A boy holds pita bread as others stand in line outside a bakery in Aleppo December 21, 2012.

ALEPPO, Syria | Sat Dec 22, 2012 7:02am EST

ALEPPO, Syria (Reuters) - In Syria's once-affluent merchant city of Aleppo, a 60-year-old man wrapped in several layers of clothes queues alongside his shivering grandchildren for bread - a daily and often fruitless ritual that consumes most of his day.

Shielding himself from the rain in Bustan al-Qasr, a rebel-held district in the south-west of Syria's biggest city, Alaa el-Din Hout says shortages of food and fuel are driving his family and many other residents to desperation.

"We're starving. I can bear it but what about my children? I stand from 3 in the afternoon until 11 at night and you can't always get bread," said Hout, wearing a winter hat and scarf to keep out the winter cold.

"We're reduced to either begging or stealing."

Five months after rebels brought their fight against President Bashar al-Assad into the heart of Aleppo, the eastern and southern swathes of the city are a mishmash of deserted districts and no-man's land.

Rebel fighters have hunkered down in warehouses to halt offensives by Assad's forces in the civil war. The few lucky bakeries in Aleppo that have supplies often have hundreds standing in line, hoping for a few loaves.

Abu Abdo, Hout's son-in-law, has three children, the youngest a 2-month-old baby shivering underneath wraps of blankets. "This is the hardest period I've ever gone through. There's no work, no industry, no electricity, no diesel. How will people live?" said the former stonemason.

"The people have a right to demand their freedom, that's the least of the demands - I am for the downfall of the regime."

"NO WATER, NO GAS"

The summer battles around Aleppo have subsided but Syrians in this city, whose peacetime population of 2.5 million has been reduced by an exodus of hundreds of thousands, are facing new challenges of winter cold and wartime shortages.

Some districts are faring better, with vegetable sellers laying out tomatoes and tangerines and falafel shops frying the ubiquitous bean food. But many people are too poor to afford it.

"We can't find any bread. There's a famine. People are dying, half the bakeries are closed. There's no flour," said one man in al-Sha'ar district.

Ahmed, a 42-year-old man with six children, said he queued from 8 in the morning. "Sometimes we get bread, sometimes we don't. There's no water, no gas, no electricity. The water supply runs out every two days."

Not all the city's residents hold Assad responsible for their suffering. Aleppo has traditionally been a city with divided loyalties and even in areas controlled by the rebels, some people have had enough of the daily shortages and blame them on the president's opponents.

"We don't leave our homes after 6 p.m. We just want peace again," said Um Saleh, a woman wearing a face veil and a full-length black wool coat. She blamed the Free Syrian Army rebels for hijacking bread lines to take loaves for their family.

Her husband Abu Saleh said "mistakes" had been made by Assad's officials but added: "You can't fix wrong with wrong."

(Editing by Dominic Evans and Mark Trevelyan)

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* Rebels use captured tank to attack airbase

* Military airfield could be used to reinforce Aleppo

* Damascus district under government attack

By Hadeel Al Shalchi

ALEPPO, Syria, Aug 2 (Reuters) - Syrian rebels turned the gun of a captured tank against government forces on Thursday, shelling a military airbase expected to be used as a staging post for army reinforcements in the battle for Aleppo.

President Bashar al-Assad's troops meanwhile bombarded the strategic Salaheddine district in Aleppo itself with tank and artillery fire while rebels tried to consolidate their hold on areas they have seized.

In the capital Damascus, troops overran a suburb on Wednesday and killed at least 35 people, mostly unarmed civilians, residents and activist organisations said.

The fighting for Syria's two biggest cities highlights the country's rapid slide into full-scale civil war 17 months on from the peaceful street protests that marked the start of the anti-Assad uprising.

World powers have watched with mounting concern as diplomatic efforts to find a negotiated solution have faltered and violence that has already claimed an estimated 18,000 lives worsens.

More than 180 people were killed in Syria on Wednesday, 133 of them civilians and 45 of them members of Assad's forces, according to the opposition Syrian Observatory for Human Rights.

The rebels' morale was boosted when they turned a government tank's gun on the Menakh airbase 35 km (25 miles) north of Aleppo - a possible staging post for army reinforcements.

"We hit the airport using a tank that we captured from the Assad army. We attacked the airport a few times but we have decided to retreat at this time," a rebel fighter named Abu Ali told Reuters.

The pro-opposition Observatory said government forces at the airbase had used artillery and rocket launchers to bombard the town of Tel Rifaat, which lies between the airbase and Aleppo, Syria's commercial centre.

Reuters correspondents heard heavy weapons fire on Thursday morning from Salaheddine in southwest Aleppo, a gateway to the city of 2.5 million people that has been fought over for the past week.

Heavily armed government troops are trying to drive a force of a few thousand rebel fighters from the city in battle whose outcome could be a turning point in the conflict.

Although government forces have made concerted efforts to take Salaheddine, a full-out assault on the city as a whole has yet to take place.

Mobile phone connections have been cut since Wednesday evening, leading to speculation among residents that an increase in military action might be imminent.

The rebels are consolidating areas they control in Aleppo, attacking police posts and minor military installations with some success. They claim to have seized three police stations this week.

NEW ATROCITIES ALLEGED

In Damascus, still a government stronghold but a scene of combat in the past two weeks, government troops faced new accusations of atrocities after they overran a suburb on Wednesday.

"When the streets were clear we found the bodies of at least 35 men," a resident, who gave his name as Fares, said by phone from Jdeidet Artouz, southwest of Damascus.

"Almost all of them were executed with bullets to their face, head and neck in homes, gardens and basements."

Syrian state television said "dozens of terrorists and mercenaries surrendered or were killed" when the army raided Jdeidet Artouz and its surrounding farmlands.

In a rallying cry to his troops on Wednesday, Assad said their battle against rebels would decide Syria's fate.

But his call-to-arms, in a written statement, gave no clues to his whereabouts two weeks after a bomb attack on his inner circle.

Assad, who succeeded his late father Hafez 11 years ago to perpetuate the family's rule of Syria, has not spoken in public since the bombing in Damascus killed four of his close security aides, although he has appeared in recorded clips on television.

His low public profile has fuelled speculation about his grip on power since the attack in which his brother-in-law died.

FOOD RUNNING SHORT

The fighting in Salaheddine district, part of a rebel-held arc stretching to the northeast of Aleppo, has left neither side in full control.

On Al-Sharqeya Street, residents and shop owners looked in awe at the damage. Some searched through what was left of their buildings - huge piles of concrete and twisted metal.

"I saw death before my eyes," said Abu Ahmed as he abandoned his home. "I was hiding in the alleyway of my building when I heard the whiz of the artillery. Look at my street now."

They said the damage was caused by helicopter fire targeting a rebel brigade based in a school. It missed the school and hit the residential buildings instead.

"This dog Assad and his men are so blind they can't even target a brigade properly," said Abu Ahmed, waving a plastic bag with his meagre belongings inside.

State television said on Wednesday the army was pursuing remaining "terrorists" in one Aleppo district and had killed several, including foreign Arab fighters.

Some foreign fighters, including militant Islamists, have joined the battle against Assad, who accuses outside powers of financing and arming the insurgents.

Aleppo had long stayed aloof from the uprising but many of its 2.5 million residents are now caught up in battle zones, facing shortages of food, fuel, water and cooking gas. Thousands have fled and hospitals and makeshift clinics can barely cope with casualties after more than a week of combat.

"The humanitarian situation is deteriorating in Aleppo and food needs are growing rapidly," said the World Food Programme, announcing plans to send emergency food supplies for up 28,000 people.

The U.N. Food and Agriculture Organisation said up to three million Syrians are likely to need food and other aid in the next 12 months because the conflict has prevented farmers from harvesting their crops.

U.S. SUPPORT

In a shift toward increased foreign involvement in the war, U.S. President Barack Obama signed a secret order authorizing American support for the rebels, according to U.S. sources familiar with the matter.

The order, approved earlier this year, broadly permits the CIA and other U.S. agencies to provide support that could help the rebels oust Assad.

The lightly armed insurgents are battling a well-equipped army that has overwhelming superiority on paper. But the rebels have managed to capture some tanks and heavy weapons and their ranks are swelled by army defectors.

The rebels, however, are united mostly by loathing of Assad, and have failed to come together despite pressure from the West, Turkey and Sunni-ruled Arab states who back their cause.

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