Buveur D'Air led home a one-two for trainer Nicky Henderson and owner JP McManus in the Stan James Champion Hurdle as Noel Fehily’s mount powered away from My Tent Or Yours, who finished second in the race for the third time.
Henderson became the most successful trainer in the history of the race as he secured his sixth victory in the two-mile showpiece.
Petit Mouchoir was third after cutting out much of the running.
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Having begun the season as a novice chaser, Buveur D'Air (5-1) did not exactly have the ideal preparation after just a canter round against inferior opposition in the Contenders Hurdle at Sandown.
However, Henderson was adamant that he should be in the Champion Hurdle and yet again the Seven Barrows man was proved right.
With the last two winners of the race sidelined by injury, the two-mile showpiece had an open look to it with owner JP McManus having three live hopes as Yanworth was sent off favourite.
Alan King's chestnut never looked like playing a part in the finish, though, and for a long way Henderson's other runner, Brain Power, looked like taking a hand until failing to come up the hill.
The six-year-old Buveur D'Air travelled powerfully and despite one or two minor errors, he was produced with an ominous looking challenge jumping the second flight from the finish.
Having claimed the front-running Petit Mouchoir before the last, Henderson's charge was in front soon enough, but found plenty for pressure to prevail by four and a half lengths.
Yet despite the impressive performance from the winner, Henderson admitted his first thought was for the runner-up, who has now been second four times at the Cheltenham Festival.
Nicky Henderson becomes the most successful trainer in Champion Hurdle history after Buveur D'Air storms home under Noel Fehily #TheFestival pic.twitter.com/QZbX99jnoQ
— Racing UK (@Racing_UK) March 14, 2017
"You feel sorry for My Tent Or Yours. It's wonderful we've won the Champion Hurdle but that's three Champion Hurdles he's been second in. What else can you say about him? He's just sensational, but the young horse has done it," said the Seven Barrows handler.
"I had my doubts whether we'd done the right thing going back over hurdles after seeing Cloudy Dream run so well in the Arkle, given we beat him easily at Haydock.
"There wasn't a particular moment when I thought we should go back to hurdles but he'd only run four times, I just felt he had unfinished business over them.
"I think he could still go back chasing one day."
He added: "It's great to break the record, but they are there to be broken I've always said.
"It's the people at Seven Barrows and all the owners I'm really happy for, they make it fun, which is what it should be.
"This place is all about winners and all you can really ask for is one, but I'm very lucky to have a huge team of really nice horses.
"It was obviously the right decision to go back hurdling, but part of me feels all I've done is make My Tent come second again!"
3.30 Stan James Champion Hurdle Challenge Trophy (Grade 1) result
— RTÉ Racing (@RTEracing) March 14, 2017
1 Buveur D'air 5-1
2 My Tent Or Yours 16-1
3 Petit Mouchoir 6-1
McManus was also winning the race for a sixth time after Istabraq's hat-trick, Binocular and Jezki. It was also his 50th winner at the Festival.
"It doesn't get much better than that, the first two in the Champion Hurdle," he said.
"I can't remember exactly what Nicky said but he wanted to go back hurdling before any of the doubts about Faugheen and Annie Power.
"I just let him get on with it, he knows best.
"I'm delighted with My Tent too, to finish second at four Festivals is a great training performance.
"Yanworth got very warm before the race and he probably lost his race there.”
Fehily was winning the race for a second time after Rock On Ruby in 2012 and was absolutely faultless in the saddle.
"Early on I felt I was doing too much and I thought it took me a while to get him switched off," said Fehily.
"He's just a very good horse. It's just fantastic. It was a great performance, it doesn't matter to me that people are saying it wasn't a vintage race.
"You certainly appreciate it more second time around."
Irish Champion Hurdle winner Petit Mouchoir confirmed his form with Footpad, who finished fourth, and trainer Henry de Bromhead said: "I'm delighted with him, he's run a fine race, and I'd say he's run to exactly the same mark as his Irish Champion win.
"We tried to put the others under pressure out in front. He might run again this season, but we'll get this season out of the way before making plans for next season (whether to go chasing or not)."
The novice Moon Racer, of whom there had been so much chat about which race he would run in, was pulled up by Tom Scudamore after a making a bad mistake just after halfway but was reported to be none the worse.
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