More holidaymakers could lose luggage at Gatwick after moves to increase competition in ground handling operations, a trade union has warned.

The Transport and General Workers' Union (TGWU) said a decision to lift limits on the number of contractors risked compromising standards and workers' safety.

The union's fears were echoed by Laura Moffatt, Labour MP for Crawley, who was last night due to put her concerns to the Government in a Parliamentary debate.

Until recently the number of companies permitted to be involved in ground handling at the Sussex airport was capped at four - including Aviance and Servisair.

The TGWU tolerated this set-up but is unhappy with a decision by the Civil Aviation Authority (CAA), which governs and regulates British airports, to scrap the cap and allow a fifth handler. The move could affect workers involved in checking-in, baggage handling, cleaning and loading aircraft.

A spokesman for the union, which has thousands of members working at Gatwick, said: "More competition means more corners are cut to make a profit. When more corners are cut there is more chance of mistakes being made."

Ms Moffatt told The Argus she too had fears about companies battling to "underbid" each other. She said: "This is taking competition too far."

A CAA spokesman said: "No other UK airport had a limit on the number of handlers. We took the decision there would be no impact on safety."