May 13, 2025

Fellow Pilots,

Allegiant’s Proffer Response Letter

As you are aware, Allegiant management sent the National Mediation Board (NMB) their response to the Union’s request for a proffer of arbitration. The document is full of startling admissions and outright fabrications. Allegiant’s arrogance and hubris remains unmatched. Mr. Fishburn asserts that the Union would produce a lengthy diatribe in response; their fabrication-ladened letter ensures no such response is necessary.

Their submission amounted to an unsubstantiated, 5-page complaint form, in which they could provide no evidence – based rebuttal of the Union’s factful and data-driven analysis on the issue of unstacking. Their silence on the core issue was an admission to our pilots and the NMB that the Union is correct when it comes to the existence of an impasse on unstacking, which has caused a total breakdown in negotiations. Management’s “4D” playbook of delay, deflect, discredit, and deceive hardly makes worthwhile reading material, much less changes the facts on the ground:

The company’s bargaining positions are extreme, concessionary, not operationally necessary, well outside of industry standards, and are proposed specifically to avoid agreement. The company has not provided ANY factual, data-driven, or evidence-based rebuttal to the contrary.

Management clearly admitted a preference for certain negotiators and representatives in the Union—an unprecedented admission of their attempts to influence and gain control over the Union, the Negotiating Committee, and our bargaining priorities. They have erased any reasonable doubt of their continued attempts to interfere and influence Union affairs, exactly as we previously stated. They continue to disparage the experience of those who hold them accountable at the bargaining table and while insisting they have the right to determine who represents you and what is in your CBA. They do not.

Mr. Fishburn then arrogantly claims that your legal right to strike is merely “nothing more than a PR stunt” — suggesting that 97% of Allegiant pilots who voted to strike the carrier are mere fools and Union puppets. This “PR stunt” rhetoric is no surprise to those familiar with this carrier. Mr. Fishburn and the rest of his team learned the “PR stunt” dog whistle from the Chairman himself; textbook Allegiant. Rather than fairly rewarding your efforts for your priceless contributions to this organization, Maury Gallagher and his team hold you in contempt for unionizing.

Allegiant’s own extreme and unreasonable bargaining positions on foundational working conditions have deliberately brought these negotiations to a standstill, yet they blame the Union for delays. Since the current CBA went into effect, pilots have filed over 6,000 grievances, with an overwhelming number of those related to scheduling issues. It is clear that yet another arbitration over basic scheduling rules at Allegiant would be futile, as management’s past history – and its May 9, 2025 letter to the NMB – makes clear. A 30-day cooling off period is the fastest way to a fair contract for Allegiant pilots.

Hold the line!

In Unity,

Captain Joshua Allen
Negotiating Committee Chairman

Captain Jay Killen
Pilot Negotiator

Captain Brad Keller
Pilot Negotiator

Captain J.R. Lynch
NC Chief of Staff

Captain Jim Cole
Recording Analyst

Copyright (C) 2025 Allegiant Pilots Association, Teamsters Local Union 2118. All rights reserved.

You are receiving this email as a member of APA Teamsters Local 2118.

This week, Allegiant reported its Q1 earnings; empirical data strikes again. Management’s repeated claims during bargaining of financial “inabilities” fall on deaf ears, as the financial performance you delivered led the industry. During the call, management boasted of an industry-leading 18.1% EBITDA margin. That margin is 25% higher than Q1 2024, and the airline’s Operating Income margin is at least double that of jetBlue, Southwest, Frontier, United, or Delta. Remember, margins are scale-neutral and are used to compare the relative financial performance of carriers of different sizes. Allegiant is undeniably among the head of the pack.

Despite the accrual of your retention bonus and a new Flight Attendant contract, Cost per Available Seat Mile (CASM) actually decreased compared to Q1 2024. On the operational front, our pilots continued to deliver a controllable completion rate of 99.2% on 32,000 departures for the quarter. This is despite management’s previous false claims that cancellations are largely driven by the Bloch Award. Consider these data points from the last earnings call:

Revenue Growth: Airline operating revenue increased by 5.7% to $668M in the 1st Quarter, which is historically the worst financial quarter for U.S. airlines.

Profit Margin Growth: Airline operating income increased by nearly 150% (not a typo) to $60.9M, delivering a 9.3 % operating margin, double that of United or Delta. Operating margin increased from 3.8% in 2024, an increase of 5.3 percentage points.

Huge EBITDA Margins: Adjusted airline-only EBITDA margin was over 18%—well above any LCC/ULCC and nearly double most legacy carriers.

Cost Decrease: CASMex minus special charges decreased by 9%, including the accrual of the pilot retention bonus and the new Flight Attendant Contract.

Ancillary Gains: Even without increasing base fares, ancillary revenue increased by nearly 5% per passenger.

Utilization Increase: Utilization has increased by 20% YoY.

Scaled Reliability: 99.9% controllable completion rate with a 14% increase in capacity crushing the company’s claims that reliability and growth were impacted by the 0% unstacked, protecting, post-Bloch Award CBI solution.

This is pure profitability, not poverty. The company is not in “survival” mode despite management’s claims to the contrary. Despite this excellent performance and strong demand for leisure travel, management continues to insist that a concessionary contract with worse-than-Spirit rules and below average with extreme and unprecedented levels of forced flying is critical for their “survival”. The answer is no.

Our position is strengthened by data and the parties remain at an impasse.

Who are our Customers and Competitors?

Management insists that carriers like Spirit, Frontier, Avelo, and Sun Country are those that they “directly compete with.” Data strikes again (and not in their favor). Management has made it crystal clear to Wall Street that Allegiant is not a ULCC by classification or business model, and none of the aforementioned carriers are our “direct competitors”. Why they feel the need to lie to you is a mystery, but it is a fact that less than 5% of Allegiant’s customers come from Frontier (and only 3% of them from Spirit). Consider the following from management’s presentation to Wall Street:

Figure: Passenger Composition, Allegiant Investor Presentation

84 % of new Allegiant customers are customers of the “Big 4” — Southwest, Delta, American, or United. In fact, Allegiant has a 40 %+ Total Revenue per Available Seat Mile (TRASM) advantage over both Frontier and Spirit (even at nine pilots per aircraft). TRASM, by management’s own admission, is more aligned with brand carriers like jetBlue and Alaska than ULCCs. A fair, truly market-based contract for the pilots who deliver this industry-leading performance is revenue and margin-accretive, and non-negotiable at this juncture.

Former Allegiant COO Speaks Out About JV

We certainly don’t need management to validate our concerns regarding protecting U.S. jobs, but former Allegiant Chief Operating Officer Jude Bricker’s recent comments on Allegiant’s proposed JV deserve serious consideration. As Allegiant intensifies its efforts to outsource its flying to foreign carriers, Bricker publicly challenged management’s narrative at the latest CAPA leaders’ summit. While Allegiant claims that the JV is its only competitive pathway to international flying, Bricker pushed back, stating:

“Allegiant can fly to Mexico any time they want. There’s nothing the DOT does to prevent that.” -Jude Bricker Former Allegiant COO and CEO of Sun Country

The Viva JV in its current form is simply about outsourcing U.S. pilot jobs and flying opportunities, and not about expanding “consumer access” to international markets. When management claimed this JV would be “revolutionary” for international travel, Bricker countered:

“If [Allegiant] wants to outsource U.S. crew jobs to a Mexican carrier … I don’t see why that’s on brand to this [Presidential] administration.” -Jude Bricker, Former Allegiant COO and CEO of Sun Country

When management claimed that the JV is necessary to gain sufficient access to Mexican markets and compete with legacy carriers, Bricker noted that carriers with far fewer resources than Allegiant—including Breeze and Sun Country—already serve Mexico with U.S. based crews and no joint venture.

“You know the airport that is a Delta hub that doesn’t have Aeromexico service, Minneapolis. Why? Because we do.” -Jude Bricker, Former Allegiant COO and CEO of Sun Country

This is not Allegiant’s first attempt to outsource flying—your 757 flying to Honolulu was proposed to be outsourced to Ryanair until pilots drew a line. The time is upon us to draw the line again. Allegiant can launch Mexico service with Allegiant pilots presently, if they choose. This Union will continue to oppose any venture that does not protect U.S. jobs and guarantee Allegiant pilots their fair share of future growth and flying.

You can read the full article here.

Fort Lauderdale Transition MOU

Fort Lauderdale (FLL) is among the bases next in line for a fleet transition from A320 to B737. In an email to the FLL pilots in reference to the transition, Captain Hardesty bravely claimed that the MOU “should not be controversial, as it is already part of the Section 12 AIP that the union and company have negotiated and agreed to”. Whether this is ignorance of the bargaining process or a blatant contempt remains uncertain.

Any agreement achieved during collective bargaining over a new CBA is not available for implementation on an individual basis. As with any agreement, and especially an AIP, those terms are contingent upon the remaining outstanding terms in the contract. An AIP may become a full language TA, or it may not, but agreements on individual parts of the contract do not take effect until there is a complete, ratified contract. Management cannot cherry-pick agreements (or portions thereof) achieved during bargaining that they want to implement or “lock in” at their convenience via MOU. That’s not how it works; every pilot labor Union agrees.

Management’s statement that it is not “controversial” to attempt to use an MOU to secure terms currently under dispute in bargaining is absurd. Manufacturing a controversy to erode pilot trust in the Union and force the Union to accept terms outside of bargaining is not good faith bargaining. Further, management inferred that the FLL pilots would be harmed by their requirement to adhere to the terms of the CBA. This is false.

First, management has the means within the CBA to minimize or eliminate any hardship the affected pilots would face by opening the requisite number of vacancies (with appropriate excess) for B737 Captains and First Officers in FLL. This ensures that those pilots who wish to remain in FLL have every opportunity to do so. Management suggested that they would not/could not do so, yet since the Union held its ground and rejected the MOU, it appears that they have done exactly that. Second, those pilots who choose not to bid for the B737 in the vacancy will be afforded their displacement rights per the CBA, despite any management claim to the contrary. If the Company deviates from the CBA, the union will take all necessary action to defend the rights of the pilot group.

Our contract must be followed. TAs or AIPs achieved during bargaining do not change that. Management should be aware that no agreements achieved during bargaining are available on an individual, piece-meal basis.

If they want those terms, sign a new contract.

Misleading Capacity “Reductions”

Management will continue to sound the economic alarm to create fear and doubt in our pilot group. Regarding their statements about capacity reductions, it is worth noting that these reductions are still increases in year-over-year (YoY) figures. For example, August is still a 16% increase in ASMs and a 17% increase in block hours YoY. While management may wish to induce panic, the data shows that this is not a panic-inducing scenario in any sense. While it is reasonable to expect that Allegiant may slow some growth to match the economy, they will likely grow faster than most other U.S. airlines. Your expectations for a fair, market-based contract should remain unchanged.

General Bargaining Updates

The company has until Tuesday, May 13th, 2025, to submit their comments to the NMB in reference to our proffer of arbitration request. We will keep you informed of further developments as they occur.

In Closing

Since bargaining began, this management group has given you few reasons to trust them. They continue to erode the little remaining trust, if any, through their backhanded tactics (LAX MOU, training center rumors and leaks, etc.) on an almost hourly basis. Despite this, they will do everything possible to convince you that your Union is the problem. This management team can’t even offer the market‑based working conditions that peer carriers already provide their pilots. These provisions work with Allegiant’s “unique” business model as have been proven through testing and empirical data.

Even still, they will tell tall tales to any pilot willing to listen. “Your Negotiating Committee is the problem,” they’ll say. “They just don’t want a contract,” they’ll claim. Give that some serious thought. Your Negotiating Committee isn’t on a special pay scale or receiving some direct retirement contribution/pension/stock option scheme you don’t get. We are a committee of your peers, and there is absolutely no motivation for us to delay a fair contract – we get better work rules and raises at the same time you do. Management is a different story.

Delays save them money and wear you down. They want to stall a fair contract because it’s in their best interest. They will delay and string you along until you demand, in unison, that management deliver a fair, market-based contract to our pilots immediately, beginning with resolving the current impasse by accepting the Union’s data-based unstacking proposal. Your Negotiating Committee will continue to prepare each day to get this contract across the finish line through data analysis, strategy, and preparation, and provide you with as much information as is permissible so you can remain engaged and informed.

It is time to stand together, unified, unapologetic about what you deserve, without fear of management or the vocal minority who believe you are worth concessions. Stand behind your brothers and sisters in the fight for what you deserve. We must show respect and dignity for our profession; we can’t wait for another carrier to carry the torch for us in hopes to pattern bargain from their efforts a decade from now. Every other pilot group has fought hard for what they have. The Allegiant pilots must do the same. The unique distinction of having both industry-leading financial performance and an industry-worst pilot contract ends now.

Four years in negotiations will not result in concessions or backwards progress. An immediate, fair, market-based contract is the only option we will accept at this juncture in negotiations.

In Unity,

Captain Joshua Allen
Negotiating Committee Chairman

Captain Jay Killen
Pilot Negotiator

Captain Brad Keller
Pilot Negotiator

Captain J.R. Lynch
Chief of Staff

Captain Jim Cole
Recording Analyst

Copyright (C) 2025 Allegiant Pilots Association, Teamsters Local Union 2118. All rights reserved.

You are receiving this email as a member of APA Teamsters Local 2118.

The Status of Bargaining

As we made clear in our previous updates, the parties remain at an impasse in negotiations. As a result, the Union has requested a status meeting with the National Mediation Board (NMB) and a proffer of arbitration. Consistent with its normal procedures, the NMB requested a response from management, which is due on May 13th, 2025.We will provide you with an update and additional information as it becomes available from the NMB.

Based on the way the Railway Labor Act (RLA) works, the next CBA will likely be the one you work under for more than five years after it is ratified. A fair, enforceable contract is non-negotiable. Your continued insistence on a contract that does not sacrifice your working conditions to achieve market-based pay, or vice-versa, remains the key to achieving this goal.

Flying Our Fair Share – IBT Opposition to Viva JV

It should come as no surprise that the IBT has written in opposition to the Viva Joint Venture since our U.S.-based aircrews have no guarantee of any portion of the block hours of this agreement, and management has made it clear that they are seeking no changes to our current scope language. In Allegiant’s response to the IBT’s filing, they lament the fact that they have been waiting “58% longer” for approval than the last Joint Venture application. See their language below:

In perhaps management’s most ironic and tone-deaf public statement to date, they cry foul to the government and bewail about the length of time their unapproved application has been pending while negotiations for a fair pilot contract have raged on without substantive progress for over 4 years. Our peers have all managed to fly internationally with U.S. based pilots on their own metal. On the other hand, Allegiant management seems desperate to give international flying opportunities to foreign carriers – with no guarantee of a fair share of the flying and work rules that would allow them to slash 20% of the pilot force. No.

This Union will continue to oppose any flying venture that disproportionately rewards foreign or other carriers. Scope matters and your Negotiating Committee will continue to fight for your rightful share of any flying sold under the Allegiant banner. Allegiant flights = Allegiant pilots. When the Company agrees to industry standard unstacking rules, we can turn our attention to resolving the Viva JV in a manner that protects our job security and career opportunities.

The Truth About Unstacking Language

Unstacking, in its simplest form, is forced work and ignoring pilot preferences. While management’s Ministry of Truth will be busy over the coming weeks building an educational series to “tell you how unstacking works,” their efforts would be better served elsewhere. Virtually the entire industry already agrees—and their rules follow the same format and are nearly identical. Avoid management “truths” and read the language for yourself:

As you can see, the language and format is virtually identical. Major airlines have aligned on the necessary protections surrounding forced work and PBS – except Allegiant. Management has decided to completely reinvent industry-standard language, common behavior from them during these negotiations, which management uses to stall progress intentionally. A standout in Allegiant’s proposed language is how management uses the numbers 50% and 70% deceptively to appear like they are using industry standard provisions, except that the provision functions in the exact opposite way.

Unlike the rest of the industry which places hard limits on who cannot be unstacked (70% in normal months, 50% in holiday months), the Allegiant language says who can be unstacked. At least 70% of the pilots can have their preferences ignored every month, and in some cases beyond 80% thanks to a rounding clause does not present anywhere else in the industry. Every airline offers explicit and reasonable limits to protect seniority, Allegiant does not. Why?

Their proposal on unstacking allows the company to manipulate inputs to achieve far greater levels of forced flying, potentially your entire schedule, all while claiming “operational necessity.” False. As we have said before, high unstacking is not a requirement of the “peak flying” model, nor the “day trip” model, nor does unstacking have any linear correlation to percent working (i.e. you don’t need 80% unstacking to achieve 80% working, despite management’s repeated claims).

Beyond just the ‘unstacking’ percentage, we do not have any of the work rules surrounding unstacking to constrain it to any reasonable limits. Minimum staffing models, reserve restrictions, trip pairing and line construction provisions, trip mix protection by system and domicile, footprint rules, and reassignment protections are non-existent in their proposal. The very rules designed to protect your quality of life and keep forced work at bay are the very rules that management has continued to reject. To quote one manager, “if you don’t like your days off being Tuesday and Wednesday, then this airline isn’t for you.” To quote one company negotiator, “Your schedule will be predictable, your days off will be Tuesday and Wednesday.” Rubbish.

We reject the idea of perpetual forced work and a limited (and shrinking) inventory of days off selections. We reject the idea that only the top 20% of pilots get their preferences awarded. We reject the idea that your only days off will be Tuesday and Wednesday for the rest of your career. The rest of the industry has moved on from 1980s-style work rules and chosen to preserve seniority rights and preferences, limit forced work, ensure schedule fairness, and protect quality of life. Unilateral authority to destroy your quality of life in perpetuity is not acceptable.

Near Industry-Leading Productivity – Industry-Worst Work Rules

Based on feedback from our last message, our pilots continue to appreciate discussions centered around unimpeachable data and empirical evidence. For years, management has tried to convince you that your efforts are inferior to those of your peers—and that you should be willing to accept less as a result. The tried-and-true lines of “we’re different,” “our airplanes sit more,” or “those guys just fly more” don’t hold any weight. Fortunately for us (and unfortunately for management), data doesn’t care about feelings and rumors — and neither does the U.S. Department of Transportation (DOT). Consider the following DOT data from 2023:

Figure: 2023 DOT BHPP/PPA Data

Despite the so-called “low-utilization” model, Allegiant pilots flew virtually the same or greater block hours per pilot than the majority of the industry. You achieved that output with the leanest staffing cushion in the industry (9 pilots per aircraft) with the weakest work rules and low pay as a reward. In fact, only Southwest has a higher BHPP with statistical relevance, and proof positive that incentivizing productivity works better than trying to achieve it through brute force and destroying your seniority rights.

As powerful as our BHPP is, other data points help to capture the actual effort our pilots exert to deliver industry-leading financial and operational performance. You should not be surprised to learn that Allegiant pilots are among the leaders in departures per pilot among major airlines, second only to Southwest.

According to DOT data, in 2023, Allegiant pilots averaged 15% more departures per pilot than the third-place airline, and had 34% more than Alaska, 61% more than United, and 31% more departures per pilot than JetBlue. Consider the following compiled from data provided by the DOT Bureau of Transportation Statistics (visit the source here):

Example: Departure Per Pilot 2023
*pilot counts exclude instructors and trainees

Four years of near-record high productivity with well below industry work rules have provided a basis for funding everything except for a fair pilot contract, including the financially disastrous Sunseeker resort, financed family fun centers, golf courses, software companies, go-kart tracks, and executive bonuses.

While you operate more departures than your peers, often in less-than-ideal and challenging conditions, management believes it is obligatory that you capitulate now and accept worse-than-Spirit work rules (re-read “Mailer 2.0” if there is doubt). 4-leg days, non-towered airports, Larry Limos, outstation maintenance “adventures,” involuntary TDYs, base closures, and the like. The idea that you should capitulate to quality-of-life concessions in exchange for another decade of continuous abuse and degradation of your seniority rights is absurd. Management extracts above industry productivity from its pilots; the bill has come due.

The data continues to show that the “low pilot utilization myth” is false. The idea that the Allegiant pilot “does less and flies less” is not reality—the data proves it. The Allegiant pilot has done more, with less, and for longer than any other major airline pilot.

Management: we do not want your truth brochures, your flight crew appreciation socks, nor another shaving kit. The only “gift” that we want to see is a fair, enforceable contract.

Gallagher’s “Legacy” Dog Whistle

As Gallagher reminded us in the infamous “another f—ing airline” letter, the phrase “legacy work rules” is management’s favorite dog whistle. Management’s way of refuting fair, reasonable, market-based contract provisions is to falsely claim that such provisions would kill the company. The “legacy” moniker is an attempt to convince you that it is your Negotiating Committee that is being unreasonable by holding the line for a market-based contract without completely unnecessary concessions in scheduling, your seniority rights, and your quality of life.

“They want legacy” is a scare tactic to convince you that basic quality-of-life protections are an irresponsible and unreasonable ask by your Union, while funding failing hotels, sponsoring family race-car teams, and other pet projects is perfectly affordable. The truth is that work rules don’t bankrupt airlines, but bad management certainly does. No matter how “cheap” a contract is, the same executives who mismanage our company will still demand concessions until pilots say enough is enough (reference: current negotiations).

If trip rigs sink airlines, the rest of the industry hasn’t noticed. Industry-leading productivity deserves industry-standard protections. Legacy is simply management’s trigger word to convince you that you are worth less and should settle. No.

In Closing 

The parties are at an impasse. We fully expect management to intensify their attempts to undermine the Union’s credibility and create division within our ranks. They do so to delay providing you with the contract you deserve. Managers will attempt to create controversies where none should exist (e.g., disparaging the Union for adding a committee member while their 13+ member negotiating team flies to bargaining sessions on private jets). You would be wise to ignore it. Division has no benefit for our pilot group.

Now is not the time for weakness—it won’t get you a contract quicker. It is more critical than ever for every pilot to stand tall, reject concessions, and demand that management deliver the contract you deserve. Beyond that, you must remain engaged. It’s easy not to care when you don’t think that something affects you until your base closes, or you’re forced into unproductive overnight trips to Bellville, IL, or Stewart, NY, or you’re the one furloughed or unstacked.

Even if you think you won’t be affected, you will be at some point. We must all demand that management deliver a fair and enforceable contract. Thank you for your support.

In Unity,

Captain Joshua Allen
Negotiating Committee Chairman

Captain Jay Killen
Pilot Negotiator

Captain Brad Keller
Pilot Negotiator

Captain J.R. Lynch
Chief of Staff

Captain Jim Cole
Recording Analyst

Copyright (C) 2025 Allegiant Pilots Association, Teamsters Local Union 2118. All rights reserved.

You are receiving this email as a member of APA Teamsters Local 2118.