It is for real. I doubt the BBC would be talking about if it weren't.
http://news.bbc.co.uk/2/hi/europe/5121786.stm\
I wonder how they'll solve issues related to the outflow valve. It was one of the major reasons smoking was banned from planes in the first place. The outflow valve is constnatly opening and closing to maintain cabin pressure. Nicotine can get stuck to the outflow valve and prevent it from opening or closing. It ends looking like someone's just scooped up some margarine and just lathered it all over the thing. It's really quite disgusting.
But anyways. Blocked outflow valve = bad news. And it used to build up pretty quickly. I wonder how quick it will build up with every passenger flying having a smoke.