Allegiant Air, with ultra-low fares, draws FAA’s attention over safety concerns
Dozens of incidents have prompted scrutiny of the safety and maintenance practices at Allegiant Air. In an industry that has habitually struggled to make money, Allegiant’s soaring earnings stand out. Last year, its profits jumped 154%, to US$220.4m, as the carrier — relying heavily on cheaper, previously used planes — flew more than 300 routes. In June, Allegiant announced a dozen new routes and 3 new cities. But observers are asking whether Allegiant has pursued fast growth and financial success at the expense of other considerations. Unwanted attention has come from federal regulators worried about safety, investors betting against the stock, a pilots union concerned about maintenance, and corporate governance experts who fault the airline’s cosy board of directors as not doing more to head off problems. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-02/unaligned/allegiant-air-with-ultra-low-fares-draws-faa2019s-attention-over-safety-concerns
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Allegiant Air, with ultra-low fares, draws FAA’s attention over safety concerns
Dozens of incidents have prompted scrutiny of the safety and maintenance practices at Allegiant Air. In an industry that has habitually struggled to make money, Allegiant’s soaring earnings stand out. Last year, its profits jumped 154%, to US$220.4m, as the carrier — relying heavily on cheaper, previously used planes — flew more than 300 routes. In June, Allegiant announced a dozen new routes and 3 new cities. But observers are asking whether Allegiant has pursued fast growth and financial success at the expense of other considerations. Unwanted attention has come from federal regulators worried about safety, investors betting against the stock, a pilots union concerned about maintenance, and corporate governance experts who fault the airline’s cosy board of directors as not doing more to head off problems. <br/>
