UP to 90 per cent of the council-owned Blackburn Transport bus company could be sold off - prompting fears that jobs and routes could be axed.

Officials today stressed that the move was designed to raise money for investment in local transport.

But unions claimed staff had been kept in the dark and feared for the future.

COUNCIL bosses are trying to sell off a large part of a municipal bus company -- raising fears over the future of less profitable routes.

Today angry staff at Blackburn Transport -- which employs 200 -- said they had been left in the dark over the move.

But Blackburn with Darwen Council said jobs were safe and a review, launched earlier this year, was about "improving services."

Blackburn Transport plunged into the red after a high profile war with rival firm, catchmebus.com -- which operated on copycat routes in 2002 and 2003.

It only began to recover after receiving damages from the firm, which has since ceased trading, in the High Court. A £100,000 settlement enabled it to make a profit in 2004.

But it has had to buy second hand buses to update its fleet while rival operators have bought brand new vehicles.

The council has already invited bids for a 40per cent share in the company, which would raise money while allowing the authority to retain overall control.

It is now also now considering an option of selling off 90per cent, which would provide more money to support public transport, although some Labour councillors would oppose the move.

Bus staff said they had found out about the proposed sale "second hand."

They said they were concerned about their jobs and said if the sale went ahead the public would suffer.

The Transport and General Workers Union today echoed their fears that a private company would not maintain less profitable routes.

Regional organiser Julie Burgess said she would fight to ensure that staff were involved in any further decisions.

If the sale of the 120-bus operation goes ahead, staff at the Ainsworth Street base said the town centre could become cut off from outlying areas such as Feniscowles, Guide, Little Harwood and Lower Darwen.

They said school runs, community buses for the elderly and ultimately their jobs could be jeopardised.

Mrs Burgess said: "There is a lot of unease in staff. They should keep them informed of such big decisions.

"We are worried about what the community will be offered. We should all have the same interests at heart so why are they keeping us in the dark?

"We have tried to set up meetings with the council but we are struggling to get any kind of response.

"This is a very infuriating situation. It has been dealt with wrongly and staff should have been told properly."

During the year ending March 31 2003 Blackburn Transport made an operating loss of £325,000 on turnover of £6.37million, compared an operating profit the year before.

But the sell off may interest companies already operating in East Lancashire.

One major company, Blazefield Holdings, runs Lancashire United and Burnley and Pendle buses.

Coun Andy Kay, in charge of regeneration at the council, said: "The council has invited expressions of interest from bus companies who may wish to enter into a partnership agreement with the council aimed at bringing investment into Blackburn Borough Transport Limited and therefore helping deliver the Council's Local Transport Plan objectives."

Council leader Kate Hollern said: "We would like to reassure staff that their jobs are safe."

She added a priority was to continue supporting bus services to outlying areas and school services.