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Reading the REGULATION (EC) No 261/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 February 2004
https://www.aviationreg.ie/_fileupload/Image/Regulation%20EC261%202004.pdf
Article 7 states that:
Right to compensation
Where reference is made to this Article, passengers shall receive compensation amounting to:
(a) EUR 250 for all flights of 1 500 kilometers or less;
(b) EUR 400 for all intra-Community flights of more than 1 500 kilometers, and for all other flights between 1 500 and 3 500 kilometers;
(c) EUR 600 for all flights not falling under (a) or (b).
In determining the distance, the basis shall be the last destination at which the denial of boarding or cancellation will delay the passenger's arrival after the scheduled time.
It states that the last destination at which the denial of boarding or cancellation happened shall be used to determine the distance!
Upvote:2
Multi-leg journeys: compensation due if passenger arrives to final destination 3 hours late
The case was referred to the CJEU by the German Supreme Court (Bundesgerichtshof), and concerned an Air France passenger who had flown from Germany to Asuncion (Paraguay) via Paris and Sao Paulo. Her first plane from Germany to Paris departed two and a half hours late; thus, she missed her connecting flight in Paris (so the air carrier booked another seat on a different flight to Sao Paulo later that day), and also missed the second connection to Asuncion in Sao Paulo. Therefore, she arrived at her final destination seven hours late, despite the first flight being only two and a half hours late.
The passenger claimed compensation under the Air Passenger Compensation Regulation (2004/261/EC), which sanctions that passengers who are delayed three or more hours are entitled to a compensation of β¬250, β¬400 or β¬600, depending on the delay and distance travelled and with a possibility of a 50% reduction for delays of less than 4 hours on journeys longer than 3,500 kilometers. The air carrier maintained that the above mentioned Regulation had to be interpreted differently, i.e. the three or more hours of delay were referred to each single leg of the journey, not to the time of arrival to the final destination.
The Bundesgerichtshof referred the question to the CJEU, asking to provide the correct interpretation. The Court affirmed that the Air Passenger Compensation Regulation referred to the scheduled time of arrival to the final destination, because providing a different interpretation would mean to discriminate between passengers facing identical inconveniences but travelling with direct flights rather than multi-leg journeys
(emphasis mine)
So if you had both legs on a single ticket on flights operated and marketed by Lufthansa, then the whole trip is considered as if it was a direct flight from origin to final destination, not each leg separately.