I'm still puzzled by this concept of morality.

Entitlement to compensation is derived from the regulations governing air transport in the EU, not a moral code. The system was set up to encourage airlines to better serve their customers. The idea is that modest fines, the compensation payments, will focus the minds of airline managers on ensuring customers' needs are met.

Not to proceed with a claim dilutes the impact of the regulation, thus weakening the effect of a provision aimed at improving public service.

Acting against "the public good" in this way puts the perpetrator on the wrong side of the angels, certainly on a slippery slope if you are seeking moral high-ground.