Gulf Air is the latest airline to announce big cutbacks in the wake of the 11 September attacks on the US.

The Bahrain-based airline intends to reduce its fleet from 30 to 26 planes.

The airline is currently being propped up by cash from its owners - the governments of Bahrain, Oman, Qatar and the United Arab Emirates.

But the picture is looking bleak for the airline industry as a whole - and politicians may find that they have to come up with a lot more money to keep the airline flying.

Losses mount

The current crisis in the airline industry could not have come at a worse time for Gulf Air, which lost nearly $100m (�70m) last year.

And since the start of this month, the carrier's passenger numbers have fallen 20%, cargo is down 10% and insurance costs have shot up following the hijackings of planes in America.

The airline has acted to cut costs.

It has suspended flights to two Gulf destinations and has stopped flying to Peshawar in Pakistan.

The company hopes the measures will allow it to maintain its services to Europe, South and East Asia and Australia.

It is also a major presence in Africa, with flights to Khartoum, Nairobi, Casablanca and Cairo.