““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 ”
Cessna Sets Sail with Long-awaited Columbus
Cessna's large-cabin Citation, the Columbus, is a "go" for launch. The all-
aluminum jet can seat 10 passengers and will cost $27 million (2008 dollars). First flight is expected in 2011, with FAA certification scheduled for 2013 and first deliveries in 2014. In a departure from how it currently builds Citations, Cessna is outsourcing construction of the fuselage and empennage to Spirit AeroSystems. Pratt & Whitney Canada's new 8,830-pound-thrust PW810 engine will power the Columbus, and Rockwell Collins will supply its Pro Line Fusion glass cockpit. The jet will have a 4,000-nautical-mile range at Mach 0.80 and a maximum cruise speed of Mach 0.85. Required takeoff distance at maximum takeoff weight will be 5,400 feet. Cessna has letters of intent for purchase of 70 of the aircraft.