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In my organisation (Head Office in Paris):
Train : mandatory for the travel time less than 2h30
Train or Flight : the cheapest option for travel time between 2h30 and 3h30
Flight : Business Class when the total travel time (including transfers) exceeds 5h (daytime) or 4h (nighttime).
First class forbeeden.
Interestingly Premium Economy since this year is not mentioned anymore. So no chance to try new PE of Lufthansa.
This is Travel Policy. In the real life of the projects common sense prevails (business and personal constraints, last minute meetings, fatigue, business class cheaper than economy etc)
Travel Policy applies for all employees and contractors regardless position in the company (however I think there is another travel Policy for VIP)