DRASTIC measures to turn around the fortunes of ailing holiday giant MyTravel have been announced by its bosses -- but job losses have been ruled out.

Travel experts today predicted that the compa ny had a long way to go to make a full recovery.

The global holiday operator, founded in East Lancashire, is currently more than £672 million in debt.

Major asset cuts are being made to save money, chief executive Peter McHugh told shareholders during the company's annual general meeting in Manchester yesterday.

This includes reducing its aircraft fleet from 56 to 44, reducing the number of ships it owns from four to two and merging nine of its businesses, including Airtours Holidays, MyTravel Airways UK and Going Places, into one business.

MyTravel employs more than 300 at its offices at Helmshore and the Globe Centre at Accrington and several hundred more East Lancashire workers are based at its headquarters near Bury.

It employs 25,000 people across the world and was once worth more than £1billion.

In February last year hundreds of its UK staff were made redundant -- but no more will follow in this latest cost-saving plan, Mr McHugh reassured share- holders.

The company's share price fell as a result of yesterday's announcements to a new low of 8.5p, then climbed slightly to 10p. In previous years it has been more than £3.

Mr McHugh said shareholders, who have seen their investment fall 96 per cent in three years, are likely to suffer further losses.

Mr McHugh said the market in the UK for summer 2004 had been "challenging" but the company's objective now was to meet its targets.

He said: "Our objective is to achieve a significant improvement in results for the current year and a return to profitability in 2005. Trading in the first half of the current year has been in line with this objective.

"The market in the UK for summer 2004 has continued to be challenging, with further market evidence that customers are booking later."

MyTravel, which announced in December last year a £911m loss for 2002-3, has parted company with nine directors in the last 18 months.

They include founder and chairman David Crossland, a former office tea boy from Burnley, who retired from the business he launched more than 32 years ago in February 2003. Mr Crossland owns 10 per cent of the company's shares.

Paul Astley, is managing director of independent operator PA Travel, based in Blakewater Road, Blackburn, and is also on the board for a consortium of 140 independent tour operators.

He said: "Any company which posts a £900 million loss there has got to be a concern there and I don't think anybody can expect that to be overturned in a short space of time.

"As an independent we can sell any operator but I do know of independents who are heavily committed to MyTravel."

Nick Baldwin, a partner at Hedley and Co Stockbrokers, Blackburn, said: "The share price has certainly dipped as a result of the announcement. It all seems to be bad news at the moment for MyTravel."