Allegiant Air under fire following '60 Minutes' safety report

Allegiant plane in the air

Shares of the budget airline were down sharply in pre-market trading

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"The story is outdated, bears no resemblances to the Allegiant I know, and shows a real and troubling misunderstanding of the FAA's rigorous oversight of Allegiant and all US airlines, which is truly the worldwide gold standard in transportation safety", Allegiant vice president of operations Eric Gust said in the statement.

In a memo to employees, CEO Maurice Gallagher and other executives said they were ready "to fight back" against the network.

Last July, 10 Allegiant planes had to make unscheduled landings, "60 Minutes" reported.

Investors fear that negative publicity will drive travelers away from Allegiant.

Shares of parent company Allegiant Travel Co. slid 4.6 percent in early trading.

Airlines are frequently the subject of bad publicity, often around poor customer service. However, despite the frequency of the incidents, Kroft notes that Allegiant has never experienced a fatal accident.

"The Teamsters Airline Division will continue to work with our members and Allegiant to ensure their safety and the safety of the flying public".

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For personal guess ROI is usually expressed as a percentage and is typically used for taking any financial decisions, for the goal 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%. It also has limited competition on many of its routes.

Allegiant buys used planes to keep costs down. As of February 2, it operated 37 McDonnell-Douglas MD-80 planes and 53 Airbus A319 and A320 jets. In the years following, the airline replaced its entire fleet of aircraft at the St. Pete-Clearwater International Airport with Airbus models.

COPYRIGHT VIOLATION NOTICE: "Somewhat Favorable News Coverage Somewhat Unlikely to Impact Allegiant Air (ALGT) Stock Price" was originally published by The Lincolnian Online and is owned by of The Lincolnian Online.

"In July 2016, the Allegiant pilots ratified their first union contract with the company".

Others commented on our Facebook post with mixed reviews. "The City of Concord is not in a position to speak to the safety practices and operations of Allegiant or other carriers, other than all the airlines must meet FAA requirements".

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

"The FAA has conducted ongoing evaluations of Allegiant's safety compliance, as it does with all carriers, and has not identified any significant or systemic problems with the carrier's current operation", FAA Associate Administrator Ali Bahrami wrote.

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