Allegiant Pilots Cry Foul – Mexican Airline Deal Threatens US Jobs

Pilots at ultra-low-cost airline Allegiant have accused the carrier of effectively trying to off-shore their jobs by arranging a highly controversial tie-up with the Mexican budget airline Viva Aerobus.

The dispute isn’t new, as Allegiant first applied for antitrust immunity to start a joint venture with Viva Aerobus back in 2021, but the controversial business plan is once again in the headlines after Allegiant asked the Department of Transportation (DOT) to get on with reviewing its application.

Allegiant’s Mexican Expansion Plans

Allegiant believes that it could quickly launch as many as 92 new non-stop routes between Mexico and secondary cities like Appleton, Grand Rapids, and Stockton, as well as larger destinations like Pittsburgh, Nashville, Cincinnati, and Las Vegas.

Unsurprisingly, Allegiant has painted the tie-up as overwhelmingly good for the American consumer, driving down ticket prices on routes that have suffered years of “oligopolistic pricing” by the likes of American Airlines, Delta, and United.

According to an updated application recently filed with the DOT, Allegiant’s lawyers claimed American consumers had been forced to pay an additional $235 million in fares as a result of its failure to approve the joint venture.

What’s more, a further one million passengers have allegedly been priced out of traveling to or from Mexico due to the high fares charged by the dominant players in the market.

“Allegiant’s un-American attempt to outsource Teamsters work to foreign crews is unacceptable”

Teamsters General President Sean M. O’Brien

Given the argument that the joint venture will create new routes and business for Allegiant, you would have thought that the union that represents pilots at the airline would be largely supportive of the plan.

You would, however, be wrong. In fact, the Teamsters union says it “strongly opposes” the deal as it would “give the majority of jobs and flying hours to Mexican crews with Viva Aerobus at the expense of 1,400 Allegiant pilots.”

“A Shameless Attempt to Lower Standards”

“We see Allegiant’s proposal for what it is –– a shameless attempt to lower our members’ standard of living, all to enrich Allegiant’s greedy executives,” blasted Teamsters General President Sean M. O’Brien.

“Allegiant’s un-American attempt to outsource Teamsters work to foreign crews is unacceptable,” O’Brien continued. “Allegiant pilots and customers deserve better than this carrier’s disrespect.”

Captain Josh Alen described Allegiant’s tie-up with Viva Aerobus as “insulting” and said he feared that if the DOT approves the deal, it will “kill American Jobs.”

Allegiant Pushes DOT to Act Fast on Viva Deal

Allegiant, however, says its expansion into the international US-Mexico market is almost essential to keep the airline going, arguing that low-fare airlines are struggling on domestic routes and need the space to expand internationally.

Under the Biden administration, Allegiant’s application was allowed to languish, but the airline is now hoping the DOT will work to quickly review and approve the application – something that the Teamsters argue should be denied on the “strongest possible terms.”

Should U.S. airlines be allowed to outsource jobs like this?