Where I live, Hawaiian culture stresses respect for our
hulu mākua (parents) and
kupuna (grandparents, ancestors). Although I am not religious, I endorse the biblical commandment to "Honor thy father and thy mother."
Granted, not all parents deserve honor -- but I assume your dad and your friend's dad must be okay since you're choosing to travel with them.
So if I were you, and if I had two upgrades, my father and my friend's father would be "honored" up in First and my friend and I would sit in steerage.
Aloha,
-jt-
(who really, really wishes his dad was still around!)