Just wanted to add my two-bits about lost luggage. Sadly, in my two experiences, I could not blame the airline, but the over-zealousness of fellow passengers. For those who hate sad endings, one of them ends happily.
Situation 1: Sharjah-Mumbai (Air Arabia) It was a quick hop to Mumbai for a friend's wedding, and was travelling really light (unthinkable with the family.. grrr). Some good offers in Duty Free, so picked up 3 Johnnie Walker Blacks, mainly for the free trolley bag. Also picked up some chocolates etc and lugged the bag as cabin baggage. Put it in the overhead and at Mumbai, noticed that the box was now in the next overhead bin.
Something seemed a bit fishy, and decided to open the box before deplaning. Found it was someone else's and frantically began the process of trying to find the other person with the identical box. Ran all the way till Immigration, customs et al, but no luck. Came across at least 4 people with the same box, made them all open it, but no go!
Checked even outside the airport, but the box had just vanished! Worse when I reached a pal's place and broke open the lock to find some ID, the fellow had not bought any hooch! Only some milk chocolates (LOTS of them), some Tang etc. No ID also, so no way to return box. Asked airline to let me know if anyone comes, but nope, no luck!
I just hope the person got into serious trouble with his wife/father/boyfriend/whatever for buying booze!
Situation 2: Emirates from Dubai to Bangalore. Reached obscenely early in the morning, and waited for 40 mins or so for my only checked-in bag. Hooch was of course in cabin baggage which I all but chained to my arm. Finally about to complain about lost luggage, when I saw my bag was lying on the floor, having been taken off the conveyor belt. Got home, went to take toothbrush from outside compartment and found some kid's face mask! NOT a good way to start a day, let alone a vacation.
Luckily, the bag had a tag, with a local phone number. Called and got an extremely worried-sounding lady, who said that her husband had taken my bag at the airport, come out, couldnt come back in, waited for around half hour for someone to bring their bag out, and then left the bag in the Emirates airport office and went home.
Whew! Was just a matter of going to airport, exchanging bags after proving my identity, and continuing with vacation.
On another note, I am a hard-core Air India flier. Maybe patriotism, or more that I just don't give a hoot about the frills. Even the 'sadistic old ladies' are not immune to a little charm, and I've never been obscenely delayed. On the contrary, even in Gulf Air, once took off from BLR, flew for half hour then returned to same airport because of tech issues.
Another airline I highly recommend is Etihad (Abu Dhabi-owned). Great space (Emirates sucks in this regard), super entertainment, and overall good service.
Was highly kicked first time in BritAir (Manchester-London-Paris), when saw that all seats were leather! Totally impressed, but not exactly the most comfortable.
And Cathay Pacific is the only airline I've ever been bumped up to First Class. So good memories there too..