Downturn grounds Cheapflights float

One of the great survivors of the dot-com boom and bust, and latterly a continuing success of the internet age, has had its plans to float on the stock market scuppered by the credit crunch.

Cheapflights has been looking at a flotation or sale in some form - reckoned to be for about £200 million - for the past 18 months to enable its founders to cash in their chips.

The business had even brought in a heavyweight chairman, former Dixons chief executive John Clare to oversee the move.

However Cheapflights - an aggregator website of air fares which makes money from the carriers every time a customer clicks through - has now admitted it has been beaten by the downturn in fortunes in financial markets and in confidence in the aviation sector. Clare indicated that equity markets or potential buyers have been wanting to get Cheapflights on the cheap.

"In the light of the contrast between financial market conditions and our continuing strong momentum, we have decided to conclude our process for the time being," he said.

The business was founded by ex-ABN Amro investment banker David Soskin, property investor Oliver Burge and his son Hugo.