With the global aviation industry in crisis due to delays and cancellations caused by pandemics, a startup in Bulgaria is offering travelers the opportunity to receive compensation in Bitcoin.
Compensation via the Colibra app is available to passengers with a flight delay of an hour or more. The Bulgarian startup has been offering compensation for fiat-uncomfortable travelers since it went live in June 2019, but has now added cryptocurrency as a payment option.
Since BTC is a volatile asset, Users can choose to set the price on the day they check in for their flight or on the day they travel. For example, a frequent flyer who booked a flight last week and set a tariff in the app when Bitcoin was priced at $ 11,000 would have received a decent return on a delayed flight if BTC was above $ 12,000.
Colibra claims that it guarantees Bitcoin payment for any user who is late by an hour or more, regardless of the reason the airline states.
Three hours is the standard
In the EU The airlines are obliged to compensate passengers for delays of three hours or more for which the company is responsible. The app requests compensation for all eligible passengers affected by delays of three hours or more and shares the money with all passengers who are more than an hour late. According to the startup, the likelihood of a 90-minute delay with the airline is 30 times higher than a three-hour delay, so travelers are more likely to be compensated.
In France, Insurance company AXA has used a similar blockchain-based compensation process for passengers whose flights are delayed by more than two hours.
However, fewer people are currently flying than at the same time last year as airlines and authorities try to contain the spread of the coronavirus. Global travel data provider OAG claims the number of flights scheduled for Aug. 10 worldwide fell by 47.9% and flights from Hong Kong and Singapore fell by a staggering 91%.