Of course in the end you have to decide if you can be bothered with the hassle, but your costs will be refunded, so the claim would be for $100, not $25. The problem is that many airlines rely on this inertia to avoid their responsibilities. They get away with it because they can. The bit I am confused about is the DOT. If AA admit losing your bag, I am astonished that the DOT are unprepared to assist. It is outrageous.
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