Allegiant Air is facing criticism from its pilots, represented by Teamsters Local 2118, after the company sold its unsuccessful Sunseeker Resort while contract negotiations with 1,400 union pilots remain unresolved. The airline claims that selling the hotel project indicates a renewed focus on its core operations, but this has been challenged by the pilots.
“Allegiant’s executives have wasted billions on failed side hustles while refusing to fairly pay the pilots who actually keep this carrier in the air,” said Teamsters General President Sean M. O’Brien. “Allegiant owes our members over $200 million in hard-earned retention bonuses. The Teamsters demand accountability and a fair contract now from this greedy, corruptible employer.”
The negotiations have been ongoing for more than four years. While other airlines have improved pay and working conditions, Allegiant has not met industry standards and is asking for concessions on quality of life and scheduling issues.
Since March 2021, Allegiant’s market value has dropped by 78 percent to a current market cap of $1.3 billion. The sale of Sunseeker Resort resulted in a $520 million loss for the company, which is over half of its current market value. This follows a pattern of spending on ventures outside core airline operations.
Greg Unterseher, Teamsters Airline Division Director, Above-the-Wing, expressed doubt about Allegiant’s management capabilities: “Management at Allegiant has no ability to lead this company. They have no allegiance to the hardworking, dedicated pilots.” He emphasized that the union lacks confidence in Allegiant’s willingness to negotiate in good faith but insists that they must return to negotiations.
The International Brotherhood of Teamsters represents over 1.3 million workers across various regions including the U.S., Canada, and Puerto Rico.
