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Allegiant Air's bid for US residency for foreign employees is blocked by the pilots union?

Allegiant Air’s pilots’ union is blocking Allegiant Air’s attempts to secure permanent residence for dozens foreign pilots, including those from Chile, Australia, and Singapore. This leaves their immigration status, and the company’s staffing, in limbo.

The union refused to certify that pilot positions which begin at around $50,000 per year (about half of what other regional airline pilots earn) meet "prevailing wage standards" to the U.S. Department of Labor. This certification is an important bureaucratic step, and it's a requirement for pilots to apply for green cards.

Teamsters Local 2118 asked Allegiant not to hire foreign pilots but to provide compensation that is industry standard and to improve scheduling in order to keep pilots from leaving to work for competitors. Allegiant, along with most U.S. carriers faced major workforce challenges after the pandemic. Low pay has been a major issue for the carrier in retaining pilots. To stabilize its staffing, the airline expanded recruitment by hiring pilots through employment-based visa programs. The union claims that the airline misrepresented their intentions to hire these pilots permanently and there is no shortage of pilots in the U.S. making it unnecessary to pursue permanent residence for the pilots. They had a difficult time finding pilots in 2023, so they hired visa pilots from Chile on H-1B1s because they verbally promised them citizenship and a greencard to come fly in America at 50,000 dollars a year.

Because they are having a difficult time keeping and maintaining their pilots with such a low salary.

Allegiant currently employs 62 pilots in Chile, Australia and Singapore via the H-1B1 visa program and E-3 visa program, which is about 4% or its total pilot count of 1345.

Allegiant's spokesperson stated that hiring pilots via visa programs was a supplement to the company's broader workforce strategy and not a replacement of U.S.-based hires. The union refused to provide the letter required for the permanent certification application filed by the airline. The Labor Department's permanent labor certification is required for employers to hire foreigners to work in the U.S. permanently. Allegiant, in a letter sent to pilots, wrote that "due to the union not providing this information, it is possible that your green card will be delayed".

Allegiant stated in a press release that "all our hiring practices are fully compliant with federal labor laws and FAA regulations as well as the collective bargaining agreement with our pilot union." Allegiant said that "all of our hiring practices fully comply with federal labor laws, FAA regulations, and the collective bargaining agreements in place with our pilot union."

"My heart goes to them." Recently, they were told that they should not even leave the country. They might not be allowed to return," said Unterseher.

Attrition on the Rise

Allegiant pilots report that attrition has increased. Pilots are leaving due to low pay in the industry, scheduling issues, and a labor contract dating back nearly 10 years.

One pilot, who requested anonymity, said that first officers at Allegiant make less in their first year than flight attendants of other major airlines and TSA agents. Allegiant has shown interest in expanding their operations. At one point, they discussed adding 1,400 new destinations. Pilots said that the lack of staffing is still a problem.

"I had nowhere to go for the past 18 months. You are now seeing people leave. The pilot continued, "I've got at least five or six of my friends in the small group that I am part of that are leaving." (Doyinsola Oladipo in New York; Editing by David Gregorio)

(source: Reuters)