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

17 April, 2018, 03:08 | Author: Regina Silva
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          Senators demand information about FAA's handling of safety measures at Allegiant Air        Senator calls for DOT investigation of Allegiant

"The story is outdated, bears no resemblance to the Allegiant I know, and shows a real and troubling misunderstanding of the FAA's rigorous oversight of Allegiant and all USA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".

But Allegiant has been retiring those MD-80 planes, which frequently encounter service problems.

"Safety is at the core of every aspect of our operation, every day", Eric Gust, the airline's vice president of operations, wrote to customers.

Our experience in 2015 was in the midst of a time when employees were complaining that the airline was not safe.

Last July, 10 Allegiant planes had to make unscheduled landings, "60 Minutes" reported. It said a pilot who was sacked after ordering an evacuation of a plane which was a focus of the report was not fired for putting passenger safety ahead of airline assets, as the report said, but because the airline determined he unnecessarily evacuated a plane "at great risk to the crew and passengers" even though there "was no smoke, fire, or an aircraft malfunction".

"It would not be one of my top choice airlines", he said. He said the airline is in the process of replacing its fleet with new Airbus jets, and in January had the second lowest number of flight cancellations among USA carriers. Gallagher was a founder, director and executive at ValuJet. 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.

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%.

Allegiant also posted a statement dismissing the incidents described in the show as "years old" and as having occurred before the company's latest FAA audit.

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Allegiant may have some cause to believe it can weather the storm, however.

When choosing your airline, you may focus more on price than anything else.

The Nevada-based low-priced carrier boasts a fleet of around 100 mostly second-hand Airbus A320-family and McDonnell-Douglas MD80 series jets.

Older planes can be operated very safely, but they tend to burn more fuel and require more maintenance. Four analysts have provided estimates for Allegiant Air's earnings. In 2016, the agency moved up a routine review of the airline by two years after a series of aborted takeoffs and other safety incidents. They received the corresponding documents from each of the airlines except Allegiant, which objected.

He called the reports "outdated" and said they were lacking an understanding on FAA practices.

Since the 1990s, the FAA has stressed voluntary reporting of potential safety issues before taking punitive enforcement actions.

60 Minutes also pointed a finger at the Federal Aviation Administration, which over the last three years has switched its priorities from actively enforcing safety rules with fines, warning letters and sanctions-which become part of the public record-to working quietly with the airlines behind the scenes to fix the problems. The report said there was smoke in the cabin and a fire in the engine that prompted the evacuation.

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