The way I was reading it, this may apply...
EU regulation 261 is definitely applicable here as it is a valid ticket and reservation, and the operating carrier is an EU Community Carrier (British Airways). Even though British Airways has no "direct contract" with
Pollie (i.e. the ticket was purchased from Qantas), under the obligations of the regulation, since it is the operating carrier fulfilling this part of the contract on behalf of Qantas, it is just as liable.
The way I see it is that
Pollie was involuntarily downgraded (in fact, it doesn't matter here how they were downgraded), and also then involuntarily denied boarding (however, since an alternative equivalent class of travel was sought, that perhaps eliminates the liability of downgrading). I'd also assume that the Thai Airways flight they were accommodated on would've been similarly scheduled to the British Airways flight, and thus would easily arrive within 3 hours of the original flight.
So the net position I see here:
- Qantas (ticket seller, original contract): No liability.
- British Airways (operating carrier in question): Liability under EU 261/2004, under the provision of involuntary denied boarding, which entitles Pollie to:
- Cash compensation: Type 3 flight amounting to EU 600, but this is halved if the Thai Airways flight is scheduled to arrive within 3 hours of the British Airways originally scheduled flight. So that's EUR 300 (AUD 374, or GBP 242, using today's exchange rate).
- Rerouting / refunding: not applicable because Pollie didn't change any routings.
- Care compensation: If Pollie bought any refreshments whilst waiting for the Thai Airways flight (possibly because they had no access to a lounge which they normally would have by flying British Airways), the retained receipts could be applied for reimbursement.
It probably doesn't make up for
Pollie missing out on the product desired, but that said it would've been easier to have known of EU 261/2004 rights in the first place and exercised them at the time to get a better deal out of British Airways.
Long story short - apply to British Airways to get some compensation under EU 261/2004. If they refuse, then this could get complicated.
I know some people will say Qantas has some supreme liability or compensation due to
Pollie because as the ticket seller, they need to take ultimate responsibility for all flights, irrespective of who operated them. I don't buy this argument, particularly when one of the operators anyway has statutory compensation obligations.