Originally Posted by
ManAtTheBack
REGULATION (EC) No 261/2004
"Article 3
3. This Regulation shall not apply to passengers travelling
free of charge or at a reduced fare not available directly or
indirectly to the public. However, it shall apply to passengers
having tickets issued under a frequent flyer programme or
other commercial programme by an air carrier or tour
operator."
If I understand you correctly, it is then up to the issueing carrier (in this case the airline of the FFP) to take care of the rebooking.