Passengers are promised a refund

Ryanair is taking over Stansted-based Buzz on 1 April, and on Friday the decision was taken to cancel all Buzz routes during April.

Buzz said it was taking bookings for May onwards, but a further announcement on changes to schedules and routes will be made on 28 February.

Tens of thousands of holiday makers who fly with Buzz are now facing an anxious wait, as Ryanair is expected to make sweeping changes when it takes over, including cuts of up to 25% on routes.

Job fears

Buzz said those affected would be given a full refund, but there was no notification on the company's website of the flight cancellations or refund procedures.

Buzz is presently losing over one million euros a week and radical action is needed Ryanair

Ryanair has already announced it plans to scrap seven new routes from Bournemouth, and there is mounting concern over job losses.

In a statement, Ryanair said "radical action" was needed to stem escalating losses at Buzz.

It declined to comment on the cancellation of flights.

But said full details of its reorganisation would be made public by the end of February.

Quick restructure

A Ryanair spokesman said: "The situation is getting worse.

"The airline is presently losing over one million euros a week and radical action is needed as the crisis is being compounded by the prospect of imminent war in Iraq."

Ryanair has estimated Buzz's annual losses to the end of March at 30 million euros (�20.4m). It predicts Buzz will make a pre-tax profit of 10 million euros (�6.8m) in 2003/04.

Nick van den Brul, an airline analyst at BNP Paribas, said refunding customers for cancelled flights in April would help with a quick restructure.

Strike action

He said: "Fine, they lose a good month's, maybe 10 million plus euros, of revenue.

"But on the other hand there's no point in having that revenue, if it's at the cost of profits."

Earlier this month, the GMB union, predicted up to 400 jobs could be lost as a result of the takeover.

The British Airline Pilots' Association (Balpa) said pilots would meet in March to discuss industrial action.

It is believed 30 pilots could lose their jobs as a consequence of the takeover.