Strategy:Low-cost airlines threatened to wipe out business class on many routes, but now companies are more willing to spend money in the sky, writes Siobhán Creaton

For many business people, the luxury and convenience of business class air travel is a distant memory, but there are signs that the Open Skies agreement will bring a more affordable and luxurious service for those crossing the Atlantic.

It's been a few years since Aer Lingus flight attendants offered harried business men and women a glass of champagne and a newspaper as they set off for London, Paris or Frankfurt.

The explosion in low-cost carriers across Europe has forced suited executives to squeeze in beside tourists and backpackers. In the past decade, frugal economy class has become the norm for business travel between European capitals, as companies sacrificed perks for cheaper fares, which sometimes are as low as a few euro.

Ryanair's priority boarding proposition, which comes for a fee, has been adopted to alleviate waiting time and allows those first on board to select the best seats, a welcome development for frequent fliers.

Aer Lingus also plans to introduce a similar fee that will allow passengers to reserve seats in the first five rows, guaranteeing a swift exit for those rushing to meetings. This, it seems, is as good as it will get for business travellers in Europe.

As increased competition amongst European carriers slashed travel budgets, companies have radically revised policies for staff travelling on short and long-haul journeys.

The Open Skies agreement between the EU and US, formally signed on April 30th, should quickly bring greater choice and cheaper flights for business men and women who regularly cross the Atlantic. In this liberalised regime, the money allocated for business travel should go much further.

Gina Byrne, a consultant with Hay Group, who clocks up thousands of air miles every year, says flying business class is worth the extra cost.

"For most people, business class is about getting some work done and getting some sleep so they can be productive when they land," she says. "It is not as important on a transatlantic flight out of Ireland as it is on the way back, particularly if you are returning to a meeting that morning."

Aer Lingus will also be rolling out upgraded premier and business class products from this month, on all of its long-haul routes. For approximately €1,500 each way, business passengers will be able to travel to the US in new cocoon-style seats that tilt further back, include power for laptops and enhanced in-flight entertainment.

The airline's commercial director, Enda Corneille says Aer Lingus will be offering a top notch service. "We recognise that we have fallen behind the best airlines in [the business class] sector, but we will be moving from being behind to overtaking them once the new and refurbished aircraft are in operation from May and June 2007."

Another growing trend is companies buying time on corporate jets in a bid to cut down on the time involved in travelling on scheduled services.

Dan Loughrey, chair of Chambers Ireland's Air Transport Users Council believes Open Skies will bring great benefits for Irish businesses. "The biggest advantage for business will be that it will offer direct access to US cities from Ireland," he says. "Direct access is good for business and increased competition should bring costs down."

Siobhán Creaton is author of Ryanair, the story of how a small Irish airline conquered Europe. An updated version will be published by Aurum Press this month.