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This is the bit a lot of us agree on, but where we diverge is on the "Appearances to whom?" question.

I'm not buying your argument, as the case for flying economy is so easily conveyed and understood that all parties on this particular flight, with one short, easy explanation will "get it". The only person in this situation with the potential to look bad is the Chairman, and this is an issue that he (maybe with the CFO depending on their relationship) needs to resolve.

What really leaves a sour taste are the replies which infer that the employees of the company should somehow "suck it up" and/or "mind their own business". The employees are the business, "plant and machinery" as another poster put it, and ignore the impact of their goodwill at your peril. I don't think this is some kind of moral issue, it's just good business sense. A "never mind about them" attitude taken at this early stage is the start of a slippery slope and will harm productivity and results in the future, one tiny increment at a time.