Lithuania-based flight compensation management company Skycop.com has completed the acquisition of its Estonian counterpart Lennuabi. This deal signals the beginning of Skycop’s expansion programme for 2024-25 as the company aims for a top-two position in Europe in the next few years.
Founded in 2017, Lennuabi has established itself as the first port of call for disrupted, delayed, overbooked or canceled flight compensation management in Estonia, and has a growing customer base in Finland. Consequently, the acquisition will bolster Skycop’s presence in the Nordic markets and will pave the way for further growth in this region.
Skycop’s CEO Tomas Vaisvila says that the flight compensation management market has been growing at par with the post-Covid travel recovery as airlines are still reluctant to provide a straightforward and user-friendly reimbursement mechanism.
“For this reason, we are embarking on an expansion and acquisition programme. Trust is key in this industry, and so we are proud to have a brand that Estonians and even Finns rely on in our business family. We are seeking further growth opportunities in the Nordics, but our ultimate goal is to reach the top-two position in the whole Europe in the foreseeable future,” Vaisvila says.
Skycop and Lennuabi will maintain separate brands and core teams, but may share some of their technical and legal infrastructure such as robotized and AI-powered processes and a trusted European network of legal advisors. Both companies agreed to keep the financial details of the deal confidential.
Skycop.com currently employs around 40 full-time colleagues and dozens of partners. Skycop's unaudited revenue amounted to €20 million in 2023. Skycop and Lennuabi currently together handle tens of thousands of compensation requests per month.
Skycop’s core business model is based on free claim management and a fixed fee if a compensation for delayed, canceled or overbooked flight is successful. The company also offers the 'Skycop Care' subscription scheme without success fees, as well as B2B services for online travel agencies, car rental companies and other businesses.
Lennuabi is renowned for its Express feature available for selected Nordic airlines where customers can receive money in a matter of days rather than months. Lennuabi’s name translates to “flight assistance” in Estonian.