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Dear SSTBeliever – I think part of the issue is that your problem occured during a very challenging period for ALL airlines. I would imagine that passengers in and out of Heathrow have been the priority, thats not to say that a damaged bag be ignored.
My best advice would be to leave it until after the holiday period. With Heathrow and passenger flows getting back to normal, along with Holidayitus, I dont think you will get much common sense from anyone until after the 4th.
I know that you intend travelling on the 10th and it may be that you need to buy another suitcase in the interim. If that it is the case, I would keep the receipt. The other option could be to contact your travel insurance or contents insurers to see if the damaged case is covered.
I think though that it would be a pity if this one incident was the cause of you along with your 2 gold card working children taking your business away from British Airways. If you are getting no joy, my advice would be to do as you suggest, march into Waterside and demand action, otherwise, try using the online Exec Club contact as it has never failed to provide a repsonse to me in the past.
Happy New Year to you and I hope your case is resolved.