Quite surprised at this - seem to be pandering to Reading commuters at the expense of long distance travellers, think Leisure travellers used to 1st class due to reduced capacity will get a shock if forced to use standard given the minimal leg room etc. The business traveller will also be less than pleased if they are to be crammed in !! Will the longer term effect 1st class catering trolley as well if a reduction in 1st class travel occurs ?
The leg room in standard in FGW HSTs is absolutely fine unlesss you're a giant, though not as generous as a 180 - if you want minimal, try a Monarch Airlines Airbus.
One first class coach isn't a lot. Perhaps the number of people travelling on full first class tickets has dropped, and FGW feel that they can make more from a more cramped standard class coach than by offering very cheap Advance fares in first class.
It says quite clearly in the FGW statement in the initial post that there will be one-and-a-half first class coaches in every HST. It's not about making money, it's about providing more seats to try to ease the pressure in the Thames Valley - and while there are undoubtedly issues with passengers not moving down trains to find seats, there are plenty of Thames Valley peak services which are so crowded that it doesn't make a blind bit of difference which coach you're in - they're all packed.
The new trains have only limited first class accomadation, and a cynic might suggest that old HSTs need to be downgraded before the new trains come in.
By new trains, I take it you mean IEP. Going by the DfT draft layouts, the five-car sets will have 45 first class seats, in essence the same as a 180. The nine-cars have one-and-a-half coaches, plus a bit of a driving car, giving 101 seats in first, so mcuh the same as a pair of Mk3s. Lose the bit of a coach, or the half-coach, and you have 70-odd to 80-odd seats, much the same as one-and-a-half Mk3s, so yes, a cynic might suggest it's a conspiracy, or he might look at the level of first class travel these days and see the change as a logical outcome of how things have gone since 2008 - and on the FGW route I use, that is a lower level of first class custom, with clear over-provision of first class accommodation, even on the busiest trains.
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