NEW YORK CITY, New York: Allegiant Air's attempt to secure permanent U.S. residency for dozens of foreign pilots has been thrown into uncertainty after its pilots' union refused to sign a key federal wage certification, deepening tensions over pay and staffing at the low-cost carrier.

The Teamsters Local 2118 declined to certify to the U.S. Department of Labor that starting salaries of about US$50,000 meet prevailing wage standards — a step required for the airline's green card applications on behalf of pilots from Chile, Australia, and Singapore. Without the certification, the permanent residency process cannot move forward.

The union argues Allegiant should raise compensation and fix scheduling issues to retain U.S. pilots rather than rely on foreign hires. "They had such a hard time in 2023 finding pilots, they actually started hiring visa pilots out of Chile … because they promised them citizenship, a green card verbally to come fly in America for 50,000 bucks a year," said Gregory Unterseher, director of the Airline Division of the International Brotherhood of Teamsters.

Allegiant said it turned to visa programmes during the post-pandemic travel surge as it struggled with workforce shortages, a challenge shared by many U.S. carriers. The airline employs roughly 62 foreign pilots — about four percent of its 1,345-pilot roster — on H-1B1 and E-3 visas. It said the union initially supported its hiring strategy.

In a letter to pilots seen by Reuters, Allegiant warned that the union's refusal could delay green card timelines. "The company condemns the union's decision to harm you," the letter said, adding that its hiring practices comply with federal law and collective bargaining agreements.

Some foreign pilots have been advised not to travel abroad as the Trump administration tightens scrutiny of foreign-born workers, according to the union. "My heart goes out to them," Unterseher said. "They were told … they shouldn't even leave the country."

Pay Pressures and Attrition

Allegiant disputes suggestions of mounting attrition, saying departures remain below industry averages and that it has not needed to hire new pilots recently. But several pilots told Reuters they have seen colleagues leave as frustrations with low pay, scheduling, and the carrier's nearly decade-old labour contract deepen.

"First officers at Allegiant in their first year, in most cases, are making less than flight attendants at other major airlines or TSA agents," said one pilot who recently left the airline.

Allegiant is currently in federal mediation for a new contract. It has offered a 70 percent hourly wage increase over five years. It has been accruing a retention bonus since June 2023, representing an 82 percent pay boost for first-year first officers and a 35 percent boost for other pilots, to be paid once a deal is ratified.

The airline has previously discussed the potential to add up to 1,400 new destinations, but pilots say staffing constraints remain a significant obstacle. "Now that people have options, you are seeing people leaving," said another pilot. "I've got five or six friends … that are leaving."