Frank Szabo
Veteran
It is actually pretty easy to estimate the revenue lost from military waivers -- agents have to enter in an override code to issue the bagtags. If an airline is estimating $$$ in bag waivers, then I suspect it is based on some stats pulled from the override data, and not a random number pulled out of their hind quarters.
One guy I spoke to at The Widget says the waivers at one large airport in the SE come close to $1m, just at that airport and for the travelers and overrides they know about...
I'm all for cutting guys in uniform some slack when it comes to enforcing the rules for things on their dime. I'm not so quick to cut the government slack, though. They're the same government who cost AA millions for wiring bundles, millions in wasted fuel during ATC delays, and millions complying with other regulatory BS which does nothing for safety but simply guarantees employment for the Thousands Standing Around.
Back to the other issue - baggages waivers.
Nobody suggested (as you saw, E) giving the government a pass on fees but - don't even try to extract the fees from the military members - that's lower than whale crap.
As you have pointed out, their are many ways for AMR to recoupe their fees - use them - leave the soldiers alone - quit picking the low hanging fruit.