Airtours backseat role for Crossland

AIRTOURS boss David Crossland shocked the travel industry today as he announced that after more than 30 years he is to hand over his role as chief executive to managing director Tim Byrne with immediate effect.

However, sceptics could conclude that the change at the top of Britain's biggest package tours operator in effect will be little more than cosmetic as workaholic Cross-land intends to remain as executive chairman.

Crossland was at pains to point out that he would be working as hard as ever.

He said: "I will be overseeing the whole business and setting the strategic direction for the next five to 10 years. Tim will be running the company on a day-today basis. I'm not going to be working any less than I am today."

Crossland denied that his decision to split the top management roles was a result of pressure from City investors fed up with a plunging share price and profit warnings.

"None of them has said anything to me," he said, rebutting reports that investors want him to step down.

"You have to look at how we've

changed. When we floated in 1987, we had profits of 2 million and 365,000 customers. Today, we have 15 million customers in 19 countries."

It also has a loss-making German division on its hands that accounted partly for the 23% drop in pretax profits for the full- year unveiled today.

Crossland said group strategy would remain focused on cutting costs throughout the business and putting its Germany division FTi right.

While the German market as a whole has cut capacity by 10%, Crossland has cut by 30%, grounding two of its six aircraft. As a result, winter bookings are 21% lower than last year and summer bookings are 28% down.

However, Crossland said he would easily meet Airtours' aims to cut the German losses in half during the current 12 months and to break even in the following financial year.

Group profits before tax and exceptional items came in at 101.3 million compared with 131.5 million on an 18% increase in turnover of 4.43 billion. Reported group profit of 211.4 million reflected the 235.8 million profit on the disposal of Cost Crociere as well as exceptional costs of 101.8 million, which included e-commerce expenses set at 10.6 million.

Diluted earnings per share halved to 10.69p but a final dividend of 7.2p raises the total 9% to 9p.

The shares drifted down 16p to 221p.

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