A Southend airline was today confirmed as the latest victim of the September 11 terror attacks with the loss of more than 300 jobs.

British World Airlines went into receivership after battling cash flow problems prompted by the worldwide aviation slump.

But £6m expansion plans at Southend Airport where the company was based will go head, director Roger Campbell said today.

All 320 of the airline's staff, the majority of whom were based at its Southend Airport headquarters, have lost their jobs less than two weeks before Christmas.

Mr Campbell, who has been employed at the airport for the past 43 years, said: "The type of operation BWA had here was more on the maintainance side. The company was not involved in providing a passenger airline service so there will be no great affect on the day-to-day operation of the airport.

"The departure of the company, although unfortunate, will not have an impact on any of our future proposals.

"However, I am very saddened by the loss of so many jobs at the airport and my sympathies and thoughts go out to all BWA employees and their families who are facing a miserable Christmas and an uncertain future."

The airline had been in difficulty since two of its customers collapsed owing it close to £1m.

However, the final straw came when BAE Systems - which leased BWA two of the aircraft that make up its ten strong fleet - terminated the contracts.

The fleet was immediately grounded at its base airports around the country, with four aircraft promptly being seized by airport operator BAA in Aberdeen over unpaid landing fees.

An emergency board meeting on Friday morning had no choice but to admit defeat, and asked its bankers to appoint a receiver for the airline.

The news came as a bitter blow to the workers, who only last month agreed to take pay cuts of up to 15 per cent in an effort to keep the airline flying.

Speaking after the workforce had left for the last time, managing director Chris Bakhurst said: "I have been faced with many tearful people leaving the building today, many of whom have been here for upwards of 15 years. It is a very, very sad day for BWA."

In a statement, the board of the airline said: "The collapse of the airline is a personal tragedy for all involved, particularly in the build up to what should be the festive season."

However, BWA's sister company, engineering firm World Aviation Support - which is also based at Southend Airport - will continue trading as normal. Trading in the shares of parent company BWA Group has been suspended.

David Dowman of the Aircraft Services Group, the arm of BAe systems which deals with aircraft leasing, said the company had little choice but to pull the plug.

Mr Dowman said: "The action by BAe was precipitated by one of BWA's Boeing 737s, leased by another company, being impounded in Brussels under a European control lien - a right to hold another's property until a debt on it is paid.

"That was the catalyst which forced BAe to look at its own two leased aircraft.

"All the other lessors have done the same simply because you have to safeguard your assets. BAe and other lessors pretty much came to the same conclusion and acted at the same time."

Published Monday December 17, 2001