HUNDREDS of jobs across the region could be in jeopardy, after it emerged that plans to build two flagship Royal Navy vessels are in disarray.

The Ministry of Defence has still to choose one of three options for a £2.9bn contract to build the aircraft carriers.

The lack of progress means the MoD is expected to miss its March deadline for awarding the full production contract to BAE Systems. Industry insiders are not expecting a decision before June.

The setback is likely to cause further delays to the original completion dates for the ships of 2012 and 2015, which have already slipped by a year.

Swan Hunter's yards on the Tyne and Tees were expected to get about 30 per cent of the work, which is estimated to last ten years. From 2005, it planned to double its workforce to 3,000.

Northern Defence Industries (NDI) has fought to bring as much work as possible on the aircraft carriers to the North-East. It has 300 companies on its books who have registered an interest in manufacturing components for the vessels.

David Bowles, NDI chief executive, warned that further delays would put companies in a difficult economic position.

"If this project slips again, that will create big gaps in the order books of large fabricators, who will be desperate for work in about a year and a half," he said.

"The marine construction industry, particularly here in the North-East, needs these orders if we are to sustain our capabilities in the long-term.

"This is not an industry that can be turned on and off at will.

"If the Government does not commit to some orders soon, our capability will be compromised and we will not be able to do what is needed when they want it."

The aircraft carriers lie at the heart of government plans to transform the armed forces into a more flexible, post-Cold War force capable of intervening around the globe.

The project became bogged down after the initial plans came in about £1.2bn over budget, and two alternative proposals were drawn up.

A spokeswoman for the MoD said that the department still expected to meet its March deadline.

No one was available to comment at Swan Hunter's, which has closed for the Christmas break.