a Group

Investments in associates

£ million	2008	2007
	Group
Balance at April 1	125	131
Exchange movements	24	(3)
Additions*	57
Share of attributable results	23	3
Share of movements on other reserves	(2)	8
Reclassification of Comair Ltd		(10)
Disposals		(4)
Balance at March 31	227	125

* £3 million of the additions are non-cash, attributed to deferred tax liabilities recognised on Iberia’s unremitted earnings.

Market value of listed associates

£ million	2008	2007
	Group total
	275	256

Details of the investments that the Group accounts for as associates using the equity method are set out below:

	Percentage of equity owned	Principal activities	Holding	Country of incorporation and principal operations
Iberia, Lineas Aéreas de España, S.A. (’Iberia’)*	13.15	Airline operations	Ordinary shares	Spain

* Held by a subsidiary company.

The Group accounts for its investment in Iberia as an associate although the Group holds less than 20 per cent of the issued share capital as the Group has the ability to exercise significant influence over the investment due to the Group’s voting power (both through its equity holding and its representation on key decision-making committees) and the nature of the commercial relationships with Iberia. On November 15, 2006 the Group acquired the minority interest held by American Airlines in BA & AA Holdings Ltd, the subsidiary that holds the interest in Iberia (see note 34).

In February 2008, the Group purchased 28.7 million additional shares in Iberia at an average price of €2.34 per share (£54 million), taking its holding to 13.15 per cent (2007: 9.95 per cent). The acquisition of additional shares in Iberia resulted in goodwill of £9 million, which has been reflected in investment in associates.

On June 9, 2006 the Group’s shareholding in Comair Ltd was reduced from 18.3 per cent to 12.9 per cent. Due to the Group’s ability to exercise significant influence, the investment in Comair Ltd was accounted for using the equity method. In September 2006, the Group’s shareholding in Comair Ltd decreased to 10.92 per cent and the Group no longer had the ability to exercise significant influence over the investment, at which time the investment was reclassified as an available-for-sale financial asset.

The following summarised financial information of the Group’s investment in associates is shown based on the Group’s share of results and net assets:

£ million	2008	2007
	Group total
Non-current assets	218	168
Current assets	414	222
Current liabilities	(234)	(145)
Non-current liabilities	(188)	(128)
Share of net assets	210	117
Goodwill attributable to investments in associates	17	8
Revenues	556	399
Net profit after tax	26	5

b Company

Investments in associates and subsidiaries

£ million	Cost	Provisions	Total 2008	Total 2007
			Company
Balance at April 1	2,191	(1,006)	1,185	1,350
Exchange movements	17		17	(1)
Additions	1,016		1,016	125
Intra group transfer	(5)		(5)
Provision*		(6)	(6)	(289)
Balance at March 31	3,219	(1,012)	2,207	1,185
Investments in associates
Balance at April 1				1
Disposals				(1)
Balance at March 31

* The 2007 provision of £289 million includes a provision of £287 million on investments in subsidiaries, which was recorded as a result of the sale of the regional business of BA Connect.

The Company accounts for its investments in subsidiaries and associates using the cost method.

The Group’s and Company’s principal investments in subsidiaries, associates and other investments are listed in the Principal investments section of the Annual Report.

During the year, the Company invested £999 million in a subsidiary funded by the transfer of interest-bearing deposits to the subsidiary whose primary purpose is to invest the Company’s excess cash. In addition, in the current year the Company invested £17 million in a subsidiary relating to the launch of a new airline, OpenSkies.

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