1/24/97 -- 8:00 PM


WASHINGTON (AP) - In-Flight Phone Corp., which provides phone service and communications links for passengers on domestic airline flights, on Friday sought bankruptcy court protection from its creditors.

In-Flight, whose parent company is IFP Holdings, Inc., said it had entered into an interim service agreement with MCI Communications Corp., which will allow it to continue operations for 45 days.

MCI, the nation's second largest long distance carrier, holds a significant stake in In-Flight's parent, IFP Holdings, Inc. MCI said in a statement it has no plans ``to invest further equity or debt in In-flight.''

In-Flight, founded in 1990 and based in Oakbrook Terrace, Ill., sought to reorganize its finances under the supervision of the U.S. Bankruptcy Court in Wilmington, Del. Under Chapter 11 of the U.S. Bankruptcy Code, a company can keep operating with the court's protection as it devises a plan revive its finances.

In-Flight installs a phone-and-computer screen system in airplanes called FlightLink that enables passengers to log onto the Internet, send faxes and play computer games, as well as make air-to-ground calls.

Continental Airlines, USAir and America West have Flightlink on their planes.

Flightlink also enables passengers on major airlines to get stock quotes, order gifts from a catalog, send flowers, make travel reservations, check on connecting flights and review a map of their destination airport.

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