““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 ”
Lufthansa Private Jets Considers New Bizjet Vendor
Lufthansa is weighing possible new options for providing executive charter services through its Lufthansa Private Jets service. The process could lead to a resumption of its alliance with NetJets Europe, with a decision on this expected next month. The German flag carrier's subsidiary Swiss International Air Lines has spent the last few weeks engaged in a formal consultation process over the future of its Swiss Private Aviation division, which is currently the main provider of flights for Lufthansa Private Jets. The consultation is required under Swiss labor laws whenever a company is considering the closure of an operation and the possible loss of jobs. A spokeswoman for Swiss told AIN that the consultation was completed last week and the various options for the future of Swiss Private Aviation are now being considered, with closure appearing to be the likely outcome. A Lufthansa spokesman told AIN that decisions about possible future partners for its private jet operation had not been taken, adding that 2010 was the division's most successful year to date. NetJets Europe would not respond to 'rumors' about the possibility of a resumption in its partnership with Lufthansa. The fractional provider had supplied aircraft for Lufthansa Private Jets until the two companies suspended their cooperation in late 2007.