Heartbreaking...
I am terribly sorry for the loss of your little pug. Although I know there is nothing any of us can do to ease your pain, know that my heart is with you.
This subject has generated a lot of controversy in past threads -- please don't let some people here make you feel as if this is your fault. Just as we trust our pilots and flight attendants to keep us safe, you trusted the handlers to keep your dog safe as well.
I hope CO is able to resolve this issue to your satisfaction.
Moderators: Perhaps a pet flying thread is approrpriate -- if it saves one animal's life, it will be worth it.