Transport company Go-Ahead last night announced its chief executive was stepping down.

Go-Ahead, which is based in Newcastle, said Martin Ballinger, 60, wanted to retire at the end of December.

He has led Go-Ahead since 1982 and steered it through bus industry deregulation in 1986, the group's management buyout in 1987 and its stock exchange listing in 1994.

He reportedly held a personal stake of £41m in the company in February and was expected to receive £1.2m in dividends this year.

Under his leadership, the group has built up a portfolio of bus operations in cities across the UK, including London, Oxford and Brighton, as well as a number of rail franchises.

The group continues to own Bedford to Brighton operator Thameslink, and has taken over South Central from French rail operator Connex.

It lost its Thames Trains commuter franchise earlier this year to rival First Group.

Thames was fined a record £2m last month for its part in the Paddington rail crash, which claimed 31 lives.

The franchise admitted two health and safety offences and was also ordered to pay prosecution costs of £75,000.

Mr Ballinger, the chairman of Thames, said at the time that the value of the fine was irrelevant compared to the grief and suffering of the bereaved and injured at Ladbroke Grove.

Mr Ballinger qualified as an accountant in 1968 and held various accounting posts before joining the National Bus Company in 1972.

Chairman Sir Patrick Brown said the board had accepted Mr Ballinger's resignation with great regret.

"From the buyout of a small bus company in Gateshead, he has inspired the creation of a very successful listed public limited company valued by the market at £650m," said Sir Patrick.

Go-Ahead said its deputy chief executive, Chris Moyes, 54, who was a key member of the buyout team in 1987, would become the group's chief executive on January 1 next year.