[m-p-3]

Or grant the owner the ability to temporarily stop an AirTag from broadcasting its signal for a specified amount of time.

Do it right before your luggage is checked in up until the estimated time of arrival.

[layer8]

The problem is not (only?) the broadcasting. The problem is the lithium battery used in a non-switched-off device.

[m-p-3]

Has a CR2032 ever been the cause of an actual fire?

[layer8]

Maybe not (who knows), but the relevant aircraft transport regulations apply to all types of lithium-based batteries.

[nonethewiser]

Not really. 2032's power most watches. There are far more watches than air tags. Why didn't they ban them?

[layer8]

They (Lufthansa) didn’t ban AirTags. When asked about whether AirTags are allowed in checked luggage, they cited the pertinent ICAO regulations. They might do the same when asked about powered-on watches with lithium batteries in checked luggage.