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This sounds like a great reason to:

a) strongly enforce minimal luggage overhead

b) require free luggage transport (up to certain limit)

c) provide much stronger penalties if airlines lose luggage

d) provide strong penalties if an airline allows too much luggage in the passenger compartment

In Japan, having lots of luggage in overhead bins is rare. However, I've never been inconvenienced by lost luggage, or had to wait very long (if at all) for luggage at the carousel.

If the airplane was a commercial building, it seems likely that the overhead bins would be banned by fire code.



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