Inflight shelves planned listing

Inflight ATI, the Irish-based aircraft credit company whose chairman is Mr Albert Reynolds, has abandoned its plan to float on the Luxembourg Stock Exchange.

In a statement yesterday, the company said it has withdrawn its offer of 11 million new ordinary #1 shares and the process for the flotation of the company has now ceased.

"All funds which have been raised to date will be returned to investors from the company's registrars, in compliance with the Companies Acts," it said.

Inflight chief executive Mr Mario Cardinali said: "We are disappointed that the company will not be floated on the Luxembourg Stock Exchange at this time. We are pursuing various options, including offers of private placement and funding from venture capitalists.

"We strongly believe the company remains a positive investment vehicle with excellent prospects based on its product offering and continues to be an innovative and original proposition."

Mr Cardinali said the company will continue with its ambition to be the first company to supply a telecommunications network for real-time credit card validation and other e-commerce purposes to passengers on commercial aircraft.

It is not known what take-up there was for the company's #11 million (£8.7 million) offering and the company said there would be no comment other than that contained in the press statement.

Mr Reynolds would have been entitled to an option for 250,000 ordinary shares at the issue price of #1 if the flotation had gone ahead. That offer now lapses.

Earlier this month, Mr Cardinali would not say whether Inflight's connection with Mr Derek Kelly, who was disqualified from being a director by the High Court in London, had had an impact on its fund-raising exercise. Mr Cardinali said Mr Kelly had only acted as an "introducer" and had no influence on the company. He had no role in the company other than being a shareholder, Mr Cardinali said.

Mr Reynolds was appointed non-executive chairman in June of this year and receives a fee of #57,000 (£45,000) for the 12 days per year he works as chairman. Additional days are paid at the rate of #1,300 per day.

ATI was founded in 1984 in California by Inflight director Mr Thomas Lee. It moved its research and development activities to the Republic in 1986. Its assets were purchased by Inflight ATI this year and include a patent for a mini-ATM which dispenses cash to passengers during flights using credit or debit cards.