PaxFour CEO Johan Fugmann says: The Employer
It is only fair the one who suffers an actual financial loss from a flight disruption should be compensated, and with business travel, that would in most cases mean the employer or the company.
Today, many companies have not made an active decision to claim compensation for flight disruptions, so it’s paid only to those employees who make an effort to claim it on their own. This is less than 10 percent of all business travelers entitled to compensation, and consequently, millions of U.S. dollars remain unclaimed every year.
The European Union’s Flight Compensation Regulation 261/2004 establishes common rules on compensation to air passengers in case of flight irregularities. However, it does not distinguish between leisure and business travelers, and when comparing these, the inconvenience caused by flight disruptions varies greatly.
In the event of a flight disruption, the leisure traveler bears all the unexpected expenses for food and refreshments in the airport, additional parking fees, accommodation, no-show fees at the destination and so on. Though the business traveler also may face these expenses, the employer most likely will end up paying.
When business travelers experience long delays or cancellations, it is obviously inconvenient, regardless of whether it cuts into working hours or leisure time. Fortunately, the business traveler’s leisure time is not often affected. According to our estimations, only 0.6 percent of all flights are delayed for more than three hours and thus actually cuts into the business traveler’s leisure time.
In addition, the business traveler is at work and most often is paid for the additional waiting time in the airport. Some business travelers will be able to convert the waiting time to time off if it extends into leisure time, and some are compensated through higher remuneration or even are paid by the hour. Thus, employees waiting for delayed flights becomes a significant business expense.
Besides the financial loss, the company also might experience a loss of business opportunities, such as canceled meetings, loss of knowledge from missing an important conference or convention and a general loss of goodwill.
The compensation that Paxfour helps companies obtain amounts to 125 to 600 euros per delay or cancellation, depending on the distance of the flight, but this would not cover the business expenses related to flight delays.
Therefore, it is only fair that it is the companies that receive the compensation.
AirHelp CEO Henrik Zillmer says: The Traveler
Imagine you’re on a business trip, and your flight home is delayed five hours. You sit in the airport for hours, working in the terminal. This delay means you can’t get home to your family for dinner. Should your employer be compensated for the time you lost?
Compensation belongs to the traveler, not the employer. According to Flight Compensation Regulation 261/2004, or EC 261, travelers are eligible, not the businesses that employ them. The European Union regulation is a Band-Aid for travelers who have had the inconvenience of being delayed, not a means to finance the employer’s travel budget.
Rights to compensation after flight disruptions are something many travelers aren’t aware of; more than 90 percent of U.S. passengers and 85 percent of EU passengers don’t know their rights. I founded AirHelp to ensure passengers get the support they need to claim compensation. EC 261 was established to protect the rights of the individual rather than airline companies. Companies funneling compensation to travelers’ employers are taking advantage of existing regulations to support corporations rather than travelers. EC 261 is a law is for consumers, not companies.
Steering flight disruption compensation to employers is unfair to business travelers, who do not stand a chance trying to argue their point to their employers, and it is unlikely they will dare to claim on their own. We have had customers contact us because their employers were trying to force them to hand over their compensation. It is not the intent of the law for employers to obligate or bully their employees into handing over compensation. AirHelp supports everyone in getting what they are legally entitled to: reimbursement of the costs they incur as a direct result of the delay.
EC 261 is a consumer law, not a travel expense financing opportunity. Any employer who takes compensation from their employee is not only taking unfair advantage of that employee but also undermining the whole basis for getting consumer compensation, as well as jeopardizing the industry overall.
RELATED: What Goes into Flight Disruption Compensation