I have written them a letter in the last hours explain the situation. I also informed them that I would escalating if a remedy wasn't formed. I also advised them that I would not be accepting their refund at this time and have blocked my credit card of all transactions.
I guess we wait but I have experienced claims like this before, and I feel the most comfortable place to pursue my claim will be in either Australia via the small claims court for negligence and the Australian Consumer Law for breach of contract. I also have very good legal insurance in Germany but am not so clear on the rights and obiligations of contract law in this county, but I guess I will find out.
I guess these would be the best place to start a process as the ticket was from Germany to Australia, I am a resident of Germany and an Aus citizen.