FEARS have arisen that North-East aerospace workers could face redundancy as the airline industry cuts jobs in the wake of last week's terrorist attacks in the US.

American plane maker Boeing yesterday announced plans to lay off 30,000 workers in response to airlines cutting flight schedules and aircraft orders.

Union leaders are urging UK companies not to follow Boeing's lead, but Virgin Atlantic has decided to axe 1,800 jobs and British Airways is expected to announce several thousand redundancies in the next 48 hours.

Rolls-Royce, which employs about 500 people at its jet engine plant in Sunderland, said it was too early to determine what effect the attack would have on its business.

Shares in the group have slumped during the past week and bosses are working to minimise the impact of the disaster.

Chief executive John Rose said: "We are working closely with our customers as they reassess the outlook for their business.

"We will continue to actively manage the business in response to the changing priorities of the market."

Aerospace Systems and Technologies 2000, in Consett, County Durham, designs and makes wing components for Airbus planes and has a workforce of 250.

No one from the North-East company was available for comment, but Airbus said it was monitoring the situation.

A spokesman said it remained cautiously optimistic about the medium to long-term prospects for air travel.

Unions urged firms to remain calm.

Roger Lyons, general secretary of the Manufacturing Science and Finance Union, said: "At this time of world turmoil, the last thing we need is a knee-jerk reaction from aerospace companies and airlines that will compound the misery by cutting jobs and throwing thousands on to the scrapheap."

Unions will meet Transport Secretary Stephen Byers today to discuss interim relief for the aerospace and airline industries.

The US Government has announced a £16.3bn rescue package for US airlines.

It will give the airlines short-term cash worth up to £22m to cover the losses incurred when flights were cancelled in the aftermath of the attacks on New York and Washington.