Allegiant Travel Company (ALGT) Accused of Failing to Ensure Its Aircraft Were Properly Maintained
According to the complaint alleging breaches of fiduciary duty against the company’s officers and directors, since at least 2015, Allegiant has had the highest rate of emergency landings of any airline in the United States. On November 2, 2016, the Tampa Bay Times published an investigative report revealing the systematic nature of Allegiant’s safety and maintenance problems and noting that approximately half of Allegiant’s aircraft broke down in flight at least once during 2015. Defendants responded by stating they were improving the company’s maintenance and safety processes and that the problems were behind them. The Tampa Bay Times continued publishing reports of safety issues at the airlines throughout 2016 and 2017. Then, in April 2018, CBS News aired a report detailing the continued safety and maintenance problems at Allegiant. The report also claimed that Allegiant lacked the infrastructure and personnel to adequately maintain its aircrafts and that the company discouraged pilots from reporting safety and maintenance issues. These safety issues have cost the company fees for airport emergency services, vouchers and refunds for passengers on aborted or emergency landed flights, fines from the company’s violations of federal and state laws, incentive compensation paid to executives who breached their fiduciary duties, and costs for defending and potentially settling the pending securities class action.