Inflight ATI, an Irish-based company which has developed the technology to operate credit-card validation and cash dispensing facilities on board aircrafts, is preparing to float on the Luxembourg stock exchange. The company is seeking to raise €11 million (£8.6 million) on August 1st through the offering of 30 per cent of Inflight's total share capital. Funds raised will be used to fund further research and development of its data communications products and its marketing activities. The Dun Laoghaire-based group has already pre-placed €8 million worth of shares with investors in Britain, France, Hong Kong, Germany and Ireland. The flotation is being handled by one of Luxembourg's biggest banks, Banque Internationale a Luxembourg. Luxembourg is one of the few European stock markets which allows start-up companies to secure a listing. It is viewed as being a very conservative market and aims to prevent wild fluctuations in the share price of fledgling companies. In the future, Inflight, expects to transfer its listing to a more liquid market.
Inflight ATI was established in April this year to continue the development of ATM systems and other financial services for airlines initially undertaken by Aerodesign Technology Inc (ATI).
ATI was founded in 1984 by Inflight director Mr Thomas Lee in California and 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 will dispense cash to passengers during their flight using credit or debit cards. The company has developed an online authorisation of credit-card purchases specially for aircrafts. By offering immediate validation, passengers will be able to buy more expensive purchases on board and will also have the option of booking hotels, car rental and items such as theatre tickets during their flight.
At the moment, most airlines will only accept credit card payments for purchases of up to £100 in an effort to cut down on the potential losses which can be incurred through stolen cards or spending which exceeds the card's limit. The company expects to be able to offer this service as early as November introducing it on Cathay Pacific Airlines.
Inflight ATI has also concluded heads of agreement with the Societe Internationale de Telecommunications Aeronautiques (SITA) - the organisation which provides information and telecommunications systems to the air transport industry - to provide it with the use of its sales and marketing departments, billing and administration departments and access to its technical support systems.
The group is in discussion with Citibank to conclude arrangements for universal validation of all credit-card transactions over its network. Inflight ATI expects to equip 215 aircraft in 2000 rising to 292 in 2002. It will generate revenues by securing a percentage of all transactions undertaken on board. In 2000 it forecasts the group will earn revenues of €2.5 million, increasing to €16.6 million in 2002. After three years it expects to make profits of €5.2 million.
Mr Mario Cardinali, former executive director of an Indonesian-based subsidiary of Deutsche Telekom, is Inflight's chief executive.
Former Taoiseach, Mr Albert Reynolds, is chairman. Its founders will retain 70 per cent of the total share capital after the August listing.
