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Lufthansa ~12h delay

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I have a query about the applicability of regulation 261 regarding flight delays of 3+ hours.

I recently had a two-stage flight with Lufthansa from the UK to Austria, connecting via Frankfurt, so everything was completely within the EU. I had left 1h 10m for the transfer.

Unfortunately the first leg of my flight ended up being delayed by several hours - the reason they gave was that 'the plane was late arriving' or something. When I pointed out that I had a connection which I would miss, Lufthansa put me on their next flight (which departed on time, one hour later than my original booking) in the hope that I would still make it.

Despite this I still ended up arriving 15 mins after boarding time, thus missing my connection, which happened to be the last flight of the day. I was put up in a hotel overnight free of charge (Lufthansa behaved impeccably in this regard), and continued by journey on the first flight of the next day, arriving just under 12 hours later than I had planned.

My question is, does Regulation 261 work with connecting flights? Because my first flight was changed, I ended up in Frankfurt only 1 hour late, and I understand that taken alone would not entitle me to compensation. However, this delay was still sufficient to make me miss my connection, and so my overall trip was delayed until the next day.

Also, if it does sound like compensation is worth a shot, do I put myself at any personal liability by sending a letter, or is the worst case scenario that they just say no?

Thanks!

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