I also suspect that they think that they will not lose a significant number of those direct intra-European flight C pax anyway, as they probably consider (and probably rightly) that for the majority of them, convenience and frequency of schedule are more important than catering and extra space in-flight. Presumably, the majority of them are Paris-based and they will therefore tend to privilege AF just for the convenience of schedules even if it means flying Y, especially if the TC challenge cabin is maintained. They might lose the odd one out but not enough for it to make a difference. Question is, though, whether the disappearance of C would also have implication on catering for TC.