Update Regarding Allegiant Air and Sun Country Airlines
Allegiant Pilots,
This is an update on the pending acquisition and proposed merger of Allegiant Air and Sun Country Airlines. On Thursday morning, January 15, 2026, Executives from Allegiant and Sun Country held an online Teams meeting with the leadership from the two labor unions that represent the two carriers’ pilots, as well as the labor unions representing the other organized crafts/employees at Allegiant and Sun Country. The representation is as follows:
| Allegiant | Sun Country | |
|---|---|---|
| Pilots | Teamsters Local 2118 | ALPA |
| Flight Attendants | TWU | Teamsters Local 120 |
| Techs & Related | Teamsters Locals 986, 135 and 769 | AMFA |
| Dispatchers | Teamsters Locals 986 | TWU |
| Fleet Service | None | Teamsters Locals 970 |
Jerry Glass, a longstanding consultant to airline industry management, led the discussion for both Allegiant and Sun Country. Speaking on behalf of both carriers, he explained that upon completion of the transaction, Allegiant will be the surviving carrier and Sun Country’s operations will be folded into Allegiant’s operations. Glass confirmed the carriers’ intent to close the transaction in the second half of 2026. No confidential information was shared during the meeting. Teamsters Local 2118 has requested a review of the material agreements relating to the announced merger, as required by Section 1.H.4 of the Allegiant Pilots’ CBA.
Teamsters Local 2118 is committed to completing the negotiations over improvements to pay, benefits, and working conditions in the current Allegiant Pilots CBA and securing ratification of a new agreement before the completion of the merger. The Allegiant Pilots Negotiating Committee is working hard to reach a new agreement through negotiations over improvements to scheduling, scope, benefits and economics. These negotiations are proceeding on a separate track from the merger-related matters discussed below.
With respect to the merger transaction, the applicable provisions of Allegiant Pilots’ CBA relating to labor protection include CBA Sections 1.H.1 and 1.H.3 b. Importantly, as set forth in Section 1.H.3.b., and assuming the Teamsters are certified as the post-merger collective bargaining representative of the combined pilot craft and class, the combined craft and class of pilots will become subject to and covered by the terms and conditions of the then-in-effect Allegiant Pilot CBA. Both the Teamsters and Allegiant have expressed their intent to complete their negotiations to amend the existing Allegiant Pilot CBA. The Allegiant Pilots CBA will be in effect at the time the combined craft and class of Allegiant/Sun Country pilots become covered under one collective bargaining agreement. The relationship between a new Allegiant Pilots CBA and the legal requirements and procedures involving the Allegiant/Sun Country merger are discussed below.
Turning to those merger-related requirements and procedures, the federal law known as the McCaskill-Bond Amendment governs the integration of seniority lists when two or more airlines merge and combine their operations. The McCaskill-Bond Amendment incorporates and codifies as federal law, the labor protective provisions contained in Parts 3 and 13 of the old Civil Aeronautics Board’s Allegheny Mohawk decision. Those protections contained in Allegheny Mohawk Parts 3 and 13 require a “fair and equitable” integration of the seniority lists of the represented crafts and classes.
The Railway Labor Act, and its regulatory agency, the National Mediation Board (NMB), through its Representation Manual and case law, covers issues pertaining to union representation of crafts and classes of employees in various transactions, including mergers of two or more air carriers’ operations.
One important legal issue to be decided by the NMB is whether the carriers have been integrated to such a degree that they constitute a “Single Transportation System” (also known as a “Single Carrier”), considering, among other factors, centralized and common control of labor relations and integration of certain essential operations. If the NMB’s investigation determines that a single carrier exists, its related procedures provide a process (usually through elections) for determining who will be the certified exclusive bargaining representative of each combined craft and class of employees of the single carrier. The determination outcome for one craft or class does not necessarily impact other crafts or classes.
The merger between Allegiant and Sun Country is only in its beginning stages. Later this year, however, with an anticipated new Pilots CBA then being in effect, it is expected that the merger will have progressed to a point where Teamsters Local 2118 (through the IBT Airline Division) or Sun Country’s Pilots’ union will file a petition for a “single carrier” determination by the NMB. Assuming it determines that a single transportation exists, and in accordance with its related procedures, the NMB will schedule an election among the Allegiant and Sun Country pilots to determine which union represents the combined pilot group.
Also, the integration of the Allegiant and Sun Country Pilots’ seniority lists will likely be completed by the time the NMB is called upon to determine the single carrier representative for the pilots. That process, as noted above, is governed by the McCaskill-Bond Amendment, which again requires a fair and equitable integration of the seniority lists. In that process, both pilot groups (Allegiant and Sun Country) will meet and, if necessary, engage in binding arbitration to establish the integrated list. Both sides have the right to retain separate counsel throughout the entire process. Teamsters Local 2118 has already retained experienced counsel to represent the Allegiant Pilots’ interests in the seniority integration process, and through its counsel, elected leadership, representatives, and subject matter experts, will work tirelessly to represent the Allegiant Pilots’ interests.
Finally, after the pilot seniority lists are integrated, and with the process for certification of the Union as the post-merger “single carrier” pilots’ collective bargaining representative completed, we anticipate negotiating over modifications to the CBA in order to account for the differences in flight operations between today’s Allegiant Air and Sun Country (for example, to account for cargo operations as well as passenger operations), and, importantly, to ensure that the Allegiant and Sun Country pilots – as a single craft and class of pilots – have their interests addressed and protected through the strength of their combined bargaining power. The Union will enter into negotiations with management over changes to the CBA to address merger-related issues and related improvements that benefit Allegiant and Sun Country pilots. The collective bargaining power and voice of Allegiant and Sun Country pilots will be leveraged and heard in this process.
We hope this update makes clear that airline mergers are complex and require completion of several important processes that directly affect the carriers’ employees. This process will not happen overnight; it will take months to complete. Local 2118 remains committed and fully focused on completing the current negotiations for a significantly improved Allegiant Pilot CBA.