The directors have overall responsibility for the Company's system of internal controls and for reviewing its effectiveness. The system of internal control is embedded in the Company's businesses for identifying, evaluating and managing the significant risks we face, including social, environmental and ethical risks. BBA Aviation considers that it has adequate information to identify and assess significant risks and opportunities affecting its long and short-term value.

The directors review the internal system of control annually; it accords with the Turnball guidance published in September 1999 by the Institute of Chartered Accountants in England & Wales. The system is designed to manage rather than eliminate risk of failure to achieve business objectives.

The key features of our internal control system are: the Risk Committee chaired by the Finance Director which reviews and assesses business, financial and compliance risk; an organisational structure at head office and divisional level that clearly defines responsibilities; an internal audit function; a Finance Manual detailing accounting policies and procedures; an annual budgeting exercise; monthly detailed management accounts with a report to the Board; control of capital expenditure through budgets and authorisation levels; defined procedures for investments and treasury management; detailed matrix of levels of authority; Board approval of significant acquisitions and disposals; a Policies Manual setting our key policies and procedures; a Health, Safety and Environmental Manual with policies and standards applicable to all of our companies.