File in small claims. When you win, (you will win, perhaps not the free first class ticket) but you are entitled to a refund and the compo due from EU Reg 261/04. I suggest you will get around an extra €600 under this reg, unless they could argue 'extraordinary circumstances'.
If they fail to pay the claim, you can then have the satisfaction of getting bailiffs to seize their plane. It has been done... they will very quickly find the money and you will enjoy a day of publicity and the satisfaction of irritating them enormously.
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