American Airlines Retreats From $100 Third Bag Fee Policy For Servicemen

August 14, 2008 11:16 a.m. EST

New York, NY (AHN) - American Airlines has backed off from its original plan to charge U.S. servicemen $100 for their third bag.

Until the announcement of the new policy Wednesday, servicemen were allowed two bags without having to pay fees. They had to pay the $100 fee for a third bag and then go to the Defense Department to be reimbursed.

The policy incurred the ire of air passengers, in addition to charges of almost anything the air carriers could collect from travelers.

Meanwhile, American Airlines, British Airways and Iberia announced a joint business agreement has been signed covering flights between North America and Europe. A website will be launched, with messages from the airlines chief executive officers, to promote the new arrangement. The arrangement also expands the Codeshare arrangements between the three airlines.