Allegiant Travel shares decrease after '60 Minutes' questions airline's reserve practices

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Allegiant Travel shares decrease after '60 Minutes' questions airline’s reserve practices

A “60 Minutes” news on Allegiant Travel’s reserve and upkeep issues is spiteful a airline’s batch price.

The company’s shares are down 4 percent Monday after a shred aired Sunday on a CBS program. Allegiant’s batch also fell 8.6 percent Friday as news of a entrance disastrous news circulated.

The news purported Allegiant’s planes are some-more approaching to have automatic problems in-flight contra a competitors, citing attention experts and a examination of FAA records. The segment also covered mixed reserve incidents for a airline, including an in-flight engine failure, over a final few years.

An Allegiant Airlines jet flies out of Las Vegas Airport.

One Wall Street researcher expects a news will impact a airline’s financial formula this year.

“We found small in a approach of incrementally disastrous information points concerning Allegiant’s operational hurdles over a past few years on final night’s 60 Minutes,” Stifel researcher Joseph DeNardi wrote in a note to clients Monday. “The bottom line is that, loyal or false, that was 30 mins of terrible broadside for Allegiant with sound bites that will extend a story. We’d be astounded if there isn’t an impact to bookings in a nearish term.”

The airline responded to a report, observant many of a issues cited are not germane today.

“It is hapless and unsatisfactory that CBS 60 Minutes has selected to atmosphere a fake account about Allegiant and a FAA. This ordinary and old-fashioned story bears no similarity to Allegiant’s operations today, and shows a elemental disagreement of FAA correspondence use and history,” Allegiant’s clamp boss of operations, Eric Gust, wrote in a statement. “It focused essentially on events of several years past, before to a FAA’s many new extensive review of Allegiant Air, that suggested no systemic or regulatory deficiencies … The story facilities cherry-picked interviews with people concerned in a lawsuit, including featured comments from John Goglia, a paid plaintiff’s declare presented by CBS as an unprejudiced attention expert. This biased display falls distant brief of obliged journalistic standards approaching from creditable outlets, including 60 Minutes.”

Tae Kim


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