A BLACKWOOD aircraft engine firm is holding its breath to find out whether massive redundancies in the aviation industry will have a knock-on effect on its 210 jobs.

Virgin made the shock announcement yesterday afternoon axing 1,200 jobs - 20 per cent of its total staff of 9,000.

The airline says it is to introduce the reduction of staff and services in October. Virgin chairman Richard Branson said the jobs axe decision has been forced on the airline due to the "consequences" of the terrorist events in the USA.

He said: "Virgin Atlantic needs to respond quickly and responsibly to match these exceptional circumstances and the consequential reduction of future customer demand.

"By taking this action now we will put ourselves in a position from which to expand again in the future."

Now, the European arm of the Tulsa Oklahoma-based Nordam Group which repairs aircraft engine nacelles or coverings, is keeping a close eye on developments.

The Blackwood-based firm secures a large slice of its work from major airlines. Richard Hale, based at Nordam's huge Hawtin Park hangars, said: "We are reacting to the airline's needs and we are watching the situation very closely. "It is too early to say if this is going to affect us as a business as there is always a flip side to these things as any downsizing in any airline operator may open up scope for more outsourcing opportunities from which we might be able to benefit."