VICTORIA - BC Ferries is laying off 35 managers and warns other staff could also lose their jobs because of a big drop in ferry traffic.

Company President David Hahn says BC Ferries has to reduce its administrative costs and several senior managers are included in the cuts.

He says no ferry crew members are affected, but warns that some shore-based workers could also face layoff.

At the same time, Hahn has announced a little good news - a rebate on the fuel surcharge on 17 minor routes, plus the route between Horseshoe Bay and the Sunshine Coast.

He says the rebate takes effect Feb. 12 and will average five per cent on the minor routes and two per cent on the Sunshine Coast.

But Hahn says the company is not yet able to offer rebates on its major routes between the mainland and Vancouver Island.