Published: Tue, April 17, 2018
Money | By Armando Alvarado

Allegiant Travel Company (NASDAQ:ALGT) Plummeted 9% Ahead of 60 minutes Investgation

Allegiant Travel Company (NASDAQ:ALGT) Plummeted 9% Ahead of 60 minutes Investgation

John Goglia, who has more than 40 years of experience in the aviation industry, including nine as a presidential appointee to the National Transportation Safety Board, told "60 Minutes" he has "encouraged my family, my friends and myself not to fly on Allegiant".

Allegiant is phasing out its oldest planes, and it seems to be helping.

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After consulting with Goglia and other safety experts, 60 minutes concluded that the airline's aggressive business model, which has produced 60 straight quarters of profits, led to a lagging safety culture made worse by the oldest fleet of planes operating in the USA ("almost all of them purchased second-hand from foreign airlines") and a lack of parts and mechanics. Allegiant says it operates at the "highest safety standards". They make up about 30% of its fleet.

Allegiant is known for low-priced, no-frill flights.

Allegiant flies to 78 destinations in the U.S., Canada and Puerto Rico, out of the Sanford airport.

The pilot's union still has safety concerns.

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The net worth of Allegiant Travel Company CEO Maurice Gallagher Jr. has also taken a $52 million dip since Friday. The company's revenue for the quarter was up 12.7% on a year-over-year basis. sell-side analysts predict that Allegiant Air will post 10.82 EPS for the current year. "They don't make any bones about it".

In a statement on Monday, Allegiant dismissed the claims in the CBS story as a "false narrative" and called any suggestions of intentional regulatory violations "offensive and defamatory". He said the FAA is being "a safety partner" to the airlines, and "it is working". What we found raised some disturbing questions about the performance of their fleet.

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Communities Secretary Sajid Javid had said he was "deeply concerned" at the treatment of people who were "long-standing pillars of our community".

The FAA exercises rigorous oversight of Allegiant, as they do all airlines operating in the United States. That was a major screw up, wasn't it? Steve Kroft: This was three years ago.

Seven months of investigation went into the report that aired Sunday night. "We are disappointed yet again by another feeble attempt to damage the reputation of our hard-working team members and that of our company". This unoriginal and outdated story bears no resemblance to Allegiant's operations today, and shows a fundamental misunderstanding of FAA compliance practice and history.

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.

The FAA increased its monitoring of Allegiant in 2016 because of labor tension with its pilots.

She said the report gave her no pause before boarding the aircraft and that she would continue to book flights with the low-priced carrier.

He said he felt some of the problems reported come with the territory of flying for cheap.

Investigative reporting on US aviation is still hard.

FAA associate administrator of safety Ali Bahrami defended the agency's performance by pointing to the lack of a fatal crash involving a USA airline since 2009, and said FAA regulation "has been very successful" in pushing airlines "to the highest level of safety". "I was so surprised".

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