AN aircraft recycling firm has been forced to cut jobs, The Northern Echo can reveal.

Sycamore Aviation, which operates from a hangar at Durham Tees Valley Airport (DTVA), says its order book has thinned as airlines cut back on scrappages.

However, bosses say they have bids in place to dismantle 12 planes in the region and remain committed to the aviation base.

The company, founded by former pilot Kevin O’Hare, is based in a hangar that housed Lancaster bombers during the Second World War.

It has previously taken apart and recovered high-value spares from Boeing 737s and Airbuses for clients across the world.

But Mr O’Hare said it had been made to cut back on contractor positions due to airlines holding on to planes for longer owing to the busy summer, and bosses wanting surplus jets to cover regulations over potentially expensive flight delays.

He added rival firms across the UK were suffering similar issues.

He told The Northern Echo: “This year has been quiet, and we are down to a skeleton staff of about five.

“But we are still at the airport, and hoping that the market will pick up in the next couple of months.

“Just because a plane hasn’t landed doesn’t mean we aren’t working and we have got millions of dollars worth of parts in the hangar.

“The airlines have kept flying planes over the summer and new regulations over delays and passenger compensation has meant they have kept more to use if needed.

“There’s peaks and troughs, however, we have bids out for 12 aircraft and could hear about those imminently.”

Mr O’Hare, who flew regularly from the airport during his days as a captain for Jet2, Flyglobespan and Thomas Cook, said the company was looking to secure a maintenance licence to expand its operations.

Sycamore forms a key part of DTVA bosses’ master plan to ensure the loss-making site’s survival, which focuses on ancillary firms, a housing development and a business park.

The airport’s future had been called into question after a dramatic drop in passenger numbers and the loss of scheduled and charter flights, with its long-term prospects hinging on income from other activities.

A DTVA spokesman said: “We continue to have a dialogue with Sycamore regarding their activities at the airport and continue to explore all avenues to move the business forward in line with the business plan.”

Last month, Sycamore’s hangar played a key role in the fitting of a new engine to the Second World War Mynarski Memorial Lancaster.

The bomber carried out a flypast at the airport but had to be housed in the hangar after suffering an oil leak.

The Lancaster is named after Canadian airman Andrew Mynarski, who flew missions from the airport during the war, when it was known as RAF Goosepool.

He was posthumously awarded the Victoria Cross for attempting to save the life of his crewmate after they took enemy fire over France in June 1944.