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I was reading Flight Compensation Regulation of the European Union, Regulation (EC) No 261/2004 and article 10 talks about upgrading and downgrading. It mentions the following:

  1. 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.

In my experience, business class tickets are sometimes many times more expensive than economy class. Being reimbursed for 30% of the cost (or sometimes even 75%) might mean that after buying a much more expensive ticket and expecting to receive a business class seat, you might be downgraded to economy and still end up paying more than the regular price for economy class?

Am I reading that right?

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    Considering how airline pricing works, one might also wonder how they even calculate the price difference between business and economy class. If they mean the difference at the time of the downgrade, then (1) economy class has probably risen in price a lot compared to when you bought the ticket, and (2) you can always cancel your business class ticket (they have full refund?) and buy economy class instead, if that's advantageous.
    – gerrit
    Commented Jan 5, 2023 at 11:35

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