This seems like a very elegant solution to the issue. Rather than pitting the CEO against one VC board member, it makes the decision one of the entire board. And allows the VC to make his pitch to his peers, who understand the travel demands of serving on several boards. First class, and especially private aviation, can be more money but also can be justified in the right circumstances.
I fly my own (single-engine piston) airplane for recreation, most of our east of the Mississippi family travel and have flown it for a prior company on business trips. Even my little bug-smasher can save a night's hotel stay on one end, and often on both ends, making my life and my family's life better for that, making me more willing to travel for business, and I had no problem (ethically or practically) submitting a spreadsheet with column B as what the airlines would have cost, including airport parking and hotel charges, and column C showing what my airplane cost (including hotel and landing/ramp fees) and submitting for reimbursement the lower total (almost always airline, but saving 2 nights hotel and 4 days parking at Logan takes away a good bit of the difference).
I fly my own (single-engine piston) airplane for recreation, most of our east of the Mississippi family travel and have flown it for a prior company on business trips. Even my little bug-smasher can save a night's hotel stay on one end, and often on both ends, making my life and my family's life better for that, making me more willing to travel for business, and I had no problem (ethically or practically) submitting a spreadsheet with column B as what the airlines would have cost, including airport parking and hotel charges, and column C showing what my airplane cost (including hotel and landing/ramp fees) and submitting for reimbursement the lower total (almost always airline, but saving 2 nights hotel and 4 days parking at Logan takes away a good bit of the difference).