Aerospace group Bombardier will cut 560 jobs from its Belfast workforce as a result of troubles at major US airlines. The jobs will go in two branches beginning in January, the company said yesterday. The balance will go in July 2005.

The jobs losses are among 2,000 posts going throughout the world's third largest aircraft manufacturer. The Canadian company said the redundancies would cost it $26 million and meant it would record a loss for the year to the end of January 2005, compared to previous forecasts of a break-even position.

The job losses have been triggered by the ongoing difficulties at US Airways, which is currently in Chapter 11 bankruptcy protection.

However, the company warned that further jobs could go if another troubled US airline, Delta Air Lines, did not take delivery of regional jets as planned. Delta, the third largest US operator and a major customer, has warned it could go bankrupt within weeks unless it secures major cost cuts.

Bombardier has decided to reduce the rate of production of its 50-seat CRJ2000 aircraft to one every four days, from one every three days currently. It is also reverting to the the previous rate of production in Belfast for the 70-seat CRJ700 and the 86-passenger CRJ900 of one plane every three days.

"Given the financial difficulties facing a number of our customers, we must continue to be prudent and proactively manage our production rates and delivery schedule to reduce our exposure to the cancellation or deferral of orders," said president and chief operating officer of Bombardier Aerospace, Mr Pierre Beaudoin,

A spokesman at the Belfast plant, Northern Ireland's single largest manufacturing firm, said: "We deeply regret the impact this will have on our valued employees and their families."

Bombardier currently employs 5,588 people in Belfast, down from 7,600 three years ago.

Mr John Wall, the national secretary for aerospace, at trade union Amicus said said it recognised the company's problems and sought "a humane and pragmatic approach" from Bombardier to the losses.

Bombardier is due to decide on production of the larger 110 and 135-seat jets in February.

Sir Reg Empey, the Ulster Unionist MLA, criticised the company. "The initial response of Bombardier to US Airways going into Chapter 11 sounded complacent at the time. This has proved to be the case.

(Additional reporting, Reuters)