DFWsakp

This is a little long post and I apologise for the same, but so many issues came up that the length was unavoidable.

Background: I am an Exec Plat for the last 3 yrs and have been travelling for over 12 yrs. This is the 2nd occasion in my life where I am having a baggage delay. I am on a 30 day vacation to India. Original Flight was DFW - ORD - DEL - PNQ. Tickets were upgraded using eVIPs. This was for a family of 4 （2 Adults and 2 kids 5yr old and 2 yr old). The first segment (DFW-ORD) got cancelled for no reason (definitely not weather). This made it impossible to connect to the ORD-DEL flight (There was another flight out but it was completely sold out and so I was going to miss my connection). Called the ExecPlat desk and the first agent won't help at all saying that she needs to book me in coach class and there were no seats in coach, although there were seats in Business on some flights. This was news. I politely hunged up and called back again. The new agent was quite nice. He was able to get me on DFW-FRA on AA and FRA-PNQ on LH. The LH portion was available only in Business (This was where the 1st agent wouldn't book the flight and the 2nd Agent agreed as there was no other option in coach). But, for DFW-FRA flight he could get 3 Business and 1 Coach (all scattered over the plane). This was better than nothing and so I took this option as there was not much available anywhere else for a group of 4 people. He said that I need to talk to Admirals club to get my luggage routed (I did talk to them and they sent out a message to the baggage handling desk).

Issues: Some are minor, but when you add them all, they do aggravate a lot.
1. On Chicago to Delhi flight, I had great seats - For a family of 4 with 2 young kids this was important. The flights were also planned with minimum layovers. To reach 11.00 p.m for a hotel stay and leave to my final destination via Car in the morning. All this went down the toilet and had to continue without any rest. One of my kids is already sick due to this non stop journey of almost 36 hrs. (minor to medium issue)
2. DFW-FRA and FRA-PNQ looked good in theory but,
a. AA gave us seats all over the plane. 2A, 2B, 5G and 40H. Now, we are traveling with 2 kids and so you can see the pain. On top of that my 5 yr old had to sit by herself and the girl next to her was 8 - 9 yrs old. If there was an emergency, we would have been in big trouble. The Flight attendants would not help us in anyway in moving the passengers around. I did not realize about this danger until I was talking to the next agent for my LH flights where she moved a passenger from his seat to make sure that an adult was next to the child and said that it was illegal to let a child sit by her own. (Major issue)
b. DFW-FRA Plane left 2 hrs late due to Mechanical problems. The AC was off and so u can imagine sitting in 100f in the plane at the gate for 2 hrs. (Medium)
c. The AVOD (entertainment system) was broken on 2 out of 3 business class seats in a 10 hour journey. The flight attendant let me sit from coach to business for some part of the journey. The only AVOD that was working was then moved to my 5 yr old's seat (these are the portable ones). We had no entertainment for the 10 hrs of the flight. (Major issue)
d. Food---Pathetic. (Minor issue. Probably not even an issue)
e. Layover in Frankfurt - 9 hours. This was another huge problem. We had to also wait in line for 1.5 hrs (I am not kidding) with 2 kids and my wife to get our Boarding passes for the LH flight as the Admirals club in DFW was not able to issue them. (Major issue)
f. Reached Pune 5.5 hours late then the original arrival time with no rest and have to continue to the next final destination. (Major)
3. The final kicker was the Luggage. We checked 7 bags. Not a single one could make it to Pune. It took another 1 HR after all bags had arrived for filling up the paperwork and explaining all the contents to the LH staff and Customs. (Major issue)
4. LH staff gave 6000 Rs (130 usd) for a family for 4 people saying that the luggage will arrive in a day or 2. Called them three times so far. It looks like my luggage followed the original routing (DFW-ORD-DEL) with the DFW-ORD flight which was the earlier soldout one. It is now sitting in Delhi awaiting paperwork from LH in Pune. As per LH it could take another 2-3 days for the luggage to arrive at my final destination (200 miles south of Pune) as tomorrow is Sunday. (Very Major issue)

The only silver lining was the flight from FRA-PNQ where the Business Class product was awesome and we enjoyed the same.

My questions: I know I am definitely due for Compensation, but would like to know the advice from experts on how to handle this. The 6000 rs is nothing in place like India where the cost of a trousers is around 2000 rs and a decent shirt is 1500 rs and thats just for me. If I have to buy the bare minimum for my wife and kids, then the total would easily cross 10000 rs (diapers for the young one, plus kids food, medicines etc). I live in USA and visiting family in India and thus do not have anything here that I can use and need to buy most of the basic things. I had 2 kids in tow and thus could not carry clothes in the carry on bags (2 carry ons) as I needed the place for my valuables (camera, documents, a little kids food, kids clothes etc). Who is responsible for this mess (AA or LH)? The bags arrived via AA although I was rebooked on AA and LH with LH being my final carrier. How should I approach AA about this?