I fly your airline (1-4 times per month) because of your single aircraft business model and your on-time performance. On most flights I wish your flight attendants would just shut up and let me enjoy some peace and quiet.
Flying is stressful enough - the corny jokes and stupid songs and smart alec and many times too personal comments just add pressure to an already hectic day. This story just burns me. Leave your customers alone - other airlines meet your fares, don't make us stand in ABC lines and don't fly out of outdated terminals with horrendous concessions and facilities.
Apologize to your customer. Your employee went over the line and needs a course in diplomacy.
Oh, and the "club seating" has been gone for years, so seriously, think about it. Who the heck was going to see her underwear with the generous 8 inches of leg room between rows? This was personal, and not about other customer's comfort or abut decency.
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