yyz_atc_qq, sorry to hear about your problems with AC. It's incredible that they are saying no back-tracking even through the circumstances were created by AC.
You should actually file a complaint with the European governing body for transportation -- you have the print out of your new schedule. With the European body I believe you will be entitled to greater compensation since there is a Passengers Bill of Rights. It is clear that CIC*77 as well as the new ACpedia reference indicates you can choose any airline to fly home with if AC insists you cannot fly through FRA to connect with AC.
I see that you are a SE and they are still screwing around with you -- no surprise as this happened to me as well. You situation reminds me of the letter to the editor Montie Brewer wrote outlining events that can disrupt an air journey. (my bolding)
Originally Posted by Montie Brewer Letter to the Editor Montreal Gazette 06APR08
.....Two types of events can disrupt an air journey
The first are those within an airline's control, such as a mechancial issue that prevents a plane from being ready. In these cases, Air Canada takes care of all its customers, including providing meal vouchers and hotels, if necessary. We have always done this and will continue to do this for all our customers.
The second type of disruption is that caused by factors outside of the airline's control, such as winter storms. .....
When you call AC you should read the above quote and ask if Montie was just giving AC double-talk (TM).
If anything, this experience has shown you, a SE, what AC thinks of your loyalty.
btw...I reread CIC*77 and there is nothing else I can provide to give you better leverage. At this point, AC is not honouring their own rule.
Let us know what happens.
Cheers