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Great idea. And I get a Notification prompt that says "XYZ Corp would like to view MyName's AirTag location until Jan 27 @ 9pm" and I can choose to deny, or decrease/increase the time. Can remove them any moment, like when I receive the luggage.

Could there be a financial incentive for Apple?

I guess you could make it opt-in at the point that you load the e-tickets into the wallet.

Even if Apple didn't charge directly for it (and they could charge the Airlines to cut down on lost baggage) they'd get a boost in sales of the AirTags.

This was my first thought too. Delta (or whoever) can provide you a $50 "Delta Tag" and partner with Apple to have access to the tracking data on that tag for the times around your flight. Combine it with a slip of paper actually placed inside the luggage (to prevent issues with external labels getting destroyed).

If you surround an iPhone with 50 or 100 airtags (or any find-my enabled device), will that drastically reduce the battery of the phone as it is periodically pinging each of them?

I hear some airlines are trying to ban airtags lol