What is the ruling on taking a compensation amount of 300 Saudi Riyals for a broken travel bag, given that its original value is unknown?

First: The joint contractor (the airline company) guarantees what is damaged by its action, even if it was by mistake or error, because its work is guaranteed by it and it does not deserve compensation unless it completes it.

Second: A fungible item is guaranteed by its like, and a non-fungible item is guaranteed by its value. Luggage is considered a fungible item, so the airline company must compensate you for your bag with a similar or close-to-similar used bag, or pay its value if not available, taking into account the assessment of experts. If the company pays the value of the used bag, there is no harm. If your friend exaggerated in requesting an increase, he must seek absolution from the company unless it permits it. If the company and the bag owner agree on a specific amount, there is no harm in that.