The nighttime news program raised serious concerns about the company's track record, reporting that the airline suffered a high number of mid-flight breakdowns and unscheduled landings - about 100 serious incidents reported to the Federal Aviation Administration in the almost two-year period between January 2016 and the end of October. Allegiant planes were forced to make 60 unscheduled landings and had 46 in-flight emergencies during that time frame, "60 Minutes" found.
"Yet for the most part, allegiant's difficulties have managed to stay under the radar of the flying public".
Allegiant defended its safety and says the report by CBS News' "60 Minutes" tells a "false narrative" about the airline.
"I want to tell you personally that I am outraged and astounded by the irresponsible, grossly misleading story aired by CBS 60 minutes", Gust said in a statement to customers. Morgan Stanley reiterated an "equal weight" rating and set a $172.00 target price (up previously from $157.00) on shares of Allegiant Air in a research report on Friday, February 23rd.
He noted that Allegiant had the second-lowest rate of cancelled flights in January, at 0.9% of its flights, according to Transportation Department statistics.
Allegiant is known for low-priced, no-frill flights. Wolfe Research raised Allegiant Air from a market perform rating to an outperform rating in a report on Thursday, February 1st. "The bottom line is that, true or false, that was 30 minutes of frightful publicity for Allegiant with sound bites that will extend the story. We'd be surprised if there isn't an impact to bookings in the nearish term", Stifel analyst Joseph DeNardi writes Monday. He also said he had just met with passengers arriving from St. Petersburg, Fla., and everyone he talked with was "extremely impressed with their service and pleased to use Allegiant and MidAmerica". One was a July flight from Cincinnati to Las Vegas that had an engine failure after taking off.
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Older planes can be operated very safely, but they tend to burn more fuel and require more maintenance.
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).
Kinzer was sacked three weeks later and is fighting the dismissal in court. This unoriginal and outdated story bears no resemblance to Allegiant's operations today, and shows a fundamental misunderstanding of FAA compliance practice and history. There have been "no emergency responses due to aircraft problems" with Allegiant, Cantwell said. An internal memo to employees, confirmed by Allegiant, said that the company is "prepared to fight back against '60 Minutes.'" Allegiant is also responding to Twitter posts by asking for private messages to "share our concerns about the story".
Several arguments have come up against Kinzer incident but it is noticeable that this incident was only one of them from the "60 minutes" report.
During a Facebook live we asked some of our viewers if they've experience problems on allegiant.