Article 10 of the denied boarding compensation regualation (EC) no 261/2004, (that piece of legislation we all know well[:)] ) states
' Upgrading and Downgrading
1. If an operating air carrier places a passenger in a class higher than that for which the ticket was
purchased, it may not request any supplementary payment.
2. 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. '
therefore it would appear that dependant on the amount of refund they offered you she has actually been offered more than legally Virgin have to compensate her.
My only concern as nick is that to have to use it within 30 days makes it almost worthless, unless the miles can be used credited to her account to be used in the future.
PS if anyone wants a copy of the EU regs PM me and i'll send them, i always carry them when flying and it's amazing the responses from airlines that try to fob you off when they get produced and quoted [y]