ARG/US Releases First Safety Audit Report

Business Jet Traveler » June 2009
Monday, June 1, 2009 - 5:00am

Cincinnati-based aviation services company ARG/US has released an on-site safety audit report focusing on commonly seen deficiencies in safety management systems (SMS) and emergency-response planning. The report is based on 116 audits of Part 91 and Part 135 operators conducted by ARG/US between Jan. 1, 2007, and Feb. 28, 2009.

According to ARG/US, 65 percent of the audit findings point to a deficient internal-evaluation program, a critical part of an SMS since it is designed to uncover problems before they become causal factors in an accident or incident. SMS manuals and training were also inadequate at about half of the audited operations. As for emergency-response planning deficiencies, blood-borne pathogens and personal protection equipment training and drills topped the list.

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““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 ”

-David Yermack