Travacoin is a blockchain based cryptocurrency designed specifically for the air transport industry. Initially, it will focus on enabling the payment of compensation by airlines to passengers in the event of flight delays or cancellations. Later, it may be used as a currency for all air transport and ancillary services.
According to EU Regulation 261, airlines must pay passengers up to €600 if a flight has been cancelled or delayed for reasons that are deemed to be within the control of the airline. Airlines’ total liability is calculated at nearly €5 billion annually. Passengers are becoming more and more aware of their rights and successfully claiming them, particularly with the help of new independent claim-chasing agencies. It’s estimated that airlines paid out nearly €200 million in 2016 and that figure is forecast to grow exponentially.
Travacoin will offer airlines a Blockchain based method of proactively paying passengers when their flights are delayed, in such a way that the passenger is incentivised to use the windfall to purchase new tickets or ancillary services. Thus, the debt is recycled into new ticket sales and commission from ancillary services and, most importantly, the passenger stays loyal to the airline that compensated him or her.
Travacoin is an Irish based project, working in partnership with airlines, airline technology platform providers and fintech experts.