Allegiant retaliates as the law firms circle

Eleanor Steed
By Eleanor Steed April 17, 2018 16:24

Allegiant retaliates as the law firms circle

Enterprising law firms are already advertising for shareholders in Allegiant Travel Company to participate in an investigation that may lead to a class action law suit against Allegiant Air following the 60 Minutes US television programme that accused the airline of a string of safety issues. Several law firms are investigating whether the company and its directors have violated federal securities laws.

Allegiant has retaliated against the claims made in the programme, which reported that the airline had filed more than 100 serious mechanical incidents with the Federal Aviation Authority (FAA) between January 2016 and October 2017, claiming that these documents show a high number of aborted takeoffs, cabin pressure loss, emergency descents and unscheduled landings.

Captain Eric Gust, vice president of operations at Allegiant Air, sent a letter to employees expressing his outrage at the report that he described as an outdated story based on incidents that are years old, which “shows a real and troubling misunderstanding of the FAA’s rigorous oversight of Allegiant and US airlines”. He added that the story was instigated by a terminated employee currently involved in a lawsuit seeking damages from the company. Gust emphasised the airline dedication to safety and says all of the incidents in the programme pre-date the most recent, comprehensive FAA audit.

Nevertheless, Allegiant’s share price fell sharply on the news. Many airlines deal with negative PR attention – the US carriers have been in particular sharp focus of late – how Allegiant deals with this latest incursion will be scrutinised by shareholders and customers.

Eleanor Steed
By Eleanor Steed April 17, 2018 16:24