Allegiant seeks B757s, may create alter-ego airline

Chronic Jetlag

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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
 

GuppyWN

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Friends don't let friends fly on seperate operating certificates.

Gup
 

A-V-8

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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.
TranStates/Go Jets

Eastern/Value Jet
 

~~~^~~~

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Delta / Comair, ASA, Freedom, Mesa, Republic, Chautauqua, Shuttle America, ACA, SkyWest, Mesaba, Pinnacle, ExpressJet, Compass
 

motch

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This all started because of Mesa/Freedom and ALPA National allowing that.
That allowed Trans States to follow suit years later with GoJet.
ALPA National had a rally in St. Louis to motivate the pilots that they would fight this tooth and nail. In the end they did not and expected TSA pilots to sign a crappy LOA which they didn't.
Therefor, GoJets came into existence and again ALPA National did nothing afterwards.

I advocated denying GJ pilots the jumpseat and I made it known that I would NEVER allow a GJ pilot to ride my jumpseat when I was a Captain at Trans States.

Many said they did not want to see a "jumpseat war". Well, if you are not going to punish the pilots that allow an Alter Ego to start, how do you prevent it?

This new alter ego will happen because we as a profession aren't willing to fight to prevent it.
From the ALPA National level all the way down to the cockpit crew.

motch
 

Fubijaakr

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I agree with you, motch. The problem is ALPA refuses to act like a UNION. You don't see non-Union electricians going down to the IBEW hall and asking for a ride out to the jobsite do you?

When are pilots going to get it through their heads that offering a UNION NEGOTIATED benefit to Non-Union pilots who undercut our contracts is counterproductive?
 

lookin4better

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Delta / Comair, ASA, Freedom, Mesa, Republic, Chautauqua, Shuttle America, ACA, SkyWest, Mesaba, Pinnacle, ExpressJet, Compass

100% agreed!
 

Ex737Driver

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Much new docuhebaggery to contemplate.
 

samballs

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I agree with you, motch. The problem is ALPA refuses to act like a UNION. You don't see non-Union electricians going down to the IBEW hall and asking for a ride out to the jobsite do you?

When are pilots going to get it through their heads that offering a UNION NEGOTIATED benefit to Non-Union pilots who undercut our contracts is counterproductive?
Don't try to explain this to pilots, most are from academys or military so have no clue about unions. Most actually think ALPA is a union, its an association.
 

Green Banana

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My bets are on 757's to Hawaii Ala ATA. This is going to put a wrench in Alaska's grand Hawaii plans.
 

Bako Cap

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The difference is that the pilots of Delta (incorrectly IMO) agreed in their contract SCOPE to allow these "alter-ego" airlines to fly their passenger with aircraft painted in their colors.

Freedom and Gojets were not accepted by Mesa or TSA pilots, but their contract SCOPE was too weak.
 

scoreboardII

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I double the bet it's on ATA's cert which SWA sells to them.
 

Nevets

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Sounds like its time to unionize and negotiate a rock solid scope clause.
 

johnsonrod

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I guess if you are going to buy used, idle 757s, now is the time to do it...
 

UALjan15

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I'm not getting the whole premise here--can someone please explain? If there is no union, and Gallagher claims that he can impose whatever pay rates he pleases, then why the need for the additional operating certificate? Why not just put the 75s on the Allegiant certificate and establish MD-80 pay rates for them? I realize that this could galvanize a unionization drive, but wouldn't setting up an alter ego do the same?
 
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