Aerospace giant Bombardier has said it's "extremely disappointed" at a decision by a top customer to cancel a major project.
ombardier, which announced around 600 job losses earlier this month, has suffered another setback after the move by Airbus to use a product made by Collins Aerospace.
It's understood Bombardier had regarded the work on the nacelles of the A320neo jet as an important source of revenue in the future.
Around 50 people were working on the early stages of the project.
Bombardier, which has a major operation in east Belfast, also makes the wings of the Airbus A220, though that work is not affected.
Bombardier said: "We are extremely disappointed by Airbus' decision to stop this programme. We are now reviewing the impact on our business.
"We were still in the development phase of this programme in Belfast and no production was planned until 2022."
Airbus told the Belfast Telegraph that the "unprecedented" Covid-19 crisis had forced it to revisit all product development to protect cash.
"We have concluded that it is in the interest of our customers to concentrate on mature and existing product offerings.
"As a consequence, Airbus has decided it will stop the marketing, development and manufacturing of its own nacelle to concentrate its efforts on the current existing nacelle. As such, only the existing Collins nacelle for the A320neo family... will be offered."
It's not clear whether the move will affect jobs at Bombardier. This month it said the global downturn in aviation following Covid-19 and lockdown was to blame for its move to cut up to 600 of its 3,500 staff.
Meanwhile, Co Tyrone firm Mallaghan Engineering, which makes equipment for airports and airlines, is the latest big employer to confirm jobs will be cut due to a fall in demand. It has around 450 people between its HQ near Dungannon and another operation in Atlanta.
The Government's job retention scheme runs out in October, meaning firms which relied on it to keep staff in place now have to decide whether or not to maintain the same numbers.
Mallaghan's Gerard O'Callaghan told the Irish News: "Everybody has plans to downsize, to let people go, to react."
He said the aviation industry may not return to pre-Covid-19 levels until 2023/24.
The company recently announced major deals, including a contract to produce 32 airport buses for Ryanair. A spokesman for the airline told the Belfast Telegraph: "We placed this order for 32 buses last year, which they continue to produce."