Sir Moir Lockhead, founder of FirstGroup, one of the largest transport companies in the UK and the US, has announced that he is to stand down as the group’s chief executive. Sir Moir has been with the operator for 21 years and will be replaced by Tim O’Toole, former London Underground chief, who joined FirstGroup in July.

The company was formed in 1995, and Sir Moir has been at the helm since the beginning. The firm, then known as FirstBus, was created when Grampian Regional Transport, a bus operator owned by Aberdeen city council, merged with the Badgerline Group.

Originally a company with 500 staff, Sir Moir created a group which was to become the largest rail, bus and freight operator in America and Britain. FirstGroup is now worth £6 billion a year; runs the iconic Greyhound coach service in the US and is responsible for rail franchises in the UK including First ScotRail, First Great Western and First Hull Trains.

Talking about his decision to step aside, Sir Moir said he believed that time was right to let Tim O’Toole and his team take over. He added that he wanted to retire when the company was in as strong a position as he currently believes it is.

Mr O’Toole, an American who started his career in the freight business with US operators Conrail, moved to London Underground in 2003. In 2005 he was given an honorary CBE because of the way he handled the July 7 bombings. He was praised for his coordination of passengers during evacuation proceedings as well as his speedy resumption of services.