Chronic Jetlag
I'm great at sleep'n in
- Joined
- Sep 18, 2003
- Posts
- 202
Allegiant is currently seeking to add B-757s to their fleet of 41 MD-80s. As with an introduction of a second aircraft type a new pay scale is currently being sought by their pilot group. The rest of the industry and its pilots have started to pay close attention and scrutinize what is about to take place between Allegiant management and AAPAG (Allegiant Air Pilot Advisory Group). The future pay scale for this second aircraft type will have far reaching consequences because there is a symbiotic relationship regarding pilot pay amongst all the airlines that operate the same or similar size aircrafts. Dissension and strife within AAPAG regarding this issue have already allowed their management to methodically dissect the unity of AAPAG by trying to impose and maintain the same pay rates which is far below industry average of comparable equipment. While no official numbers have been introduced those close to the source have indicated that a single pay rate may be in effect for both the MD-80 and B-757 which is considered by most of the AAPAG pilots to be grossly inadequate and unacceptable.
AAPAG faces the unique challenge of not only trying to request for a new pay rate without the true power of negotiation under the proper legal forum enjoyed by other union carriers but is also trying to unite all of its pilots to show resolve and fight for a common cause built on mutual interests. AAPAG’s diverse pilot group consists of but not limited to legacy furloughees, corporate, regional, and cargo pilots to pilots that have crossed picket lines during a strike. Some of its pilots fundamentally believe that the success and growth of Allegiant is reflected and dependent upon low labor cost and its very survival is inextricably tied to their below industry average pay; but this notion is not held by most others whom contend that Allegiant’s very own business model and financial statements prove otherwise and it is paying substandard pilot wages simply because it can.
In a recent meeting between Allegiant’s top executive officers and AAPAG, CEO Maurice Gallagher Jr. announced that Allegiant is currently actively seeking to acquire another carrier’s certificate and its intentions to operate it independently from Allegiant Air. Mr. Gallagher told AAPAG that he expects the pilots to fly the new aircraft type at current MD-80 rates with new work rules to be negotiated. He also discussed business plans with an actual LOI to purchase B757s which may be added to Allegiant’s certificate. Much to the disappointment of AAPAG Mr. Gallagher made it clear that he invited AAPAG to the meeting only as a courtesy and ultimately "the company will do whatever they want to do.” Mr. Gallagher repeatedly and bluntly suggested that AAPAG was being greedy in believing it should be better compensated and ultimately said “ the only people that matter to us are the shareholders” (The three largest share holders are Gallagher, Harris and Levy). http://www.allegiantair.com/aaExecutiveBios.php
History has proven the creation and existence of an alter-ego airline is an egregious airline business strategy that destroys a pilot’s career and its only true purpose is to serve itself by enhancing executive compensation (Mesa/Freedom). AAPAG is being tested and its resolve will greatly determine their pilot’s future.
As a publically traded non union leisure travel air carrier, Allegiant’s current market cap of $ 685 million is larger than United’s $456 million and U.S. Air’s $245 million. With its unique business model of serving small cities to large destinations with bundled all inclusive vacation packages and virtually no competition Allegiant enjoys operating margins of well over 20%, that’s both unrivaled and unheard of in the airline industry. When a barrel of oil peaked at $147 Allegiant was still able to sustain profitability without fuel hedges.
A concerned 121 Pilot
AAPAG faces the unique challenge of not only trying to request for a new pay rate without the true power of negotiation under the proper legal forum enjoyed by other union carriers but is also trying to unite all of its pilots to show resolve and fight for a common cause built on mutual interests. AAPAG’s diverse pilot group consists of but not limited to legacy furloughees, corporate, regional, and cargo pilots to pilots that have crossed picket lines during a strike. Some of its pilots fundamentally believe that the success and growth of Allegiant is reflected and dependent upon low labor cost and its very survival is inextricably tied to their below industry average pay; but this notion is not held by most others whom contend that Allegiant’s very own business model and financial statements prove otherwise and it is paying substandard pilot wages simply because it can.
In a recent meeting between Allegiant’s top executive officers and AAPAG, CEO Maurice Gallagher Jr. announced that Allegiant is currently actively seeking to acquire another carrier’s certificate and its intentions to operate it independently from Allegiant Air. Mr. Gallagher told AAPAG that he expects the pilots to fly the new aircraft type at current MD-80 rates with new work rules to be negotiated. He also discussed business plans with an actual LOI to purchase B757s which may be added to Allegiant’s certificate. Much to the disappointment of AAPAG Mr. Gallagher made it clear that he invited AAPAG to the meeting only as a courtesy and ultimately "the company will do whatever they want to do.” Mr. Gallagher repeatedly and bluntly suggested that AAPAG was being greedy in believing it should be better compensated and ultimately said “ the only people that matter to us are the shareholders” (The three largest share holders are Gallagher, Harris and Levy). http://www.allegiantair.com/aaExecutiveBios.php
History has proven the creation and existence of an alter-ego airline is an egregious airline business strategy that destroys a pilot’s career and its only true purpose is to serve itself by enhancing executive compensation (Mesa/Freedom). AAPAG is being tested and its resolve will greatly determine their pilot’s future.
As a publically traded non union leisure travel air carrier, Allegiant’s current market cap of $ 685 million is larger than United’s $456 million and U.S. Air’s $245 million. With its unique business model of serving small cities to large destinations with bundled all inclusive vacation packages and virtually no competition Allegiant enjoys operating margins of well over 20%, that’s both unrivaled and unheard of in the airline industry. When a barrel of oil peaked at $147 Allegiant was still able to sustain profitability without fuel hedges.
A concerned 121 Pilot
