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

Andrew Cummings
April 17, 2018

The airline is popular in the Quad Cities, it offers nonstop, discounted flights between Moline and places like Phoenix, Orlando, Clearwater/St. Petersburg and Las Vegas.

In a statement responding to questions from "60 Minutes", Capt. Eric Gust, vice president of operations for Allegiant Air, said the airline is proud of its "strong safety record", and emphasized the airline's low cancellation rate, which "demonstrates our operational integrity and commitment to safety and reliability".

Bill Nelson is calling for an investigation into the FAA for its reported handling of an Allegiant Air's poor safety record.

We have also not heard back from the FAA for comment.

The low-priced airline based out of Las Vegas, with several flights coming through Concord Regional Airport, reportedly has more than three times the number of serious in-flight mechanical failures as other U.S. Airlines, according to the results of a seven-month investigation by the 60 Minutes team.

"We found little in the way of incrementally negative data points concerning Allegiant's operational challenges over the past few years on last night's 60 Minutes", Stifel analyst Joseph DeNardi wrote in a note to clients Monday.

The report of "60 minutes" also highlights an incident involving Captain Jason Kinzer, who was sacked in 2015 because smoke was found in the cabin shortly after the take off (sources say).

Tim Davis of Direct Travel is offering support for Allegiant Airlines. Allegiant also canceled or rescheduled 11 separate flights leaving Las Vegas, its headquarters, during that month. This one-sided presentation falls far short of responsible journalistic standards expected from reputable outlets, including 60 Minutes. Not only do we expect our team members to adhere to all company procedures and policies-including safety procedures-but many positions are subject to statutory and regulatory obligations. "We have safely carried almost 90 million passengers since beginning operations in 2001". She said she has seen signs of poor maintenance on flights she has taken with Allegiant.

The CBS story is just the latest examination of the carrier in recent years that has found significantly higher safety problems aboard Allegiant flights as compared to its rivals. "All we can do is we can encourage Allegiant to do what's right", he said, adding he thinks it will overcome the controversy. The FAA later overruled Allegiant's objections and produced the documents.

If 60 Minutes had been interested in current information, they would have reported that today, according to just-released Department of Transportation data, Allegiant is a leader in reliability, with the second-lowest cancelation rate among all USA airlines.

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