Negotiating Update – April 19, 2024

Allegiant Air Pilots,

We would like to start by extending our heartfelt congratulations to the Allegiant Flight Attendants on the successful negotiation and ratification of their contract. Their achievement is a testament to their unified efforts, and they have truly earned this milestone.

This week, your Negotiating Committee has been diligently preparing for the upcoming in-person negotiation sessions. As previously mentioned, the Union has recently proposed solutions for Sections 5, 12, 25, and several term-sheet items. We eagerly anticipate the company’s responses.

Week in Review:

Monday: The Payroll Committee identified a list of ongoing payroll issues and engaged in discussions to find potential solutions.

Tuesday: We met with Trustee Greg Unterseher to address administrative “housekeeping” items. Post-meeting, we continued preparations for negotiating Section 3 (Compensation). We analyzed the data from the recently concluded CBA survey and compared your feedback with peer CBAs to ensure our efforts align with your expectations. Members of the Negotiating Committee also participated in an evening Steward meeting hosted by Captain Unterseher.

Wednesday: Representatives from both the Company and the Union met with the NMB for a standard “Principals” meeting to discuss the upcoming negotiation sessions and various housekeeping items in preparation for future dates. In addition, the committee members also worked on Section 14 (Hours of Service).

Thursday: We discussed the unique aspects of the Allegiant business model and how the pilots, management, shareholders, and passengers share a vested interest in the growth and success of Allegiant. With a common goal for Allegiant to reach its fullest potential, we explored various solutions that support the Allegiant business model while securing the Compensation and Quality of Work Life improvements that we have earned.

Friday: We continue our preparations for next week’s negotiations.

Topic Of The Week: Why Allegiant?

Allegiant’s unique business model is no secret. It provides pilots with a balanced career that harmonizes fulfilling work with quality time at home. Thanks to the concerted efforts of our peer airlines and successful pattern bargaining, the industry standard for the compensation of Airbus or Boeing pilots, regardless of the airline they serve, has been set. This ensures that pilots are compensated fairly for their crucial role in safely transporting our passengers.

However, a career or a contract isn’t solely about pay rates. The crux of these contract negotiations lies in what we must do to earn that pay rate. By securing language that safeguards the current Allegiant model, we are doing more than just ensuring the company’s continued success, we are also acknowledging and rewarding the pilots for their indispensable role in achieving that success. It’s about creating a work environment where fair compensation goes hand in hand with respect for the work we do.

In our current model, the majority of our crews and aircraft return to their permanent domicile every night. This model, while providing a significant quality of life incentive to our pilots, also benefits the company in numerous ways. The cost reductions, operational simplicity, and other advantages all contribute to Allegiant’s ability to further increase their operating margin.

What sets Allegiant apart is its ability to flexibly adapt to the demand peaks and valleys of the coveted Leisure Travel Segment. This “Flex Up and Down” model has consistently translated into industry-leading profit margins for our airline and should accordingly translate to an industry-leading Collective Bargaining Agreement (CBA) for our pilots.

Given our unique domicile structure of operating 24 “Airlines Within an Airline”, our contract requires special attention to ensure that no base, large or small, is adversely impacted. While we are all familiar with the term “Industry Standard”, being unique comes with special challenges that may not be solved by looking to our peers for the answer. Simply stated, unique solutions are required to match our unique model.

Example: The Allegiant business model thrives on a schedule unlike anything comparable in the industry. In most cases, comparing what others do is akin to trying to fit a round peg into a square hole. To mitigate these potential challenges, management must first acknowledge that, as the front-line leaders of this airline, we are the best witnesses of how it operates. We see the positives and negatives and have the greatest impact in real time. For mutual success, we must collaboratively partner with management to embrace a scheduling solution that accurately reflects and embraces our unique business model. That will set the baseline for the necessary work rules that will provide operational integrity for our pilots and the company.

Example: Our leisure centric model necessitates a workforce committed to working hard to support our model in the peak months of March, summer and holidays; however, it also requires mutually-beneficial solutions that guarantee we are fairly accommodated in the valleys, such as September where capacity is pulled back by up to 50%.

Our Pilots are resolute that a fully implemented comprehensive scheduling system will deliver quality of work life and fair compensation to our pilots, optimum utilization of our company’s assets, a return on shareholder investment, and most importantly, provide our customers with safe reliable travel.

Example: Operationally, Allegiant’s Boeing 737 expansion plans include the company plan to mitigate inefficiencies associated with a split fleet by isolating different fleet types by base, building infrastructure to support both Airbus and Boeing aircraft. This “isolation” will require expanded Section 12 language and other contractual protections.

Example: Allegiant has proposed a trans-border joint venture (JV) with Viva Aerobus, seeking antitrust immunity to deepen their relationship in trans-border flying between the US and Mexico. This first-of-its-kind ULCC JV demands great scrutiny for our pilots and international transborder relations as well. It is a big deal and will require strong Section 1 (SCOPE) language in our contract to even begin discussions for our support. The potential opportunities that come with this brand expansion also require language associated with job protections, international flying, multi-day pairings and safety-related provisions to mention a few. A mutually-transparent dialogue on this subject will be a good first step…but for now our position has not changed.

So, while we too “Couldn’t Be More Bullish on The Future of Allegiant” and the exciting opportunities on the horizon, our support is contingent on securing the contract you have earned. By capturing language that embraces our “Home Every Night” model while mutually affording Allegiant the opportunity to tap new markets, we believe that Allegiant pilots could become the envy of the industry.

Question of the week? Based on our unique business model, what should a representative reserve system look like at Allegiant? negotiatingcommittee@apa2118.org

In closing, your survey results have clearly indicated what it will take to secure your affirmative vote, and we are committed to achieving nothing less.

Fraternally,

Your Negotiating Committee
Allegiant Pilots Association, Teamsters Local 2118