'60 Minutes' Report Questions Safety of Allegiant Air


'60 Minutes' Report Questions Safety of Allegiant Air

CBS correspondents followed up with some new facts and figures, and nailed a revealing interview with a Federal Aviation Administration official.

Allegiant's response, in a memo sent to employees, called the "60 Minutes" report "inaccurate" and "deceitful".

It has come to our attention that the story was instigated by a terminated employee, now engaged in a lawsuit seeking monetary damages from the company.

CBS did not say the specific time period these records cover. "60 Minutes" is owned by CBS (CBS), and has a significantly larger audience of about 12 million viewers per week, or about 4% of the USA population.

A "60 Minutes" report called Allegiant Air unsafe, and now Allegiant is calling "60 Minutes" deceitful.

Allegiant buys used planes to keep costs down.

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 United States ("almost all of them purchased second-hand from foreign airlines") and a lack of parts and mechanics.

Sunday's program opened with, "For the past seven months, we have been scrutinizing "service difficulty reports" filed by Allegiant with the FAA". Today, the MD-80 makes up less than a third of their fleet.

However it also noted that if the CEO of Allegiant, Maurice Gallagher seems familiar, it's because he was "one of the founders of Valujet, another low-priced carrier with the same business model as Allegiant". Allegiant runs flights out of local airports, including CIRA.

The pilot's union still has safety concerns.

. "To you, a member of our Allegiant family of travelers, I want to be very clear: safety is at the core of every aspect of our operation, every day".

Allegiant and Phoenix-Mesa Gateway are under a five-year contract. "They don't make any bones about it".

No other details of that employee are reported and the entire scenerepresented by the Allegiant seems unclear.

The FAA still doesn't like to talk about safety.

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It's not the first time Allegiant has come under fire.

"We have only had a positive experience with Allegiant Airlines since they began operations previous year". That was a major screw up, wasn't it?

Our Scripps sister station in Las Vegas, KTNV, also reported on safety concerns in an extensive investigation two and a half years ago.

John Duncan: All those incidents have been addressed as I've described multiple times.

"What we found raised some disturbing questions about the performance of their fleet", the "60 Minutes" reporter said on air. "We are disappointed yet again by another feeble attempt to damage the reputation of our hard-working team members and that of our company".

Following Sunday night's showing, Allegiant defended its record.

Allegiant air is a low-priced carrier that is one of the country's most profitable airlines.

By "comprehensive audit", Gust is likely referring to the 2016 review of Allegiant's FAA certificate. 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%.

Users on social media were shocked by the report. "I was so surprised".

Us too, Steve. Us too.

Allegiant isn't happy about the report.