'60 Minutes' report raises questions over Allegiant Air's safety

60 Minutes Preview: Is Allegiant Airlines Safe to Fly?

The airline plans to retire all its MD-80s by the end of this year.

Almost 173,000 passengers in New Orleans boarded or arrived on Allegiant flights in 2017, according to statistics tracked by Louis Armstrong International Airport.

It has come to our attention that the story was instigated by a terminated employee, now engaged in a lawsuit seeking monetary damages from the company.

"The traveling public deserves to know whether the FAA is conducting thorough safety oversight of Allegiant".

Allegiant's Vice President of Operations, Eric Gust, called the "60 Minutes" report "grossly misleading" in a statement he released Sunday night. To suggest that Allegiant would engage in the practice of asking team members to violate company and regulatory obligations is offensive and defamatory. The pilot is now suing the airline, and one of his paid experts was featured prominently in the "60 Minutes" broadcast. That pilot, Jason Kinzer, claims that he was wrongfully terminated after an evacuation.

"60 Minutes" correspondent Steve Kroft said in an "Overtime" segment that "60 Minutes" got "no cooperation" from either Allegiant or the FAA in the beginning of reporting the story.

The letter said, "In 2016, we moved up allegiant's 2018 scheduled review, known as a certificate holder evaluation process".


Investors fear that negative publicity will drive travelers away from Allegiant. Morgan Stanley decreased their price target on Allegiant Air from $172.00 to $171.00 and set an equal weight rating for the company in a report on Friday, April 6th. Between Jan. 2016 and October 2017, there were 60 unscheduled landings and 46 in-flight emergencies including an explosive engine incident last July.

For personal guess ROI is usually expressed as a percentage and is typically used for taking any financial decisions, for the objective of comparing a Allegiant Travel Company (NASDAQ:ALGT)'s profitability or to compare the efficiency of different investments, hence, ALGT return on investment (ROI) is 8.90%.

"It is unfortunate and disappointing that CBS 60 Minutes has chosen to air a false narrative about Allegiant and the FAA. We'd be surprised if there isn't an impact to bookings in the nearish term".

Allegiant may have some cause to believe it can weather the storm, however. As of February 2, it operated 37 McDonnell-Douglas MD-80 planes and 53 Airbus A319 and A320 jets. In the years following, the airline replaced its entire fleet of aircraft at the St. Pete-Clearwater International Airport with Airbus models. "I thought they were great!"

No fatal incidents have been reported, but Allegiant Air was found to be 3.5 times more likely to have midair breakdowns than other major carriers. They received the corresponding documents from each of the airlines except Allegiant, which objected.

"The FAA. has not identified any significant or systemic problems with the carrier's current operation", FAA Associate Administrator Ali Bahrami wrote. He said the FAA is being "a safety partner" to the airlines, and "it is working".

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