An air steward apologised “unreservedly” yesterday for making “unfounded” allegations of racism and homophobia against Ron Dennis, the McLaren Formula One chairman.

Peter Boland worked for Mr Dennis on his private jet for five years but was dismissed in May 2007.

In a startling about turn, he withdrew his claim that he had been victimised and discriminated against on the basis that he was believed to be gay.

More than a week after the case started at an employment tribunal in Southampton it emerged the 27-year-old air steward had falsely accused Mr Dennis, 61, of washing his hands because he had been “shaking hands with Arabs all day”.

He had also falsely claimed that Mr Dennis sacked him because of untrue rumours that he was gay.

His decision to drop the case came after Mr Dennis told the tribunal his former employee had lied and that the false allegations had already damaged his reputation.

After a morning of legal discussions by both parties, Mr Boland, an engineering graduate, entered the hearing and read out a prepared statement.

It said: “I have decided to withdraw my action against Mr Dennis and all respondents in the case.

“I unreservedly apologise to Mr Dennis and all respondents, and to the Southampton Employment Tribunal, for wasting their time with what I now realise were unfounded allegations.

“In particular, I apologise to Mr Dennis for suggesting that he is, or was, either racist or homophobic, or that he ever made any remarks or performed any actions that would suggest that he was.

“I feel great remorse for the upset that I now realise I have needlessly caused to him, to his family and to his colleagues.”

Mr Boland said he would also return a Mercedes company car, which has been the subject of county court proceedings.

“I consider this matter now closed and will not be taking further action, or making further comments, in connection with it in the future,” he added.

Speaking after the hearing, Mr Dennis said: “Clearly, I and all at McLaren, and all the other respondents, have been totally vindicated by the complete and unequivocal withdrawal and unreserved apology by Peter Boland, who had worked as a steward on my aeroplane between 2002 and 2007.

“This case has been hurtful, irritating and unnecessary, in the sense that no impropriety ever took place, which fact Mr Boland now concedes.

“Equally, Mr Boland accepts that I have never said or done anything either racist or homophobic.

“Moreover, every action taken by my colleagues and me in connection with Mr Boland’s dismissal was done with the intention of minimising the negative impact of that dismissal on his reputation and employment record.

“Had he not embarked on this unsuccessful and injudicious legal action, which he has anyway now abandoned, those goals could have been achieved.”

Mr Dennis said he conceded he had unfairly dismissed Mr Boland, from Stowmarket, Suffolk, but he had done this out of kindness so that he could reach an amicable settlement.

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