Virgin Atlantic has lost a high-stakes legal battle over the design of its premium “flat-bed” seats, in a case that lays bare the fierce competition for free-spending air travellers.

Airlines are intensely protective of their lucrative business and first-class cabins – with good reason. Virgin, the long-haul carrier controlled by Sir Richard Branson, launched its “Upper Class Suite” seat in 2003 to international acclaim, boosting its market share by up to 12 per cent on some routes.