Not handed. They were offered economy on earlier flight, which is where the downgrade comes in, but chose to stay in business on original flight.
From the Original Post
"So we're in the taxi to PER, nice and early for QF 776 and while we are on the freeway I get a text saying my flight has been delayed by 2.5 hours and will now get in at 01.30, not 23.00I go to check-in desk and am told there are plenty of seats on the 16.35 then get sent to the service counter. While in the service counter queue I ring 131313 and after explaining my situation am directed back to desk 20 where the helpful agent rebooks us on the earlier 16.35.
In the J lounge with my 2 redemption J tickets, and am paged to the front desk.
QF - "We are sorry, but we've had to rebook you on the original QF 776, still delayed to 19.05"
Me - "But I have boarding passes for the 16.35 - see here"
QF - "Oh!, let me check with xx"
xx - I'm afraid we had to move you back to 776, we've overbooked.
Me - "So we've been bumped?"
xx - "No, in the chaos, we booked too many passengers on the earlier flight. While you were downstairs being rebooked, we were upstairs being rebooking other pax too. We booked too many."
i thought a lot of things about QF when I read this, not many of them charitable but I didn't think for one minute that QF were attempting to downgrade the passengers, seriously :?: