Wednesday, April 01, 2015

Allegiant Air responds to union's safety accusations

Allegiant Air, the budget airline making its Raleigh-Durham International Airport debut in May, is “just barely meeting acceptable safety standards,” according to a letter published Monday on the International Brotherhood of Teamsters' website, the union representing Allegiant's pilots.

“The fact is we are uncomfortable remaining silent about company practices that negatively impact our customers’ travel and vacation, including your comfort, and – most importantly – your safety,” the letter reads.

Allegiant has about 500 pilots and, according to a union spokesperson, 498 are members.

The letter goes on to call out the fleet for “persistent mechanical problems” and “poor equipment,” as well as “the company’s unwillingness to invest in its operation or its workforce.”

The situation could soon come to a head, as the union sent out a news release Wednesday warning of a pilots' strike April 2. The strike, according to the release, would impact the airline's major hubs across the country, including Orlando, Phoenix, Tampa and Las Vegas. As Allegiant has yet to take off from RDU, it's not something that would impact Triangle flights.

Allegiant accused the union of engaging in “scare tactics” and “manipulating facts” instead of addressing the issues at the bargaining table.

“The safety of our passengers and crew is, above all, our number on priority,” says Steve Harfst, chief operating officer of Allegiant. “Allegiant has one of the best safety records among passenger airlines in the world and complies with all FAA regulations.”

A search for incidents involving Allegiant planes on the Federal Aviation Administration’s Accident and Incident Data System showed 19 reports between 2005 and 2014, all resulting in minor or no damage to the aircraft.

The airline and the union are currently negotiating a contract. The National Mediation Board, the agency that oversees the collective bargaining process, directed both the union and the airline to return to the bargaining table April 29 in Washington, D.C.

In March, an Allegiant executive told Triangle Business Journal that Allegiant was making investments, buying newer planes for its western fleet. Jude Bricker, senior vice president of planning for the airline, said that while newer planes weren’t being purchased specifically for the RDU expansion, RDU flights would benefit from the newer technology, as the planes the new aircraft will be replacing will shift east.

The airline has been making moves to increase its coffer. According to securities filings, the airline borrowed $7.5 million from Nevada State Bank via a subsidiary. Proceeds will be used for general corporate purposes. Additionally, the company closed on a loan agreement, borrowing $30 million, secured by two aircraft, also to be used for general corporate purposes.

As for its expansion into RDU, the company is not planning to hire additional personnel, instead relying on an outside ground crew contractor.

Allegiant focuses on the leisure market, offering budget flights to vacation destinations such as Orlando and Punta Gorda, Florida. To keep prices low, the airline charges extra for many things that are standard on other airlines, such as carry-on luggage.

Source:  http://www.bizjournals.com

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