Our engines are in service with more than 500 airlines and 2,400 corporate users around the globe. In 2000 we secured a 31 per cent share of engine orders placed and a 27 per cent share of engines delivered. We now supply 38 of the world's top 50 airlines.

Over the next 20 years we believe annual air passenger demand will grow by five per cent per year and air freight by just over six per cent, compared with global economic growth expected to average some three per cent per year. The highest traffic growth will be associated with Asia-Pacific markets, both within the region and to North America and Europe. Of all widebody deliveries over the next 20 years, 41 per cent are expected to be to Asia-Pacific airlines. By contrast, North America dominates demand for narrow-bodied aircraft and is expected to order 4,000 such aircraft over the same period.

Rolls-Royce is well positioned to benefit from this market expansion through its broad product range and international presence.

The Trent family of aero engines is central to our growth over the coming years. This innovative, three-shaft, high-bypass ratio engine is lighter and provides better payload/range and revenue-earning potential than its competitors. The Trent is currently fitted to widebody Airbus Industrie and Boeing aircraft including the twin engined A330 and Boeing 777 and will fly in 2001 for the first time on the long range A340.

In December 2000, Airbus announced the launch of its new A380, which will enter service in 2006 and be powered by four Trent 900 engines. We have secured orders from leading airlines, including Singapore Airlines, Virgin Atlantic and Qantas which established our Trent 900 as the lead engine for the joint certification programme with Airbus. Since 1997, the Trent family has secured a market-leading 57 per cent share of all widebody engine orders.

We are a leading supplier to the fast growing regional and corporate jet markets. The BR700 engine family, developed in Germany, had a particularly successful year with over 200 engines delivered. The BR700 family meets the power requirements of large corporate jets and regional aircraft of 80-130 seats. The engine is fitted to the top of the range Gulfstream and Bombardier corporate jets and powers the Boeing 717 regional aircraft.

International Aero Engines, the multi-national consortium in which Rolls-Royce is a major shareholder, had an outstanding year, winning 59 per cent of the available market for its V2500 engine. Firm orders for a total of 382 V2500 engines were placed for A319, A320, A321 and Airbus Corporate Jetliner aircaft.

We anticipated the growth in potential for turbofans in the regional aircraft market when, in 1995, we purchased the Allison Engine Company and today the AE 3007 is the sole engine for Embraer's fast-selling twin jet RJ 145 series of regional passenger aircraft. In addition, the AE 3007 powers the successful Cessna Citation X. Altogether we delivered 400 of these powerplants during 2000. The successful Williams-Rolls joint venture delivered a total of 203 FJ44 engines in 2000, 160 of them to Cessna for its popular CitationJet range.

Customer relations, reliability, service and support are at the heart of our success. Rolls-Royce has created a network of repair and overhaul joint ventures with key airline customers to ensure that our products are maintained to the highest standards. We provide global support to our operators. Last year we reached agreement with Zurich-based SR Technics to create a new maintenance and overhaul company to service Trent aero-engine customers in Europe and Africa. This 50:50 joint venture expands the Rolls-Royce global network for Trent support and complements our presence in Singapore, Hong Kong, the United States and the United Kingdom. In total we have repair and overhaul operations in 17 countries.