Trade union leaders in the North admit there is little chance of avoiding 500 redundancies among the permanent workforce at Bombardier after the group reported massive losses for the third quarter.

The Canadian aerospace giant, which employs 7,000 people in Belfast, has reported net losses of $235.4 million (€266.7 million) for the third quarter, following the New York and Washington terrorist attacks and the global slowdown in the aviation industry.

Although the group's overall revenues increased by 22 per cent to more than $3 billion in the three months to October, exceptional costs relating to redundancy and restructuring dragged Bombardier into the red.

The group blamed a $599 million charge as the key reason for the high losses in the latest quarter, which compares with profits for the same period last year of $141 million.

Bombardier is one of the world's leading business jet manufacturers; its aerospace division contributes the vast majority of its revenue. But Mr Robert Brown, the group's chief executive, has warned that business aircraft sales and deliveries have been dramatically affected in the aftermath of September 11th.

"We are aiming at recovering the situation in the fourth quarter while recognising that we have to deliver a considerable number of business aircraft in a difficult environment," he said.

The group's latest financial performance will bring little comfort to a significant number of its workforce in Belfast, who are facing the prospect of redundancy immediately after Christmas.

Bombardier has already axed 400 temporary and contract staff at Shorts in east Belfast, but union leader Mr Jackie McNicholl said concern was growing that the aerospace group might implement a further round of cuts.

The Canadian giant had previously warned that 1,100 jobs were under threat in Belfast if its core markets did not show a significant recovery over the next three months.

Mr McNicholl, who is a representative of the Manufacturing Science and Finance union, believes more must be done to try and sustain the jobs in Northern Ireland.

"We believe there are signs that the aerospace industry will recover in the medium term. The decision by the United Kingdom government to approve plans for a fifth terminal at Heathrow Airport yesterday reflects our optimism.

"There are talks continuing with Bombardier and with the UK government but as yet there has been no breakthrough on that front," Mr McNicholl added.