Thousands of airport jobs are hanging in the balance as one of Sussex's biggest employers embarks on a major cost-cutting exercise.

British Airways, which employs 7,500 staff at Gatwick airport, is expected to announce an overhaul of its operations in the next few days with the publication of a controversial report into its future.

It is feared the airline may cut as many as 6,000 jobs to try to slash costs and tackle spiralling debts of more than £6 billion.

Business analysts predict as many as 20 per cent of the airline's 56,000 staff may eventually lose their jobs.

Last week we reported plans by the airline to take on low-cost rivals such as Ryanair and easyJet by launching shorthaul flights from Gatwick.

The news came after months of uncertainty, including rumours BA was pulling out of the airport altogether.

The airline is now expected to confirm it will maintain some presence. The scale of its plans for the airport are still unclear and workers fear it may be drastically reduced.

Flights to less profitable destinations are almost certain to be axed and BA is expected to reduce prices and become more aggressive on marketing and sales promotions.

Spokesman Leo Seaton said: "It is too early to say exactly what will happen or who would be affected. We are undergoing a review of our options which is being finalised at the moment and will be announced in the very near future.

"Gatwick is one of the key issues for us and an integral part of this whole review which has been going on.

"We should know more when the Future Size And Shape report is published."

BA has been hit hard by the impact of the September 11 terrorist attacks on transatlantic air travel.

Passenger figures out last week showed traffic on BA flights in January was still 6.3 per cent down on the previous year.

This came a day after the airline reported one of its biggest quarterly losses, £160 million, for the final three months of 2001.

BA has announced 7,200 job cuts in recent months and any cuts this week are likely to take place over a number of years.