Airlines are backing a startup that could fix the overbooking problem

Volantio, the Atlanta-based startup that helped United manage its overbookings in the wake of the Dr. Dao scandal last summer, is telling investors it’s cracked a seemingly impossible code: generate more money for airlines while improving customer satisfaction. Eight months into its product lifespan, the company—which helps airlines preventatively rejigger inventory by offering buyouts to flexible passengers—closed a $2.6m series B funding round in February. The monetary sum is less impressive than the venture capitalists contributing to it: On board are three of the world’s biggest aviation investors, which rarely join hands: International Airlines Group (IAG), JetBlue Technology Ventures (JTV), and Qantas Ventures. One reason they all bit: to avoid the type of public relations nightmare that smacked United last year, when the carrier forcibly removed a doctor from an oversold aircraft, leaving him with a concussion and a broken nose. Volantio’s technology could have preemptively sorted passengers onto different flights so the airline wouldn’t been positioned to oversell in the first place. As of now, airlines are handling re-bookings manually. But Volantio’s applications are far more varied—and consumer-friendly—than just that. Airlines are interested in the platform because it offers a variety of solutions for everyday pain points. <br/>