SAS has just announced it will eliminate business class from all its "domestic" and Euro flights as of June 1st. I have posted more details at:

http://www.flyertalk.com/forum/Forum82/HTML/000772.html

This follows a ban on offering FF miles on flights within Norway, which I suspect also applies to STAR partners' programs.

The FINANCIAL POST speculates that this might be something the Canadian government might wish to impose on AC, the ban on FF miles for domestic flights. Obviously, such an imposition here would start a major revolt and possibly overthrow of the Liberal government. 50% mileage is bad enough. [And the Combines office has ordered AC to open Aeroplan up to any small competitor who wishes to join, so the POST is launching a bit of a lead-filled trial balloon.

But this SAS move does give some credence to the possibility that AC could remove J seats altogether from many more of its secondary routes, beyond the transformation of AC Regional [JAZZ] or the expansion of TANGO.