Two major development schemes at Gatwick Airport have been put on hold as the airline industry continues to struggle.

The decision was made two weeks after airport strategy manager Alastair McDermid told our reporter that development plans were not affected by the crisis in the airline industry.

Passenger numbers at Gatwick were down by 6.2 per cent last month compared with the same time last year.

This was the result of the terrorist attacks in America, which have put many travellers off flying.

Work is due to stop on a £79 million scheme to build the first bridge in Europe over an aircraft taxiway.

The scheme also includes 12 piers giving direct access to aircraft from the North Terminal, linked by the bridge.

The other scheme affected is a £20 million extension to the arrivals and baggage reclaim hall in the South Terminal.

A Gatwick spokeswoman said: "There is a pause in the developments and the two schemes are on hold.

"We expect the impact on passenger figures will be short-term and passengers will be back. Everything is in place to continue with the projects when air travel picks up."

BAA, which runs the country's major airports, has said it is cutting its capital expenditure budget, leading to some short-term projects being postponed.

The spokeswoman said it was still committed to the ten-year legal agreement with local councils for a strategic development of Gatwick, allowing it to take 40 million passengers a year by 2008.

She added: "All that changes is the timing and nature of when we may develop certain parts of that strategy. We are sure this is a short-term impact."

October passenger figures, due out in a couple of weeks, are likely to show a continued drop.

There was a bigger dip in figures during the Gulf War and the recession which followed, when Gatwick passengers dropped from 21 million a year to 18 million.

She said: "It is a challenge for us to rebuild confidence and get people flying again.

"We have stepped up security significantly and budget airlines are looking for opportunities to grow."