Today's Irish Times
FreshAer, the British company planning to launch budget flights from the Republic in October, is preparing to refund all payments received from customers. Siobhán Creaton, Finance Correspondent, reports
It also announced yesterday that it will not accept any further bookings until it has received regulatory approval.
In a statement, it also revealed the departure from the company of its chairman and chief executive, Mr John Lepp and its commercial manager, Mr Erig Conway.
Its sole director, Mr Tony Robinson, said Mr Lepp's departure was being announced "with regret" and as a result of "adverse publicity".
On Saturday The Irish Times disclosed that Mr Lepp, whose full name is Mr John Ditchfield-Lepp, was convicted on two counts of trading with intent to defraud creditors in London in 1999.
He was sentenced to 12 months in prison and disqualified from acting as a company director until October 2009.
Mr Lepp, who is believed to hold 34 per cent of FreshAer, has also withdrawn his financial support from the company.
FreshAer had been selling tickets to destinations in the UK and Spain to Irish consumers through its website and telephone lines for almost two weeks but had not been licensed to operate as an airline or tour operator in this State.
The company refused to state how many bookings it had taken or the amount of money to be repaid.
The airline is still intending to begin flights in October after it has obtained the necessary approval. Mr Robinson said the airline had decided to refund payments and cease taking bookings in order to co-operate fully with the Commission for Aviation Regulation. It began the application process to secure a licence to carry passengers last week.
Mr Robinson said FreshAer had taken "the regrettable step of stopping all further bookings until such time that it is fully licensed in the eyes of both EU and Irish legislation".
The company has written to all customers telling them that their money will be refunded.
"FreshAer has instructed its merchant services bank to reverse all payments received by customers and to refund the full amount directly to their credit cards - a process which may take up to 10 working days to complete", according to the company statement.
Referring to The Irish Times report of Mr Lepp's disqualification as a director in the UK, Mr Robinson pointed out that he would still have been entitled to be a director of a company incorporated in Ireland.
He stressed that Mr Lepp was not, and never had been, a director of FreshAer.
"Right from the outset, Mr Lepp has made his position clear to us and at all times has been honest and honourable. He has acted as a spokesman/consultant for the company and a key investor who has invested heavily into the FreshAer.com concept."
