The management of Inflight ATI, the company based in Dun Laoghaire, Co Dublin, which aims to develop in-flight banking for commercial aircraft, remains confident that it can expand the company and eventually make another approach to the markets.

Next month Cathay Pacific will test the company's technology, which it believes will allow in-flight validation of credit cards.

Because credit cards cannot at present be validated in flight, commercial airlines put a limit on the amount of duty-free sold to passengers using credit cards. They also tend to downplay rather than promote credit card use for in-flight transactions.

Inflight ATI believes a system that will allow in-flight validation will allow airlines push for greater duty-free sales. The system will also allow the development of in-flight e-commerce, banking, and the installation of ATMs on commercial flights.

The company sees itself profiting from the operation of the global telecoms system set up to service the in flight transactions. It has entered into a strategic partnership with the Societe Internationale de Telecommunications Aeronautiques, the owner of the world's largest international private communications network.

Airtel ATN, a company with offices at the same address as Inflight, has entered into an agreement with Inflight for the use of software which facilitates end-to-end telecommunication.

Inflight's chief executive, Mr Mario Cardinali, believes the firm has a "very innovative, original solution" and is "ahead of anyone else in the world" in terms of developing such a system.

If next month's tests prove successful, installation of the system into commercial aircraft would begin next year, Mr Cardinali said.

The failed flotation is a setback but contact was made with parties interested in investing in the company and Mr Cardinali is confident the necessary finance can be procured.

Investment is needed to fund sales and marketing and research and development.

He said the directors' faith in the project is illustrated by the fact that they will not receive remuneration until the project is properly financed and proving successful.

"If it is a failure then we get nothing. That is an enormous disincentive against failure. But if it works, then we all make a lot of money." The flotation failure is a setback which will be overcome. "The destination is exactly the same. The route has changed slightly."