That is correct.
AC is being greedy and it will blow up in their face... I was going to try and convince our management to pay the 300$ difference for t+ TPAC fares but now that it is in excess of 1000$ there is no way in he'll that will fly.
Congrats AC, you have successfully turned away a loyal customers (200k BIS miles this year and probably 40k in revenue, plus all the staff i influence at in ticket choice at our company).
Max