My long response to Emirates via ARN (swedish NEB). Sorry for a lot of text!
Thank you for your email in regards to this matter.
Let me present my point of view here by first referencing EC 261/2004, which is the regulation we are discussing:
Article 10
Upgrading and downgrading
1. If an operating air carrier places a passenger in a class higher than that for which the ticket was purchased, it may not request any supplementary payment.
2. If an operating air carrier places a passenger in a class lower than that for which the ticket was purchased, it shall within seven days, by the means provided for in Article 7(3), reimburse
(a) 30 % of the price of the ticket for all flights of 1500 kilometres or less, or
(b) 50 % of the price of the ticket for all intra-Community flights of more than 1500 kilometres, except flights between the European territory of the Member States and the French overseas departments, and for all other flights between 1500 and 3500 kilometres, or
(c) 75 % of the price of the ticket for all flights not falling under (a) or (b), including flights between the European territory of the Member States and the French overseas departments.
As you can see, my claim is based on Article 10, Section 2C which specifies that the compensation is 75% on the price of the ticket. Now, the price of the ticket is fairly obvious. You have specified it on the ticket that you sold me for XXXXX SEK. It does not specify any particular price for the segments, but it’s a price of the ticket that specifies transportation from Stockholm to Auckland in First Class. That is undisputable I would say.
So, let us look at the fact. You made a commercial decision to do an equipment change. This I can only assume had to do with the fact that you had overbooked economy. The 2-class configuration gave you many more economy seats than the 3-class configuration according to your own websites information.
Now, when going back to regulation 261/2004, and the preceding work of why it came about etc, it was to make sure that airlines wasn’t doing these commercial decisions on the expense of the contract agreed upon between the airline and the passenger. Back then denied boarding etc was a lot more common than it is today, so the regulation did work. It just wasn’t commercially viable to deny boarding in the same extent.
Now, let us look at your email to me:
"Quote from Emirates email"
Allow me to explain that ticket refunds are non-negotiable. Airlines do not invent random amounts and figures to refund passengers. They are calculated based on the fare which is paid. Your calculation below is incorrect. You are not entitled to a refund based on a random market fare which you have found on the internet at today's prices. You are entitled to 75% of your ticket 17XXXXXXX. You are only entitled to compensation for the flight sector on which you were downgraded.
My repsone:
This is where we disagree. Nowhere in regulation 261/2004 does it mention the price of sectors.
"Quote from Emirates email"
On all other flights, you flew, as ticketed, in First Class. I will further explain the breakdown of the calculation of the refund. Your ticket price was calculated based on the fare from Stockholm to Auckland and return. The total fare paid was SEK 36802 (excluding the fuel surcharge and taxes, which remain). Breaking down this fare further, we assess the total ticketed kilometres which is 23730 and then divide this by SEK 36802, to reach a fare amount of 1.55086 SEK per kilometre. We multiply 1.55086 SEK by the ticketed kilometres of the Stockholm Dubai portion of the ticket (the sole sector on which you were downgraded) of 2986km. Finally, 75% of that amount is SEK 3470. This calculation methodology is universally accepted and, as you can see, is far from arbitrary.
My response:
I am sorry, but I disagree on the fact that this is universally accepted. As a matter of fact, as I am sure you know as well, there is no universally accepted methodology when it comes to 261/2004 Section 10. If so, I would like you to present this. On the contract between us, which is the ticket, the term ticketed kilometer isn’t mentioned. On your website, the term ticketed kilometer isn’t mentioned. I also tried looking for the term ticketed mile, but no luck. The only thing mentioned on both the ticket and in Section 10 is the price of the ticket, hence my claim is, as stated in Section 10; 75% of the price of the ticket.
Best regards