American Airlines said Wednesday it will cut domestic flight capacity by up to 12 percent and start charging $15 for the first checked bag to deal with economic conditions. Meanwhile, Alaska Airlines told its pilots not to expect a "solid raise" in the face of rising fuel costs. The pilots set up an informational picket line Tuesday in Seattle.

The government has entered closed-door discussions aimed at helping cellphone customers avoid expensive termination fees, which often are $175 or more for bowing out of a service contract early. Under a proposal before the Federal Communications Commission, such fees would be capped and penalties lifted within a specified time frame.

If the state's legislature approves, operation of the Pennsylvania Turnpike for the next 75 years will be turned over to a group led by Citigroup and Spanish toll-road operator Abertis Infraestructuras, which submitted the winning $12.8 billion bid earlier this week.

In a White House policy change announced Wednesday, Cuban-Americans will be allowed to send mobile phones to family members in Cuba.

At least eight young women thought to be underage mothers in a polygamist sect are actually adults, Texas court proceedings have disclosed in ongoing child-custody hearings being held to sort out the futures of more than 400 children. That cuts the number of underage mothers to 23, eroding statistics state officials have cited to bolster their claims of widespread abuse.

Detroit's City Council delivered a petition to Michigan Gov. Jennifer Granholm (D) Tuesday, asking her to remove Detroit Mayor Kwame Kilpatrick (D) from office. Kilpatrick has refused to step down despite facing criminal charges in a text-messaging scandal with a former aide.

Despite 10 to 20 inches of spring rain across much of the Southeast, government forecasters warn that a two-year drought is far from over and that officials shouldn't move too quickly to lift water restrictions. The level of Lake Lanier, Atlanta's main water source, remains 13 feet below normal.

The One Laptop Per Child Foun-dation in Cambridge, Mass., announced Tuesday it plans to resume a donor program that has provided children in poor countries, such as Haiti and Afghanistan, with $188 computers. They are paid for in a get one-give one arrangement. The foundation says its second-generation "XO" computers will be smaller, lighter, and incorporate a touch screen.

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