 aircraft.

Dubbed the ‘skycouch’, the lie-flat seating involves a bank of three seats which can be folded down to the back of the seat in front. Big enough for two people, 22 sets of the skycouches will be offered in the first 11 window rows.

Business travellers have to specifically book a skycouch, which will cost them the equivalent of two-and-a-half seats. Corporate travellers will be able to book the skycouches from late April.

Travel management company, BCD Travel, welcomed the initiative particularly as many corporate travellers will continue to fly economy in 2010 due to GFC-related cost cutting by their employers.

The failed terrorist attack on a Christmas Day flight from Amsterdam to Detroit has prompted a review of security measures at many airports around the world, including Australia, the US and Canada, according to corporate travel agency, BCD Travel.

Business travellers are advised to allow extra time for check-in at major international airports, particularly if flying to or out of the US. Some airlines are even requesting that passengers including corporate travellers arrive three hours ahead of departure rather than the usual two hours.

Increased security measures include full body pat downs and full body scanning devices - which will be introduced at Australian international airports in 2011. In Canada, all travellers including corporate travellers bound for the US will not be allowed to take any carry-on luggage, except for handbags and briefcases. Full body scanners will also be installed at nine Canadian airports.

Airline carriers are considering reducing their first class business travel cabins to enable more economy seating following a significant reduction in first class corporate travel in 2009.

However, this move may not be necessary with early indications that first class may be back in favour among corporate travellers in 2010.

Business confidence in Australia is far greater than it was at this time 12 months ago when the GFC was hitting hard. Some experts, including the world’s third largest corporate travel management company, BCD Travel, predict a surge in first class corporate travel bookings in 2010.

Latest IATA figures show demand for premium seating in November 2009 was 5% up on May but still 6.7% lower than November 2008. However, British Airways, Finnair and Lufthansa have all reported noticeable increases in first class bookings in 2010, although they are well off their pre-GFC levels.

The latest airline carrier to announce it is considering reducing first class is Qantas, which may remove up to two-thirds of its first class seating to free up more room for economy. It would retain first class seating on popular business travel routes, Sydney to Los Angeles and Sydney to London. Qantas has not yet made any firm decisions. Other carriers also considering removing some first class seating include Cathay Pacific, Virgin Blue and bmi.

Companies should re-negotiate their corporate travel rates with their business travel suppliers, including airlines, car hire companies and hotels as soon as possible, according to BCD Travel.

In an article in CFO Magazine, corporate travel management company, BCD Travel says companies have greater buying power due to a 15-20% decline in corporate travel across the board in 2009.

Last year, suppliers were very keen to retain as much corporate travel business as possible and they were more than willing to negotiate.

However, with an expected boost in corporate travel in 2010 due to greater business confidence, the negotiating climate may weaken over the next two quarters, so companies should look at re-negotiating their business travel deals as soon as possible.

To read the CFO Magazine article, click here.