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Leftrudder, I can understand your annoyance at being treated in such a high-handed manner. To identify the corporate identity of AA I had a look at the ASIC site which provides some free information on the status of Australian companies. It lists AA separately and refers to it as a public company, but such a status also applies to subsidiaries of public companies. A review of documents lodged with them has a detail of the Annual Notice by Wholly owned Entities and to confirm this a look at the ASX site does not provide you with any reference to it as a separate listed company.
More damning is a review of the Qantas webite where it is stated that AA is indeed a subsidiary. By your reading of the T&Cs it is clear you were dudded.
Good luck in your pursuits but my only concern for you is what you actually expect from them by way of compensation. Access to lounges that you already have?
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