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As I understand it, the actual fare paid has nothing to do with the refund due for an involuntary downgrade. Its the published J fare on the day for the flight travelled, less the published walk-up economy fare that could have been purchased on the day of the flight. So in this case just for the MEL-AKL sector. The fact the OP was on a OneWorld Explorer makes no difference.As I mentioned, I have not seen anything published that details the terms officially. The case as you describe could also have issues since the fare paid was to LAX and the price with a mix of economy and business would likely be pretty much as expensive.
No, I don't have a link. This is how it was explained to me when it *almost* happened to me on a DONE4 flying BA LHR-HKG when they had a last minute aircraft sub that resulted in a reduced number of J seats. I was handed a Y BP at the boarding gate. I stood my ground, asked tough questions of the ground staff and eventually they found a J pax that missed the connection and I was given his seat. Of course there was no compensation for the aircraft sub from NCW to OCW (yes it was a while ago). Many of the J pax were complaining they booked the flight because it had NCW and were angry they got OCW seats. I was just glad to be in the J cabin instead of the "B" in economy seats they handed my at boarding. After that close call I made enquiring and the "compensation" policy was as described. I was told this is common policy amongst most carriers, but as most people don't know it, few actually ask/demand it and the airline's manage to get away with providing vouchers etc.Do you have a link to a terms that details the official policy since the T&Cs seem lacking?