TRAVEL group Airtours has unveiled plans to buy a leading American travel firm for £240million.

The move to takeover Travel Service international sent the share price of the firm - which was hit by poor financial results last week - up by more than 15 per cent.

TSI owns a range of travel distribution businesses in the US, working through telephone and internet booking systems.

David Crossland, chairman of Airtours which employs more than 1,200 at its Helmshore and Accrington bases, said: "The acquisition of TSI will provide Airtours with a market leading position in the US, the world's largest travel market."

The acquisition of TSI will be funded from Airtours' cash reserves.

TSI's cruise booking business leads the US market, selling about 450,000 cruises a year. The business takes 11 per cent of its sales through the internet.

Its hotel reservations business, Lexington, is also the largest in the US, handling 1.25million bookings last year.

And TSI also owns Auto Europe, a car hire business which leads the market in renting cars to US and Canadian travellers visiting Europe.

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