BOSSES at The Yorkshire Air Museum, near York, say they are "back on track" after cutbacks were made to avoid it going into the red.

The Elvington attraction was forced to offload its operations manager, Ian Dewar, to save costs, as business experts predicted a financial deficit could occur at the end of last year.

Savings of about £25,000 were made from the redundancy and other cost-cutting measures.

Mr Dewar, who has been at the attraction for three years, is believed to be staying on as a volunteer.

The museum, which has a turnover of about £500,000, was forced to make the savings as visitor numbers have levelled off at about 65,000 a year, while costs, including aircraft restoration work, have continued to rise.

In a statement, museum director Ian Reed said: "The museum is not in financial difficulties. "Like any charity or attraction, it operates strict financial controls in order to maximise and manage a fluctuating income base. It constantly reviews efficiency at all levels.

"While visitor numbers have not fallen off significantly, the exceptionally wet summer has caused a levelling off, rather than the increases experienced in recent years.

"Forecasts at the beginning of the year suggested a deficit could occur at the end of 2004/5 and the management of the museum took immediate action to ensure this did not occur.

"Following a lengthy staff consultation in which operating costs were further reviewed, one staff member was eventually made redundant.

"The museum is confident that it now remains on track for another successful year of award winning events in 2005."

The museum, which employs a staff of 11, including four in the restaurant and three maintenance staff, opened on the former Second World War bomber airfield in 1985.

It was placed on a professional footing in 1999, and was later named the Yorkshire Visitor Attraction Of The Year in 2001.

Updated: 10:38 Wednesday, January 12, 2005