Fellow SF writer Mercedes Lackey used to work for American Airlines, and is a vol firefighter. Her site is
www.mercedeslackey.com
The regs against butane lighters in checked baggage have been there since
forever. They were there when I started working for AA---1982. You're also
not allowed spray insecticide or paint or anything that isn't a toiletry. It
used to be that you were also not supposed to carry pressurized containers of
anything---including shaving cream, perfume, hairspray, deodorant,
air=freshner, whipped cream.... They changed that: see
http://asi.faa.gov/docs/HAZMATByPassenger.pdf
Checking the first posting, it's clear that the violation was this Hazmat
code, not a security violation. A piece of idiocy perpetrated by a
bureaucrat looking for a gold star in his bunny-book, based on an outmoded
reg, but no big deal and the guy's daughter isn't going to get a "potential
terrorist" stamp on her passport.
Unfortunately, pleading ignorance isn't going to get them anywhere, since the
reg is "clearly" printed in all that microtype on your ticket....UNLESS
Daughter got an E-ticket! In which case, she CAN'T have been aware of the
reg, and that's the "extenuating circumstances"! "My daughter had an
electronic, not a paper ticket, and thus we had not seen and were unaware of
the regulation." Hell, if it was me, I'd just send that as an answer anyway
and make them prove that I didn't have an e-ticket.
I recall this particular piece of trivia because as non-revs (standby
passengers) we were expected to know and abide by ALL the stupid regs, no
matter how stupid. What was another odd one---oh, no more than two carry-on
pets per cabin (that would be 2 in first, 2 in business and 2 in coach). I
have no idea why. Because the yap-dog and the kitten might double-team the
bird in row 24? And you can cram as many animals as you want into the kennel
itself, but no more than 4 checked kennels per flight. Mind, that might be a
space-thing; the kennel area is heated as well as pressurized. (We were also
supposed to dress in suit and tie at all times. You could always tell the
nonrevs. They were the only ones coming from Hawaii, Disneyland, or Miami in
a suit and tie). That said, they were never able to open your bags to look
for Hazmat unless someone heard a hissing noise or other suspcious sounds
until the license-to-loot issued by Homeland Insecurity---about the only way
they'd find a couple of lighters was if the bag broke open in transit (or
someone decided your bag looked expensive enough to try a little shopping in
and they caught him). I can't tell you WHY the reg is there, but I can
guess; cargo holds weren't pressurized at all in prop planes or in early jets
(707s?) and weren't pressurized very well up until the late 1970s early
1980s. (I recall this because of a couple of cases of people dying whilst
being smuggled in someone's luggage or sneaking into the cargo hold to
smuggle themselves. Also pets put in cargo by mistake or being smuggled
croaked.).
Explanation for the reg? It is possible that an explosion and fire could
start that way in an unpressurized hold (not likely, but possible, and the
then-FAA preferred to err heavily on the side of caution.
end quote
Gee. Do we feel safer, now?
Bearing that in mind, the crew loading the cargo holds, cannot be expedient and gentle at the same time. The airlines want efficiency not baggage handlers with kid gloves! I always advise friends/family to never place anything valuble or fragile in checked baggage because of this. JMHO. 
