ft434

We have a business class Oneworld Classic Flight Reward (280k points, 35k miles) booked directly through Qantas using Qantas points, that includes a BA operated sector from LHR to CAI in December. We've just received a letter from BA advising of a type change from a BA to a Titan operated aircraft that doesn't have a Club World cabin.

The letter included the following options:
1. You can travel with Titan Airways in the Premium Economy Cabin with the same flight number, date and departure time. We'll refund the appropriate amount.
2. You can use the value of the ticket towards cost of travel to an alternate destination we fly to.
3. You can choose not to travel and receive an applicable refund.

As changing anything on these kinds of tickets is a nightmare we are probably going to go with option 1, but want to understand our entitlement for being downgraded. As a category 3 flight, we think we are due a 75% refund of something, probably the cost of the sector. But is that the cost of the sector in (Qantas) points, or in cash, and how are either of those things worked out? Also should we be talking to Qantas or BA about this?

We called BA to try to establish the "appropriate amount" they would refund us, and they told us to deal with Qantas.
We called Qantas and they told us that no refund was due, and that BA should never have sent us the letter.

So we're a bit confused. Any insights would be appreciated.