Monday, 24 September, 2018

Allegiant Air feels impact of damaging "60 Minutes" report

60 Minutes Preview: Is Allegiant Airlines Safe to Fly? Allegiant Air Story on '60 Minutes' Reminds me of My Experience
Laurie Berry | 17 April, 2018, 04:49

The 60 Minutes report claims that there have been a large number of safety issues for an airline the size of Allegiant Air.

Davis said the report used data from a time when Allegiant was experiencing "growing pains".

In 2014, a flight headed from the Ford to Florida was forced to make an emergency landing in SC after a loss of pressure in the cabin. And its good to know that the higher that percentage, the more the company retains on each dollar of sales, to service its other costs and the debt obligations, and Allegiant Travel Company (NASDAQ:ALGT)'s gross margin stands at 68.90%. The report also aired a long-running accusation by the Teamsters union local representing Allegiant pilots that the airline discourages pilots from reporting mechanical problems with planes.

During the investigation, Kroft spoke to several passengers who had travelled onboard Allegiant Air flights.

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Allegiant's Vice President of Operations Capt. Eric Gust defended the company and issued a statement saying the report by "60 Minutes" is unoriginal and outdated. "The story is outdated, bears no resemblance to the Allegiant I know, and shows a real and troubling misunderstanding of the FAA's rigorous oversight of Allegiant and all USA airlines".

Phoenix-Mesa Gateway Airport released the following statement: "Like all certified commercial airlines, Allegiant works very closely with the Federal Aviation Administration (FAA) to ensure strict aircraft safety compliance". In a response to the 60 Minutes story, the FAA reported a sharp decline over the past three years experienced by Allegiant flights. Wolfe Research raised shares of Allegiant Air from a market perform rating to an outperform rating in a report on Thursday, February 1st. Notably, none of the concerns allegedly expressed by Allegiant team members during the 60 Minutes episode were found to have been reported through any of these appropriate channels. 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. We have safely carried almost 90 million passengers since beginning operations in 2001. Our workforce is made up of more than 4,000 dedicated and hard-working people who wake up every day thinking about how to move our customers safely from one place to another. He said the airline complies with all FAA requirements, and that any suggestion the airline muzzled employees "is offensive and defamatory".

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".

Part of the problem in 2015 when the initial investigation was launched was the planes Allegiant was flying. However, we ask that you refer to Allegiant or the FAA for any specifics. The 60 Minutes report referenced a 2015 report from the Tampa Bay Times that found the low-priced carrier made emergency landings at four times the rate of other airlines in the United States.

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