all aircraft are stated at the fair value of the consideration given after taking ac 612387

British Airways Plc (2010)

Notes to the accounts [extract]

2 Summary of significant accounting policies [extract]

Property, plant and equipment [extract]

B Fleet

All aircraft are stated at the fair value of the consideration given after taking account of manufacturers’ credits. Fleet assets owned, or held on finance lease or hire purchase arrangements, are depreciated at rates calculated to write down the cost to the estimated residual value at the end of their planned operational lives on a straight-line basis.

Cabin interior modifications, including those required for brand changes and relaunches, are depreciated over the lower of five years and the remaining life of the aircraft.

Aircraft and engine spares acquired on the introduction or expansion of a fleet, as well as rotable spares purchased separately, are carried as property, plant and equipment and generally depreciated in line with the fleet to which they relate.

Major overhaul expenditure, including replacement spares and labour costs, is capitalised and amortised over the average expected life between major overhauls. All other replacement spares and other costs relating to maintenance of fleet assets (including maintenance provided under ‘pay-as-you-go’ contracts) are charged to the income statement on consumption or as incurred respectively.