DAVID Crossland - the one-time Burnley tea boy who went on to built the giant Airtours travel group - has announced his retirement.

He told shareholders at the company's annual general meeting that he would be stepping down as executive chairman in November.

His decision to quit the company he launched in 1972 coincided with company warnings that there would be a 'significant' jump in losses for the first six months of the financial year because of the terrorist attacks on America on September 11.

But Mr Crossland insisted that the company was 'in great shape' and that sales had picked up since Christmas to put the business ahead of last year's record-breaking performance.

"We are in an ideal position being one of the most profitable travel businesses in the world," he told shareholders.

"It goes without saying that I will be sad to leave both the group and the travel industry, but I am intensely proud of what all of us who work at Airtours plc have achieved.

"We have great people and great technology and I am convinced that the future is going to be even more exciting than the past."

Mr Crossland, 55, said he had no intention of reducing his family's £125 million stake in the business "to any material extent". He will be replaced as chairman by his deputy Eric Sanderson.

Airtours is the most successful business ever to be launched in East Lancashire and is a classic 'rags to riches' tale of a young Burnley boy who even failed his Maths 'O' level and was turned down for an administration jobs at the town's hospital.

His first job was at Altham's travel agency in Burnley as an office boy. He moved across town to Central Travel, went to Silverwings in Rawtenstall and reached the giddy heights of office manager at Travelplan in Burnley.

The big breakthrough came in 1972 when he bought Pendle Travel for just £8,000 with his brother-in-law Tom Trickett. By 1980, they had nine shops in East Lancashire and decided to open a tour operator - Airtours - which soon moved to Helmshore.

The company floated on the Stock Market in 1987, making David Crossland a multi-millionaire overnight.

Airtours relocated its head office to Rochdale in 1999, but stills employs hundreds of people at Helmshore and at the Globe Centre in Accrington.