ONE hundred workers are to be axed by an aerospace company suffering from the effects of the terrorist attacks on America.

Bosses at the successful Hurel-Hispano site in Burnley made their announcement after being hit by the downturn in the industry since September 11.

After the attacks on the World Trade Centre in Manhattan and the Pentagon in Washington, airline passenger confidence has hit an all-time low and some of the world's biggest airlines have sacked thousands of workers.

The firm's announcement affects temporary and contract workers as well as sub-contractors at the Bancroft Street site, where thrust reversers for aircraft are made. The engineering works is part of the part state-owned French group SNECMA.

It was only in July this year that bosses at the plant announced production would be increased and the workforce swelled to 780.

Burnley's MP, Peter Pike was saddened by the job losses. He said: "All job losses are very sad. I am going to meet management at the company next week.

"The employment situation in Burnley does not look good, considering that almost all of our manufacturing jobs are reliant, in some way, on the aerospace industry."

Mr Pike said he will be asking Government to try to address the situation and recognise the problems faced by East Lancashire's manufacturing industry.

The company also carries out work for Brazilian manufacturer Embraer. Senior executives from that company travelled to Burnley to see the first units roll off a new production line.

A spokesman for the AEEU which represents some of the workers at the plant said: "Unfortunately people who work in the aerospace industry are going to be facing problems like this.

"There has been a sharp decline in some parts of the industry and we are now witnessing the knock on effects of what happened in America."

A spokesman for Hurel Hispano said: "The aerospace industry is facing difficult circumstances following the events of recent weeks and this may continue for some time.

"Hurel Hispano UK Ltd is constantly evaluating the effects of programme changes on our workload.

"This production year contained a 'peak' in demand in terms of workload and temporary and contract staff were engaged to assist us.

"The programmed reductions recently communicated to us by our customers mean that we will have to reduce the number of temporary/contract staff working on the shop floor sooner than originally planned.

"Therefore the company is announcing today that it is releasing approximately 100 staff and sub-contractors.

"Hurel Hispano UK Ltd is part of the larger SNECMA group and it continues to pursue a long term strategy.

"In the long term, global air traffic will continue to grow and our industry will prosper.

"The SNECMA group has the requisite advantages to meet this challenge, starting with the commitment of our people, guaranteeing that we will further strengthen our position as a major player in the aerospace industry."