(Reuters) - Allegiant Travel Co said it would raise its pilots' pay by 5-7 percent per hour effective May 1 and that the Federal Aviation Administration (FAA) had stepped up its surveillance of labor disputes at the low-cost airline operator.

Allegiant also said it expects a successful outcome on a preliminary injunction it had filed against a planned strike by its pilots, after two years of talks on contract terms fell through.

On April 1, a U.S. judge issued an order temporarily blocking Allegiant Air pilots from striking, avoiding a strike that could have grounded more than 250 flights throughout the country ahead of a holiday weekend.

The FAA has indicated that it would not process any current or additional requests for work relating to Allegiant's planned growth.

Allegiant said it does not yet expect any immediate effect on its operations.

The company on Wednesday reported a profit of $3.74 per share for the first quarter ended March 31, above analysts' average estimate of $3.53, according to Thomson Reuters I/B/E/S.

Allegiant's shares closed down slightly at $167.85 on Wednesday on the Nasdaq.

 

They sure like to change things unilaterally, over there.

 

This is the contractually obligated pay raise from the 2010 negotiated Pilot Work Works. They are not GIVING the pilots anything that they didn't have to per the contract that the judge has ruled is the law of the land.

This is just their spin doctors trying to make it look like they are just giving the pilot group money out of the goodness of their hearts.

ETA: and it was discussed a few days ago here: http://www.airlinepilotforums.com/ma...t-air-253.html

 

OK, thanks.

 

They just saw a 95% increase in profit for Q1 BTW

 

Meanwhile....

ALGT Executive Compensation up 32.74% in 1 year (2012-2013...2014 not reported yet)

Total Exec. Comp (all positions)
2010 - $2.73 mil
2011 - $4.70 mil
2012 - $7.00 mil
2013 - $9.29 mil

Andrew C. Levy - President & COO
2010 - $1,040,195
2011 - $1,515,020
2012 - $1,910,910
2013 - $5,207,042

ALGT Allegiant Travel Co LLC Executive Compensation

 

He also got quite a parachute when he "left to pursue other avenues" last year. Came right out of the operating funds. Remember our current pay is tied to operating margin, so that was a nice present for the pilots. :/