Airline slump hits food firm

The company laid off workers last year

A Scottish food firm is shedding 130 jobs because of the fall in the number of airline passengers following the US terrorist attacks.

Grampian Country Food Group has announced plans to cut more than a third of the workforce at its Newbridge plant.

Much of the work at the factory had been focussed on servicing the demand for in-flight meals.

Fewer passengers are using airlines

But that market has dried up and the group has decided to wind up that side of the business.

Thousands of jobs have already been lost in the aviation industry due to the drop in the number of airline passengers since the attacks on New York and Washington on 11 September .

Last February Grampian Country Foods shed 540 jobs at the Newbridge plant when it decided to stop processing fresh chickens on the site.

The latest job cuts will reduce the number of staff at the plant from 310 to 180.

Malcolm Smith, chief executive of Grampian's chicken division, said the firm "deeply regretted" the move.

Despite these job losses every effort will be made to grow the remaining business at the site

Malcolm Smith, Grampian Country Food Group

Managers have already started talks with union representatives over the terms of redundancy packages available for staff.

Ms Smith said: "Following the recent atrocities in the USA the airline sector has seen a reduction in passenger numbers.

"As an airline and ready meals supplier we have suffered in line with this downturn and regrettably have made the decision to exit this sector in order to protect the remaining operations on this site."

The Aberdeen-based company said its roast poultry operations would continue at the Newbridge site.

Mr Smith added: "Despite these job losses every effort will be made to grow the remaining business at the site."

Each year the food group, which was set up in 1980, processes 1.5m pigs, 1.15m lambs, 198m chickens, and 72,800 cattle.