Al­le­giant shares fall af­ter ‘60 Min­utes’ re­port

Sun Sentinel Broward Edition - - MONEY - As­so­ci­ated Press

LAS VE­GAS — Shares of Al­le­giant Air’s par­ent com­pany fell Mon­day af­ter a news re­port that is rais­ing se­ri­ous safety ques­tions about the low-cost car­rier.

Al­le­giant is de­fend­ing its safety and says the re­port by CBS News’ “60 Min­utes” tells a “false nar­ra­tive” about the air­line. In­vestors, how­ever, fear that the neg­a­tive pub­lic­ity will cause trav­el­ers to avoid Al­le­giant, which has a fleet in­clud­ing many older planes that typ­i­cally re­quire

“60 Min­utes” re­ported Sun­day night that from Jan­uary 2016 to Oc­to­ber 2017, the Las Ve­gas-based air­line ex­pe­ri­enced more than 100 se­ri­ous me­chan­i­cal in­ci­dents, in­clud­ing aborted take­offs, loss of cabin pres­sure and emer­gency land­ings.

CBS said that de­tailed re­ports from the Fed­eral Avi­a­tion Ad­min­is­tra­tion in­di­cated that Al­le­giant flights were three-and-ahalf times more likely to more main­te­nance. suf­fer an in-flight break­down than flights op­er­ated by Amer­i­can, United, Delta, JetBlue or Spirit.

The re­port also aired a long-run­ning ac­cu­sa­tion by the Team­sters union lo­cal rep­re­sent­ing Al­le­giant pi­lots that the air­line dis­cour­ages pi­lots from re­port­ing me­chan­i­cal prob­lems with planes.

Al­le­giant is­sued a state­ment by Eric Gust, vice pres­i­dent of op­er­a­tions, charg­ing that the CBS story told a “false nar­ra­tive” about Al­le­giant and the FAA. He said the air­line com­plies with all FAA re­quire­ments and takes part in many vol­un­tary safety pro­grams and is sub­ject to “rig­or­ous over­sight” by the FAA.

“To sug­gest that Al­le­giant would en­gage in the prac­tice of ask­ing team mem­bers to vi­o­late com­pany and reg­u­la­tory obli­ga­tions is of­fen­sive and defam­a­tory,” Gust said.

Shares of par­ent com­pany Al­le­giant Travel Co. fell $4.65, or 3 per­cent, to $146.40 in trad­ing Mon­day.

DAVID BECKER/AP 2013

Shares of Al­le­giant Air’s par­ent com­pany fell 3 per­cent Mon­day af­ter a “60 Min­utes” re­port on safety con­cerns.

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