AIRTOURS chairman David Crossland today revealed the travel operator had built up a £760million war chest to buy up other companies.

The firm, which had its proposed £850million takeover of First Choice Holidays blocked by European Commission regulators earlier this year, revealed the size of its hoard as it announced record sales and a rise in profits.

"We are not raising this just to put it in the bank," said Mr Crossland, who began work as a tea boy in a Padiham travel agents in 1963.

"We do have very considerable cash reserves and they are there to make strategic acquisitions of sizable natures."

Airtours, which employs more than 1,300 at its East Lancashire bases at Helmshore and Accrington, has until the first week of December to decide whether to appeal against the European Commission's blocking of the First Choice deal.

The appeal process would take two to three years and cost up to £3million, adding to the £4.5million already spent on the bid.

Mr Crossland refused to say whether Airtours would take the appeal route.

He said there were always about 16 companies being looked at as potential acquisition targets, both in the UK and abroad.

However, in the current regulatory regime none of the big four UK operators would be able to merge, he said.

Pre-tax profits for the year to September 30 came in at £150.9million against £140.3million last year. Turnover hit a record £3.77billion against £3.05billion last time.

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