Start-up AirHelp putting fear into airlines

Danish start-up AirHelp is putting the fear into airlines across Europe and the US by securing compensation for passengers who have experienced delays, cancellations and overbooked flights.

It fights the airlines on behalf of travellers who are unsure of their rights under EU or international law, or who lack the time, confidence or expertise to make a claim.

‘A pain’

“Like any good company, ours started with a pain we experienced. We were flying a lot and often experienced cancelled, delayed and overbooked flights,” AirHelp co-founder and chief marketing officer

Nicolas Michaelsen

says.“We decided to automate the compensation system.”

AirHelp handles every step of the process, including going to court if necessary. It takes 25 per cent commission on successful claims.

Users answer five questions on the AirHelp website or mobile app. They are then told whether their flight is eligible for compensation. For a delayed, cancelled or overbooked flight in Europe, passengers can get up to €600 per flight.

Billions unpaid

Every year, 26 million passengers are entitled to compensation for delayed, cancelled, or overbooked flights under the European Union’s EC Regulations 261/2004. However, out of the €11 billion the travellers are entitled to, only 2 per cent seek payment, with the majority never successfully receiving their rightful compensation.

He says in certain places, such as the UK, passengers can claim for delayed or cancelled flights dating back six years.

“It’s the delay in getting to your final destination that compensation is based upon,” he says.

Passengers have been very happy with the app, but some aviation authorities warn it will lead to fare increases.