Lark, stop being so literal! I used that company as an extreme example; I'm quite aware that they're EU black listed. Look at the Cork turbo prop crash a couple of years ago to see an EU sub-chartered for a Manx company going awry over dodgy standards.
As for refunds if you chose not to travel on subbed flights, I'm pretty sure you can as you are not getting the exact product you paid for. Consumer laws probably have something to cover it, and with good reason. A lack of mention on a website doesn't preclude that.