Allegiant Air shares nosedive on '60 Minutes' report on safety concerns

Allegiant Air shares nosedive on '60 Minutes' report on safety concerns

Captain Eric Gust, vice president of operations at Allegiant, said in a prepared statement that "60 Minutes" aired a "false narrative about Allegiant and the FAA, which he said exercises "rigorous oversight" of the airline". The nighttime news program raised serious concerns about the company's track record, reporting that the airline suffered a high number of mid-flight breakdowns and unscheduled landings - about 100 serious incidents reported to the Federal Aviation Administration in the almost two-year period between January 2016 and the end of October.

It says Allegiant had more than 40 in-flight emergencies or unscheduled landings in 2016, and is nearly four times more likely to experience a mid-flight breakdown than Delta, United or American airlines.

Allegiant Air is the Las Vegas based ultra-low-cost carrier.

"The FAA is vigilant in scrutinizing the operations of all airlines and is prepared to act on new information brought to its attention from data, from inspectors' observations and findings, and from any reliable source about any carrier at any time", said the letter from Ali Bahrami, FAA associate administrator for aviation safety.

The company also sent 8 On Your Side a lengthy statement insisting their planes are safe and called the 60 minutes report inaccurate. Citing reports the airline filed with the FAA, "60 Minutes" uncovered an unusually high number of emergencies on the low-priced airline's flights - things like failed engines or aborted takeoffs. I know that Allegiant has improved their safety issues over the years and are continuing to improve.

A local travel agent is disputing a report from 60 Minutes that claimed Allegiant Airlines has placed passengers on planes with safety or maintenance issues.

Allegiant was among the first low-priced carriers to fly out of the Gerald R. Ford International Airport near Grand Rapids. The people, however, through social media have shown their active participation and have given their views too for the Air Allegiant that they won't be travelling in that aircraft. For example, the show's star interviewee, John Goglia, is not an un-biased commentator; he is a paid expert working for a former Allegiant pilot who has sued Allegiant. "It focused primarily on events of several years past, prior to the FAA's most recent comprehensive audit of Allegiant Air, which revealed no systemic or regulatory deficiencies ..."

In that time period, "60 Minutes" counted dozens of in-flight mishaps and in-flight emergencies on Allegiant's planes. They received the corresponding documents from each of the airlines except Allegiant, which objected. Additionally, we expect our team members to follow all company policies and practice strict adherence to FAA regulations and guidelines.

Allegiant Air (NASDAQ:ALGT) had its price target decreased by Morgan Stanley from $171.00 to $169.00 in a report issued on Thursday.

Allegiant Air offers flights from Pease International Tradeport in Portsmouth to Myrtle Beach in SC, as well as Daytona Beach, Orlando and Fort Myers in Florida. "We have safely carried almost 90 million passengers since beginning operations in 2001".