I’d be upset too. Yes, airlines sometimes need crew rest seats, but pulling a confirmed business class passenger at the gate on a long haul holiday flight is not something that should be treated as normal or acceptable, especially when the passenger has mobility issues and a language barrier.
The fact they explicitly said she was chosen because it was an award ticket is the part that bothers me most. A confirmed seat is a confirmed seat, points or cash. Using that as the deciding factor feels lazy at best and unfair at worst.
$1,000 in credit or 50k miles sounds like the standard gate script, not something tailored to the actual impact. Business to premium economy on EWR to HNL is a huge downgrade. Lie flat vs not is the entire point of that cabin. I’ve seen people push after the fact and get more, especially when there are health or accessibility angles involved.
I’d definitely follow up in writing and explain the full situation calmly. Focus on the involuntary nature, her age, the physical impact, and the language issue at the gate. Even if they don’t fully reverse it, there’s a decent chance of additional compensation.
This is one of those cases where “operationally allowed” doesn’t mean “handled well at all.”