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Were the tweets that this article linked to edited after the fact or something? Cos I can't see how this:

   @_5foot1 We understand how annoying this is and apologise! Unfortunately we can't help you right now, the Lost & Found will contact you
is "adamantly refusing to help."
"We can't help. Stop trying to contact us and wait for a call which is clearly not coming." Not sure how that wouldn't qualify.
From that tweet no. Yet what I gleaned from the article is that the department in charge of lost luggage was/is giving them the run around whether intentional or not.
You're right - it's not a refusal to help but a complete inability to help. It sounds like a cooperative fuckup by Air Berlin and whomever they outsourced handling lost baggage to, with the effect that procedures are opaque and make it impossible for people in charge of helping customers to do their job.
This is a really low quality (and badly formatted) article.

I'm not sure how the German airline "melted down." It sounds like people are complaining AT them. Melted down implies they started saying rude or inappropriate things.

"a farewell gift to guests as they exist the aircraft"

Allow me to snip this little gem, to keep company to previously collected items such as "rear window defrogger" and "string loaded door".

(Add cartoon image of passengers willing an airplane into existence by collective belief, if you will.)

How exactly was this a meltdown?
Went to Germany and Austria from Sweden this summer, Air Berlin lost(well, i guess it's the baggage people at TXL that lost it really) my bag on the trip down to Germany for two days and for one week on the trip back from Austria.

They lost my bag twice on the same trip + the bags was apparently sent to Gothenburg on the Wednesday(we came back on a Sunday), but i didn't get the back until the Sunday a week from when we arrived home.