A DRAMATIC fall in bookings after the terror attacks on America has forced a leading travel agent to slash the wages of its staff until January.

Althams Travel, which has 30 branches in Lancashire and Yorkshire including offices in Blackburn, Accrington, Clitheroe, Colne and Nelson, has told its 220 staff they will work 15 per cent fewer hours with a corresponding reduction in wages until January 2.

Managing director Eddie Starkie said he was forced into the move because bookings were down by between 30 and 40 per cent since the twin towers of the World Trade Centre were destroyed by terrorists on September 11.

The measures follow the announcement of 350 job losses throughout the UK at Airtours six weeks ago. Travel agents across the country have been forced to lay off staff and operate work a four-day week in the wake of the atrocity.

Mr Starkie said his business was affected instantly on September 11 but was certain bookings would pick up after the Christmas period.

He said holidays in America were the worst affected but all destinations were suffering from the downturn in business. Staff would be getting an extra half a day a week off work and would be also going in to work at later or earlier times to make up the 15 per cent cut in hours.

He said: "Althams is not in trouble and there will be no layoffs. We are just being prudent and are optimistic people will start booking more holidays after Christmas. November and December are quiet months anyway so we using the time to do constructive things, like staff training courses. Having said that, there are definitley bargains on offer if anyone wants to book a last-minute holiday.

"We are all pulling together and the team spirit is good. What is more, staff are grateful we have not laid them off.

"The whole of the industry was affected by what happened in the USA and we will all have to reduce our wages for the next few weeks. And that includes me".