A recent academic study finds that firms that have been acquired by private equity investors in a leveraged buyout (LBO) transaction on average have 40% smaller private jet fleets than similarly sized publicly traded firms in the same industry. Further, firms often sell some private jets shortly after being acquired by private equity investors.

The private jets are used by employees (typically senior management) in lieu of commercial airline travel.

For clarity, the following table is a hypothetical example.

Firm	Industry	Annual Sales	Ownership	Private Jets
ABC Corp	Widget Manufacturing	$300 Million	Private Equity	6
XYZ Corp	Widget Manufacturing	$300 Million	Public Equity	10

Explain why firms owned by private equity investors own fewer private jets than firms owned by public equity investors.