““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 ”
Operational Control for Part 91 on FAA's Radar
The FAA's scrutiny of Part 135 operational control has spurred an interest in operational control of Part 91 business jets. While no specific regulation requires operational control under Federal Aviation Regulation Part 91, owners are responsible for airworthiness and safety, and this implies a need for operational control, according to Mike Nichols, vice president of operations, education and economics for the National Business Aviation Association.
The issue for Part 91 operators came to light during FAA examinations of Part 135 charter companies when the agency asked aircraft owners about who had operational control over certain flights. Some owners didn't know or assumed that the Part 135 certificate holder had operational control, even over Part 91 flights. "What the FAA is saying," Nichols noted, "is that if the owner doesn't want to take control, Part 135 would be the only option." The FAA isn't going to regulate flight departments or management companies, he said, but it may take action against an owner if a flight is conducted illegally or against a management company that should be operating under Part 135 but is not.