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Note 18: Intangible assets

a  Group

£ million Goodwill Landing rights Software Group total
Cost        
Balance at April 1, 2007 40 175 143 358
Additions   28 12 40
Disposals     (2) (2)
Balance at March 31, 2008 40 203 153 396
Additions 5 44 12 61
Disposals     (15) (15)
Impairment (note 19) (5)     (5)
Exchange movements*   7   7
At March 31, 2009 40 254 150 444
Amortisation        
Balance at April 1, 2007 36 110 146
Disposals     (2) (2)
Charge for the year   8 23 31
Balance at March 31, 2008 44 131 175
Disposals     (15) (15)
Charge for the year   5 12 17
At March 31, 2009 49 128 177
Net book amounts        
March 31, 2009 40 205 22 267
March 31, 2008 40 159 22 221

* Goodwill and landing rights with a carrying value of £5 million and £42 million respectively are associated with the acquisition of L’Avion, an airline operating services between Paris (Orly) and New York (Newark) airports. The functional currency of L’Avion is euros, as such, these assets are subject to exchange movements.

b  Company

£ million Landing rights Software Company total
Cost      
Balance at April 1, 2007 175 143 318
Additions 28 11 39
Disposals   (1) (1)
Balance at March 31, 2008 203 153 356
Additions 9 12 21
Disposals   (15) (15)
At March 31, 2009 212 150 362
Amortisation      
Balance at April 1, 2007 36 109 145
Charge for the year 8 23 31
Disposals   (1) (1)
Balance at March 31, 2008 44 131 175
Charge for the year 5 12 17
Disposals   (15) (15)
At March 31, 2009 49 128 177
Net book amounts      
March 31, 2009 163 22 185
March 31, 2008 159 22 181

c  Analysis of Group intangible asset additions (excluding goodwill)

      Group
£ million Landing rights Software 2009 2008
Cash paid 12 12 24 33
Acquired through business combinations 35   35  
Accrual movements (3)   (3) 7
Total additions 44 12 56 40

d  Allocation of indefinite-life intangibles to cash-generating units

Landing rights based within the EU, considered to have an indefinite useful life, are assigned to ‘cash-generating units’ for the purposes of impairment review. An impairment review has been conducted on the network airline operations, including passenger operations, cargo operations and related ancillary operations. A separate review has been conducted on the operations of OpenSkies and the landing rights acquired as a result of the acquisition of L’Avion in July 2008.

The allocation of indefinite-life landing rights to cash-generating units is as follows:

  Group
£ million 2009 2008
Network airline operations 163  
OpenSkies 30  
Total indefinite-life landing rights 193

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