““CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. More good news is released when CEOs are back at work, and CEOs appear not to leave headquarters at all if a firm has adverse news to disclose. When CEOs are away from the office, stock prices behave quietly with sharply lower volatility. Volatility increases immediately when CEOs return to work.” —David Yermack, a New York University finance professor, whose recently released study shows a correlation between when CEOs take their private jets on vacation and movements in their companies’ stock price ”
Bizjet Accidents Increased Significantly Last Year
The number of non-fatal accidents involving U.S.-registered business jets nearly doubled from 16 in 2010 to 31 last year, according to statistics compiled by BJT sister publication Aviation International News. During the same period, the number of accidents involving U.S.-registered turboprops increased from 32 to 43.
In the one fatal business jet accident last year, all four crewmembers were killed in a crash during a test flight of a new Gulfstream G650 (like the one pictured). Two people died in the single fatal accident of a business jet in 2010. There were no fatal Part 135 jet accidents over the last two years. Meanwhile, the number of fatalities in turboprop accidents more than doubled from 2010 (when 12 died in four accidents) to last year (when 29 were killed in 11 accidents).
Last year, five accidents involving non-U.S.-registered jets on private, charter and government missions killed 68 people (including a charter with 44 people on board), compared with four accidents and 14 fatalities in 2010. Similar missions by non-U.S. registered turboprops killed 55 people last year compared with 59 in 2010.