British Aerospace, which last week announced 380 redundancies at its jetstream facility in Prestwick, is to retain up to 200 engineers at the site to support aircraft still in service.
The job losses, expected to take effect over the next few months, come despite BAe’s plans to transfer work to the factory from other sites.
BAe’s decision to end Jetstream manufacture comes after years of losses and a gradual decline in production. Losses have been running at £1m for each Jetstream made at Prestwick – a quarter of the aircraft’s value. The regional jet business has been breaking even.
The Jetstream factory will be taken over by the adjacent aerostructures business, which employs 1,000 people.
The facility could benefit from work transferred from other sites as a result of projects such as Nimrod and Eurofighter 2000. No orders are expected for at least 18 months. BAe will make provisions of £250m for the redundancies.