Air New Zealand has created Cuddle Class
"Cuddle class" is an innovative seat design that has given coach passengers the first real opportunity to lie flat for sleep on long flights. To create the extra space, three seats in a row have fold-away armrests and a padded foot-rest panel that flips up and locks into place. Two passengers take up three seats and pay an average of half the cost of the third seat, typically an extra $500 to $800 for an overnight flight.
What I found interesting, and relevant to a lot of the discussions around here, was the testing process they used to figure it all out:
"Everybody says, 'Oh, it's so simple. Why wasn't that thought of before?' " said Mr. Reeves. "You had to go through the whole process to get there."
The article talks about the different configurations they tried and some of the reactions from test passengers.