With Croydon residents accounting for an estimated 20 per cent of Gatwick Airport's 30,000 workers, last week's news that British Airways' slump may mean further job-losses, could hit the town hard.

British Airways had already announced 5,200 job losses following the September 11 terror attacks on the United States, and would not rule out further cuts last week.

Last Tuesday BA released details of a dramatic slump in profits to just £5m in the three months to September from £200 million the previous year.

The drop reflects an unprecedented downturn in traffic and chief executive Rod Eddington has said that cutbacks are likely if market conditions do not pick up.

This could mean redundancy for many of the estimated 6,000 Croydon based workers.

The airline also plans to cut the number of its long-haul destinations from Gatwick airport from 43 to 25 and will transfer some routes to Heathrow and cut other unprofitable routes altogether.

A spokesman for BA told the Guardian: "We are in a period of trying to secure voluntary redundancies, getting staff to take unpaid leave or to go part time from full time

"We are trying to avoid compulsory redundancies."

BA's approach is mirrored by other airlines and high street travel companies who have had to make serious cut backs in the aftermath of the terror attacks, with Virgin, who also fly from Gatwick cutting 1,200 jobs.

And with consumer spending currently keeping the UK economy out of recession,

redundancies could threaten the prospect of a Christmas windfall that many high street retailers depend on for nearly 50 per cent of their

annual turn-over.

Croydon Chamber of Commerce chief executive Chris Hughes said: "One hates to see job cuts at any time, but particularly in the run up to Christmas. Job cuts will mean a reduction in consumer spending and will undoubtedly impact on Croydon's retail economy, which until now has faired pretty well compared with central London where the drop in tourism has had a markable impact."

November 14, 2001 15:30