Irish-based airline CityJet is re organising its sales and marketing and distribution network as part of its alliance with Air France. However, CityJet's chief executive, Mr Pat Byrne, has denied the process could lead to up to 40 job losses.

Mr Byrne said that, because of the company's "growing relationship" with Air France, it would be relying more on its sales and marketing distribution network. "We will also be re-deploying some people to where we are under-strength," he said.

Earlier this year it was announced that CityJet, which has had a turbulent history since its establishment, would get a cash injection of £8 million (€10.7 million) in return for Air France taking a 25 per cent stake and Air Foyle, a British-based aviation group, taking a majority shareholding.

Mr Byrne said Jersey European, a British airline, would soon be flying routes from London City Airport, including to Belfast.

CityJet flies daily to London City Airport. Jersey, which has almost 30 aircraft, is part of the Air France grouping, and will take over operating the CityJet desk in London.

Mr Byrne said it was expected that the four staff employed there would transfer to Jersey, if they wished.

"There will be a little bit of down sizing in sales and marketing, but we employ 350 people and there are other positions around the house," he said.

Mr Byrne said overall about 20 people worked in sales and marketing.

He said the company would continue to retain a sales and marketing function for its flights to London, Malaga and its Dublin-Paris and Dublin-East Midlands route.

The company was refocusing some of its operations because of its increasing Air France link.

"The profile of the business is shifting, there is less emphasis on commercial activity and more on operational activities," he said.

Mr Byrne maintained that City Jet would increase its business and take on more staff. CityJet currently flies five aircraft on behalf of Air France and another two on a franchise basis. It is also contracted to increase the fleet by a further six aircraft in the next 18 months.

It is understood that CityJet has had previous discussions with Aer Lingus about taking over operating the London City route. However, talks were abandoned and Jersey will now operate the London end of the business.

Aer Lingus is currently reviewing its London routes and is likely to introduce its own service to London City in the autumn.