BRITISH European, the airline built up by the late Blackburn Rovers benefactor Jack Walker, has announced plans to cut up to 300 jobs.

The Exeter-based company is blaming the global economic slowdown for 50 job losses, saying it needs to save up to £2million.

A further 250 maintenance jobs due to be created at the company's new hangar at Exeter Airport are also under threat.

British European is also warning that the impact on the company of the terrorist attacks on America, which has led to the loss of tens of thousands of jobs in the airline industry, would have to be closely monitored.

The former Jersey European Airline was taken over by Jack Walker's Walkersteel Group in 1983, to add to its Blackpool-based charter operation Spacegrand.

They were merged to create the Walker Aviation group in 1985. Jersey European changed its name to British European last year in a reflection of the company's position as one of the UK's leading domestic airlines.

Managing director Jim French, said between 35 and 50 senior and middle managers had been told their jobs would have to go.

"We have been experiencing a significant slowdown for many months now," said Mr French. "Airlines tend to experience these things usually about six months before the rest of the world."

He insisted last week's terrorist attacks in America were not responsible for the job cuts.

British European Airlines fly more than 1.5 million passengers to 15 UK and European destinations.

The company said today that the £420 million purchase of 12 new Avro RTX-100 planes from BAE Systems would still go ahead