FlyerTalk Forums - NW/KL Permanently Lost Luggage Policy

Not sure whether this is better answered under the NW or KL forum, but I thought I'd post here first.

Some friends of mine flew VIE-AMS-ORD on all KL metal back in July. Upon arrival at ORD, one of their bags didn't make it. Fast forward to today, and it still has not turned up. After an initial period, their case got turned over to NW, since they are located in the US. At this point, they are having extreme difficulties trying to get ANYONE on the phone to discuss their options. They continuously get the runaround, and were most recently told that they may have to wait another 60-day period, to see whether their bag turns up. Seeing as it's been 2+ months already, I would say that this bag ain't coming back.

So, my question is this: What are they entitled to regarding compensation? I know that many of the items in the missing bag were gifts purchased abroad (they'd been traveling the world for over a year), and I'm guessing that they do not have receipts for the majority of the items. Also, if anyone has experience with this, could you please let me know what the best way is to get to the bottom of this, and to stop getting the run-around?

I did try to call the elite line on their behalf, and although they were very sympathetic, they couldn't do much other than give me the number for central baggage handling.

Thanks all.