Overview
Allegiant Air’s long‑running contract battle with its pilots has escalated into an immigration and wage‑standards test case. After years of complaining about low pay and grueling schedules under a 2016 contract that became amendable in 2021, Allegiant’s roughly 1,400 pilots, represented by Teamsters Local 2118, are now blocking the airline’s attempt to secure U.S. permanent residency for about 62 foreign pilots hired from Chile, Australia, and Singapore. The union refuses to certify to the U.S. Department of Labor that these jobs—starting around $50,000 a year, roughly half what comparable regional pilots earn—meet the “prevailing wage” requirement for green card sponsorship.
Allegiant says visa‑based hiring via H‑1B1 and E‑3 programs is a small, lawful supplement to its workforce after post‑pandemic staffing challenges, and warns union resistance could delay or derail green cards for the foreign pilots. The Teamsters counter that Allegiant should raise wages and fix scheduling to retain U.S. pilots instead of leaning on lower‑paid visa workers, alleging the company verbally promised some foreign pilots a path to citizenship during a 2023 hiring spree. The dispute unfolds amid nationwide pickets, a 97% strike authorization vote, Allegiant’s ambitious 2026 route expansion, and a renewed Trump‑era crackdown on foreign workers—turning a niche staffing tactic into a broader fight over how airlines use immigration channels to manage labor costs.
Key Indicators
People Involved
Organizations Involved
Allegiant Air is a U.S. ultra‑low‑cost airline focused on nonstop routes between small and mid‑sized cities and leisure destinations, operated by parent Allegiant Travel Company.
Teamsters Local 2118 represents approximately 1,300–1,400 Allegiant Air pilots nationwide in contract negotiations, safety issues, and disputes over the airline’s use of foreign visa pilots.
The U.S. Department of Labor oversees labor standards and administers the Permanent Labor Certification (PERM) process required for employers to sponsor foreign workers for green cards, including airline pilots.
Timeline
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Pilots’ union blocks Allegiant bid to secure green cards for foreign pilots
Immigration & Labor ClashReuters reports that Allegiant’s pilots’ union has refused to certify to the U.S. Department of Labor that Allegiant pilot jobs meet prevailing‑wage standards, a required step for the company’s permanent labor certification applications. The move effectively blocks or delays green cards for about 62 foreign pilots from Chile, Australia, and Singapore hired on H‑1B1 and E‑3 visas. The union argues Allegiant should raise pay and improve schedules to retain U.S. pilots rather than relying on low‑paid foreign hires; Allegiant says visa hiring is a small, lawful supplement to its workforce.
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Media spotlight on Allegiant’s 2026 expansion and pilot unrest
Corporate StrategyCoverage of the November pickets notes Allegiant’s plan to add 30 new nonstop routes across 35 cities in 2026, with low promotional fares, even as pilots protest pay and scheduling. The juxtaposition raises questions about whether expansion is sustainable amid labor turmoil and potential staffing constraints.
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Allegiant pilots picket at 22 U.S. airports over stalled contract talks
Public ProtestNearly 1,400 Allegiant pilots, represented by Teamsters Local 2118, hold coordinated informational pickets at 22 airport bases. They demand higher pay and better scheduling under a contract that has been amendable since 2021. Allegiant highlights its offer of a 50% immediate average wage increase rising to 70% over five years, plus improved benefits, but disputes persist over schedules and surplus‑pilot designations.
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Pilots ask National Mediation Board to release parties from mediation
Regulatory MoveTeamsters Local 2118 formally requests that the National Mediation Board release Allegiant and the union from mediation. If granted and if either side refuses arbitration, this could start a 30‑day cooling‑off period after which a legal strike would be allowed.
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Practice picket at Allegiant HQ signals escalating tensions
Public ProtestAllegiant pilots and Teamsters leaders, including General President Sean O’Brien, stage a practice picket outside Allegiant’s Las Vegas headquarters. They denounce Allegiant’s attempts to tie pay raises to concessions on working conditions and highlight the airline’s spending on non‑core ventures.
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Allegiant pilots vote 97.4% to authorize a strike
Union ActionTeamsters Local 2118 announces that Allegiant pilots have voted 97.4% in favor of authorizing a strike if the carrier fails to reach a fair contract, citing low pay and intense schedules. The vote does not immediately trigger a strike but increases pressure under the Railway Labor Act.
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Retention bonus program for Allegiant pilots begins accruing
Compensation PolicyAllegiant launches a retention‑bonus scheme for pilots, set to be paid out upon ratification of a new contract. By late 2025, the company says senior captains could receive more than $200,000 in bonuses, but pilots argue bonuses do not replace a fair base‑pay and scheduling framework.
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Allegiant begins hiring foreign pilots on H‑1B1 and E‑3 visas
Staffing DecisionFacing difficulties recruiting enough U.S. pilots as post‑pandemic travel surges, Allegiant starts hiring foreign pilots on H‑1B1 visas from Chile and later E‑3 visas from Australia and Singapore. Union officials say some were verbally promised future green cards and citizenship while being offered salaries around $50,000 per year.
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Pilot contract becomes amendable, opening path to renegotiation
Labor ProcessThe 2016 Allegiant pilot contract becomes amendable under the Railway Labor Act. Negotiations begin over wages, scheduling, and quality‑of‑life provisions, but talks drag on for years amid industry‑wide pilot shortages and Allegiant’s rapid expansion plans.
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Allegiant pilots ratify contract that will later become a flashpoint
Labor AgreementAllegiant Air pilots approve a collective bargaining agreement that sets pay and scheduling rules. The contract is scheduled to become amendable in 2021; union leaders will later argue it leaves pilots significantly underpaid relative to peers.
Scenarios
Contract Deal Raises Pay and Eases Schedules, Clearing Path for Green Cards
Discussed by: Union statements, Allegiant public offers, and labor analysts covering recent airline contracts
In this scenario, Allegiant and Teamsters Local 2118 reach a comprehensive contract settlement that significantly narrows the pay gap with competitors and improves scheduling protections. Allegiant’s public offer—an immediate 50% average wage increase rising to 70% over five years, plus enhanced retirement and disability benefits—forms the baseline, but the final deal also addresses pilots’ concerns over control of off days, reserve usage, and the classification of surplus pilots. Once pilots feel wages are at or near industry standards, Local 2118 could provide the documentation the Department of Labor needs to certify pilot jobs as prevailing‑wage positions, unfreezing green card processing for the 62 foreign pilots. This would stabilize Allegiant’s staffing and support its 2026 expansion, while giving foreign pilots the permanent status many say they were promised.
Prolonged Stalemate: Foreign Pilots in Limbo and Gradual Attrition at Allegiant
Discussed by: Union leaders warning of attrition and industry reporters tracking pilot moves to major carriers
If neither side concedes on core issues—pay parity and schedule control for the union, cost structure and flexibility for Allegiant—the dispute could drag on. Foreign pilots would remain on temporary visas with no clear path to permanent residency, potentially advised not to leave the U.S. due to immigration risk. Some may return home or seek other employment if visas near expiration. Meanwhile, Allegiant could continue to lose experienced U.S. pilots to higher‑paying carriers like Delta, United, and American, as union spokespeople say is already happening. This scenario preserves short‑term operational continuity but undermines Allegiant’s reliability and growth plans, especially as it tries to staff 30 new routes in 2026.
Regulators or Courts Reframe Use of Visa Programs in Airline Hiring
Discussed by: Immigration and labor policy commentators drawing parallels to past H‑1B controversies at firms like Disney and Southern California Edison
The Allegiant case could spur scrutiny of how airlines deploy employment‑based visa programs for pilots. Lawmakers or regulators—particularly in a Trump‑era environment skeptical of foreign labor—might tighten prevailing‑wage tests, require more rigorous proof that no qualified U.S. pilots are available, or limit the use of PERM in sectors with active union opposition. Alternatively, Allegiant or affected foreign pilots could seek legal recourse or policy relief, arguing that union gatekeeping over DOL documentation unfairly jeopardizes their immigration status. Past backlash over H‑1B use at companies such as Disney and Southern California Edison illustrates how public outrage can trigger investigations and legislative proposals even without immediate statutory change.
Release From Mediation Triggers Strike or Near‑Strike Showdown
Discussed by: Teamsters’ own communications about seeking release from the National Mediation Board and aviation labor analysts
Should the National Mediation Board grant Local 2118’s request to be released from mediation, and if either side rejects binding arbitration, a 30‑day cooling‑off period would begin. With a 97% strike authorization in hand, pilots could launch a strike or use the threat of one to win last‑minute concessions. Allegiant might secure a presidential emergency board or other intervention given the potential impact on air service to smaller communities, but even a near‑strike could disrupt operations and force the company to revisit its reliance on foreign pilots. A settlement under these conditions could yield a richer contract for pilots and possibly clearer rules governing visa hires, but at the cost of short‑term instability and reputational damage.
Historical Context
Sunwing Airlines’ Aborted Plan to Hire Temporary Foreign Pilots (Canada)
2022–2023What Happened
In 2022, Canadian carrier Sunwing Airlines sought permission to hire about 63–65 foreign pilots through Canada’s Temporary Foreign Worker Program, arguing a pilot shortage and planning to pay some of the foreign pilots more than unionized Canadian captains. Unifor and the Air Line Pilots Association (ALPA) Canada denounced the move as a misuse of the program, warning of safety issues and undermining of collective bargaining. After a high‑profile campaign, Sunwing withdrew its application in December 2022, and unions hailed it as a major victory against employers using foreign pilots to avoid improving pay and conditions for local crews.
Outcome
Short term: Sunwing backed away from its plan, and Canadian unions demonstrated they could block the use of foreign pilots through public pressure and engagement with regulators.
Long term: The case became a precedent in Canada for limiting employers’ reliance on temporary foreign pilots, reinforcing the idea that labor shortages should be addressed through domestic hiring and better contracts rather than guest worker programs.
Why It's Relevant
The Sunwing episode mirrors Allegiant’s conflict: unions challenge airlines’ claims of pilot shortages, argue that foreign hiring undermines bargaining, and successfully leverage regulatory processes to block visas—suggesting Allegiant’s union may exert similar leverage unless the company improves pay and conditions.
Disney and Southern California Edison H‑1B Visa Controversies
2014–2016What Happened
In the mid‑2010s, Walt Disney World in Orlando and Southern California Edison came under fire for laying off hundreds of U.S. IT workers and replacing them with contractors on H‑1B visas. Some Disney employees were required to train their foreign replacements, leading to class‑action lawsuits alleging that Disney and outsourcing firms misused the visa program to displace American workers and undercut wages. Similarly, Southern California Edison faced congressional criticism after announcing layoffs while hiring hundreds of H‑1B workers through contractors, prompting accusations that the company was exploiting loopholes around prevailing‑wage and non‑displacement rules.
Outcome
Short term: The controversies generated intense media scrutiny, lawsuits, and congressional hearings, but did not immediately overhaul H‑1B law. Some claims were dismissed or settled, and companies defended their actions as legal cost‑cutting.
Long term: The cases helped cement public skepticism about employers’ use of skilled‑worker visas, feeding later political movements—including Trump‑era reforms—aimed at tightening eligibility, strengthening prevailing‑wage enforcement, and protecting U.S. workers from displacement.
Why It's Relevant
These episodes show how disputes over visa‑based hiring can escalate into national debates on whether immigration tools are being used to undercut domestic labor. Allegiant’s reliance on H‑1B1 and E‑3 pilots, and the union’s prevailing‑wage objections, could similarly attract policy attention if framed as another example of corporate wage arbitrage.
U.S. Airline and Flight‑Crew Organizing Under the Railway Labor Act
Ongoing (notably 2010s–2020s)What Happened
U.S. airlines and their workforces operate under the Railway Labor Act, which makes strikes rare but high‑stakes once legal conditions are met. Recent years have seen large‑scale organizing, informational pickets, and strike threats among pilots and flight attendants at carriers ranging from the majors to regionals and ultra‑low‑cost airlines. Cases such as the SkyWest "company union" lawsuit underscore ongoing conflicts over representation, while practice pickets and strike authorization votes have become common bargaining tools.
Outcome
Short term: Most disputes end in last‑minute settlements before strikes occur, often delivering substantial pay increases and quality‑of‑life gains for crews, especially in a tight pilot labor market.
Long term: The pattern has raised wage floors across the industry but left structural issues—like scheduling control, reserve utilization, and management’s use of alternative staffing models—unresolved, leading to repeated cycles of conflict.
Why It's Relevant
Allegiant’s standoff fits squarely into this broader wave of airline labor assertiveness, but with an added twist: the union is using immigration chokepoints, not just strike threats, to shape management’s staffing options. How this plays out could influence tactics at other airlines confronting the intersection of visa hiring and collective bargaining.