Flying Like Crazy

Well I have been taking some classes about tourism, they have been two of the greatest classes ever, mostly for the people that have been in the class with me over the actual content of the courses. This story I found really interesting and hope that I can tie it into my course if at all possible.
The article was about the new airline that is starting which allows people when flying to take off all of their clothes. It is like a nudest resort in the air, it is operating in Germany which is a very nudest friendly location. This airline brought up a few issues for me, who rules the rules of air travel and what are the costs to the airline to have this airline.

I first thought of the issue of who controls air travel when a few years back there was an airline that was going to offer flights that would allow people to smoke on the planes. I wonder is this legal and why other airlines have stopped allowing people to smoke on the planes. I know the basic issue of how bad second hand smoking is and that it has been banded in most places (in progressive countries at least). What were the legal basis for the government to ban smoking on planes?? Also why are the bans on smoking extended to the Airports as well. The ban on smoking in an airport does not seem to make sense if the rest of the region where the airport is in does not have any bans on it.
To get back on the nudest flights, are there any legal reasons why this would not be able to happen. Also why, if there is such a demand for this service, this airline has not started sooner. I will not make any judgments about the people who would use this service, I am sure they are 'normal' people.

The other issue I was interested in is how much is it going to cost the airline to put this service in place. They are going to cover each of the chairs with towels that after each use will be washed. I have learned in my tourism classes that airlines can save a lot of money by reduce the amount of weight of the planes. I am sure that the weight of the towels will be but I am sure that they could affect fuel costs of the air line. I looked for the information I learned in class but I appeared to have lost it.
This airline is also just going to be traveling within Europe, which means the flights are not going to be 'long hall' ones. The use of traveling by plane in Europe is a terrible use of resources because Europe, unlike North America, has a sophisticated rail system. This means that the people, in my view, should not be flying, who cares what they are wearing (or not). Europeans do travel a lot within Europe, which should be only on the rails and not in the skies.

These are some of my thoughts when I read the story yesterday. The article can be found here:
http://news.bbc.co.uk/2/hi/europe/7223733.stm