----

----

| £ | REGISTRATION                STATEMENT PURSUANT TO SECTION 12(b) OR 12(g)   |
|--------|----------------------------------------------------------------------------|
|   | OF                THE SECURITIES EXCHANGE ACT OF 1934                      |
|   | OR                                                                         |
|   |                                                                       |
| S      | ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE       |
|   | SECURITIES                EXCHANGE ACT OF 1934                             |
|   | For                the fiscal year ended April 30, 2007               |
|   | OR                                                                         |
|   |                                                                       |
| £ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE    |
|   | SECURITIES                EXCHANGE ACT OF 1934                             |
|   | OR                                                                         |
|   |                                                                       |
| £ | SHELL                COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   | SECURITIES                EXCHANGE ACT OF 1934                             |

| Yes                S | No                £ |
|----------------------|--------------------------|

----

----

----

| Yes                £ | No                S |
|---------------------------|---------------------|

| Yes                S | No                £ |
|----------------------|--------------------------|

| Large                Accelerated Filer S | Accelerated                Filer £ | Non-Accelerated                Filer £ |
|------------------------------------------|-----------------------------------------|---------------------------------------------|

| Item 17                S | Item 18                £ |
|-------------------------------|------------------------------------|

| Yes                £ | No                S |
|---------------------------|---------------------|

| Yes                £ | No                £ |
|---------------------------|--------------------------|

----

| Item                     |                                                                                                       | Page   |
|--------------------------|------------------------------------------------------------------------------------------------------------|--------|
|                     |                                                                                                       |   |
| PART                I    |                                                                                                       | 5      |
|                     |                                                                                                       |   |
| ITEM                1.   | IDENTITY                OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS                                       | 5      |
| ITEM                2.   | OFFER                STATISTICS AND EXPECTED TIMETABLE                                                     | 5      |
| ITEM                3.   | KEY                INFORMATION                                                                             | 5      |
| ITEM                4.   | INFORMATION                ON THE COMPANY                                                                  | 17     |
| ITEM                5.   | OPERATING                AND FINANCIAL REVIEW AND PROSPECTS                                                | 33     |
| ITEM                6.   | DIRECTORS,                SENIOR MANAGEMENT AND EMPLOYEES                                                  | 72     |
| ITEM                7.   | MAJOR                SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                                           | 91     |
| ITEM                8.   | FINANCIAL                INFORMATION                                                                       | 93     |
| ITEM                9.   | THE                OFFER AND LISTING                                                                       | 93     |
| ITEM                10.  | ADDITIONAL                INFORMATION                                                                      | 95     |
| ITEM                11.  | QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 97     |
| ITEM                12.  | DESCRIPTION                OF SECURITIES OTHER THAN EQUITY SECURITIES                                      | 98     |
|                     |                                                                                                       |   |
| PART                II   |                                                                                                       | 99     |
|                     |                                                                                                       |   |
| ITEM                13.  | DEFAULTS,                DIVIDEND ARREARAGES AND DELINQUENCIES                                             | 99     |
| ITEM                14.  | MATERIAL                MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF                PROCEEDS | 99     |
| ITEM                15.  | CONTROLS                AND PROCEDURES                                                                     | 99     |
| ITEM                16A. | AUDIT                COMMITTEE FINANCIAL EXPERT                                                            | 100    |
| ITEM                16B. | CODE                OF ETHICS                                                                              | 100    |
| ITEM                16C. | PRINCIPAL                ACCOUNTANT FEES AND SERVICES                                                      | 100    |
| ITEM                16D. | EXEMPTIONS                FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                                  | 101    |
| ITEM                16E. | PURCHASE                OF EQUITY SECURITIES BY ISSUER AND AFFILIATED PURCHASERS                           | 101    |
|                     |                                                                                                       |   |
| PART                III  |                                                                                                       | 102    |
|                     |                                                                                                       |   |
| ITEM                17.  | FINANCIAL                STATEMENTS                                                                        | 102    |
| ITEM                18.  | FINANCIAL                STATEMENTS                                                                        | 164    |
| ITEM                19.  | EXHIBITS                                                                                                   | 165    |

----

----

| ITEM                1. | IDENTITY                OF DIRECTORS, SENIOR MANAGEMENT AND                ADVISERS |
|------------------------|-------------------------------------------------------------------------------------|

| ITEM                2. | OFFER                STATISTICS AND EXPECTED TIMETABLE |
|------------------------|--------------------------------------------------------|

| ITEM                3. | KEY                INFORMATION |
|------------------------|--------------------------------|

----

|                                                                                                  |   | As                at and for the fiscal year                ended April 30,    |    |
|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|---------|
|                                                                                                  |   | 2007                                                                           |    |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
|                                                                                                  |   |                                                                           |    |   | (i) |   |   | (i) |   |   |   |   |   |   |   |
|                                                                                                  |   | (in millions                of Canadian dollars except per share amounts) |    |
| Amounts                under Canadian                GAAP                                             |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Data:                                                                        |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                                               |   | $                                                                              | 1,149.1 |   |   | $ | 997.1 |   |   | $ | 954.2 |   |   | $ | 771.4 |   |   | $ | 762.9 |   |
| Direct                costs                                                                           |   |                                                                           | (924.7  | ) |   |   | (788.5 | ) |   |   | (732.7 | ) |   |   | (620.3 | ) |   |   | (579.2 | ) |
| General                and administration costs                                                       |   |                                                                           | (43.4   | ) |   |   | (27.9 | ) |   |   | (35.3 | ) |   |   | (18.6 | ) |   |   | (31.1 | ) |
| Amortization                                                                                          |   |                                                                           | (65.3   | ) |   |   | (55.5 | ) |   |   | (50.1 | ) |   |   | (38.5 | ) |   |   | (32.1 | ) |
| Restructuring                (costs) recovery                                                         |   |                                                                           | 2.3     |   |   |   | (16.1 | ) |   |   | (17.4 | ) |   |   | (9.2 | ) |   |   | - |   |
| Gain                (loss) on disposals of assets                                                     |   |                                                                           | (3.0    | ) |   |   | - |   |   |   | 4.1 |   |   |   | 3.3 |   |   |   | 2.4 |   |
| Fair                value adjustment                                                                  |   |                                                                           | -       |   |   |   | - |   |   |   | (14.3 | ) |   |   | - |   |   |   | (12.8 | ) |
| Operating                income                                                                       |   |                                                                           | 115.0   |   |   |   | 109.1 |   |   |   | 108.5 |   |   |   | 88.1 |   |   |   | 110.1 |   |
| Debt                settlement costs                                                                  |   |                                                                           | -       |   |   |   | - |   |   |   | (2.0 | ) |   |   | (19.7 | ) |   |   | (12.5 | ) |
| Financing                charges                                                                      |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest                expense                                               |   |                                                                           | (51.8   | ) |   |   | (43.5 | ) |   |   | (32.4 | ) |   |   | (30.6 | ) |   |   | (31.1 | ) |
|     Other                                                                         |   |                                                                           | (6.5    | ) |   |   | (9.5 | ) |   |   | (5.0 | ) |   |   | 0.8 |   |   |   | (4.5 | ) |
| Earnings                from continuing operations before taxes and undernoted                items   |   |                                                                           | 56.7    |   |   |   | 56.1 |   |   |   | 69.1 |   |   |   | 38.6 |   |   |   | 62.0 |   |
| Gain                on sale of long-term investments                                                  |   |                                                                           | -       |   |   |   | 37.5 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Equity                in earnings of associated companies and non-controlling                interest |   |                                                                           | 1.1     |   |   |   | 6.6 |   |   |   | 5.2 |   |   |   | 3.9 |   |   |   | 2.3 |   |
| Income                tax (provision) recovery                                                        |   |                                                                           | (16.8   | ) |   |   | (10.5 | ) |   |   | (27.4 | ) |   |   | 9.7 |   |   |   | 2.2 |   |
| Net                earnings from continuing                operations                                 |   |                                                                           | 41.0    |   |   |   | 89.7 |   |   |   | 46.9 |   |   |   | 52.2 |   |   |   | 66.5 |   |
| Net                earnings (loss) from discontinued operations                                       |   |                                                                           | 2.2     |   |   |   | 1.0 |   |   |   | 9.6 |   |   |   | (0.3 | ) |   |   | - |   |
| Extraordinary                item                                                                     |   |                                                                           | 0.8     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net                earnings                                                                           |   | $                                                                              | 44.0    |   |   | $ | 90.7 |   |   | $ | 56.5 |   |   | $ | 51.9 |   |   | $ | 66.5 |   |
|                                                                                                  |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per                Share                Data:                                                         |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                 |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net                earnings from continuing operations                        |   | $                                                                              | 0.97    |   |   | $ | 2.14 |   |   | $ | 1.12 |   |   | $ | 1.26 |   |   | $ | 1.60 |   |
|     Net                earnings (loss) from discontinued operations               |   |                                                                           | 0.05    |   |   |   | 0.02 |   |   |   | 0.23 |   |   |   | (0.01 | ) |   |   | - |   |
|     Extraordinary                item                                             |   |                                                                           | 0.02    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Net                earnings                                                   |   |                                                                           | 1.04    |   |   |   | 2.16 |   |   |   | 1.35 |   |   |   | 1.25 |   |   |   | 1.60 |   |
| Diluted                                                                                               |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net                earnings from continuing operations                        |   |                                                                           | 0.90    |   |   |   | 1.95 |   |   |   | 1.03 |   |   |   | 1.16 |   |   |   | 1.48 |   |
|     Net                earnings (loss) from discontinued operations               |   |                                                                           | 0.05    |   |   |   | 0.02 |   |   |   | 0.20 |   |   |   | (0.01 | ) |   |   | - |   |
|     Extraordinary                item                                             |   |                                                                           | 0.02    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Net                earnings                                                   |   |                                                                           | 0.97    |   |   |   | 1.97 |   |   |   | 1.23 |   |   |   | 1.15 |   |   |   | 1.48 |   |
| Dividends                per participating voting share                                               |   |                                                                           | 0.50    |   |   |   | 0.40 |   |   |   | 0.30 |   |   |   | 0.25 |   |   |   | 0.10 |   |
| Dividends                (in US $) per share (ii)                                                     |   |                                                                           | 0.44    |   |   |   | 0.34 |   |   |   | 0.24 |   |   |   | 0.19 |   |   |   | 0.06 |   |
|                                                                                                  |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding in (000)                                           |   |                                                                           | 42,819  |   |   |   | 42,708 |   |   |   | 42,673 |   |   |   | 42,122 |   |   |   | 41,456 |   |
|                                                                                                  |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Financial Data (iii):                                                            |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                - 2007, 2006 and 2005                                                          |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating                segments                                             |   |                                                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Global                Operations                      |   | $                                                                              | 428.0   |   |   | $ | 330.9 |   |   | $ | 292.1 |   |   |   |   |   |   |   |   |   |
|         European                Operations                    |   |                                                                           | 539.9   |   |   |   | 520.4 |   |   |   | 530.9 |   |   |   |   |   |   |   |   |   |
|         Heli-One                                              |   |                                                                           | 180.6   |   |   |   | 145.7 |   |   |   | 130.8 |   |   |   |   |   |   |   |   |   |
|                                                                                                  |   |                                                                           | 1,148.5 |   |   |   | 997.0 |   |   |   | 953.8 |   |   |   |   |   |   |   |   |   |
|     Corporate                and                other                             |   |                                                                           | 0.6     |   |   |   | 0.1 |   |   |   | 0.4 |   |   |   |   |   |   |   |   |   |
| Total                revenue                                                                          |   | $                                                                              | 1,149.1 |   |   | $ | 997.1 |   |   | $ | 954.2 |   |   |   |   |   |   |   |   |   |

----

|                                                                     |   | As                at and for the fiscal year                ended April 30,    |         |
|--------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------------|
|                                                                     |   | 2007                                                                           |         |   | 2006 |   |   | 2005 |   |   | 2004 |   |   | 2003 |   |
|                                                                     |   |                                                                           |         |   | (i) |   |   | (i) |   |   |   |   |   |   |   |
|                                                                     |   | (in millions                of Canadian dollars except per share amounts) |         |
| Other                Financial Data (iii)                (cont’d): |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                - 2004 and 2003                                   |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Helicopter                operations                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |
| Europe                                                                   |   |                                                                           |         |   |   |   |   |   |   |   | $ | 482.1 |   |   | $ | 508.7 |   |
| International                                                            |   |                                                                           |         |   |   |   |   |   |   |   |   | 191.8 |   |   |   | 184.8 |   |
| Schreiner                (iv)                                            |   |                                                                           |         |   |   |   |   |   |   |   |   | 32.4 |   |   |   | - |   |
| Composites                                                               |   |                                                                           |         |   |   |   |   |   |   |   |   | 7.0 |   |   |   | 6.4 |   |
|                                                                     |   |                                                                           |         |   |   |   |   |   |   |   |   | 713.3 |   |   |   | 699.9 |   |
| Repair                and overhaul                                       |   |                                                                           |         |   |   |   |   |   |   |   |   | 58.1 |   |   |   | 63.0 |   |
| Total                revenue                                             |   |                                                                           |         |   |   |   |   |   |   |   | $ | 771.4 |   |   | $ | 762.9 |   |
|                                                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                EBITDAR - 2007, 2006 and 2005 (v)                 |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                segments                                        |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Global                Operations                                         |   | $                                                                              | 135.1        |   |   | $ | 90.9 |   |   | $ | 87.3 |   |   |   |   |   |   |   |   |   |
| European                Operations                                       |   |                                                                           | 95.3         |   |   |   | 107.5 |   |   |   | 110.8 |   |   |   |   |   |   |   |   |   |
| Heli-One                                                                 |   |                                                                           | 273.2        |   |   |   | 229.5 |   |   |   | 231.0 |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                                                                           | 503.6        |   |   |   | 427.9 |   |   |   | 429.1 |   |   |   |   |   |   |   |   |   |
| Corporate                and other                                       |   |                                                                           | (41.3        | ) |   |   | (27.7 | ) |   |   | (32.1 | ) |   |   |   |   |   |   |   |   |
| Inter-segment              eliminations                                  |   |                                                                           |  (180.8 | )  |   |   |  (154.0 | )  |   |   |  (153.2 | )  |   |   |   |   |   |   |   |   |
|                                                                     |   | $                                                                              | 281.5        |   |   | $ | 246.2 |   |   | $ | 243.8 |   |   |   |   |   |   |   |   |   |
|                                                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                EBITDA - 2004 and 2003 (vi)                       |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Helicopter                operations                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Europe                                                                   |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   | $ | 72.1 |   |   | $ | 89.3 |   |
| International                                                            |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   | 23.4 |   |   |   | 35.3 |   |
| Schreiner                                                                |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   | 3.4 |   |   |   | - |   |
| Composites                                                               |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   | (2.0 | ) |   |   | (3.2 | ) |
|                                                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   | 96.9 |   |   |   | 121.4 |   |
| Repair                and overhaul                                       |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   | 55.4 |   |   |   | 52.8 |   |
| Corporate                and other                                       |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   | (19.7 | ) |   |   | (21.5 | ) |
|                                                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   | $ | 132.6 |   |   | $ | 152.7 |   |
|                                                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                property and equipment additions (vii)              |   | $                                                                              | 423.3        |   |   | $ | 304.3 |   |   | $ | 250.3 |   |   | $ | 170.6 |   |   | $ | 58.1 |   |
| Ratio                of earnings to fixed charges (viii)                 |   |                                                                           | 1.5x         |   |   |   | 1.9x |   |   |   | 1.9x |   |   |   | 1.7x |   |   |   | 1.9x |   |
|                                                                     |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                Sheet                Data:                        |   |                                                                           |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working                capital (ix)                                      |   | $                                                                              | 210.3        |   |   | $ | 147.1 |   |   | $ | 110.2 |   |   | $ | 127.7 |   |   | $ | 131.6 |   |
| Total                assets                                              |   |                                                                           | 2,102.2      |   |   |   | 1,686.1 |   |   |   | 1,686.7 |   |   |   | 1,527.6 |   |   |   | 1,106.7 |   |
| Total                debt                                                |   |                                                                           | 840.6        |   |   |   | 624.1 |   |   |   | 624.5 |   |   |   | 514.0 |   |   |   | 321.3 |   |
| Total                liabilities                                         |   |                                                                           | 1,550.9      |   |   |   | 1,195.4 |   |   |   | 1,226.6 |   |   |   | 1,108.3 |   |   |   | 726.3 |   |
| Capital                stock                                             |   |                                                                           | 252.5        |   |   |   | 240.2 |   |   |   | 239.5 |   |   |   | 238.4 |   |   |   | 237.0 |   |
| Shareholders’                equity                                |   |                                                                           | 551.3        |   |   |   | 490.7 |   |   |   | 460.1 |   |   |   | 419.3 |   |   |   | 380.4 |   |

----

|                                                                               |   | As                    at and for the fiscal year                    ended April 30,                   |    |
|------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|---------|
|                                                                               |   | 2007(Restated)                                                                                        |    |   | 2006(Restated) |   |   | 2005(Restated) |   |   | 2004(Restated) |   |   | 2003 |   |
|                                                                               |   |                                                                                                  |    |   | (i) |   |   | (i) |   |   |   |   |   |   |   |
|                                                                               |   | (in millions                    of Canadian                    dollars except per share amounts) |    |
| Amounts                    under US                    GAAP                        |   |                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                    Data                    (cont'd):                     |   |                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                            |   | $                                                                                                     | 1,149.1 |   |   | $ | 997.1 |   |   | $ | 954.2 |   |   | $ | 771.4 |   |   | $ | 762.9 |   |
| Direct                    and general and                    administrative costs  |   |                                                                                                  | 970.5   |   |   |   | 816.2 |   |   |   | 773.1 |   |   |   | 637.7 |   |   |   | 613.8 |   |
| Amortization                                                                       |   |                                                                                                  | 65.1    |   |   |   | 55.2 |   |   |   | 50.1 |   |   |   | 38.5 |   |   |   | 32.1 |   |
| Financing                    charges                                               |   |                                                                                                  | 67.7    |   |   |   | 5.5 |   |   |   | 50.9 |   |   |   | 54.1 |   |   |   | 18.9 |   |
| Net                    earnings                                                    |   |                                                                                                  | 34.7    |   |   |   | 130.1 |   |   |   | 42.9 |   |   |   | 33.4 |   |   |   | 87.6 |   |
|                                                                               |   |                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per                    Share                    Data:                              |   |                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                    earnings per                    share                     |   | $                                                                                                     | 0.82    |   |   | $ | 3.10 |   |   | $ | 1.02 |   |   | $ | 0.81 |   |   | $ | 2.11 |   |
| Diluted                    earnings per                    share                   |   |                                                                                                  | 0.75    |   |   |   | 2.82 |   |   |   | 0.93 |   |   |   | 0.74 |   |   |   | 1.95 |   |
| Dividends                    per participating voting                    share     |   |                                                                                                  | 0.50    |   |   |   | 0.40 |   |   |   | 0.30 |   |   |   | 0.25 |   |   |   | 0.10 |   |
| Dividends                    (in US $) per share                    (ii)           |   |                                                                                                  | 0.44    |   |   |   | 0.34 |   |   |   | 0.24 |   |   |   | 0.19 |   |   |   | 0.06 |   |
|                                                                               |   |                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                    average shares                    outstanding in (000) |   |                                                                                                  | 42,819  |   |   |   | 42,708 |   |   |   | 42,673 |   |   |   | 42,122 |   |   |   | 41,456 |   |
|                                                                               |   |                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                    Sheet                    Data:                          |   |                                                                                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working                    capital (ix)                                            |   | $                                                                                                     | 32.7    |   |   | $ | 148.9 |   |   | $ | 107.2 |   |   | $ | 128.8 |   |   | $ | 145.9 |   |
| Total                    assets                                                    |   |                                                                                                  | 2,301.7 |   |   |   | 1,690.4 |   |   |   | 1,688.5 |   |   |   | 1,528.7 |   |   |   | 1,073.9 |   |
| Total                    debt                                                      |   |                                                                                                  | 840.6   |   |   |   | 624.3 |   |   |   | 625.0 |   |   |   | 515.0 |   |   |   | 322.2 |   |
| Total                    liabilities                                               |   |                                                                                                  | 1,852.1 |   |   |   | 1,255.4 |   |   |   | 1,306.3 |   |   |   | 1,114.4 |   |   |   | 724.0 |   |
| Capital                    stock                                                   |   |                                                                                                  | 251.7   |   |   |   | 240.2 |   |   |   | 239.5 |   |   |   | 238.4 |   |   |   | 237.0 |   |
| Shareholders’                    equity                                      |   |                                                                                                  | 449.6   |   |   |   | 435.0 |   |   |   | 382.2 |   |   |   | 414.3 |   |   |   | 349.9 |   |

| (i) | See                Note 2 to our audited consolidated financial statements included                elsewhere in this Annual Report. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Amounts                have been converted to US dollars at the average exchange rate for                the                period as provided below. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Prior                to May 1, 2005, the Company reported under a different structure.                Segment information for the years ended April 30, 2004 and 2003 has                not been presented under the current organizational structure as                accurate                estimates to reflect certain lease, power-by-the-hour (“PBH”) and                associated transactions between the Company’s operating segments could not                be made. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | Schreiner                helicopter operations revenue includes some repair and overhaul                revenue. |
|--|------|------------------------------------------------------------------------------------------------------------------|

| (v) | Segment                EBITDAR is defined as segment EBITDA before aircraft leases and associated                costs. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | Segment                EBITDA is revenue less operating expenses allocated to each of our                segments. See Note 25 to our audited consolidated financial                statements included elsewhere in this Annual                Report. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vii) | Total                property and equipment additions include all asset acquisitions,                including                aircraft, as well as helicopter major inspection and helicopter component                expenditures during the period. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (viii) | For                the purpose of this calculation "earnings" are defined as earnings                before                income taxes and undistributed earnings from equity investees. Fixed                charges consist of interest and an estimated portion of aircraft                lease                expense representative of the interest                factor. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ix) | Working                capital consists of current assets less current liabilities, excluding                the                current portion of debt                obligations. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | Year                ended                April 30, |   |
|----------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                               |   | 2007US$                                                 |   |   | 2006US$ |   |   | 2005US$ |   |   | 2004US$ |   |   | 2003US$ |   |
|                                               |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exchange                rate at the end of period  |   |                                                    | 0.9035 |   |   |   | 0.8926 |   |   |   | 0.7957 |   |   |   | 0.7293 |   |   |   | 0.6975 |   |
| Average                exchange rate during period |   |                                                    | 0.8818 |   |   |   | 0.8499 |   |   |   | 0.7891 |   |   |   | 0.7445 |   |   |   | 0.6498 |   |
| High                exchange rate during period    |   |                                                    | 0.9100 |   |   |   | 0.8926 |   |   |   | 0.8493 |   |   |   | 0.7880 |   |   |   | 0.6975 |   |
| Low                exchange rate during period     |   |                                                    | 0.8437 |   |   |   | 0.7872 |   |   |   | 0.7158 |   |   |   | 0.7032 |   |   |   | 0.6264 |   |

----

|   |   | Month                ended                       |   |
|--------|--------|--------------------------------------------------|--------|
|   |   | August                31,                2007US$ |   |   | July                31,                2007US$ |   |   | June                30,                2007US$ |   |   | May                31,                2007US$ |   |   | April                30,                2007US$ |   |   | March                31,                2007US$ |   |
|   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| High   |   |                                             | 0.9527 |   |   |   | 0.9641 |   |   |   | 0.9453 |   |   |   | 0.9345 |   |   |   | 0.9035 |   |   |   | 0.8673 |   |
| Low    |   |                                             | 0.9470 |   |   |   | 0.9355 |   |   |   | 0.9322 |   |   |   | 0.8980 |   |   |   | 0.8633 |   |   |   | 0.8467 |   |

----

| (i) | Loss                of license insurance for our pilots in Europe, Africa and                Australia. |
|-----|---------------------------------------------------------------------------------------------------------|

|  | (ii) | Death                and disability insurance for employees of our Norwegian                operations. |
|--|------|---------------------------------------------------------------------------------------------------------|

|  | (iii) | Valuation                rate protection for the pension plan for employees of our Norwegian                operations. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | Benefit                plans of various operating                subsidiaries. |
|--|------|--------------------------------------------------------------------------------|

----

----

----

----

----

| • | increasing                the equity in an amount sufficient to achieve such balance and to                ensure                that the equity of the subsidiary becomes adequate compared to the                risks                and the size of the subsidiary's business;                or |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | reducing                the share capital to pay off losses in an amount sufficient to achieve                such balance. |
|---------|-----------------------------------------------------------------------------------------------------------------------------|

----

----

| ITEM                4. | INFORMATION                ON THE COMPANY |
|------------------------|-------------------------------------------|

----

----

----

| • | an                established brand name; |
|---------|-------------------------------------------|

| • | a                strong track record of providing high quality, safe and reliable                service; |
|---------|-----------------------------------------------------------------------------------------------------------|

| • | a                large, diversified fleet of helicopters to accommodate various customer                requirements; |
|---------|-----------------------------------------------------------------------------------------------------------------------|

| • | a                highly skilled and dedicated team of pilots, engineers and support                staff; |
|---------|-----------------------------------------------------------------------------------------------------------|

| • | a                cost structure that allows the provision of services at competitive                prices; |
|---------|-------------------------------------------------------------------------------------------------------------|

| • | an                effective capital structure that permits financing of new                aircraft; |
|---------|------------------------------------------------------------------------------------------------------|

| • | a                broad network of regional bases to cost-effectively bid for new contracts                in most areas of the world as opportunities arise;                and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | familiarity                with a variety of local business practices and regulations around                the                world and established local joint venture partnerships and strategic                customer alliances. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Agip                                     | ExxonMobil | Premier                                |
|------------------------------------------|------------|----------------------------------------|
| Apache                                   | Ireland    | Royal                Dutch/Shell Group |
| Bp                                       | Maersk     | Statoil                                |
| Chevron                                  | Marathon   | TotalFinaElf                           |
| Commonwealth                of Australia | Nexen      | Unocal                                 |
| ConocoPhillips                           | Petrobras  |                                   |

| • | Global                Coverage.                We currently                provide helicopter transportation services in over 30 countries and                on all                seven continents. This broad geographic coverage and an efficient                management structure enable us to respond quickly and cost effectively                to                customer needs and new business opportunities while adhering to local                market regulations and customs. Since new contract and base start-up                costs                can represent a significant portion of operating expenses, our global                network of bases allows us to reallocate equipment and crews efficiently                and bid on new contracts at competitive rates. Additionally, as                multinational oil and gas companies seek service providers that can                provide one standard of service in many locations around the world,                our                geographic coverage makes us one of only two global providers that                can                effectively compete for many of these                contracts. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Focus                on                Safety.                In over                60 years of operations, we have developed sophisticated safety and                training programs and practices that have resulted in a strong safety                record. We have implemented a single Safety Management System worldwide                and continue to meet or exceed the stringent safety and performance                audits                that are conducted by our customers. Our advanced flight training                facility                in Norway provides a wide variety of training services to our employees                as                well as third-party civil and military organizations around the world.                Providing and expanding these advanced training services in Aberdeen                and                Vancouver enhances our global reputation for leadership and excellence                in                helicopter services. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Low                Cost                Operator.                We believe                that we have significant cost advantages over our competitors with                respect                to our medium and heavy helicopter services, which increase our likelihood                of winning new contracts. We believe that our economies of scale,                lower                insurance costs related to our industry leading safety record and                in-house                R&O and training capabilities give us a cost advantage over                competitors who must incorporate higher third-party R&O costs into                their contract bids. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Long-Term                Customer                Relationships.                We have worked                successfully for many years with major oil and gas companies, some                of                which have been customers continuously for more than 20 years. As a                result of our established long-term customer relationships, our focus                on                safety and flight training, our crews’ experience and the quality of our                services, we consistently meet or exceed our customers’ standards and are                invited to bid on new projects. In addition to standard helicopter                transportation services, certain of our customers rely on us for                ancillary                services, including our computerized logistics systems for crew scheduling                and passenger handling services, all of which help strengthen customer                relationships. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Large,                Modern and Diversified                Fleet of Helicopters.                To meet the                diverse operational requirements of our customers, we operate a large                fleet that includes some of the most sophisticated helicopters in                the                world. We have led the industry in fleet renewal with aircraft sought                after by customers for their improved speed, range, passenger capacity,                comfort and general superior performance. As of April 30, 2007, we                operated 255 aircraft, comprised of 86 heavy helicopters,                146 medium helicopters, three light helicopters and                twenty fixed-wing aircraft. The helicopter fleet consists of more                than a dozen types of helicopters manufactured primarily by Eurocopter,                Sikorsky, AgustaWestland and Bell. During the year we added an additional                four Sikorsky S92 aircraft for a total of ten S92 aircraft to complement                our fleet of twenty Super Puma MkIIs. These two aircraft types represent                the most advanced civilian heavy helicopter types in service today.                In                addition, we have six AgustaWestland AW139 in our fleet. The                AgustaWestland AW139 is a new aircraft type, which we have added                to the                fleet along with the Sikorsky S92. During the year, we signed a contract                with Eurocopter for the purchase of 16 new EC225 helicopters to be                delivered between fiscal 2008 and fiscal 2012. The EC225 aircraft                is also                a new heavy aircraft type. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | Retention                of Asset                Value.                Based on                independent appraisals as of April 30, 2007 the estimated fair market                value of our owned aircraft fleet was $628.2 million, exceeding our                net book value by approximately $33.1 million. Since a significant                portion of a helicopter’s value resides in its major components including                engines, gearboxes, transmissions and repairable parts, which are                replaced                or upgraded on a regular basis, older models of helicopters that                have been                upgraded are capable of meeting many of the same performance standards                as                newer aircraft. As a result, when helicopters are sold as part of                our                ongoing fleet management, we often receive prices in excess of net                book                value. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In-house                Repair and Overhaul                Business.                We believe                that our R&O activities reduce our costs, diversify our revenue                streams and help position us as a full-service, high-quality helicopter                operator. We are a market leader in R&O capability and have the only                licensed commercial engine and major component R&O facility in the                world for the Eurocopter Super Puma and EC225 helicopters, other                than the                original equipment manufacturers, and have the capability to support                several other helicopter types including Eurocopter Dauphin, Sikorsky                S61                and S76 and Bell 212/412. This capability allows us to control the                quality and cost of our helicopter maintenance, repair and refurbishment.                The development of the Boundary Bay R&O facility, acquisition of                Heli-Dyne and the expansion of in-house capabilities may result in                our                exit from third-party PBH maintenance programs in the                future. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Strengthen                Competitive                Position in Existing Markets.                We intend to                increase our ability to win new contracts, renew existing contracts,                strengthen our existing customer relationships and enhance our competitive                position by improving our focus on customer needs and reducing costs                while                maintaining high standards for safety and reliability. Our organizational                structure ideally positions us to service increased demand from existing                customers and new entrants to the                marketplace. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Growth                Through                Acquisition.                During the                year we acquired an equity position in BHS, one of the largest helicopter                operators in the Brazilian offshore sector. We also acquired Heli-Dyne,                a                helicopter completion and maintenance centre based in Hurst, Texas.                We                intend to seek out additional acquisition opportunities to further                strengthen our position in existing markets and expansion into new                markets. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Selectively                Expand                International Operations.                We intend to                capitalize on our broad geographic coverage, our long-term customer                relationships and our fleet capabilities to pursue new opportunities                in                Africa, Asia, Brazil and other developing oil and gas regions, which                are                expected to be the fastest growing markets for offshore helicopter                transportation services. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Expand                the Helicopter Support                Business with Heli-One.                We plan to                continue to expand our R&O business by further penetrating the                Eurocopter (Super Puma and EC225) major component and engine overhaul                market and pursuing new opportunities in heavy and medium aircraft                maintenance and military helicopter support through the development                of                facilities in North America, including the acquisition of Heli-Dyne                in fiscal 2007. During the year, we began construction of a                240,000 square foot R&O facility at Boundary Bay Airport in                Delta, BC, Canada, which is expected to be completed in the fourth                quarter                of fiscal 2008. Heli-One has the capability to support, on a nose-to-tail                basis, our entire fleet of over 150 Sikorsky S61 and S76 and Eurocopter                Super Puma aircraft and to compete for helicopter work for a worldwide                fleet of aircraft in this sector. In addition to repair and overhaul,                Heli-One provides the following services to the helicopter                industry: |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Integrated                logistics support; |
|--------|---|----------------------------------------------|

|   | - | Aircraft                leasing; |
|--------|---|----------------------------------|

|   | - | Heavy                maintenance; |
|--------|---|-----------------------------------|

|   | - | Design                and engineering; |
|--------|---|----------------------------------------|

|   | - | Helicopter                parts and distribution; and |
|--------|---|-------------------------------------------------------|

|   | - | Inventory                management. |
|--------|---|--------------------------------------|

----

| • | Pursue                Profitable New Business                Beyond the Oil and Gas Sector.                We believe                that we have a competitive advantage in the EMS/SAR sectors by virtue                of                our experience in servicing both the oil and gas and EMS/SAR industries.                We believe that this advantage stems from our ability to operate                sophisticated twin-engine medium and heavy helicopters with highly                trained                pilots in complex situations. Typically, EMS/SAR customers require                the                operator to meet stringent quality standards on a long-term                basis. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Continue                to Focus on Long-Term                Contracts.                We seek to                enter into long-term contracts with our major customers in order                to                maximize the stability of our revenue. Revenue from operations under                long-term contracts represented approximately 67% of our revenue                during                the year, compared to 66% in the prior                year. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Revenue                by Industry                Sector |   | 2007                         |    | 2006(i) |                    | 2005(i) |
|----------------------------------------------------------|--------|------------------------------|---------|---------|-------------------------|---------|
|                                                     |   | (in                millions) |    |    |                  % |    |   | (in                millions) |   |   |                  % |   |   | (in                millions) |   |   |                  % |   |
| Oil                and Gas                               |   |                         | 803.4   |    |                    |    | 69.9 | % |   |   | 696.7 |   |   |   | 69.9 | % |   |   | 667.6 |   |   |   | 70.0 | % |
| Repair                and Overhaul                       |   |                         | 159.3   |    |                    |    | 13.9 | % |   |   | 131.5 |   |   |   | 13.2 | % |   |   | 112.2 |   |   |   | 11.7 | % |
| EMS/SAR                                                  |   |                         | 80.7    |    |                    |    | 7.0 | % |   |   | 82.7 |   |   |   | 8.3 | % |   |   | 84.8 |   |   |   | 8.9 | % |
| Other                                                    |   |                         | 73.3    |    |                    |    | 6.4 | % |   |   | 61.4 |   |   |   | 6.1 | % |   |   | 57.5 |   |   |   | 6.0 | % |
| Passenger                Transportation                  |   |                         | 26.8    |    |                    |    | 2.3 | % |   |   | 18.0 |   |   |   | 1.8 | % |   |   | 24.7 |   |   |   | 2.6 | % |
| Training                                                 |   |                         | 5.6     |    |                    |    | 0.5 | % |   |   | 6.8 |   |   |   | 0.7 | % |   |   | 7.4 |   |   |   | 0.8 | % |
| Total                                                    |   | $                            | 1,149.1 |    |                    |    | 100.0 | % |   | $ | 997.1 |   |   |   | 100.0 | % |   | $ | 954.2 |   |   |   | 100.0 | % |

----

| Revenue                by Geographic                Area |   | 2007                         |    | 2006(i) |                          | 2005(i) |
|----------------------------------------------------------|--------|------------------------------|---------|---------|-------------------------------|---------|
|                                                     |   | (in                millions) |    |    |                   % |    |   | (in                millions) |   |   |                   % |   |   | (in                millions) |   |   |                   % |   |
| Canada                                                   |   | $                            | 48.2    |    |                          |    | 4.2 | % |   | $ | 32.9 |   |   |   | 3.3 | % |   | $ | 24.0 |   |   |   | 2.5 | % |
| United                Kingdom                            |   |                         | 248.8   |    |                          |    | 21.7 | % |   |   | 209.4 |   |   |   | 21.0 | % |   |   | 237.7 |   |   |   | 24.9 | % |
| Norway                                                   |   |                         | 202.0   |    |                          |    | 17.6 | % |   |   | 206.7 |   |   |   | 20.7 | % |   |   | 182.9 |   |   |   | 19.2 | % |
| Africa                                                   |   |                         | 189.9   |    |                          |    | 16.5 | % |   |   | 150.1 |   |   |   | 15.1 | % |   |   | 124.3 |   |   |   | 13.0 | % |
| Australia                                                |   |                         | 74.6    |    |                          |    | 6.5 | % |   |   | 64.5 |   |   |   | 6.5 | % |   |   | 62.2 |   |   |   | 6.5 | % |
| Denmark                                                  |   |                         | 29.1    |    |                          |    | 2.5 | % |   |   | 28.1 |   |   |   | 2.8 | % |   |   | 35.5 |   |   |   | 3.7 | % |
| The                Netherlands                           |   |                         | 72.1    |    |                          |    | 6.3 | % |   |   | 67.2 |   |   |   | 6.7 | % |   |   | 65.9 |   |   |   | 7.0 | % |
| Other                Asian countries                     |   |                         | 68.1    |    |                          |    | 5.9 | % |   |   | 52.7 |   |   |   | 5.3 | % |   |   | 88.5 |   |   |   | 9.3 | % |
| Other                European countries                  |   |                         | 120.9   |    |                          |    | 10.5 | % |   |   | 108.0 |   |   |   | 10.8 | % |   |   | 88.7 |   |   |   | 9.3 | % |
| Other                countries                           |   |                         | 95.4    |    |                          |    | 8.3 | % |   |   | 77.5 |   |   |   | 7.8 | % |   |   | 44.5 |   |   |   | 4.6 | % |
| Consolidated                total                        |   | $                            | 1,149.1 |    |                          |    | 100.0 | % |   | $ | 997.1 |   |   |   | 100.0 | % |   | $ | 954.2 |   |   |   | 100.0 | % |

| (i) | See                Note 2 to our audited consolidated financial statements included                elsewhere in this Annual Report. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

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|                                                                           | Number                in                Fleet |      |   |                                         | PassengerCapacity(i) |
|--------------------------------------------------------------------------------|-----------------------------------------------|-----------|--------|----------------------------------------------|----------------------|
| Fleet                Composition                                               | Owned                                         | Leased    |   | Type                of                Engine |                 |   |   |
|     Light                Helicopters                       |                                          |      |   |                                         |                 |   |   |
|     Eurocopter                AS350 Series                 |  1                                       | -         |   | Turbine                                      |                 |  5 |   |
|     Eurocopter                AS355 Twin Star              |  1                                       | -         |   | Twin                Turbine                  |                 |  4 |   |
|     MD                902                                  |  1                                       | -         |   | Twin                Turbine                  |                 |  7 |   |
|     Total                Light                Helicopters  |  3                                       | -         |   |                                         |                 |   |   |
|                                                                           |                                          |      |   |                                         |                 |   |   |
|     Medium                Helicopters                      |                                          |      |   |                                         |                 |   |   |
|     AgustaWestland                AW139                    |  2                                       |  4   |   | Twin                Turbine                  |                 | 15 |   |
|     Bell                212 Series                         |  9                                       |  1   |   | Twin                Turbine                  |                 | 14 |   |
|     Bell                214                                |  1                                       | -         |   | Twin                Turbine                  |                 | 19 |   |
|     Bell                412                                |  8                                       |  9   |   | Twin                Turbine                  |                 | 14 |   |
|     Eurocopter                155B                         | -                                             |  2   |   | Twin                Turbine                  |                 | 12 |   |
|     Eurocopter                365                Series    |  19                                      |  13  |   | Twin                Turbine                  |                 | 10 |   |
|     Sikorsky                S76                Series      |  48                                      |  30  |   | Twin                Turbine                  |                 |  9 |   |
|     Total                Medium                Helicopters |  87                                      |  59  |   |                                         |                 |   |   |
|                                                                           |                                          |      |   |                                         |                 |   |   |
|     Heavy                Helicopters                       |                                          |      |   |                                         |                 |   |   |
|     Eurocopter                Super Puma 332L/L1           |  17                                      |  15  |   | Twin                Turbine                  |                 | 20 |   |
|     Eurocopter                Super Puma 332 MkII          |  1                                       |  19  |   | Twin                Turbine                  |                 | 19 |   |
|     Sikorsky                S61N                           |  22                                      |  2   |   | Twin                Turbine                  |                 | 26 |   |
|     Sikorsky                S92                Series      | -                                             |  10  |   | Twin                Turbine                  |                 | 19 |   |
|     Total                Heavy                Helicopters  |  40                                      |  46  |   |                                         |                 |   |   |
|                                                                           |                                          |      |   |                                         |                 |   |   |
|     Fixed-Wing                Aircraft                     |                                          |      |   |                                         |                 |   |   |
|     ATR                42-500                              | -                                             |  1   |   | Twin                Turboprop                |                 | 48 |   |
|     Boeing                737-300                          | -                                             |  2   |   | Twin                Jet                      |                 | 149 |   |
|     Convair                580                             |  2                                       | -         |   | Twin                Turboprop                |                 | 55 |   |
|     Dash                8                                  |  6                                       |  2   |   | Twin                Turboprop                |                 | 47 |   |
|     Learjet                45                              |  1                                       | -         |   | Twin                Jet                      |                 |  9 |   |
|     Twin                Otter                              |  5                                       |  1   |   | Twin                Turboprop                |                 | 19 |   |
|     Total                Fixed-Wing Aircraft               |  14                                      |  6   |   |                                         |                 |   |   |
|                                                                           |                                          |      |   |                                         |                 |   |   |
| TOTAL                                                                          |  144                                     |  111 |   |                                         |                 |   |   |

| (i) | Excludes                pilots and assumes standard seating of only one                pilot. |
|-----|-----------------------------------------------------------------------------------------------|

----

| Aircraft                Type              |   | Global                Operations |   |   | European                Operations |   |   | Heli-One |   |   | Total  |   |   | Owned  |   |   | Leased |   |
|-------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Heavy                                     |   |                             |   |   |                               |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Eurocopter                Super Puma      |   |                             | 9      |   |                               |   | 18     |     |   |   | 5      |   |   |   | 32     |   |   |   | 17 |   |   |   | 15 |   |
| Eurocopter                Super Puma MkII |   |                             | 4      |   |                               |   | 16     |     |   |   | -      |   |   |   | 20     |   |   |   | 1 |   |   |   | 19 |   |
| Sikorsky                S61N              |   |                             | 12     |   |                               |   | 9      |     |   |   | 3      |   |   |   | 24     |   |   |   | 22 |   |   |   | 2 |   |
| Sikorsky                S92 series        |   |                             | 2      |   |                               |   | 5      |     |   |   | 3      |   |   |   | 10     |   |   |   | - |   |   |   | 10 |   |
|                                      |   |                             | 27     |   |                               |   | 48     |     |   |   | 11     |   |   |   | 86     |   |   |   | 40 |   |   |   | 46 |   |
| Medium                                    |   |                             |   |   |                               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AgustaWestland                AW139       |   |                             | 2      |   |                               |   | 4      |     |   |   | -      |   |   |   | 6      |   |   |   | 2 |   |   |   | 4 |   |
| Bell                212                   |   |                             | 10     |   |                               |   | -      |     |   |   | -      |   |   |   | 10     |   |   |   | 9 |   |   |   | 1 |   |
| Bell                412                   |   |                             | 15     |   |                               |   | -      |     |   |   | 2      |   |   |   | 17     |   |   |   | 8 |   |   |   | 9 |   |
| Eurocopter                365 Series      |   |                             | 15     |   |                               |   | 8      |     |   |   | 9      |   |   |   | 32     |   |   |   | 19 |   |   |   | 13 |   |
| Sikorsky                S76 Series        |   |                             | 55     |   |                               |   | 13     |     |   |   | 10     |   |   |   | 78     |   |   |   | 48 |   |   |   | 30 |   |
| Other                                     |   |                             | -      |   |                               |   | 3      |     |   |   | -      |   |   |   | 3      |   |   |   | 1 |   |   |   | 2 |   |
|                                      |   |                             | 97     |   |                               |   | 28     |     |   |   | 21     |   |   |   | 146    |   |   |   | 87 |   |   |   | 59 |   |
| Light                                     |   |                             |   |   |                               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Eurocopter                AS350/355       |   |                             | 1      |   |                               |   | -      |     |   |   | 1      |   |   |   | 2      |   |   |   | 2 |   |   |   | - |   |
| Other                                     |   |                             | -      |   |                               |   | -      |     |   |   | 1      |   |   |   | 1      |   |   |   | 1 |   |   |   | - |   |
|                                      |   |                             | 1      |   |                               |   | -      |     |   |   | 2      |   |   |   | 3      |   |   |   | 3 |   |   |   | - |   |
| Total                Helicopters          |   |                             | 125    |   |                               |   | 76     |     |   |   | 34     |   |   |   | 235    |   |   |   | 130 |   |   |   | 105 |   |
| Fixed-wing                                |   |                             | 20     |   |                               |   | -      |     |   |   | -      |   |   |   | 20     |   |   |   | 14 |   |   |   | 6 |   |
| Total                Aircraft             |   |                             | 145    |   |                               |   | 76     |     |   |   | 34     |   |   |   | 255    |   |   |   | 144 |   |   |   | 111 |   |

----

|                                                                    |                                                                                                         |                               | Owned                or Leased/Lease                Expiration Date |
|-------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|------------------------------------|---------------------------------------------------------------------|
| Location                                                                | Operations                                                                                                   | Buildings(Sq.                Feet) | Land                                                                | Buildings |
| Richmond,                British Columbia,                Canada        | Headquarters                for Corporate,Global                Operations and Heli-One; Repair and Overhaul | 80,000                             | LeasedOctober                1, 2038                                | Owned |
| Gander,                Newfoundland and                Labrador, Canada | CHC                Composites Inc.Composites                Manufacturer                                     | 60,000                             | LeasedJuly,                2018                                     | Owned |
| Aberdeen,                Scotland                                       | CHC                Scotia Limited;Helicopter                Operations                                       | 42,000                             | LeasedApril                16, 2030                                 | LeasedApril                30, 2016 |
|                                                                    | CHC                Scotia Limited;Terminal                Building                                           | 25,000                             | LeasedJune                30, 2027                                  | Owned |
| Stavanger,                Norway                                        | CHC                Helikopter Service AS Helicopter Operations                                               | 199,000                            | LeasedMarch                1, 2012                                  | Owned |
|                                                                    | Heli-One                (Norway) AS Headquarters;Repair                and Overhaul                          | 179,000(i)                         | LeasedApril                20, 2010                                 | Owned |
| Cape                Town,South                Africa                    | CHC                Africa;Helicopter                Operations                                               | 142,884                            | LeasedApril                30, 2010                                 | Owned |
| Adelaide,                Australia                                      | CHC                Australia;Helicopter                Operations                                            | 10,000                             | Owned                                                               | Owned |
| Hoofddorp,The                Netherlands                                | CHC                Netherlands BV;Heli-One                (Netherlands) BV                                   | 39,000                             | Leased                                                              | Leased |
| Den                Helder,The                Netherlands                | CHC                Netherlands;Helicopter                Operations                                          | 5,200                              | LeasedJune                30, 2008                                  | LeasedJune                30, 2008 |
| Delta,                British Columbia, Canada(ii)                      | Future                Headquarters for Heli-One and future Repair and Overhaul                facilities     | 240,000                            | Leased                                                              | Owned |
| Hurst,                Texas                                             | Heli-One                USA Inc.                                                                             | 30,000                             | Owned                                                               | Owned |

| (i) | Sub-leased                  from CHC Helikopter Service AS who leases from Heliwest AS and                  included                  within the 199,000 square feet shown in the table above for that                  company. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | The                  building on this property is under construction with occupation                  expected                  in February 2008. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM                5. | OPERATING                AND FINANCIAL REVIEW AND PROSPECTS |
|------------------------|-------------------------------------------------------------|

----

| • | The                Global Operations segment includes helicopter and fixed-wing flying                services for offshore oil and gas and EMS/SAR customers in Australia,                Africa, the Middle East, the Americas, Asia and other locations around                the                world, excluding Europe. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                European Operations segment provides offshore oil and gas flying                operations from 17 bases in the UK, Norway, Ireland, the Netherlands                and                Denmark, as well as EMS/SAR and training operations throughout                Europe. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                Heli-One segment combines our helicopter services support capabilities                including repair and overhaul, maintenance, integrated logistics                support                and aircraft leasing to both internal and external customers. Heli-One                operates repair and overhaul facilities located in Norway, Canada,                the UK,                the US, Australia and Africa. Heli-One also performs composite aerospace                component manufacturing. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                Corporate and other segment includes corporate head office and other                corporate costs in various                jurisdictions. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | Excluding                the impact of FX, there was a $108.1 million increase in revenue in                fiscal 2007 in Global Operations primarily due to increased flying                revenue                from new and expanded contracts in Australia, South America, Africa                and                Southeast Asia, as well as increased fixed-wing activity in Nigeria                and                rate increases on a number of existing                contracts. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | European                Operations’ revenue increased by $17.1 million, excluding FX, over                fiscal 2006 due to new and renewed contracts and rate increases earned                on                new aircraft types. These increases were partially offset by the                loss of                the ConocoPhillips contract in late fiscal 2006 and the impact of                aircraft                availability issues in fiscal 2007. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | An                increase in external revenue in fiscal 2007 in Heli-One of                $37.4 million, excluding FX. This increase was due to increases in                both external fleet and R&O revenues. External fleet revenue increased                due to incremental lease revenue on a larger third-party leased fleet,                including new aircraft lease contracts in Mexico and the US. R&O                revenue increased due to an increase in customer flying hours, new                PBH                contracts in Malaysia and Mexico, part sales increases and an increase                in                base maintenance activities. Base maintenance activities increased                primarily as a result of the consolidation of Heli-Dyne in the US,                which                was acquired during fiscal 2007, as well as increases in third party                base                maintenance work performed in Norway and                Europe. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                    |   | Fiscal                Year Ended April 30    |   |
|-----------------------------------------|--------|----------------------------------------------|--------|
|                                    |   | 2007                                         |   |   | 2006 |   |   | Change |   |   | 2007 |   |   | 2006 |   |   | Change                (i) |   |
| Industry                Sector          |   | (percentage                of total revenue) |   |   | (in millions                of CDN dollars) |   |
| Oil                and Gas              |   |                                         | 69.9   | % |   |   | 69.9 | % |   |   | - |   |   | $ | 803.4 |   |   | $ | 696.7 |   |   | $ | 106.7 |   |
| Repair                and Overhaul      |   |                                         | 13.9   | % |   |   | 13.2 | % |   |   | 0.7 | % |   |   | 159.3 |   |   |   | 131.5 |   |   |   | 27.8 |   |
| EMS/SAR                                 |   |                                         | 7.0    | % |   |   | 8.3 | % |   |   | (1.3 | )% |   |   | 80.7 |   |   |   | 82.7 |   |   |   | (2.0 | ) |
| Other                                   |   |                                         | 6.4    | % |   |   | 6.1 | % |   |   | 0.3 | % |   |   | 73.3 |   |   |   | 61.4 |   |   |   | 11.9 |   |
| Passenger                Transportation |   |                                         | 2.3    | % |   |   | 1.8 | % |   |   | 0.5 | % |   |   | 26.8 |   |   |   | 18.0 |   |   |   | 8.8 |   |
| Training                                |   |                                         | 0.5    | % |   |   | 0.7 | % |   |   | (0.2 | )% |   |   | 5.6 |   |   |   | 6.8 |   |   |   | (1.2 | ) |
| Total                                   |   |                                         | 100.0  | % |   |   | 100.0 | % |   |   | - |   |   | $ | 1,149.1 |   |   | $ | 997.1 |   |   | $ | 152.0 |   |

| (i) | The                $106.7 million increase in revenue in the oil and gas sector was due                primarily to growth in Global Operations and European Operations                offset                partially by unfavourable FX. The $27.8 million increase in repair                and overhaul revenue was primarily due to an increase in customer                flying                hours, increased base maintenance activities in Norway and Europe                and the                acquisition of Heli-Dyne in the US during the year, partially offset                by                unfavourable FX. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                     |   |   | Global                Operations |   |   | European                Operations |   |   | Total                Flying Segments |   |   | Heli-One |   |   | Corporate                &                Other |   |   | Total  |   |
|----------------------------|--------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|--------------------------------------|--------|--------|----------|--------|--------|-----------------------------------------------------|--------|--------|--------|--------|
| Fiscal                2007 | Q1     |   | $                                | 91.8   |   |                               | $      | 132.9  |                                 |   | $      | 224.7    |   |   | $                                                   | 38.4   |   |   | $      | - |   |   | $ | 263.1 |   |
|                       | Q2     |   |                             | 97.8   |   |                               |   | 131.7  |                                 |   |   | 229.5    |   |   |                                                | 43.3   |   |   |   | 0.2 |   |   |   | 273.0 |   |
|                       | Q3     |   |                             | 119.7  |   |                               |   | 135.5  |                                 |   |   | 255.2    |   |   |                                                | 45.5   |   |   |   | 0.1 |   |   |   | 300.8 |   |
|                       | Q4     |   |                             | 118.7  |   |                               |   | 139.8  |                                 |   |   | 258.5    |   |   |                                                | 53.5   |   |   |   | 0.2 |   |   |   | 312.2 |   |
|                       |   |   | $                                | 428.0  |   |                               | $      | 539.9  |                                 |   | $      | 967.9    |   |   | $                                                   | 180.7  |   |   | $      | 0.5 |   |   | $ | 1,149.1 |   |
|                       |   |   |                             |   |   |                               |   |   |                                 |   |   |     |   |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Fiscal                2006 | Q1     |   | $                                | 76.0   |   |                               | $      | 133.6  |                                 |   | $      | 209.6    |   |   | $                                                   | 33.4   |   |   | $      | - |   |   | $ | 243.0 |   |
|                       | Q2     |   |                             | 79.5   |   |                               |   | 138.5  |                                 |   |   | 218.0    |   |   |                                                | 34.5   |   |   |   | (0.1 | ) |   |   | 252.4 |   |
|                       | Q3     |   |                             | 86.6   |   |                               |   | 126.0  |                                 |   |   | 212.6    |   |   |                                                | 40.8   |   |   |   | 0.1 |   |   |   | 253.5 |   |
|                       | Q4     |   |                             | 88.8   |   |                               |   | 122.3  |                                 |   |   | 211.1    |   |   |                                                | 37.0   |   |   |   | 0.1 |   |   |   | 248.2 |   |
|                       |   |   | $                                | 330.9  |   |                               | $      | 520.4  |                                 |   | $      | 851.3    |   |   | $                                                   | 145.7  |   |   | $      | 0.1 |   |   | $ | 997.1 |   |

----

|                       |   |   | Flying                Hours    |   |   | Number                of Aircraft at Period End |   |
|----------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------------|--------|
| Period                     |   |   | Global                Operations              |   |   | European                Operations              |   |   | Total |   |   | Global                Operations |   |   | European                Operations |   |   | Heli-One |   |   | Total |   |
| Fiscal                2007 | Q1     |   |                                          | 19,502 |   |                                            |   | 24,240 |   |   |   | 43,742 |   |   |   | 132 |   |   |   | 76 |   |   |   | 44 |   |   |   | 252 |   |
|                       | Q2     |   |                                          | 20,981 |   |                                            |   | 23,256 |   |   |   | 44,237 |   |   |   | 128 |   |   |   | 77 |   |   |   | 43 |   |   |   | 248 |   |
|                       | Q3     |   |                                          | 21,547 |   |                                            |   | 21,556 |   |   |   | 43,103 |   |   |   | 128 |   |   |   | 75 |   |   |   | 47 |   |   |   | 250 |   |
|                       | Q4     |   |                                          | 22,177 |   |                                            |   | 21,956 |   |   |   | 44,133 |   |   |   | 145 |   |   |   | 76 |   |   |   | 34 |   |   |   | 255 |   |
|                       |   |   |                                          | 84,207 |   |                                            |   | 91,008 |   |   |   | 175,215 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |   |                                          |   |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal                2006 | Q1     |   |                                          | 16,262 |   |                                            |   | 23,713 |   |   |   | 39,975 |   |   |   | 127 |   |   |   | 77 |   |   |   | 14 |   |   |   | 218 |   |
|                       | Q2     |   |                                          | 17,042 |   |                                            |   | 25,968 |   |   |   | 43,010 |   |   |   | 128 |   |   |   | 71 |   |   |   | 27 |   |   |   | 226 |   |
|                       | Q3     |   |                                          | 18,854 |   |                                            |   | 23,764 |   |   |   | 42,618 |   |   |   | 131 |   |   |   | 72 |   |   |   | 27 |   |   |   | 230 |   |
|                       | Q4     |   |                                          | 17,701 |   |                                            |   | 22,026 |   |   |   | 39,727 |   |   |   | 131 |   |   |   | 72 |   |   |   | 30 |   |   |   | 233 |   |
|                       |   |   |                                          | 69,859 |   |                                            |   | 95,471 |   |   |   | 165,330 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                               |   | Hourly                     |   |   | Fixed                      |   |   | Total                      |   |
|------------------------------------|--------|----------------------------|--------|--------|----------------------------|--------|--------|----------------------------|--------|
| Segment                            |   | Fiscal                2007 |   |   | Fiscal                2006 |   |   | Fiscal                2007 |   |   | Fiscal                2006 |   |   | Fiscal                2007 |   |   | Fiscal                2006 |   |
| Global                Operations   |   | $                          | 114.1  |   |                       | $      | 97.2   |                       |   | $ | 260.6 |   |   | $ | 210.7 |   |   | $ | 374.7 |   |   | $ | 307.9 |   |
| European                Operations |   |                       | 282.4  |   |                       |   | 311.0  |                       |   |   | 231.9 |   |   |   | 186.2 |   |   |   | 514.3 |   |   |   | 497.2 |   |
|                               |   | $                          | 396.5  |   |                       | $      | 408.2  |                       |   | $ | 492.5 |   |   | $ | 396.9 |   |   | $ | 889.0 |   |   | $ | 805.1 |   |

|                               |   | Fiscal                2007 |   |   | Fiscal                2006 |   |
|------------------------------------|--------|----------------------------|--------|--------|----------------------------|--------|
| Segment                            |   | Heavy                      |   |   | Medium                     |   |   | Light |   |   | FixedWing |   |   | Total |   |   | Heavy |   |   | Medium |   |   | Light |   |   | FixedWing |   |   | Total |   |
| Global                Operations   |   | $                          | 87.8   |   |                       | $      | 242.1 |   |   | $ | 0.9 |   |   | $ | 43.9 |   |   | $ | 374.7 |   |   | $ | 70.0 |   |   | $ | 204.8 |   |   | $ | 2.5 |   |   | $ | 30.6 |   |   | $ | 307.9 |   |
| European                Operations |   |                       | 378.2  |   |                       |   | 136.1 |   |   |   | - |   |   |   | - |   |   |   | 514.3 |   |   |   | 369.7 |   |   |   | 127.5 |   |   |   | - |   |   |   | - |   |   |   | 497.2 |   |
| Total                Flying        |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                            |   | $                          | 466.0  |   |                       | $      | 378.2 |   |   | $ | 0.9 |   |   | $ | 43.9 |   |   | $ | 889.0 |   |   | $ | 439.7 |   |   | $ | 332.3 |   |   | $ | 2.5 |   |   | $ | 30.6 |   |   | $ | 805.1 |   |
| Total                %             |   |                       | 52.5   | %      |                       |   | 42.5 | % |   |   | 0.1 | % |   |   | 4.9 | % |   |   | 100.0 | % |   |   | 54.6 | % |   |   | 41.3 | % |   |   | 0.3 | % |   |   | 3.8 | % |   |   | 100.0 | % |

----

| (in                millions of Canadian dollars)          |   | 2007   |   |   | 2006   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Interest                on debt obligations               |   | $      | 51.9   |   |   | $      | 43.5 |   |
| Amortization                of deferred financing costs   |   |   | 1.4    |   |   |   | 1.6 |   |
| Foreign                exchange losses                    |   |   | 8.2    |   |   |   | 6.2 |   |
| Release                of currency translation adjustment |   |   | (0.3   | )      |   |   | 2.6 |   |
| Other                interest income                      |   |   | (2.9   | )      |   |   | (0.9 | ) |
| Total                                                     |   | $      | 58.3   |   |   | $      | 53.0 |   |

----

| (in                millions of Canadian dollars)                                  |   | 2007   |   |   | 2006   |   |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Earnings                from continuing operations before income taxes            |   | $      | 57.8   |   |   | $      | 100.2 |   |
| Combined                Canadian federal and provincial statutory income tax rate |   |   | 34     | %      |   |   | 34 | % |
| Income                tax provision calculated at statutory rate                  |   |   | (19.7  | )      |   |   | (34.1 | ) |
| (Increase)                decrease in income tax provision resulting from:        |   |   |   |   |   |   |   |   |
|     Rate                differences in various jurisdictions  |   |   | 12.9   |   |   |   | 13.5 |   |
|     Effect                of change in tax law                |   |   | (1.3   | )      |   |   | (0.2 | ) |
|     Non-deductible                items                       |   |   | (0.6   | )      |   |   | (1.2 | ) |
|     Large                corporations tax                     |   |   | -      |   |   |   | (0.5 | ) |
|     Other                foreign taxes                        |   |   | (7.8   | )      |   |   | (3.5 | ) |
|     Non-taxable                portion of capital gains       |   |   | 0.6    |   |   |   | 13.6 |   |
|     Non-taxable                income                         |   |   | 1.9    |   |   |   | 2.7 |   |
|     Valuation                allowance                        |   |   | 0.7    |   |   |   | (0.3 | ) |
|     Other                                                     |   |   | (3.5   | )      |   |   | (0.5 | ) |
| Income                tax provision                                               |   | $      | (16.8  | )      |   | $      | (10.5 | ) |

----

| (in                millions of Canadian dollars) |   |   |   |
|--------------------------------------------------|--------|--------|--------|
| 2008                                             |   | $      | 5.1    |   |
| 2009                                             |   |   | 8.9    |   |
| 2014                                             |   |   | 3.0    |   |
| 2015                                             |   |   | 19.3   |   |
| 2026                                             |   |   | 33.0   |   |
| 2027                                             |   |   | 4.2    |   |
| Indefinitely                                     |   |   | 80.2   |   |
|                                             |   | $      | 153.7  |   |

----

| Fiscal                2007             |   | Revenue                                               |    |   | Net                earnings                from continuing operations |   |   | Net                earnings |   |   | Total                assets |   |   | Totallong-term                financial liabilities |    |   | Cash                dividends per                share |   |    | Net                earningsper                share from                continuing operations |   |   | Net                earningsper                share |   |
|----------------------------------------|--------|-------------------------------------------------------|---------|--------|-----------------------------------------------------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------------------------------|---------|--------|--------------------------------------------------------|--------|---------|-----------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                   |   | (in millions                of Canadian dollars) |    |   | declared                                                              |   |   | Basic                       |   |   | Diluted                     |   |   | Basic                                               |    |   | Diluted                                                |   |
| Q1                                     |   | $                                                     | 263.1   |   |                                                                  | $      | 9.0    |                        |   | $      | 8.8                         |   |   | $                                                   | 1,838.2 |   |                                                   | $      | 1,043.4 |                                                                                          |   | $      | -                                                   |   |   | $ | 0.21 |   |   | $ | 0.20 |   |   | $ | 0.21 |   |   | $ | 0.19 |   |
| Q2                                     |   |                                                  | 273.0   |   |                                                                  |   | 8.3    |                        |   |   | 8.9                         |   |   |                                                | 1,839.0 |   |                                                   |   | 1,018.2 |                                                                                          |   |   | 0.50                                                |   |   |   | 0.20 |   |   |   | 0.18 |   |   |   | 0.21 |   |   |   | 0.20 |   |
| Q3                                     |   |                                                  | 300.8   |   |                                                                  |   | 12.0   |                        |   |   | 12.8                        |   |   |                                                | 2,012.6 |   |                                                   |   | 877.6   |                                                                                          |   |   | -                                                   |   |   |   | 0.28 |   |   |   | 0.26 |   |   |   | 0.30 |   |   |   | 0.28 |   |
| Q4                                     |   |                                                  | 312.2   |   |                                                                  |   | 11.7   |                        |   |   | 13.5                        |   |   |                                                | 2,102.2 |   |                                                   |   | 842.7   |                                                                                          |   |   | -                                                   |   |   |   | 0.28 |   |   |   | 0.26 |   |   |   | 0.32 |   |   |   | 0.30 |   |
| Total                                  |   | $                                                     | 1,149.1 |   |                                                                  | $      | 41.0   |                        |   | $      | 44.0                        |   |   |                                                |    |   |                                                   |   |    |                                                                                          |   | $      | 0.50                                                |   |   | $ | 0.97 |   |   | $ | 0.90 |   |   | $ | 1.04 |   |   | $ | 0.97 |   |
|                                   |   |                                                  |    |   |                                                                  |   |   |                        |   |   |                        |   |   |                                                |    |   |                                                   |   |    |                                                                                          |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal                2006   |   |                                                  |    |   |                                                                  |   |   |                        |   |   |                        |   |   |                                                |    |   |                                                   |   |    |                                                                                          |   |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Q1                                     |   | $                                                     | 243.0   |   |                                                                  | $      | 18.8   |                        |   | $      | 19.2                        |   |   | $                                                   | 1,669.8 |   |                                                   | $      | 975.2   |                                                                                          |   | $      | -                                                   |   |   | $ | 0.45 |   |   | $ | 0.41 |   |   | $ | 0.46 |   |   | $ | 0.42 |   |
| Q2                                     |   |                                                  | 252.4   |   |                                                                  |   | 39.2   |                        |   |   | 39.2                        |   |   |                                                | 1,675.1 |   |                                                   |   | 939.1   |                                                                                          |   |   | 0.40                                                |   |   |   | 0.93 |   |   |   | 0.85 |   |   |   | 0.93 |   |   |   | 0.85 |   |
| Q3                                     |   |                                                  | 253.5   |   |                                                                  |   | 21.4   |                        |   |   | 21.5                        |   |   |                                                | 1,685.6 |   |                                                   |   | 945.8   |                                                                                          |   |   | -                                                   |   |   |   | 0.51 |   |   |   | 0.47 |   |   |   | 0.51 |   |   |   | 0.47 |   |
| Q4                                     |   |                                                  | 248.2   |   |                                                                  |   | 10.3   |                        |   |   | 10.8                        |   |   |                                                | 1,686.1 |   |                                                   |   | 911.7   |                                                                                          |   |   | -                                                   |   |   |   | 0.25 |   |   |   | 0.22 |   |   |   | 0.26 |   |   |   | 0.23 |   |
| Total                                  |   | $                                                     | 997.1   |   |                                                                  | $      | 89.7   |                        |   | $      | 90.7                        |   |   |                                                |    |   |                                                   |   |    |                                                                                          |   | $      | 0.40                                                |   |   | $ | 2.14 |   |   | $ | 1.95 |   |   | $ | 2.16 |   |   | $ | 1.97 |   |

| (i) | Results                for Q2 of fiscal 2006 included a pre-tax gain of $21.8 million for                the sale of the Company’s remaining interest in CHL and other long-term                investments. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | Results                for Q3 of fiscal 2006 included a pre-tax gain of $15.7 million for                the sale of the Company’s equity interest in                Inaer. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Results                for Q1 of fiscal 2007 included aircraft introduction costs of                approximately $5.5 million in support of future                growth. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | Results                for Q2 of fiscal 2007 included foreign exchange losses of approximately                $6.6 million relating to various items including repatriation of cash                to Canada, internal financing arrangements between subsidiaries of                the                Company in currencies other than their functional currencies, and                short-term imbalances in third-party trade and other balances in                the                Company’s Norwegian and South African                subsidiaries. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | Results                for Q3 of fiscal 2007 included revenue on the sale of an aircraft                of                approximately $13.0 million. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | Results                for Q4 of fiscal 2007 included aircraft introduction costs of                $5.1 million in support of continued                growth. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                    |   | Global                Operations |    |   | European                Operations |   |    | Heli-One |   |   | Corporate&                Other |   | Inter-segment                Eliminations |   | Total  |   |
|---------------------------------------------------------|--------|----------------------------------|---------|--------|------------------------------------|--------|---------|----------|--------|--------|-------------------------------------|--------|-------------------------------------------|--------|--------|--------|
| Year                ended April 30, 2006 (i)            |   | $                                | 330,877 |   |                               | $      | 520,367 |     |   | $      | 145,668                             |   |                                      | $      | 175    |   |  N/A |   | $ | 997,087 |   |
| Foreign                exchange impact (ii)             |   |                             | (11,007 | )      |                               |   | 2,468   |     |   |   | (2,453                              | )      |                                      |   | 13     |   |  N/A |   |   | (10,979 | ) |
| Revenue                increase (decrease)              |   |                             | 108,086 |   |                               |   | 17,086  |     |   |   | 37,398                              |   |                                      |   | 429    |   |  N/A |   |   | 162,999 |   |
| Year                ended April 30,                2007 |   | $                                | 427,956 |   |                               | $      | 539,921 |     |   | $      | 180,613                             |   |                                      | $      | 617    |   |  N/A |   | $ | 1,149,107 |   |
|                                                    |   |                             |    |   |                               |   |    |     |   |   |                                |   |                                      |   |   |   |   |   |   |   |   |
| Total                revenue                increase    |   | $                                | 97,079  |   |                               | $      | 19,554  |     |   | $      | 34,945                              |   |                                      | N/A    |   | N/A    |   | $ | 152,020 |   |
| %                increase                               |   |                             | 29.3    | %      |                               |   | 3.8     | %        |   |   | 24.0                                | %      |                                      | N/A    |   | N/A    |   |   | 15.2 | % |
| %                increase excluding                FX   |   |                             | 32.7    | %      |                               |   | 3.3     | %        |   |   | 25.7                                | %      |                                      | N/A    |   | N/A    |   |   | 16.3 | % |

|                                                                    |   | Global                Operations |    |   | European                Operations |   |    | Heli-One |   |   | Corporate&                Other |   |   | Inter-segment                Eliminations |    |   | Total  |   |
|-------------------------------------------------------------------------|--------|----------------------------------|---------|--------|------------------------------------|--------|---------|----------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------|--------|
| Year                ended April 30, 2006 (i)                            |   | $                                | 90,922  |   |                               | $      | 107,481 |     |   | $      | 229,475                             |   |   | $                                         | (27,662 | )      |   | $      | (154,049 | ) |   | $ | 246,167 |   |
| Foreign                exchange impact (ii)                             |   |                             | (3,183  | )      |                               |   | (3,679  | )        |   |   | 1,302                               |   |   |                                      | 1,428   |   |   |   | - |   |   |   | (4,132 | ) |
| Segment                EBITDAR increase (decrease)                      |   |                             | 47,392  |   |                               |   | (8,460  | )        |   |   | 42,397                              |   |   |                                      | (15,104 | )      |   |   | (26,808 | ) |   |   | 39,417 |   |
| Year                ended April 30,                2007                 |   | $                                | 135,131 |   |                               | $      | 95,342  |     |   | $      | 273,174                             |   |   | $                                         | (41,338 | )      |   | $      | (180,857 | ) |   | $ | 281,452 |   |
|                                                                    |   |                             |    |   |                               |   |    |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Segment                EBITDAR margin                (iii)              |   |                             |    |   |                               |   |    |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| -                Last                year                               |   |                             | 27.5    | %      |                               |   | 20.7    | %        |   |   | 45.8                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 24.7 | % |
| -                This                year                               |   |                             | 31.6    | %      |                               |   | 17.7    | %        |   |   | 47.7                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 24.5 | % |
| Total                Segment EBITDAR increase                (decrease) |   | $                                | 44,209  |   |                               | $      | (12,139 | )        |   | $      | 43,699                              |   |   | $                                         | (13,676 | )      |   | $      | (26,808 | ) |   | $ | 35,285 |   |
| %                increase                (decrease)                     |   |                             | 48.6    | %      |                               |   | (11.3   | %)       |   |   | 19.0                                | %      |   |                                      | (49.4   | %)     |   | N/A    |   |   |   | 14.3 | % |
| %                increase (decrease)                excluding FX        |   |                             | 52.1    | %      |                               |   | (7.9    | %)       |   |   | 18.5                                | %      |   |                                      | (54.6   | %)     |   | N/A    |   |   |   | 16.0 | % |

|                                                                   |   | Global                Operations |   |   | European                Operations |   |    | Heli-One |   |   | Corporate&                Other |   |   | Inter-segment                Eliminations |    |   | Total  |   |
|------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|---------|----------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------|--------|
| Year                ended April 30, 2006 (i)                           |   | $                                | 7,706  |   |                               | $      | 31,857  |     |   | $      | 168,790                             |   |   | $                                         | (27,662 | )      |   | $      | - |   |   | $ | 180,691 |   |
| Foreign                exchange impact (ii)                            |   |                             | (1,366 | )      |                               |   | (3,792  | )        |   |   | 4,266                               |   |   |                                      | 1,416   |   |   |   | - |   |   |   | 524 |   |
| Segment                EBITDA increase (decrease)                      |   |                             | 27,811 |   |                               |   | (25,830 | )        |   |   | 12,901                              |   |   |                                      | (15,092 | )      |   |   | - |   |   |   | (210 | ) |
| Year                ended April 30,                2007                |   | $                                | 34,151 |   |                               | $      | 2,235   |     |   | $      | 185,957                             |   |   | $                                         | (41,338 | )      |   | $      | - |   |   | $ | 181,005 |   |
|                                                                   |   |                             |   |   |                               |   |    |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Segment                EBITDA margin                (iii)              |   |                             |   |   |                               |   |    |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| -                Last                year                              |   |                             | 2.3    | %      |                               |   | 6.1     | %        |   |   | 33.7                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 18.1 | % |
| -                This                year                              |   |                             | 8.0    | %      |                               |   | 0.4     | %        |   |   | 32.5                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 15.8 | % |
| Total                Segment EBITDA increase                (decrease) |   | $                                | 26,445 |   |                               | $      | (29,622 | )        |   | $      | 17,167                              |   |   | $                                         | (13,676 | )      |   | $      | - |   |   | $ | 314 |   |
| %                increase                (decrease)                    |   |                             | 343.2  | %      |                               |   | (93.0   | %)       |   |   | 10.2                                | %      |   |                                      | (49.4   | %)     |   | N/A    |   |   |   | 0.2 | % |
| %                increase (decrease)                excluding FX       |   |                             | 360.9  | %      |                               |   | (81.1   | %)       |   |   | 7.6                                 | %      |   |                                      | (54.6   | %)     |   | N/A    |   |   |   | (0.1 | %) |

|                                                                     |   | Global                Operations |   |   | European                Operations |   |    | Heli-One |   |   | Corporate&                Other |   | Inter-segment                Eliminations |   | Total   |   |
|--------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|---------|----------|--------|--------|-------------------------------------|--------|-------------------------------------------|--------|---------|--------|
| Year                ended April 30, 2006 (i)                             |   | $                                | 2,913  |   |                               | $      | 24,721  |     |   | $      | 116,297                             |   |                                      | $      | (34,865 | )      |  N/A |   | $ | 109,066 |   |
| Foreign                exchange impact (ii)                              |   |                             | (1,133 | )      |                               |   | (3,736  | )        |   |   | 3,196                               |   |                                      |   | 1,391   |   |  N/A |   |   | (282 | ) |
| Operating                income increase (decrease)                      |   |                             | 28,271 |   |                               |   | (22,275 | )        |   |   | 8,212                               |   |                                      |   | (7,936  | )      |  N/A |   |   | 6,272 |   |
| Year                ended April 30,                2007                  |   | $                                | 30,051 |   |                               | $      | (1,290  | )        |   | $      | 127,705                             |   |                                      | $      | (41,410 | )      |  N/A |   | $ | 115,056 |   |
|                                                                     |   |                             |   |   |                               |   |    |     |   |   |                                |   |                                      |   |    |   |   |   |   |   |   |
| Total                operating income                increase (decrease) |   | $                                | 27,138 |   |                               | $      | (26,011 | )        |   | $      | 11,408                              |   |                                      | $      | (6,545  | )      | N/A |   | $ | 5,990 |   |
| %                increase                (decrease)                      |   |                             | 931.6  | %      |                               |   | (105.2  | %)       |   |   | 9.8                                 | %      |                                      |   | (18.8   | %)     | N/A |   |   | 5.5 | % |
| %                increase (decrease)                excluding FX         |   |                             | 970.5  | %      |                               |   | (90.1   | %)       |   |   | 7.1                                 | %      |                                      |   | (22.8   | %)     | N/A |   |   | 5.8 | % |

| (i) | Comparative                figures have been reclassified for the classification of Survival-One                as                discontinued operations as outlined in Note 2 to our fiscal 2007                audited consolidated financial                statements. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Includes                  both the foreign exchange on the translation of the financial results                  of                  the foreign subsidiaries into Canadian dollars (“translation impact”) and                  the foreign exchange on the translation of foreign currency denominated                  transactions into the reporting currencies of the subsidiaries                  (“transaction impact”). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | Segment                  EBITDAR and segment EBITDA as a percent of revenue from external                  customers                  except for the Heli-One segment, which is a percent of total                  revenue. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | See                  Note 25 to our fiscal 2007 audited consolidated financial                  statements. |
|------|------------------------------------------------------------------------------------------------------------------|

----

----

| • | through                BHS, a five-year contract for the provision of eight Sikorsky S76C+                helicopters in support of Petrobras’ operations in the Brazilian offshore                sector. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                seven-year (plus three years of extension options) EMS contract with                the                Ambulance Service of New South Wales for the provision of five aircraft                in                the Greater Sydney area. The contract commenced in late fiscal 2007                and                calls for AgustaWestland AW139 and Eurocopter EC145                aircraft. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | a                contract renewal by the Irish Minister for Transport for the continued                provision of marine SAR services in Ireland from July 2007 to                July 2010, plus three option                years. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                three-year contract and two five-year contracts by Statoil for the                provision of helicopter services in the Norwegian sector of the                North Sea commencing in                mid-2007. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                four-year contract renewal by Apache North Sea Limited for the provision                of helicopter services in support of Apache’s offshore operations. The                contract commenced on September 1, 2006 and is supported by a                Sikorsky S92 aircraft. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | a                three-year contract (plus two option years) by TOTAL E&P Norge AS for                the provision of helicopter transportation services from Stavanger                and                Kristiansund, Norway, commencing in early 2008. A Eurocopter EC225                will be                deployed on the contract. The contract is expected to generate annual                revenue of approximately                $9.0 million. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | two                major contracts by Statoil ASA, Norway for provision of helicopter                services in the Norwegian Sea. The Company believes that this is                the                largest bundle of helicopter services contracts ever awarded, with                a total                value of approximately $1.1 billion, over the fixed and option                periods. The contract details are as                follows: |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i) | A                five-year contract for the provision of five Sikorsky S92 and two                Eurocopter EC225 aircraft in support of Statoil's offshore operations                based out of Floroe and Bergen, Norway, plus an additional back-up                Eurocopter AS332L2 in Bergen. The operation in Floroe will commence                in                June 2009 and the contract in Bergen in January 2010. The contract                includes options for up to four additional                years. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | A                seven-year contract for the provision of two all-weather Search and                Rescue                EC225 aircraft. One helicopter will be based at Statoil's Statfjord                field                in the North Sea, and the other in Bergen as back-up for this service.                Commencing in March 2009, the contract includes options for up to                four                additional years. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                five-year contract renewal by Statoil for the provision of helicopter                services in support of Statoil’s offshore operations. The contract will                commence on July 1, 2009 and is anticipated to generate up to                $170 million over the five-year extension                period. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                five-year contract renewal by GDF Production Nederland BV in                Den Helder. The contract was renewed in June 2007 and is expected to                generate revenue of approximately $55 million over the five-year                extension period. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                          |   | Heli-One                  Activities                    |    |
|-------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|---------|
|                                                                          |   | Fiscal                  Year Ended April                  30,          |    |
|                                                                          |   | (in                  thousands of Canadian                  dollars)                  |    |
|                                                                          |   | Fleet                                                                                                |    |   | R&O    |   |   | Total    |   |
|                                                                          |   | 2007                                                                                                                |    |   | 2006 |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Revenue                                                                       |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     External                                              |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         PBH/R&O                   |   | $                                                                                                                   | -       |   |   | $ | - |   |   | $ | 130,878 |   |   | $ | 106,104 |   |   | $ | 130,878 |   |   | $ | 106,104 |   |
|         Lease                         |   |                                                                                                                | 21,338  |   |   |   | 12,882 |   |   |   | - |   |   |   | - |   |   |   | 21,338 |   |   |   | 12,882 |   |
|         Other(i)                      |   |                                                                                                                | -       |   |   |   | - |   |   |   | 28,397 |   |   |   | 26,682 |   |   |   | 28,397 |   |   |   | 26,682 |   |
|             Total |   |                                                                                                                | 21,338  |   |   |   | 12,882 |   |   |   | 159,275 |   |   |   | 132,786 |   |   |   | 180,613 |   |   |   | 145,668 |   |
|     Internal                                              |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         PBH/R&O                   |   |                                                                                                                | -       |   |   |   | - |   |   |   | 210,098 |   |   |   | 194,915 |   |   |   | 210,098 |   |   |   | 194,915 |   |
|         Lease                         |   |                                                                                                                | 181,200 |   |   |   | 150,855 |   |   |   | - |   |   |   | - |   |   |   | 181,200 |   |   |   | 150,855 |   |
|         Other(i)                      |   |                                                                                                                | -       |   |   |   | - |   |   |   | 222 |   |   |   | 9,243 |   |   |   | 222 |   |   |   | 9,243 |   |
|             Total |   |                                                                                                                | 181,200 |   |   |   | 150,855 |   |   |   | 210,320 |   |   |   | 204,158 |   |   |   | 391,520 |   |   |   | 355,013 |   |
|     Total                  Revenue                        |   |                                                                                                                | 202,538 |   |   |   | 163,737 |   |   |   | 369,595 |   |   |   | 336,944 |   |   |   | 572,133 |   |   |   | 500,681 |   |
|                                                                          |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct                  costs                  (ii)                           |   |                                                                                                                | (18,839 | ) |   |   | (19,872 | ) |   |   | (280,120 | ) |   |   | (251,334 | ) |   |   | (298,959 | ) |   |   | (271,206 | ) |
| Segment                  EBITDAR (ii)                                         |   |                                                                                                                | 183,699 |   |   |   | 143,865 |   |   |   | 89,475 |   |   |   | 85,610 |   |   |   | 273,174 |   |   |   | 229,475 |   |
| Segment                  EBITDAR                  margin                      |   |                                                                                                                | 90.7    | % |   |   | 87.9 | % |   |   | 24.2 | % |   |   | 25.4 | % |   |   | 47.7 | % |   |   | 45.8 | % |
| Aircraft                  lease and associated costs (ii)                     |   |                                                                                                                | (87,217 | ) |   |   | (60,685 | ) |   |   | - |   |   |   | - |   |   |   | (87,217 | ) |   |   | (60,685 | ) |
| Segment                  EBITDA (ii)                                          |   | $                                                                                                                   | 96,482  |   |   | $ | 83,180 |   |   | $ | 89,475 |   |   | $ | 85,610 |   |   |   | 185,957 |   |   |   | 168,790 |   |
| Segment                  EBITDA                  margin                       |   |                                                                                                                | 47.6    | % |   |   | 50.8 | % |   |   | 24.2 | % |   |   | 25.4 | % |   |   | 32.5 | % |   |   | 33.7 | % |
| Amortization                                                                  |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (56,474 | ) |   |   | (44,363 | ) |
| Restructuring                  (costs) recovery                               |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 991 |   |   |   | (7,445 | ) |
| Loss                  on                  disposal of assets                  |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,769 | ) |   |   | (685 | ) |
| Operating                  income                                             |   |                                                                                                                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 127,705 |   |   | $ | 116,297 |   |

| (i) | Other                consists of Composites, Heli-One Components B.V. and the recently                sold                trading surplus business. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | See                Note 25 to our fiscal 2007 audited consolidated financial                statements. |
|------|--------------------------------------------------------------------------------------------------------------|

----

| • | a                five-year helicopter lease and maintenance contract, plus two option                years, with AB Norrlandsflyg of Sweden commencing in January 2008.                Heli-One will provide Norrlandsflyg with two new Sikorsky S76C++                helicopters in SAR configuration and will support the helicopters’ major                components through a PBH maintenance agreement. Norrlandsflyg will                operate                the aircraft in a SAR capacity for the Swedish Maritime                Agency. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | contracts                with major European Air Forces as                follows: |
|---------|------------------------------------------------------------------------------------|

|  | (i) | Modifications                to twelve Royal Norwegian Air Force Bell 412SP helicopters and upgrades                to                a further six 412 helicopters form SP to HP models. Work will be                carried                out in 2007 and 2008. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | S61A                fleet support for Royal Danish Air Force, including C-inspections,                component repair and overhaul, and personnel                support. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Phase                inspections on two Royal Netherlands Air Force AS532U1 Cougar helicopters                (with options for a further five inspections) to be performed at                Royal                Netherlands Air Force facilities in                Woensdrecht. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                contract with Eurocopter for the purchase of 16 new EC225                helicopters. Total value of the contract is approximately                $430 million. These aircraft are expected to be delivered between                fiscal 2008 and fiscal 2012. We plan to use these aircraft in support                of                new offshore oil and gas contracts and potentially as SAR aircraft                to meet                the unprecedented demand from various customers in both the offshore                oil                and gas industry and government sponsored SAR. The EC225 fleet will                be                fully supported by Heli-One who will provide total maintenance, repair                and                overhaul support for the advanced EC225. Heli-One has been granted                an                exclusive license to perform R&O on EC225                components. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i) | Excluding                the impact of FX, there was a $66.7 million increase in revenue in                fiscal 2006 in Global Operations primarily due to increased flying                revenue                from new and expanded contracts in Southeast Asia, the Ivory Coast,                Canada                and Azerbaijan. This increase also relates to increased revenue from                fixed-wing activity. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | An                increase, excluding FX, in revenue in fiscal 2006 in European Operations                of $44.0 million due to new and expanded contracts and increased                flying activity on existing                contracts. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | An                increase, excluding the impact of FX, in revenue in fiscal 2006 in                Heli-One of $29.0 million. This increase was due primarily to                increased revenue from existing customers and moving into new markets                including Brazil. |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | Fiscal                Year Ended April 30    |   |
|-----------------------------------------|--------|----------------------------------------------|--------|
|                                    |   | 2006                                         |   |   | 2005 |   |   | Change |   |   | 2006 |   |   | 2005 |   |   | Change                (i) |   |
| Industry                Sector          |   | (percentage                of total revenue) |   |   | (in millions                of CDN dollars) |   |
| Oil                and Gas              |   |                                         | 69.9   | % |   |   | 70.0 | % |   |   | (0.1 | )% |   | $ | 696.7 |   |   | $ | 667.6 |   |   | $ | 29.1 |   |
| Repair                and Overhaul      |   |                                         | 13.2   | % |   |   | 11.7 | % |   |   | 1.5 | % |   |   | 131.5 |   |   |   | 112.2 |   |   |   | 19.3 |   |
| EMS/SAR                                 |   |                                         | 8.3    | % |   |   | 8.9 | % |   |   | (0.6 | )% |   |   | 82.7 |   |   |   | 84.8 |   |   |   | (2.1 | ) |
| Other                                   |   |                                         | 6.1    | % |   |   | 6.0 | % |   |   | 0.1 | % |   |   | 61.4 |   |   |   | 57.5 |   |   |   | 3.9 |   |
| Passenger                Transportation |   |                                         | 1.8    | % |   |   | 2.6 | % |   |   | (0.8 | )% |   |   | 18.0 |   |   |   | 24.7 |   |   |   | (6.7 | ) |
| Training                                |   |                                         | 0.7    | % |   |   | 0.8 | % |   |   | (0.1 | )% |   |   | 6.8 |   |   |   | 7.4 |   |   |   | (0.6 | ) |
| Total                                   |   |                                         | 100.0  | % |   |   | 100.0 | % |   |   | - |   |   | $ | 997.1 |   |   | $ | 954.2 |   |   | $ | 42.9 |   |

| (i) | The                $29.1 million increase in revenue in the oil and gas sector was due                primarily to growth in Global Operations and European Operations                offset                partially by unfavourable FX. The $19.3 million increase in repair                and overhaul revenue was due primarily to revenue from growth in                the                business from new and expanded contracts partially offset by unfavourable                FX. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   |   |                             |   |   |                               |   |   |                                 |   |   |     |   |   |                                 |   |   |   |   |
|----------------------------|--------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|--------------------------------------|--------|--------|----------|--------|--------|--------------------------------------|--------|--------|--------|--------|
| Period                     |   |   | Global                Operations |   |   | European                Operations |   |   | Total                Flying Segments |   |   | Heli-One |   |   | Corporate                & Other |   |   | Total  |   |
| Fiscal                2006 | Q1     |   | $                                | 76.0   |   |                               | $      | 133.6  |                                 |   | $      | 209.6    |   |   | $                                    | 33.4   |   |   | $      | - |   |   | $ | 243.0 |   |
|                       | Q2     |   |                             | 79.5   |   |                               |   | 138.5  |                                 |   |   | 218.0    |   |   |                                 | 34.5   |   |   |   | (0.1 | ) |   |   | 252.4 |   |
|                       | Q3     |   |                             | 86.6   |   |                               |   | 126.0  |                                 |   |   | 212.6    |   |   |                                 | 40.8   |   |   |   | 0.1 |   |   |   | 253.5 |   |
|                       | Q4     |   |                             | 88.8   |   |                               |   | 122.3  |                                 |   |   | 211.1    |   |   |                                 | 37.0   |   |   |   | 0.1 |   |   |   | 248.2 |   |
|                       |   |   | $                                | 330.9  |   |                               | $      | 520.4  |                                 |   | $      | 851.3    |   |   | $                                    | 145.7  |   |   | $      | 0.1 |   |   | $ | 997.1 |   |
|                       |   |   |                             |   |   |                               |   |   |                                 |   |   |     |   |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Fiscal                2005 | Q1     |   | $                                | 71.9   |   |                               | $      | 137.6  |                                 |   | $      | 209.5    |   |   | $                                    | 30.2   |   |   | $      | - |   |   | $ | 239.7 |   |
|                       | Q2     |   |                             | 71.2   |   |                               |   | 134.6  |                                 |   |   | 205.8    |   |   |                                 | 32.9   |   |   |   | 0.1 |   |   |   | 238.8 |   |
|                       | Q3     |   |                             | 73.8   |   |                               |   | 132.0  |                                 |   |   | 205.8    |   |   |                                 | 32.4   |   |   |   | 0.1 |   |   |   | 238.3 |   |
|                       | Q4     |   |                             | 75.2   |   |                               |   | 126.7  |                                 |   |   | 201.9    |   |   |                                 | 35.3   |   |   |   | 0.2 |   |   |   | 237.4 |   |
|                       |   |   | $                                | 292.1  |   |                               | $      | 530.9  |                                 |   | $      | 823.0    |   |   | $                                    | 130.8  |   |   | $      | 0.4 |   |   | $ | 954.2 |   |

|                       |   | Flying                Hours      |                               | Number                of Aircraft at Period End |
|----------------------------|--------|----------------------------------|------------------------------------|-------------------------------------------------|
| Period                     |   | Global                Operations | European                Operations | Total                                           |   | Global                Operations | European                Operations | Heli-One |   | Total |
| Fiscal                2006 | Q1     |  16,262                     |                               |  23,713                                    |   |  39,975 |   | 127 |   | 77 |   | 14 |   | 218 |
|                       | Q2     |  17,042                     |                               |  25,968                                    |   |  43,010 |   | 128 |   | 71 |   | 27 |   | 226 |
|                       | Q3     |  18,854                     |                               |  23,764                                    |   |  42,618 |   | 131 |   | 72 |   | 27 |   | 230 |
|                       | Q4     |  17,701                     |                               |  22,026                                    |   |  39,727 |   | 131 |   | 72 |   | 30 |   | 233 |
|                       |   |  69,859                     |                               |  95,471                                    |   |  165,330 |   |   |   |   |   |   |   |   |
|                       |   |                             |                               |                                            |   |   |   |   |   |   |   |   |   |   |
| Fiscal                2005 | Q1     |  16,481                     |                               |  24,468                                    |   |  40,949 |   | 112 |   | 82 |   | 13 |   | 207 |
|                       | Q2     |  16,364                     |                               |  24,028                                    |   |  40,392 |   | 114 |   | 80 |   | 13 |   | 207 |
|                       | Q3     |  17,070                     |                               |  22,927                                    |   |  39,997 |   | 122 |   | 79 |   | 13 |   | 214 |
|                       | Q4     |  16,778                     |                               |  22,183                                    |   |  38,961 |   | 121 |   | 81 |   | 13 |   | 215 |
|                       |   |  66,693                     |                               |  93,606                                    |   |  160,299 |   |   |   |   |   |   |   |   |

|                                |   | Hourly                     |   |   | Fixed                      |   |   | Total                      |   |
|-------------------------------------|--------|----------------------------|--------|--------|----------------------------|--------|--------|----------------------------|--------|
| Segment                             |   | Fiscal                2006 |   |   | Fiscal                2005 |   |   | Fiscal                2006 |   |   | Fiscal                2005 |   |   | Fiscal                2006 |   |   | Fiscal                2005 |   |
| European                flying      |   | $                          | 97.2   |   |                       | $      | 82.1   |                       |   | $ | 210.7 |   |   | $ | 194.5 |   |   | $ | 307.9 |   |   | $ | 276.6 |   |
| International                flying |   |                       | 311.0  |   |                       |   | 321.1  |                       |   |   | 186.2 |   |   |   | 181.6 |   |   |   | 497.2 |   |   |   | 502.7 |   |
|                                |   | $                          | 408.2  |   |                       | $      | 403.2  |                       |   | $ | 396.9 |   |   | $ | 376.1 |   |   | $ | 805.1 |   |   | $ | 779.3 |   |

----

|                                                       |   | 2006   |   |   | 2005   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Segment                                                    |   | Heavy  |   |   | Medium |   |   | Light |   |   | FixedWing |   |   | Total |   |   | Heavy |   |   | Medium |   |   | Light |   |   | FixedWing |   |   | Total |   |
| Global                Operations                           |   | $      | 70.0   |   |   | $      | 204.8 |   |   | $ | 2.5 |   |   | $ | 30.6 |   |   | $ | 307.9 |   |   | $ | 69.1 |   |   | $ | 174.3 |   |   | $ | 3.5 |   |   | $ | 29.7 |   |   | $ | 276.6 |   |
| European                Operations                         |   |   | 369.7  |   |   |   | 127.5 |   |   |   | - |   |   |   | - |   |   |   | 497.2 |   |   |   | 363.2 |   |   |   | 137.9 |   |   |   | 1.6 |   |   |   | - |   |   |   | 502.7 |   |
| Total                    Flying                    Revenue |   | $      | 439.7  |   |   | $      | 332.3 |   |   | $ | 2.5 |   |   | $ | 30.6 |   |   | $ | 805.1 |   |   | $ | 432.3 |   |   | $ | 312.2 |   |   | $ | 5.1 |   |   | $ | 29.7 |   |   | $ | 779.3 |   |
| Total                %                                     |   |   | 54.6   | %      |   |   | 41.3 | % |   |   | 0.3 | % |   |   | 3.8 | % |   |   | 100.0 | % |   |   | 55.5 | % |   |   | 40.1 | % |   |   | 0.6 | % |   |   | 3.8 | % |   |   | 100.0 | % |

|   | Fiscal                2006 | Fiscal                2005 | %                Change(2006                vs 2005) |
|--------|----------------------------|----------------------------|------------------------------------------------------|
| Q1     | 115,696                    | 102,228                    | 13.2%                                                |
| Q2     | 120,813                    | 104,715                    | 15.4%                                                |
| Q3     | 113,743                    | 95,896                     | 18.6%                                                |
| Q4     | 114,684                    | 101,132                    | 13.4%                                                |
| Total  | 464,936                    | 403,971                    | 15.1%                                                |

----

| (in millions                of Canadian dollars)     |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Interest                on debt obligations               |   | $      | 43.5   |   |   | $      | 32.4 |   |
| Amortization                of deferred financing costs   |   |   | 1.6    |   |   |   | 3.2 |   |
| Foreign                exchange losses (gains)            |   |   | 6.2    |   |   |   | (1.2 | ) |
| Release                of currency translation adjustment |   |   | 2.6    |   |   |   | - |   |
| Other                interest and banking expenses        |   |   | (0.9   | )      |   |   | 3.0 |   |
| Total                                                     |   | $      | 53.0   |   |   | $      | 37.4 |   |

----

| (in                millions of Canadian dollars)                                  |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Earnings                from continuing operations before income taxes            |   | $      | 100.2  |   |   | $      | 74.3 |   |
| Combined                Canadian federal and provincial statutory income tax rate |   |   | 34     | %      |   |   | 35 | % |
| Income                tax provision calculated at statutory rate                  |   |   | (34.1  | )      |   |   | (26.0 | ) |
| (Increase)                decrease in income tax provision resulting from:        |   |   |   |   |   |   |   |   |
| Rate                differences in various jurisdictions                          |   |   | 13.5   |   |   |   | 16.0 |   |
| Effect                of change in tax legislation                                |   |   | (0.2   | )      |   |   | (4.2 | ) |
| Non-deductible                items                                               |   |   | (1.2   | )      |   |   | (3.2 | ) |
| Large                corporations tax                                             |   |   | (0.5   | )      |   |   | (0.5 | ) |
| Other                foreign taxes paid                                           |   |   | (3.5   | )      |   |   | (1.7 | ) |
| Non-taxable                portion of capital gains                               |   |   | 13.6   |   |   |   | 1.1 |   |
| Non-taxable                income                                                 |   |   | 2.7    |   |   |   | 1.3 |   |
| Valuation                allowance                                                |   |   | (0.3   | )      |   |   | (7.0 | ) |
| Other                                                                             |   |   | (0.5   | )      |   |   | (3.1 | ) |
| Income                tax provision                                               |   | $      | (10.5  | )      |   | $      | (27.3 | ) |

----

| Fiscal |   | Revenue                                               |   |   | Net                earnings from continuing operations |   |   | Net                earnings |   |   | Total                assets |   |   | Total                long-term financial liabilities |    |   | Cash                dividends per share |   |   | Net                earnings per share from continuing operations |   |   | Net                earnings per share |   |
|--------|--------|-------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|------------------------------------------------------|---------|--------|-----------------------------------------|--------|--------|------------------------------------------------------------------|--------|--------|---------------------------------------|--------|
| 2006   |   | (in millions                of Canadian dollars) |   |   | declared                                               |   |   | Basic                       |   |   | Diluted                     |   |   | Basic                                                |    |   | Diluted                                 |   |
| Q1     |   | $                                                     | 243.0  |   |                                                   | $      | 18.8   |                        |   | $      | 19.2                        |   |   | $                                                    | 1,669.8 |   |                                    | $      | 975.2  |                                                             |   | $      | -                                     |   |   | $ | 0.45 |   |   | $ | 0.41 |   |   | $ | 0.46 |   |   | $ | 0.42 |   |
| Q2     |   |                                                  | 252.4  |   |                                                   |   | 39.2   |                        |   |   | 39.2                        |   |   |                                                 | 1,675.1 |   |                                    |   | 939.1  |                                                             |   |   | 0.40                                  |   |   |   | 0.93 |   |   |   | 0.85 |   |   |   | 0.93 |   |   |   | 0.85 |   |
| Q3     |   |                                                  | 253.5  |   |                                                   |   | 21.4   |                        |   |   | 21.5                        |   |   |                                                 | 1,685.6 |   |                                    |   | 945.8  |                                                             |   |   | -                                     |   |   |   | 0.51 |   |   |   | 0.47 |   |   |   | 0.51 |   |   |   | 0.47 |   |
| Q4     |   |                                                  | 248.2  |   |                                                   |   | 10.3   |                        |   |   | 10.8                        |   |   |                                                 | 1,686.1 |   |                                    |   | 911.7  |                                                             |   |   | -                                     |   |   |   | 0.25 |   |   |   | 0.22 |   |   |   | 0.26 |   |   |   | 0.23 |   |
| Total  |   | $                                                     | 997.1  |   |                                                   | $      | 89.7   |                        |   | $      | 90.7                        |   |   |                                                 |    |   |                                    |   |   |                                                             |   | $      | 0.40                                  |   |   | $ | 2.14 |   |   | $ | 1.95 |   |   | $ | 2.16 |   |   | $ | 1.97 |   |
|   |   |                                                  |   |   |                                                   |   |   |                        |   |   |                        |   |   |                                                 |    |   |                                    |   |   |                                                             |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal |   |                                                  |   |   |                                                   |   |   |                        |   |   |                        |   |   |                                                 |    |   |                                    |   |   |                                                             |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2005   |   |                                                  |   |   |                                                   |   |   |                        |   |   |                        |   |   |                                                 |    |   |                                    |   |   |                                                             |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Q1     |   | $                                                     | 239.7  |   |                                                   | $      | 18.2   |                        |   | $      | 17.5                        |   |   | $                                                    | 1,494.0 |   |                                    | $      | 829.9  |                                                             |   | $      | -                                     |   |   | $ | 0.44 |   |   | $ | 0.40 |   |   | $ | 0.42 |   |   | $ | 0.37 |   |
| Q2     |   |                                                  | 238.8  |   |                                                   |   | (0.7   | )                           |   |   | (0.7                        | )      |   |                                                 | 1,512.8 |   |                                    |   | 855.0  |                                                             |   |   | 0.30                                  |   |   |   | (0.02 | ) |   |   | (0.01 | ) |   |   | (0.02 | ) |   |   | (0.01 | ) |
| Q3     |   |                                                  | 238.3  |   |                                                   |   | 14.7   |                        |   |   | 22.5                        |   |   |                                                 | 1,624.5 |   |                                    |   | 924.2  |                                                             |   |   | -                                     |   |   |   | 0.35 |   |   |   | 0.32 |   |   |   | 0.54 |   |   |   | 0.49 |   |
| Q4     |   |                                                  | 237.4  |   |                                                   |   | 14.7   |                        |   |   | 17.2                        |   |   |                                                 | 1,686.7 |   |                                    |   | 934.4  |                                                             |   |   | -                                     |   |   |   | 0.35 |   |   |   | 0.32 |   |   |   | 0.41 |   |   |   | 0.38 |   |
| Total  |   | $                                                     | 954.2  |   |                                                   | $      | 46.9   |                        |   | $      | 56.5                        |   |   |                                                 |    |   |                                    |   |   |                                                             |   | $      | 0.30                                  |   |   | $ | 1.12 |   |   | $ | 1.03 |   |   | $ | 1.35 |   |   | $ | 1.23 |   |

| (i) | In                Q2 of fiscal 2005, the Company incurred a tax asset adjustment of                $4.2 million relating to a tax rate reduction in the                Netherlands. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | In                Q2 of fiscal 2005, the Company recorded a fair value adjustment for                Composites of $14.3 million. |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | In                Q3 of fiscal 2005, the Company incurred a net-of-tax gain on the                sale of                Schreiner Aircraft Maintenance B.V. (“SAMCO”) and Schreiner Canada Ltd.                (“Schreiner Canada”) of $7.5 million included in discontinued                operations. The remaining $1.1 million net-of-tax gain on the sale of                SAMCO and Schreiner Canada was incurred in Q4 of fiscal                2006. |
|--|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | Results                  for Q2 of fiscal 2006 included a pre-tax gain of $21.8 million for                  the sale of the Company’s remaining interest in CHL and other long-term                  investments. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v) | Results                  for Q3 of fiscal 2006 included a pre-tax gain of $15.7 million for                  the sale of the Company’s equity interest in                  Inaer. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            |   | Global                Operations |    |   | European                Operations |   |    | Heli-One |   |   | Corporate&                Other |   | Inter-segment                Eliminations |   | Total  |   |
|-----------------------------------------------------------------|--------|----------------------------------|---------|--------|------------------------------------|--------|---------|----------|--------|--------|-------------------------------------|--------|-------------------------------------------|--------|--------|--------|
| Year                ended April 30, 2005 (i)                    |   | $                                | 292,066 |   |                               | $      | 530,897 |     |   | $      | 130,844                             |   |                                      | $      | 435    |   |  N/A |   | $ | 954,242 |   |
| Foreign                exchange impact (ii)                     |   |                             | (27,868 | )      |                               |   | (54,575 | )        |   |   | (14,153                             | )      |                                      |   | (17    | )      |  N/A |   |   | (96,613 | ) |
| Revenue                increase (decrease)                      |   |                             | 66,679  |   |                               |   | 44,045  |     |   |   | 28,977                              |   |                                      |   | (243   | )      |  N/A |   |   | 139,458 |   |
| Year                ended April 30, 2006 (i)                    |   | $                                | 330,877 |   |                               | $      | 520,367 |     |   | $      | 145,668                             |   |                                      | $      | 175    |   |  N/A |   | $ | 997,087 |   |
|                                                            |   |                             |    |   |                               |   |    |     |   |   |                                |   |                                      |   |   |   |   |   |   |   |   |
| Total                revenue increase                (decrease) |   | $                                | 38,811  |   |                               | $      | (10,530 | )        |   | $      | 14,824                              |   |                                      | N/A    |   | N/A    |   | $ | 42,845 |   |
| %                increase                (decrease)             |   |                             | 13.3    | %      |                               |   | (2.0    | %)       |   |   | 11.3                                | %      |                                      | N/A    |   | N/A    |   |   | 4.5 | % |
| %                increase excluding                FX           |   |                             | 22.8    | %      |                               |   | 8.3     | %        |   |   | 22.1                                | %      |                                      | N/A    |   | N/A    |   |   | 14.6 | % |
|                                                            |   |                             |    |   |                               |   |    |     |   |   |                                |   |                                      |   |   |   |   |   |   |   |   |

|                                                                    |   | Global                Operations |   |   | European                Operations |   |    | Heli-One |   |   | Corporate&                Other |   |   | Inter-segment                Eliminations |    |   | Total  |   |
|-------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|---------|----------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------|--------|
| Year                ended April 30, 2005 (i)                            |   | $                                | 87,284 |   |                               | $      | 110,792 |     |   | $      | 231,016                             |   |   | $                                         | (32,103 | )      |   | $      | (153,227 | ) |   | $ | 243,762 |   |
| Foreign                exchange impact (ii)                             |   |                             | (6,730 | )      |                               |   | (12,766 | )        |   |   | (6,993                              | )      |   |                                      | 1,471   |   |   |   | - |   |   |   | (25,018 | ) |
| Segment                EBITDAR increase (decrease)                      |   |                             | 10,368 |   |                               |   | 9,455   |     |   |   | 5,452                               |   |   |                                      | 2,970   |   |   |   | (822 | ) |   |   | 27,423 |   |
| Year                ended April 30, 2006 (i)                            |   | $                                | 90,922 |   |                               | $      | 107,481 |     |   | $      | 229,475                             |   |   | $                                         | (27,662 | )      |   | $      | (154,049 | ) |   | $ | 246,167 |   |
|                                                                    |   |                             |   |   |                               |   |    |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Segment                EBITDAR margin                (iii)              |   |                             |   |   |                               |   |    |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| -                Last                year                               |   |                             | 29.9   | %      |                               |   | 20.9    | %        |   |   | 45.2                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 25.5 | % |
| -                This                year                               |   |                             | 27.5   | %      |                               |   | 20.7    | %        |   |   | 45.8                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 24.7 | % |
| Total                Segment EBITDAR increase                (decrease) |   | $                                | 3,638  |   |                               | $      | (3,311  | )        |   | $      | (1,541                              | )      |   | $                                         | 4,441   |   |   | $      | (822 | ) |   | $ | 2,405 |   |
| %                increase                (decrease)                     |   |                             | 4.2    | %      |                               |   | (3.0    | %)       |   |   | (0.7                                | %)     |   |                                      | 13.8    | %      |   | N/A    |   |   |   | 1.0 | % |
| %                increase excluding                FX                   |   |                             | 11.9   | %      |                               |   | 8.5     | %        |   |   | 2.4                                 | %      |   |                                      | 9.3     | %      |   | N/A    |   |   |   | 11.2 | % |
|                                                                    |   |                             |   |   |                               |   |    |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |

|                                                                   |   | Global                Operations |   |   | European                Operations |   |   | Heli-One |   |   | Corporate&                Other |   |   | Inter-segment                Eliminations |    |   | Total  |   |
|------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|----------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------|--------|
| Year                ended April 30, 2005 (i)                           |   | $                                | 15,889 |   |                               | $      | 21,976 |     |   | $      | 180,463                             |   |   | $                                         | (32,103 | )      |   | $      | - |   |   | $ | 186,225 |   |
| Foreign                exchange impact (ii)                            |   |                             | (6,644 | )      |                               |   | (8,983 | )        |   |   | (651                                | )      |   |                                      | 1,467   |   |   |   | - |   |   |   | (14,811 | ) |
| Segment                EBITDA increase (decrease)                      |   |                             | (1,539 | )      |                               |   | 18,864 |     |   |   | (11,022                             | )      |   |                                      | 2,974   |   |   |   | - |   |   |   | 9,277 |   |
| Year                ended April 30, 2006 (i)                           |   | $                                | 7,706  |   |                               | $      | 31,857 |     |   | $      | 168,790                             |   |   | $                                         | (27,662 | )      |   | $      | - |   |   | $ | 180,691 |   |
|                                                                   |   |                             |   |   |                               |   |   |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Segment                EBITDA                margin(i)                 |   |                             |   |   |                               |   |   |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |
| -                Last                year                              |   |                             | 5.4    | %      |                               |   | 4.1    | %        |   |   | 35.3                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 19.5 | % |
| -                This                year                              |   |                             | 2.3    | %      |                               |   | 6.1    | %        |   |   | 33.7                                | %      |   | N/A                                       |    |   | N/A    |   |   |   | 18.1 | % |
| Total                Segment EBITDA increase                (decrease) |   | $                                | (8,183 | )      |                               | $      | 9,881  |     |   | $      | (11,673                             | )      |   | $                                         | 4,441   |   |   | $      | - |   |   | $ | (5,534 | ) |
| %                increase                (decrease)                    |   |                             | (51.5  | %)     |                               |   | 45.0   | %        |   |   | (6.5                                | %)     |   |                                      | 13.8    | %      |   | N/A    |   |   |   | (3.0 | %) |
| %                increase (decrease)                excluding FX       |   |                             | (9.7   | %)     |                               |   | 85.8   | %        |   |   | (6.1                                | %)     |   |                                      | 9.3     | %      |   | N/A    |   |   |   | 5.0 | % |
|                                                                   |   |                             |   |   |                               |   |   |     |   |   |                                |   |   |                                      |    |   |   |   |   |   |   |   |   |   |

|                                                                     |   | Global                Operations |   |   | European                Operations |   |   | Heli-One |   |   | Corporate&                Other |   |   | Inter-segment Eliminations |    |   | Total  |   |
|--------------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------|--------|--------|----------|--------|--------|-------------------------------------|--------|--------|---------------------------------|---------|--------|--------|--------|
| Year                ended April 30, 2005 (i)                             |   | $                                | 10,899 |   |                               | $      | 13,573 |     |   | $      | 127,459                             |   |   | $                               | (43,411 | )      |   |   | N/A |   |   | $ | 108,520 |   |
| Foreign                exchange impact (ii)                              |   |                             | (6,310 | )      |                               |   | (8,460 | )        |   |   | 1,065                               |   |   |                            | (62     | )      |   | N/A    |   |   |   | (13,767 | ) |
| Operating                income increase (decrease)                      |   |                             | (1,676 | )      |                               |   | 19,608 |     |   |   | (12,227                             | )      |   |                            | 8,608   |   |   | N/A    |   |   |   | 14,313 |   |
| Year                ended April 30, 2006 (i)                             |   | $                                | 2,913  |   |                               | $      | 24,721 |     |   | $      | 116,297                             |   |   | $                               | (34,865 | )      |   | N/A    |   |   | $ | 109,066 |   |
|                                                                     |   |                             |   |   |                               |   |   |     |   |   |                                |   |   |                            |    |   |   |   |   |   |   |   |   |   |
| Total                operating income                increase (decrease) |   | $                                | (7,986 | )      |                               | $      | 11,148 |     |   | $      | (11,162                             | )      |   | $                               | 8,546   |   |   | N/A    |   |   | $ | 546 |   |
| %                increase                (decrease)                      |   |                             | (73.3  | %)     |                               |   | 82.1   | %        |   |   | (8.8                                | %)     |   |                            | 19.7    | %      |   | N/A    |   |   |   | 0.5 | % |
| %                increase (decrease)                excluding FX         |   |                             | (15.4  | %)     |                               |   | 144.5  | %        |   |   | (9.6                                | %)     |   |                            | 19.8    | %      |   | N/A    |   |   |   | 13.2 | % |

| (i)  | Figures                  have been reclassified for the classification of Survival-One as                  discontinued operations as outlined in Note 2 to our fiscal 2007                  audited consolidated financial                  statements. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii) | Includes                  both the foreign exchange on the translation of the financial results                  of                  the foreign subsidiaries into Canadian dollars (“translation impact”) and                  the foreign exchange on the translation of foreign currency denominated                  transactions into the reporting currencies of the subsidiaries                  (“transaction impact”). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | Segment                  EBITDAR as a percent of revenue from external customers except                  for the                  Heli-One segment, which is a percent of total                  revenue. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | See                  Note 25 to our fiscal 2007 audited consolidated financial                  statements. |
|------|------------------------------------------------------------------------------------------------------------------|

----

----

| • | a                five-year contract renewal (plus two one-year options) with ConocoPhillips                Australia Pty Ltd. for two Super Puma AS332 helicopters in                Australia; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                five-year contract renewal (plus one-year option) with Petronas for                S76C+                and fixed-wing services in Southeast                Asia; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                four-year contract for the lease of two Bell 412 in                India; |
|---------|--------------------------------------------------------------------------------------------|

| • | a                two-year contract (plus one-year option) with Cairn Energy Sangu                Field in                Bangladesh; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|

| • | a                multi-year renewal for Sikorsky S61 services in support of the Sable                Offshore Energy Project in Halifax, Canada;                and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                two-year contract for an S92 in Asia with Malaysian Helicopter Services                in                support of Shell offshore                operations. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | a                five-year contract by the United Kingdom Maritime and Coastguard                Agency (MCA) for the provision of commercial search and rescue helicopter                services from four bases in the UK commencing July 1, 2007. The                contract requires the deployment of four Sikorsky S92s and three                AgustaWestland AW139s; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                five-year contract renewal by ConocoPhillips (UK) Limited for the                provision of a dedicated Sikorsky S76C, plus additional flight hours,                in                support of ConocoPhillips Southern North Sea                operations; |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                contract from Tullow Oil Plc. for the provision of a dedicated Sikorsky                S76A+ to support development activity in Southern North Sea and a                three-year contract renewal, plus options, for the provision of a                sole-use                AgustaWestland AW139 helicopter commencing in July                2006; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                five-year contract renewal (plus three one-year options) by Maersk                Oil and                Gas AS for the provision of helicopter transportation services in                support                of its offshore oil and gas operations in the Danish sector of the                North Sea. The contract will be supported by three dedicated Sikorsky                S92 helicopters beginning on July 1, 2007;                and |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | a                seven-year contract renewal, plus options, by Perenco UK Limited                for the                provision of a sole-use AgustaWestland AW139 helicopter commencing                in                fiscal 2007. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | An                increase in receivables of $50.8 million over the prior year                primarily related to an increase in trade receivables from increased                activity and an increase in non-trade receivables of $10.9 million                related to the sale of an aircraft to a lessor. Days sales in trade                receivables decreased from 69 days at April 30, 2006 to                66 days at April 30 2007, which was offset by an increase in                trade receivables of $47.4 million resulting from an increase in                activity. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | An                increase in inventory of $39.9 million over the prior year due to the                introduction of 40 aircraft, increases in safety stock at bases                throughout the world to improve aircraft serviceability, and increased                base maintenance related to the acquisition of Heli-Dyne in fiscal                2007. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | An                increase in prepaid expenses of $30.4 million over the prior year                largely related to the advancement of approximately $25 million of                security deposits related to future lease                transactions. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | An                increase in payables and accruals of $83.9 million over the prior                year mainly related to approximately $40 million in final balances                owing on recent aircraft purchases and overall increased                activity. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the                addition of 18 new aircraft and several new aircraft types, including                the                Sikorsky S92, AgustaWestland AW139 and Eurocopter                EC155; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the                establishment of a new global warehouse in the Netherlands and the                build-up of repair and overhaul facilities in British Columbia,                Canada; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | the                acquisition of inventory from new PBH customers including                ACN; |
|---------|--------------------------------------------------------------------------------------------------|

| • | the                purchase of stock previously provided by third-party consignment                vendors; |
|---------|-------------------------------------------------------------------------------------------------------------|

| • | increases                in safety stock at bases throughout the world to improve aircraft                serviceability; and |
|---------|-------------------------------------------------------------------------------------------------------------------------------|

----

| • | accounts                receivable has also increased in part due to the build-up of operating                capability in BHS and significant growth in our international customer                base where payment terms exceed other jurisdictions in which we                operate. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Currency                                 |   | Debt                in functional currency(millions) |      |   | Canadian                equivalent(millions) |   |
|------------------------------------------|--------|------------------------------------------------------|-----------|--------|----------------------------------------------|--------|
| UK                pound sterling         |   | £                                               | 9.6       |   |                                         | $      | 21.2 |   |
| Euro                                     |   | €                                              | 33.2      |   |                                         |   | 50.2 |   |
| Canadian                dollar           |   | $                                                    | 164.2     |   |                                         |   | 164.2 |   |
| US                dollar                 |   | USD                                                  | 505.0     |   |                                         |   | 558.9 |   |
| Norwegian                kroner          |   | NOK                                                  | 240.0     |   |                                         |   | 44.7 |   |
| Brazilian                real            |   | BRL                                                  |  2.7 |   |                                         |   | 1.4 |   |
| Cash                (various currencies) |   |                                                 |      |   |                                         |   | (89.5 | ) |
| Total                net debt            |   |                                                 |      |   |                                         | $      | 751.1 |   |

----

|                                                      |                      | April                30,                2007 |                          | April                30, 2006 |   |
|-----------------------------------------------------------|---------------------------|----------------------------------------------|-------------------------------|-------------------------------|--------|
|                                                      | Fair                Value |                                         | Carrying                Value | Fair                Value     |   | Carrying                Value |   |
| Senior                subordinated notes (73⁄8%) |                      | $                                            | 429.4                         |                          |   | $ | 442.7 |   |   | $ | 454.3 |   |   | $ | 448.1 |   |

----

| Hedging                Item                                                               | Maturity                 |   | Notionalamount             | Fair                market valuegain                (loss) (millions) |
|-------------------------------------------------------------------------------------------|--------------------------|--------|----------------------------|-----------------------------------------------------------------------|
| Forward                foreign exchange contracts                                         |                     |   |                       |                                                                  |   |
|     Sell                US                dollar; buy Canadian dollar | Various                  |   | $118.0                     |                                                                  |  $5.0 |
|     Sell                pound sterling; buy euro                      | Various                  |   | €  30.5    |                                                                  |  (1.2) |
|     Sell                Norwegian kroner; buy pound sterling          | May                2007  |   | £                12.4 |                                                                  |  - |
|     Sell                Norwegian kroner; buy Australian dollar       | May                2007  |   | AUD                28.0    |                                                                  |  - |
|     Sell                Norwegian kroner; buy euro                    | May                2007  |   | €  26.9    |                                                                  |  - |
|     Sell                Canadian dollar; buy euro                     | May                2007  |   | €  2.7     |                                                                  |  - |
|     Sell                Brazilian real; buy US dollar                 | May                2007  |   | USD                28.0    |                                                                  | 0.1 |
|     Sell                Canadian dollar; buy Norwegian kroner         | May                2007  |   | NOK                150.0   |                                                                  |  (0.2) |
|     Sell                Canadian dollar; buy US dollar                | June                2007 |   | USD                150.0   |                                                                  |  (0.2) |
|                                                                                      |                     |   |                       |                                                                  |  $3.5 |

----

| Contractual                obligations                    |   | Total  |    |   | Less                than 1                year |   |   | 1-3                years |   |   | 4-5                years |   |   | More                than 5                years |   |
|-----------------------------------------------------------|--------|--------|---------|--------|------------------------------------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-------------------------------------------------|--------|
| Long-term                debt                             |   | $      | 397.9   |   |                                           | $      | 333.7  |                     |   | $      | 41.5                     |   |   | $                                               | 9.6    |   |   | $ | 13.1 |   |
| Senior                subordinated notes (73⁄8%) |   |   | 442.7   |   |                                           |   | -      |                     |   |   | -                        |   |   |                                            | -      |   |   |   | 442.7 |   |
| Operating                lease (aircraft)                 |   |   | 556.3   |   |                                           |   | 103.4  |                     |   |   | 187.5                    |   |   |                                            | 151.7  |   |   |   | 113.7 |   |
| Operating                lease (other)                    |   |   | 44.6    |   |                                           |   | 5.7    |                     |   |   | 9.0                      |   |   |                                            | 7.5    |   |   |   | 22.4 |   |
| New                aircraft commitments                   |   |   | 837.1   |   |                                           |   | 295.5  |                     |   |   | 474.2                    |   |   |                                            | 67.4   |   |   |   | - |   |
| Total                contractual obligations              |   | $      | 2,278.6 |   |                                           | $      | 738.3  |                     |   | $      | 712.2                    |   |   | $                                               | 236.2  |   |   | $ | 591.9 |   |

----

|                                                                                       |   | Number                of Shares              |   |   | Consideration                 |   |
|--------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|-------------------------------|--------|
| (amounts                in thousands)                                                      |   | April                30,                2007 |   |   | April                30, 2006 |   |   | April                30,                2007 |   |   | April                30, 2006 |   |
| Class                A subordinate voting shares                                           |   |                                         | 39,858 |   |                          |   | 36,860 |   |   | $ | 235,346 |   |   | $ | 223,241 |   |
| Class                B multiple voting shares                                              |   |                                         | 5,863  |   |                          |   | 5,861 |   |   |   | 18,413 |   |   |   | 18,413 |   |
| Ordinary                shares                                                             |   |                                         | 22,000 |   |                          |   | 22,000 |   |   |   | 33,000 |   |   |   | 33,000 |   |
| Ordinary                share loan                                                         |   |                                         | -      |   |                          |   | - |   |   |   | (33,000 | ) |   |   | (33,000 | ) |
| Class                  A                  subordinate voting employee share purchase loans |   |                                         | -      |   |                          |   | - |   |   |   | (1,254 | ) |   |   | (1,502 | ) |
|                                                                                       |   |                                         |   |   |                          |   |   |   |   | $ | 252,505 |   |   | $ | 240,152 |   |
| Contributed                surplus                                                         |   |                                         |   |   |                          |   |   |   |   | $ | 5,042 |   |   | $ | 4,363 |   |

| Class                A Shares that would be issued upon conversion of the                following: |   | April                30,                2007 |   |   | April                30, 2006 |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|-------------------------------|--------|
| Class                B Shares                                                                       |   |                                         | 5,863  |   |                          |   | 5,861 |   |
| Stock                options                                                                        |   |                                         | 2,232  |   |                          |   | 3,819 |   |
| Convertible                debt                                                                     |   |                                         | -      |   |                          |   | 1,379 |   |

----

| (a) | Recoverability                of pre-operating expenses |
|-----|---------------------------------------------------------|

| (b) | Flying                asset amortization |
|-----|------------------------------------------|

| (c) | Carrying                value of aircraft |
|-----|-------------------------------------------|

| (d) | Inventory                obsolescence |
|-----|---------------------------------------|

----

| (e) | Defined                benefit employee pension plans |
|-----|-------------------------------------------------------|

| (f) | Utilization                of income tax losses |
|-----|-------------------------------------------------|

| (g) | Lease                aircraft return costs |
|-----|--------------------------------------------|

| (h) | Aircraft                operating leases |
|-----|------------------------------------------|

----

| (i) | Consolidation                of variable interest entities                (“VIE”s) |
|-----|------------------------------------------------------------------------------------------------|

| (j) | General                tax contingencies |
|-----|------------------------------------------|

| (a) | Financial                Instruments |
|-----|--------------------------------------|

----

|   | New                Accounting                Policies |
|--------|-------------------------------------------------------|

| (i) | Classification                of financial                instruments |
|-----|-----------------------------------------------------------------------|

----

| (ii) | Determination                of fair                value |
|------|-----------------------------------------------------------|

| (iii) | Transaction                costs |
|-------|----------------------------------|

| (iv) | Normal                purchase and sale                exemption |
|------|------------------------------------------------------------------|

|   | Classification                on Initial                Adoption |
|--------|------------------------------------------------------------------|

| • | Cash                and cash equivalents and restricted cash are designated as held for                trading. These items are measured at fair value. At May 1 and                July 31, 2007, the measured amount approximates                cost. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Receivables,                junior loans and loans receivable are classified as loans and receivables.                After their initial fair value assessment, these items are measured                at                amortized cost using the effective interest rate                method. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Payables                and accruals, dividends payable, non-revolving long-term debt and                senior                subordinated notes are classified as other liabilities. After their                initial fair value assessment, these items are measured at amortized                cost                using the effective interest rate                method. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Derivatives |   |
|-------------|--------|

----

|                                     |   | Retained                earnings |   |   | Accumulated                other comprehensive                earnings |   |
|------------------------------------------|--------|----------------------------------|--------|--------|------------------------------------------------------------------------|--------|
|                                     |   |                             |   |   |                                                                   |   |
| Deferred                debt issue costs |   | $                                | (580   | )      |                                                                   | $      | - |   |
| Cash                flow hedges          |   |                             | -      |   |                                                                   |   | 2,275 |   |
| Guarantees                               |   |                             | (2,774 | )      |                                                                   |   | - |   |
| Embedded                derivatives      |   |                             | (5,583 | )      |                                                                   |   | - |   |
| Total                                    |   | $                                | (8,937 | )      |                                                                   | $      | 2,275 |   |

| (b) | Other |
|-----|-------|

----

| Year                ended April 30, (in millions                of US dollars, except per share amounts) |   | 2007   |    |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Revenue                                                                                                  |   | $      | 1,038.3 |   |   | $      | 901.0 |   |
| Operating                income                                                                          |   |   | 104.0   |   |   |   | 98.6 |   |
| Net                earnings from continuing                operations                                    |   |   | 37.0    |   |   |   | 81.1 |   |
| Net                earnings from discontinued                operations                                  |   |   | 2.0     |   |   |   | 0.9 |   |
| Extraordinary                item                                                                        |   |   | 0.7     |   |   |   | - |   |
| Net                earnings                                                                              |   |   | 39.7    |   |   |   | 82.0 |   |
| Per                Share                Information                                                      |   |   |    |   |   |   |   |   |
| Basic                                                                                                    |   |   |    |   |   |   |   |   |
|     Net                earnings                from continuing operations            |   | $      | 0.88    |   |   | $      | 1.93 |   |
|     Net                earnings                from discontinued operations          |   |   | 0.05    |   |   |   | 0.02 |   |
|     Extraordinary                item                                                |   |   | 0.02    |   |   |   | - |   |
|     Net                earnings                                                      |   |   | 0.95    |   |   |   | 1.95 |   |
| Diluted                                                                                                  |   |   |    |   |   |   |   |   |
|     Net                earnings                from continuing operations            |   | $      | 0.81    |   |   | $      | 1.76 |   |
|     Net                earnings                from discontinued operations          |   |   | 0.05    |   |   |   | 0.02 |   |
|     Extraordinary                item                                                |   |   | 0.02    |   |   |   | - |   |
|     Net                earnings                                                      |   |   | 0.88    |   |   |   | 1.78 |   |

| ITEM                6. | DIRECTORS,                SENIOR MANAGEMENT AND EMPLOYEES |
|------------------------|-----------------------------------------------------------|

| Sylvain                Allard, M.B.A.,                49, | Director                since November, 2004. Resident of British Columbia, Canada.                Mr. Allard is the President and Chief Executive Officer of the                Corporation. He has been President for eight years and was appointed                Chief                Executive Officer in November 2004. Mr. Allard started with the                Corporation as a helicopter pilot in Eastern Canada in 1982. He earned                a                Masters of Business Administration degree (Gold Medalist) from Concordia                University, Montreal, and has held several key positions in the                Corporation, including President of Viking Helicopters Ltd., Canadian                Helicopters (Eastern) and CHC Helicopters International Inc.                                                                                                            |
|-----------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Donald                Carty, O.C., 61,          | Director                since November, 2004. Resident of Texas, United States of America.                Mr. Carty is the Vice Chairman and Chief Financial Officer of Dell                Inc. He served as Chairman and Chief Executive Officer of AMR Corporation                from 1998 to 2003. He served as President and CEO of CP Air in Canada                from                1985 to 1987 and spent several years in various management positions                with                Celanese Canada, Ltd., Air Canada, and the Canadian Pacific Railway.                Mr. Carty is a graduate of Queen's University in Kingston, Ontario,                and of the Harvard Graduate School of Business Administration.                Mr. Carty was appointed as an officer of the Order of Canada in 2002.                He is a director of Dell Inc. and Barrick Gold                Corp. |

----

| Craig                C. Dobbin,                42,                                 | Director                since 1998. Resident of Newfoundland and Labrador, Canada. From 1999                to                January 2002, he was Director of Marketing with CHC Composites Ltd.                From                1995 to 1999, he was the President of Seaforest Plantation Co. Ltd.,                a cod                aquaculture company. From 1996 to 2006, he was General Manager of                Canadian                Northern Outfitters Ltd., an executive wilderness retreat. From 1991                to                1993, he was employed as the marketing director for GPA Helicopters                Limited (a division of CHC) and from 1993 to 1995 he was Manager                of                Corporate Planning for Air Atlantic and subsequently served on the                Board                of Directors of Air Atlantic (1995) Limited. From January 2002 until                March                2003, he was a Vice-President of CHC Helicopter Corporation.                                                                                                                                              |
|------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mark                Dobbin,                47,                                     | Director                since 2006. Resident of Newfoundland and Labrador, Canada. Mr. Dobbin                is the founder and President of Killick Capital Inc., a Newfoundland                based                private equity company and is the Chairman of the Board of the                Corporation. From 1998 to 2003 Mr. Dobbin was the Chair and CEO of                Vector Aerospace Corporation, a globally recognized aviation repair                and                overhaul service. Prior to Vector he was employed for 17 years with                the Corporation and held increasingly responsible positions with                CHC                culminating in serving as Senior Vice-President. He was a director                of the                Corporation from 1994 to 1998 and from 2001 to 2003. He is currently                a                director of Aurora Energy Resources Inc., Plasco Energy Group Inc.,                Consilient Technologies Inc., Verafin Inc. and Greyfirst                Corp.                                                                                              |
| George                N. Gillett Jr.,                68,                           | Director                since October, 2004. Resident of Colorado, United States of America.                Since                1996 Mr. Gillett has been Chairman of Booth Creek Management                Corporation, based in Vail, Colorado, a diversified company with                interests                in the recreational, fresh and processed protein products, automotive                and                transportation, and landscape and garden industries. Mr. Gillett is                Chairman of the Montreal Canadiens hockey club, Booth Creek Ski Holdings,                and Coleman Natural Foods. He is also a director of Steadman Hawkins                Research Foundation and is a member of the Board of Governors of                the                National Hockey League.                                                                                                                                                                                                                                                                                                                                          |
| John                J. Kelly,                B.E.,                Ph.D., 72,       | Director                since 1999. Resident of Ireland. He holds both a Bachelor of Engineering                and a Ph.D. degree from University College, Dublin. On graduation,                he                worked for a number of years in the petroleum industry in the UK                and in                Ireland, after which he was appointed to the staff of the School                of                Engineering in University College, Dublin, where he served as Dean                of                Engineering, from 1979 to 1986, from 1986 to 1994 as Registrar/Senior                Vice-President of the University and since 1994 as Professor of Chemical                Engineering at the University. He was a Fulbright Scholar to the                University of Maryland, where he was visiting Professor in its School                of                Engineering. He was the director of the Fulbright Scholarship Program                between Ireland and the United States from 1996 to 2000, and acts                as                Executive Director of the Ireland Canada University                Foundation.  |
| Jack                M. Mintz,                B.A.,                M.A., Ph.D., 56, | Director                since 2004. Resident of Ontario, Canada. He is a Professor of Business                Economics at the University of Toronto. From 1999 to July 2006 he                was the                President and Chief Executive Officer of the C.D. Howe Institute,                an                independent policy think-tank. He has published more than 180 books                and articles in the fields of public economics and fiscal federalism.                He                has consulted widely with the World Bank, the International Monetary                Fund,                the Organization for Economic Co-operation and Development and various                governments, businesses and non-profit organizations. He serves as                a                director of Brookfield Asset Management Inc., Imperial Oil Limited,                Ontario Financing Authority, the Royal Ontario Museum Foundation                and the                National Statistics Council.                                                                                                                                 |

----

| Sir                Bob Reid,                73,                   | Director                since 2004. Resident of the United Kingdom. He joined Shell International                Petroleum Company in 1956 and spent much of his career overseas,                including                posts in Brunei, Nigeria, Thailand and Australia. He served as Chairman                and Chief Executive of Shell UK from 1985 to 1990. He has served                as                Chairman of the British Railways Board, London Electricity, British-Borneo                Oil and Gas plc, The Council of the Industrial Society and Sears                plc. From                1997 to 2004 he served as Deputy Governor of the Bank of Scotland.                He has                been Chairman of the Petroleum Exchange of London (now ICE Futures)                since                1999. He served as Chairman of Avis Europe from 2002 to 2004 and                as a                non-executive director for Sun Life Financial Services of Canada                until                2004. He also serves as a non-executive director for Intercontinental                Exchange Service Inc., The Merchants Trust and Siemens, plc.  |
|-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Guylaine                Saucier, C.M.,                F.C.A., 61, | Director                since 2005. Resident of Quebec, Canada. Ms. Saucier is a Fellow of                the Institute of Chartered Accountants. She was Chair of the Joint                Committee on Corporate Governance established in 2000 by the Canadian                Institute of Chartered Accountants, the Canadian Venture Exchange                and the                Toronto Stock Exchange. She was Chair of the Canadian Institute of                Chartered Accountants from June 1999 to June 2000 and was Chairman                of the                Board of the Canadian Broadcasting Corporation from April 1995 to                December                2000. In 1989 she was appointed as a member of the Order of Canada.                Ms.                Saucier is currently a member of the board of directors of several                Canadian corporations including Petro-Canada Inc. and the Bank of                Montreal, and the French company, Areva.                                                                                                                                                                                |
| William                W. Stinson,                73,             | Director                since 2003. Resident of Newfoundland and Labrador, Canada. He is                Chairman                and CEO of Westshore Terminals Inc. which operates a bulk terminal                facility. He is also a director of Grant Forest Products. From 2003                to                2005 he was Chairman of the Board of Sun Life Financial, a worldwide                insurer and wealth management company. He was a director of Sun Life                Financial since 1985. Mr. Stinson spent most of his career with Canadian                Pacific Ltd., a diversified transportation and industrial company,                where                he was Chief Executive Officer for eleven years and Chairman and                Chief                Executive Officer for six years before retiring in 1996.                                                                                                                                                                                                                                                                                                                                       |

| Sylvain                Allard, M.B.A.,                49, | See                “Board of                Directors.”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Annette                Cusworth, C.A.,                41, | Resident                of British Columbia, Canada. Ms. Cusworth began as the Assistant                Director, Financial Reporting of the Corporation in November 2004,                subsequently holding the positions of Director, Financial Reporting                and                Corporate Controller. In October 2006 she was appointed Vice-President,                Financial Services. Prior to her employment with the Corporation,                she was                the Manager, Financial Services for Weldwood of Canada Limited, a                Canadian                subsidiary of International Paper.                                                                                        |
| Rick                Davis, C.A.,                45,       | Resident                of British Columbia, Canada. Mr. Davis began as the Vice-President,                Internal Audit of the Corporation and in September 2004, was appointed                as                Vice-President, Financial Reporting. In May 2006, he was appointed                Acting                Chief Financial Officer and in September 2006, he was appointed Senior                Vice-President and Chief Financial Officer. Prior to his employment                with                the Corporation, he was the Corporate Controller for Vector Aerospace                Corporation, a publicly traded aerospace maintenance, repair and                overhaul                service provider. |

----

| Mark                Dobbin,                47,            | See                “Board of                Directors.”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| G.                Blake Fizzard, C.A.,                43, | Resident                of British Columbia, Canada. Mr. Fizzard began as the Director of                Taxation of the Corporation in March 2001 and was appointed                Vice-President, Financial Structuring in 2003. Prior to his employment                with the Corporation, he was member of the tax and audit departments                at                Deloitte & Touche LLP and served as an Assistant Vice-President of                International Advisory Services in Hamilton, Bermuda. Mr. Fizzard                received a Bachelor of Commerce degree from Memorial University of                Newfoundland in 1986 and became a chartered accountant in                1988.                                                                                                                                                                                                                                                                                                      |
| Rick                O. Green, C.G.A.,                50,  | Resident                of British Columbia, Canada. Mr. Green has been employed by the                Corporation for the past 19 years. He began as the Chief Accountant                with a                predecessor company, Sealand Helicopters Limited, and moved through                increasingly responsible positions within the Corporation. In 1988,                he was                named the Assistant Corporate Controller. In 1993, he moved into                an                Internal Audit function until 1995 when he was appointed as                Vice-President, Finance in the International division. He remained                in this                position until 2000 when he was appointed as Vice-President, Planning                and                Control. In May 2003, he assumed the role of Vice-President, Global                Systems and Solutions. In May 2006, he was appointed as Vice-President                and                Chief Information Officer.  |
| John                Hanbury, C.M.A.,                50,   | Resident                of British Columbia, Canada. Mr. Hanbury was appointed as Corporate                Treasurer of the Corporation in July 2005. Prior to his employment                with                the Corporation, he was the Treasurer of a major company operating                in the                forestry sector of British Columbia. Mr. Hanbury has a Bachelor of                Commerce degree from the University of British Columbia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Martin                Lockyer, LLB,                47,    | Resident                of British Columbia, Canada. Mr. Lockyer is the Vice-President, Legal                Services and Corporate Secretary of the Corporation. Prior to his                employment with the Corporation, he was a partner of a major Atlantic                Canada law firm and was outside counsel to the Corporation. His practice                included corporate and commercial transactions and securities matters.                He                is former Vice-Chairman of a Canadian airport authority. Mr. Lockyer                has an honours degree in Commerce from Memorial University of Newfoundland                and a law degree from Osgoode Hall Law School.                                                                                                                                                                                                                                                                                                              |
| Nancy                Montgomery, C.A.,                36, | Resident                of British Columbia, Canada. Ms. Montgomery began as the Director,                SOX and Internal Audit of the Corporation in March 2006. In                May 2007, she was appointed Vice-President, Internal Audit. Prior to                her employment with the Corporation, she was the Manager, SOX Compliance                at a major publicly traded Canadian gold mining                Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

| Director                                        | Director                Since | Class                A Shares | Class                B Shares | Ordinary                Shares | Class                A Shares Under                Options | Share                Appreciation                Rights | Value                of All Unexercised                In-The-Money Options and SARS |
|-------------------------------------------------|-------------------------------|-------------------------------|-------------------------------|--------------------------------|------------------------------------------------------------|---------------------------------------------------------|--------------------------------------------------------------------------------------|
|                                            |                          |                          |                          |                           |                                                       | Vested                                                  | Unvested                                                                             | Options | VestedSARs | Unvested                SARs |
| Sylvain                Allard                   | 2004                          | 278,468                       |  -                       |  -                        | 643,932                                                    |  -                                                 |  -                                                                              | 7,713,216 |  - |  - |
| Donald                Carty, OC                 | 2004                          | 20,000                        |  -                       |  -                        |  -                                                    | 73,334                                                  | 36,666                                                                               |  - | 47,667 | 23,833 |
| Craig                C. Dobbin                  | 1998                          |  -                       |  -                       |  -                        | 60,000                                                     |  -                                                 |  -                                                                              | 1,042,200 |  - |  - |
| Mark                D. Dobbin                   | 2006(i)                       | 5,665,188(ii)                 | 5,673,604(iii)                | 22,000,000(iv)                 | 519,990(v)                                                 |  -                                                 | 110,000                                                                              | 4,055,922 |  - | 118,800 |
| George                N. Gillett Jr.            | 2004                          |  -                       |  -                       |  -                        |  -                                                    | 73,334                                                  | 36,666                                                                               |   | 310,000 |  - |
| John                J. Kelly, B.E., Ph.D.       | 1999                          | 6,280                         |  -                       |  -                        |  -                                                    | 60,000                                                  |  -                                                                              |   | 1,008,450 |  - |
| Jack                M. Mintz, B.A., M.A., Ph.D. | 2004                          | 2,000                         |  -                       |  -                        |  -                                                    | 73,334                                                  | 36,666                                                                               |   | 409,200 |  - |
| Sir                Bob Reid                     | 2004                          |  -                       |  -                       |  -                        |  -                                                    | 110,000                                                 |  -                                                                              |   | 731,500 |  - |
| Guylaine                Saucier, C.M., F.C.A.   | 2005                          | 3,000                         |  -                       |  -                        |  -                                                    | 73,334                                                  | 36,666                                                                               |   |  - |  - |
| William                W. Stinson               | 2003                          | 10,000                        |  -                       |  -                        |  -                                                    | 110,000                                                 |  -                                                                              |  - | 1,039,500 |  - |

| (i) | Mark D.                Dobbin previously served as a director of the Corporation from 1994                - 1998                and 2001 - 2003. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Of                these, 3,892,540 shares are held by Discovery Helicopters Inc., a                holding                company, all of the voting shares of which are owned by the Estate                of                Craig L. Dobbin, of which Mark Dobbin is the sole executor and                251,264 shares are held by a family education                trust. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (iii) | Of                these, 5,555,432 shares are held by Discovery Helicopters                Inc. |
|-------|-------------------------------------------------------------------------------------------------|
| (iv)  | These              shares              are held by O.S. Holdings, a holding company wholly owned indirectly              by              the Estate of Craig L. Dobbin. |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (v) | These              options              are held by the Estate of Craig L.              Dobbin. |
|-----|-------------------------------------------------------------------------------------------------|

----

| • | met                with management and the external auditors to review and discuss the                April 30, 2007 consolidated financial                statements; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | discussed                with the external auditors the matters required by Canadian regulators                in                accordance with Section 5751 of the General Assurance and Auditing                Standards of the Canadian Institute of Chartered Accountants                “Communications with Those Having Oversight Responsibility for the                Financial Reporting Process” and by US regulators in accordance with the                Statement on Auditing Standards No. 61 “Communication with Audit                Committee” issued by the American Institute of Certified Public                Accountants; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | received                written disclosures from the independent auditors required by the                US                Securities and Exchange Commission in accordance with the requirements                of                the Independence Standards Board;                and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | discussed                with the external auditors that firm’s                independence. |
|---------|----------------------------------------------------------------------------------------------------|

| (i)   | to                  provide a compensation program that motivates executive officers                  to                  achieve their strategic goals;                                                            |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)  | to                  be competitive with other leading North American and global companies                  so                  as to attract and retain talented executives; and,                                   |
| (iii) | to                  align the interests of its executive officers with the long-term                  interests                  of the Corporation's shareholders through stock-related                  programs. |

----

----

----

| Director                                        | Director                and                BoardChair                CashRetainer$ | Committee                ChairCash                Retainer$ | Board                and                CommitteeAttendance                Fees$ | Total                Annual                Fees$ |
|-------------------------------------------------|------------------------------------------------------------------------------------|-------------------------------------------------------------|----------------------------------------------------------------------------------|--------------------------------------------------|
| Sylvain                Allard                   |  -                                                                            |  -                                                     |  -                                                                          |  -                                          |
| Donald                Carty, O.C.               | 45,835                                                                             |  -                                                     | 32,025                                                                           | 77,860                                           |
| Craig                C. Dobbin                  | 45,835                                                                             |  -                                                     | 18,334                                                                           | 64,169                                           |
| Mark                D. Dobbin                   | 284,375                                                                            |  -                                                     |  -                                                                          | 284,375                                          |
| George                N. Gillett Jr.            | 45,835                                                                             |  -                                                     | 16,169                                                                           | 62,004                                           |
| John                J. Kelly, B.E., Ph.D.       | 58,266                                                                             | 14,567                                                      | 23,306                                                                           | 96,139                                           |
| Jack                M. Mintz, B.A., M.A., Ph.D. | 45,835                                                                             | 28,647                                                      | 32,025                                                                           | 106,507                                          |
| Sir                Bob Reid                     | 85,416                                                                             | 53,385                                                      | 38,392                                                                           | 177,193                                          |
| Guylaine                Saucier, C.M., F.C.A.   | 45,835                                                                             |  -                                                     | 38,930                                                                           | 84,765                                           |
| William                W. Stinson               | 45,835                                                                             |  -                                                     | 11,212                                                                           | 57,047                                           |

| (i) | directors                are encouraged to maintain minimum share ownership in the Corporation                equal in value to the annual board fees;                and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | the                Named Executive Officers are encouraged to maintain minimum share                ownership in the Corporation equal in value to their base                salary. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name                and principal                position                                 | Year   | Annual                compensation$(i) | Long-term                compensation$(ii) | All                other                compensation$(iii) | Pension                service                cost$ | Total                compensation$ | EBITDA$                millions | Total                compensation as % of                EBITDA% |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------|--------------------------------------------|------------------------------------------------------------|-----------------------------------------------------|------------------------------------|---------------------------------|------------------------------------------------------------------|
|                                                                                      |   |                                   |                                       |                                                       |                                                |                               |                            |                                                             |   |   |   |   |   |   |   |
| Sylvain                AllardPresident                and Chief Executive Officer         | 2007   |  1,340,690                        |                                       |  812,500                                              |                                                | 61,399                             |                            |  408,100                                                    |   |  2,622,689 |   |  181,005 |   | 1.45% |   |
| Rick                DavisSenior                Vice-President and Chief Financial Officer | 2007   |  640,308                          |                                       |  350,000                                              |                                                | 58,999                             |                            |  -                                                          |   |  1,049,307 |   |  181,005 |   | 0.58% |   |
| Christine                BairdPresident,                Global Operations                 | 2007   |  626,436                          |                                       |  165,000                                              |                                                | 39,520                             |                            | 98,600                                                           |   |  929,556 |   |  181,005 |   | 0.51% |   |
| Neil                CalvertPresident,                Heli-One                             | 2007   |  521,067                          |                                       |  165,000                                              |                                                | 59,163                             |                            | 89,600                                                           |   |  834,830 |   |  181,005 |   | 0.46% |   |
| Keith                MullettManaging                Director, European Operations         | 2007   |  445,093                          |                                       |  153,085                                              |                                                | 75,493                             |                            | 76,900                                                           |   |  750,571 |   |  181,005 |   | 0.41% |   |

| (i) | Cash                payments of base salary and STIP                award. |
|-----|----------------------------------------------------------------------------|

| (ii) | The                value of PSUs granted under the LTIP calculated by multiplying the                number                of PSUs granted by the grant price which for Fiscal 2007 was $28.12.                In                the case of Mr. Davis, no value is ascribed to the SARs granted to                him during Fiscal 2007 as none of these had vested as of April 30,                2007. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Includes                vehicle expenses and allowances, relocation assistance under the                Corporation’s relocation plans available to employees other then the Named                Executive Officers and contribution to the                RPP. |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                  |   | Annual                    compensation |   | Long-term                    compensation |   |
|-----------------------------------------------------------------------|--------|----------------------------------------|--------|-------------------------------------------|--------|
|                                                                  |   |                                   |   | Bonus(i)                        |   |   |   | Awards |   |   |   |
| Name                    and principal                    position     | Year   | Salary$                                |   | Operations$(v)                            |   | Corporate                    development$(iv) |   | Other                    annual                    compensation$(ii) |   | Securities                    under options/SARs                    granted# |   | All                    other                    compensation$(iii) |   |
|                                                                  |   |                                   |   |                                      |   |   |   |   |   |   |   |   |   |
| Sylvain                    Allard                                     | 2007   | 650,000                                |   | 690,690                                   |   | - |   | - |   | - |   | 20,000 |   |
| President                    & Chief Executive Officer            | 2006   | 650,000                                |   | -                                         |   | - |   | - |   | 200,000 |   | 19,000 |   |
|                                                                  | 2005   | 650,000                                |   | 1,807,000                                 |   | 225,000 |   | - |   | - |   | 16,500 |   |
| Jo                    Mark                    Zurel                   | 2007   |  21,000                           |   | -                                         |   | - |   | - |   | - |   |  1,060,000 |   |
| Former                    Senior Vice-President & Chief Financial | 2006   | 435,000                                |   | -                                         |   | - |   | - |   | 100,000 |   | 19,000 |   |
| Officer                                                               | 2005   | 435,000                                |   | 1,072,000                                 |   | 150,000 |   | - |   | - |   | 16,500 |   |
| Rick                    Davis                                         | 2007   | 350,000                                |   | 290,308                                   |   | - |   | - |   | 55,524 |   | 20,000 |   |
| Senior                    Vice-President & Chief Financial        | 2006   | 200,000                                |   | 20,000                                    |   | - |   | - |   | 40,000 |   | 9,500 |   |
| Officer                                                               | 2005   | 175,000                                |   | 74,760                                    |   | - |   | - |   | - |   | 8,250 |   |
| Christine                    Baird                                    | 2007   | 339,900                                |   | 286,536                                   |   | - |   | - |   | - |   | 20,000 |   |
| President,                    Global Operations                       | 2006   | 330,000                                |   | 33,000                                    |   | - |   | - |   | 60,000 |   | 19,000 |   |
|                                                                  | 2005   | 330,000                                |   | 161,700                                   |   | - |   | - |   | - |   | 16,500 |   |
| Neil                    Calvert                                       | 2007   | 339,900                                |   | 181,167                                   |   | - |   | - |   | - |   | 20,000 |   |
| President,                    Heli-One                                | 2006   | 330,000                                |   | 33,000                                    |   | - |   | - |   | 60,000 |   | 19,000 |   |
|                                                                  | 2005   | 330,000                                |   | 207,075                                   |   | - |   | - |   | - |   | 16,500 |   |
| Keith                    Mullett                                      | 2007   | 326,205                                |   | 111,888                                   |   | - |   | - |   | - |   | 18,920 |   |
| Managing                    Director, European Operations             | 2006   | 252,804                                |   | 108,959                                   |   | - |   | - |   | 60,000 |   | 15,166 |   |
|                                                                  | 2005   | 204,762                                |   | 143,471                                   |   | - |   | - |   | - |   | 10,735 |   |

| (i)    | Bonuses                  are                  shown in the fiscal year to which payments relate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | Other                  compensation and personal benefits amount to less than the lower                  of                  $50,000 and 10% of salary and bonus for all Named Executive Officers                  in                  2007 and for all except the Executive Chairman in each of the previous                  two                  fiscal years. The amounts shown for Mr. Davis in fiscal 2005 are                  relocation allowance in connection with the move of the Corporation’s head                  office in fiscal 2005 and vehicle benefits. |
| (iii)  | This                  consists                  of Corporation’s contributions to the RPP made on behalf of the Named                  Executive Officers. For Mr. Zurel, whose employment with the                  Corporation terminated on May 10, 2006, it includes amounts payable                  to him upon termination including bonuses, car allowance, and health                  and                  dental benefits.                                                                                                                                    |
| (iv)   | These                  special                  transaction bonuses (Corporate Development) are related to the                  acquisition                  of Schreiner Aviation Group and were paid in August 2005 upon the                  attainment of certain financial targets by Schreiner.                                                                                                                                                                                                                                                                                    |
| (v)    | These                  amounts                  include:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | (a)                       regular                    performance bonus payments under the STIP, which is also used                    as an                    incentive for other senior managers, and                                                                                                                                                                                                                                                                                                                                                                   |
|   | (b)                       the TSR Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (vi)   | Mr. Davis                  became Acting Chief Financial Officer on May 10, 2006 and was                  appointed Senior Vice-President and Chief Financial Officer on                  September 13, 2006.                                                                                                                                                                                                                                                                                                                                                             |
| (vii)  | Mr. Mullett                  is paid in                  GBP. The amounts included in the table are the Canadian dollar                  equivalents converted using the year to date average exchange rate                  as at                  April 30 of the relevant year.                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|                           |                    | Performance                Period | Estimated                Future Payouts                UnderNon-Securities-Price-Based                Plans |
|--------------------------------|-------------------------|-----------------------------------|-------------------------------------------------------------------------------------------------------------|
| Name                           | PSUs                (#) | UntilPayout                       | Threshold($                or #)                                                                            | Target($                or #) | Maximum($                or                #) |
| Sylvain                Allard  | 28,894                  | April                30, 2009     | N/A                                                                                                         | N/A | N/A |
| Rick                Davis      | 12,447                  | April                30, 2009     | N/A                                                                                                         | N/A | N/A |
| Christine                Baird | 5,868                   | April                30, 2009     | N/A                                                                                                         | N/A | N/A |
| Neil                Calvert    | 5,868                   | April                30, 2009     | N/A                                                                                                         | N/A | N/A |
| Keith                Mullett   | 5,444                   | April                30, 2009     | N/A                                                                                                         | N/A | N/A |

| Plan                  Category                                              | Number                  of securities                  to                  be issued upon exercise of                  outstanding options | Weighted-average                  exercise                  price per                  share                  ofoutstanding                  options | Number                  of securities                  remaining                  available                  for                  future issuance                  under                  equity                  compensation                  plans |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                        |                                                                                                                                       |                                                                                                                                                 |                                                                                                                                                                                                                                                  |   |   |   |   |
| Employee                  Share Option Plan                                 | 2,232,922                                                                                                                                  |                                                                                                                                                 |                                                                                                                                                                                                                                                  |  $                  17.64 |   | 10,462 |   |
| Equity                  compensation plans not approved by security holders | -                                                                                                                                          |                                                                                                                                                 |                                                                                                                                                                                                                                                  | - |   | - |   |
| Total                                                                       | 2,232,922                                                                                                                                  |                                                                                                                                                 |                                                                                                                                                                                                                                                  |  $                  17.64 |   | 10,462 |   |

----

| Name                           | SARs                Granted# | Percent                of Total SARs Granted                to Employees during the year ended April 30, 2007 | Exercise                Price($/Security) | Market                Value of Securities                Underlying SARs at the Date of Grant ($/Security) | Expiration                Date    |
|--------------------------------|------------------------------|---------------------------------------------------------------------------------------------------------------|-------------------------------------------|------------------------------------------------------------------------------------------------------------|-----------------------------------|
| Sylvain                Allard  | -                            | -                                                                                                             | -                                         | -                                                                                                          | -                                 |
| Rick                Davis      | 55,524                       | 57.1%                                                                                                         | $22.07                                    | $22.07                                                                                                     | September                28, 2016 |
| Jo                Mark Zurel   | -                            | -                                                                                                             | -                                         | -                                                                                                          | -                                 |
| Christine                Baird | -                            | -                                                                                                             | -                                         | -                                                                                                          | -                                 |
| Neil                Calvert    | -                            | -                                                                                                             | -                                         | -                                                                                                          | -                                 |
| Keith                Mullett   | -                            | -                                                                                                             | -                                         | -                                                                                                          | -                                 |

| Name                              | Type                of                Security | Securities                acquired on                exercise# | Aggregate                value                realized$ | Options                exercisable (vested) at                April 30, 2007#(i) | Options                not exercisable                (unvested) at April 30, 2007#(i) | Value                of all vested unexercised                in-the-money optionsApril                30,                2007$ | Value                of all non-vested                unexercised in-the-money optionsApril                30,                2007$ |
|-----------------------------------|------------------------------------------------|----------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| Sylvain                Allard     | Class A                                   |  -                                                        | -                                                       | 241,966                                                                               | 80,000                                                                                      | 7,713,216                                                                                                                       | -                                                                                                                                   |
| Rick                Davis         | Class A                                   |  -                                                        | -                                                       |  4,000                                                                           | 16,000                                                                                      | -                                                                                                                               | -                                                                                                                                   |
| Jo Mark                Zurel | Class A                                   |  46,500                                                   | 1,052,063                                               | 97,500                                                                                | -                                                                                           | 1,469,650                                                                                                                       | -                                                                                                                                   |
| Christine                Baird    | Class A                                   |  -                                                        | -                                                       | 12,000                                                                                | 18,000                                                                                      | -                                                                                                                               | -                                                                                                                                   |
| Neil                Calvert       | Class A                                   |  -                                                        | -                                                       | 12,000                                                                                | 18,000                                                                                      | -                                                                                                                               | -                                                                                                                                   |
| Keith                Mullett      | Class A                                   |  -                                                        | -                                                       | 18,000                                                                                | 18,000                                                                                      | 121,080                                                                                                                         | -                                                                                                                                   |

| (i) | Each                option entitles the holder to receive two Class A                Shares. |
|-----|---------------------------------------------------------------------------------------------------|

----

| • | 0.5%                of average earnings up to the CPP earnings limit at                retirement; |
|---------|----------------------------------------------------------------------------------------------------|

| • | 1%                of average earnings above such CPP earnings limit up to the earnings                for                which the Canada Revenue Agency (the "CRA") maximum contribution                could be                made under the RPP in the year of retirement;                and |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 2%                of average earnings in excess of the above CRA earnings                limits. |
|---------|--------------------------------------------------------------------------------------------------|

|               |          |   | Years                of Credited Service |
|--------------------|---------------|--------|------------------------------------------|
| Remuneration  |          | 15     |                                     |   | 20 |   |   | 25 |   |   | 30 |   |   | 35 |   |
|               | $             |   |                                     | $ |   |   | $ |   |   | $ |   |   | $ |   |   | $ |   |
|               |  200,000 |   |                                     |  60,000 |   |   |  80,000 |   |   |  100,000 |   |   | 120,000 |   |   |  140,000 |   |
|               |  400,000 |   |                                     | 120,000 |   |   | 160,000 |   |   |  200,000 |   |   | 240,000 |   |   |  280,000 |   |
|               |  600,000 |   |                                     | 180,000 |   |   | 240,000 |   |   |  300,000 |   |   | 360,000 |   |   |  420,000 |   |
|               |  800,000 |   |                                     | 240,000 |   |   | 320,000 |   |   |  400,000 |   |   | 480,000 |   |   |  560,000 |   |
|               | 1,000,000     |   |                                     | 300,000 |   |   | 400,000 |   |   |  500,000 |   |   | 600,000 |   |   |  700,000 |   |
|               | 1,200,000     |   |                                     | 360,000 |   |   | 480,000 |   |   |  600,000 |   |   | 720,000 |   |   |  840,000 |   |
|               | 1,400,000     |   |                                     | 420,000 |   |   | 560,000 |   |   |  700,000 |   |   | 840,000 |   |   |  980,000 |   |
|               | 1,600,000     |   |                                     | 480,000 |   |   | 640,000 |   |   |  800,000 |   |   | 960,000 |   |   |  1,120,000 |   |
|               | 1,800,000     |   |                                     | 540,000 |   |   | 720,000 |   |   |  900,000 |   |   | 1,080,000 |   |   |  1,260,000 |   |
|               | 2,000,000     |   |                                     | 600,000 |   |   | 800,000 |   |   |  1,000,000 |   |   | 1,200,000 |   |   |  1,400,000 |   |

----

| Aggregate                Indebtedness                ($)                     |
|------------------------------------------------------------------------------|
| Purpose                                                                      | To                the Corporation or its                subsidiaries | To                another                entity |
| Executive                Share Purchase Loans(A                loan program) | $1,206,210 |  - |
| Ordinary                share loan                                           | $33,000,000 |  - |

----

| Name                and principal position                                                                     | Involvement                of Corporation or subsidiary | Largest                amount outstanding during fiscal year 2007$ | Amount                outstanding as at August 31, 2007$ | Financially                assisted securities purchases during fiscal 2007# | Security                for indebtedness                                                                                                                                                                                          | Amount                forgiven during fiscal 2007 |
|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|--------------------------------------------------------------------|---------------------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
| EXECUTIVE                SHARE PURCHASE LOANS (A loan program)                                                 |                                                    |                                                               |                                                          |
| Sylvain                AllardPresident                & Chief Executive Officer, Proposed Nominee Director | Lender                                                  | 277,067                                                            | 236,189                                                       |  -                                                                      | An                assignment of the shares or proceeds of vested options to acquire                100,000                Class A shares held by the executive, having an exercise price of                $2.125 per share. |  -                                           |
| Christine                BairdPresident,                CHC Global Operations                                  | Lender                                                  | 34,980                                                             | 28,021                                                        |  -                                                                      | A                first lien on the Class A shares purchased under the                program                                                                                                                                 |  -                                           |
| THE                ORDINARY SHARE LOAN                                                                         |                                                    |                                                               |                                                          |                                                                         |                                                                                                                                                                                                                              |
| O.S.                Holdings Inc.(a                corporation indirectly wholly owned by Craig L. Dobbin)     | Lender                                                  | 33,000,000                                                         | 33,000,000                                                    |  -                                                                      | A                lien in CHC’s favour on the purchased Ordinary Shares, together with                certain other security (see below)                                                                                     |  -                                           |

----

|                                                       |   | Year                ended April                30 |   |
|------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                                       |   | 2007                                              |   |   | 2006 |   |   | 2005 |   |
| Administrative,                support and other personnel |   |                                              | 1,534  |   |   |   | 1,320 |   |   |   | 1,450 |   |
| Pilots                                                     |   |                                              | 930    |   |   |   | 836 |   |   |   | 756 |   |
| Maintenance                engineers                       |   |                                              | 1,353  |   |   |   | 1,010 |   |   |   | 883 |   |
|                                                       |   |                                              | 3,817  |   |   |   | 3,166 |   |   |   | 3,089 |   |

----

| Name                           | Class                AShares | Percent                of TotalClass                AShares | Options                (Class AShares)(i) | Exercise                Price of options | Expiration                date of options |
|--------------------------------|------------------------------|-------------------------------------------------------------|-------------------------------------------|------------------------------------------|-------------------------------------------|
| Sylvain                Allard  | 278,468                      | 0.697%                                                      | Grant                1:                   |  103,216                            |                                      | Grant                1: |  $                  4.26 |   | Grant                1: | April                22, 2009 |   |
|                           |                         |                                                        | Grant                2:                   |  118,750                            |                                      | Grant                2: |  30.70 |   | Grant                2: | May                1, 2012 |   |
|                           |                         |                                                        | Grant                3:                   |  100,000                            |                                      | Grant                3: |  49.60 |   | Grant                3: | June                29, 2015 |   |
|                           |                         |                                                        |                                      |  321,966                            |                                      |   |   |   |   |   |   |
| Rick                Davis      | 2,400                        | 0.006%                                                      |                                      | 20,000                                   |                                      |   |  $                49.60 |   |   | June                29, 2015 |   |
| Christine                Baird | 13,160                       | 0.033%                                                      |                                      | 30,000                                   |                                      |   |  $                49.60 |   |   | June                29, 2015 |   |
| Neil                Calvert    | 2,399                        | 0.006%                                                      |                                      | 30,000                                   |                                      |   |  $                49.60 |   |   | June                29, 2015 |   |
| Keith                Mullet    | 337                          | 0.000%                                                      | Grant                1:                   |  6,000                              |                                      | Grant                1: |  $                30.70 |   | Grant                1: | May                1, 2012 |   |
|                           |                         |                                                        | Grant                2:                   | 30,000                                   |                                      | Grant                2: |  49.60 |   | Grant                2: | June                29, 2015 |   |
|                           |                         |                                                        |                                      | 36,000                                   |                                      |   |   |   |   |   |   |

| (i) | Each                option entitles the holder to receive two Class A                shares. |
|-----|---------------------------------------------------------------------------------------------------|

| ITEM                7. | MAJOR                SHAREHOLDERS AND RELATED PARTY                TRANSACTIONS |
|------------------------|---------------------------------------------------------------------------------|

----

| Name                of Shareholder            |   | Number                of voting shares owned, controlled                or directed (i) |      |   | Percent                of class (i)                  |   |
|-----------------------------------------------|--------|-----------------------------------------------------------------------------------------|-----------|--------|------------------------------------------------------|--------|
|                                          |   | SubordinateVoting                Shares                                                 |      |   | Multiple                Voting                Shares |   |   | Ordinary                Shares |   |   | Subordinate                Voting                Shares |   |   | Multiple                Voting                Shares |   |   | Ordinary Shares |   |
| Estate                of Craig L. Dobbin (ii) |   |                                                                                    | 5,426,462 |   |                                                 |   | 5,555,432 |   |   |   | 22,000,000 |   |   |   | 13.6 | % |   |   | 94.8 | % |   |   | 100.0 | % |
| FMR                Corp.                      |   |                                                                                    | 2,875,800 |   |                                                 |   | - |   |   |   | - |   |   |   | 7.2 | % |   |   | - |   |   |   | - |   |

| (i) | Includes                shares beneficially owned by the listed person. If a person has the                right                to acquire beneficial ownership of any shares by exercise of options                or                otherwise by October 30, 2007, those shares are deemed beneficially                owned by that person and are deemed to be outstanding solely for                the                purpose of determining the percentage of the shares that the person                owns.                Those shares are not included in the computations for any other                person. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Discovery                Helicopters Inc., a holding company, all of the voting shares of                which are                owned by the estate of Craig L. Dobbin (the “Estate”), holds 3,892,540                Class A shares. All of the Class B shares are beneficially owned                by the Estate. O.S. Holdings Inc., a holding company, wholly owned                by the                Estate, holds all of the ordinary shares. The Estate directly or                indirectly own shares of the Corporation that collectively carry                62.8% of                the votes attached to all of the outstanding shares of the Corporation.                The shares owned by Discovery Helicopters Inc. collectively represent                59.0% of the votes attached to all of our outstanding                shares. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | In                the course of its regular business activities, the Company enters                into                routine transactions with companies subject to significant influence                by                the Company (most significantly ACN) as well as parties affiliated                with                the controlling shareholder. These transactions are measured at the                amounts exchanged, which is the amount of consideration determined                and                agreed to by the related parties. Transactions with related parties                for                the years ended April 30 are summarized as                follows: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                     |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Revenues                from ACN                                                                                         |   | $      | 90,256 |   |   | $      | 70,738 |   |   | $ | 43,518 |   |
| Direct                costs                                                                                              |   |   | 432    |   |   |   | 446    |   |   |   | 1,298 |   |
| Inventory                additions                                                                                       |   |   | -      |   |   |   | 10,679 |   |   |   | - |   |
| Capital                asset additions                                                                                   |   |   | -      |   |   |   | 5,692  |   |   |   | 8,160 |   |
| Net                  amounts receivable and payable in respect of such revenues,                  expenses and additions |   |   | 25,351 |   |   |   | 21,878 |   |   |   | 15,044 |   |

| (b) | During                fiscal 2000, in connection with securing tender credit facilities,                the                Company received an unsecured, subordinated, convertible 12% loan                from an                affiliate of the controlling shareholder in the amount of                $5.0 million. This loan was subordinated to the Company’s senior                credit facilities and its senior subordinated notes (see Note 14 to                our fiscal 2007 audited consolidated financial statements). The loan                was                convertible at the option of the shareholder into Class A subordinate                voting shares at $3.63 per share. The estimated value of the loan                proceeds attributable to the conversion feature of $1.0 million was                allocated to contributed surplus. The equivalent reduction in the                carrying                value of the loan is amortized to earnings over the term of the loan.                Interest expense of $0.6 million (2006 - $0.6 million, 2005 -                $0.7 million), including amortization of the above noted discount,                was recorded on the loan during the fiscal year ended April 30,                2007. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM                8. | FINANCIAL                INFORMATION |
|------------------------|--------------------------------------|

| ITEM                9. | THE                OFFER AND LISTING |
|------------------------|--------------------------------------|

|                          |   | Class                A Subordinate Voting                Shares |   |   | Class                B Multiple Voting                Shares |   |
|-------------------------------|--------|-----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                          |   | High                                                            |   |   | Low                                                          |   |   | Volume |   |   | High |   |   | Low |   |   | Volume |   |
| Fiscal                2007    |   |                                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First                quarter  |   | $                                                               | 28.50  |   |                                                         | $      | 23.65 |   |   |   | 7,662,870 |   |   | $ | 28.30 |   |   | $ | 24.88 |   |   |   | 6,750 |   |
| Second                quarter |   |                                                            | 26.10  |   |                                                         |   | 21.06 |   |   |   | 5,945,693 |   |   |   | 26.99 |   |   |   | 21.78 |   |   |   | 8,336 |   |
| Third                quarter  |   |                                                            | 26.69  |   |                                                         |   | 22.63 |   |   |   | 5,743,981 |   |   |   | 26.00 |   |   |   | 24.30 |   |   |   | 13,117 |   |
| Fourth                quarter |   |                                                            | 25.45  |   |                                                         |   | 21.86 |   |   |   | 8,442,500 |   |   |   | 25.60 |   |   |   | 23.00 |   |   |   | 5,940 |   |
|                          |   |                                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal                2006    |   |                                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First                quarter  |   | $                                                               | 28.08  |   |                                                         | $      | 23.24 |   |   |   | 10,314,800 |   |   | $ | 28.00 |   |   | $ | 23.90 |   |   |   | 4,300 |   |
| Second                quarter |   |                                                            | 27.34  |   |                                                         |   | 22.11 |   |   |   | 9,896,100 |   |   |   | 25.75 |   |   |   | 24.00 |   |   |   | 1,600 |   |
| Third                quarter  |   |                                                            | 28.48  |   |                                                         |   | 23.39 |   |   |   | 4,743,500 |   |   |   | 28.75 |   |   |   | 24.00 |   |   |   | 3,700 |   |
| Fourth                quarter |   |                                                            | 31.25  |   |                                                         |   | 24.30 |   |   |   | 8,795,700 |   |   |   | 33.00 |   |   |   | 25.15 |   |   |   | 20,000 |   |

|   |   | Class                A Subordinate Voting                Shares |   |   | Class                B Multiple Voting                Shares |   |
|--------|--------|-----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|   |   | High                                                            |   |   | Low                                                          |   |   | Volume |   |   | High |   |   | Low |   |   | Volume |   |
|   |   |                                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2003   |   | $                                                               | 18.03  |   |                                                         | $      | 10.82 |   |   |   | 37,426,564 |   |   | $ | 18.00 |   |   | $ | 10.90 |   |   |   | 94,502 |   |
| 2004   |   |                                                            | 20.62  |   |                                                         |   | 12.00 |   |   |   | 37,563,400 |   |   |   | 20.50 |   |   |   | 12.41 |   |   |   | 107,000 |   |
| 2005   |   |                                                            | 29.71  |   |                                                         |   | 18.38 |   |   |   | 27,155,639 |   |   |   | 29.08 |   |   |   | 18.58 |   |   |   | 21,918 |   |
| 2006   |   |                                                            | 31.25  |   |                                                         |   | 22.11 |   |   |   | 33,750,100 |   |   |   | 33.00 |   |   |   | 23.90 |   |   |   | 29,600 |   |
| 2007   |   |                                                            | 28.50  |   |                                                         |   | 21.06 |   |   |   | 27,795,044 |   |   |   | 28.30 |   |   |   | 21.78 |   |   |   | 34,143 |   |

----

|                       |   | Class                A Subordinate Voting                Shares |   |   | Class                B Multiple Voting                Shares |   |
|----------------------------|--------|-----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                       |   | High                                                            |   |   | Low                                                          |   |   | Volume |   |   | High |   |   | Low |   |   | Volume |   |
|                       |   |                                                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                2007  |   | $                                                               | 24.45  |   |                                                         | $      | 21.86 |   |   |   | 3,311,859 |   |   | $ | 25.10 |   |   | $ | 23.63 |   |   |   | 700 |   |
| April                2007  |   |                                                            | 24.05  |   |                                                         |   | 22.40 |   |   |   | 2,849,313 |   |   |   | 23.63 |   |   |   | 23.00 |   |   |   | 1,500 |   |
| May                2007    |   |                                                            | 26.54  |   |                                                         |   | 23.13 |   |   |   | 2,898,543 |   |   |   | 26.35 |   |   |   | 23.81 |   |   |   | 4,300 |   |
| June                2007   |   |                                                            | 28.33  |   |                                                         |   | 23.16 |   |   |   | 5,399,615 |   |   |   | 27.70 |   |   |   | 24.34 |   |   |   | 2,400 |   |
| July                2007   |   |                                                            | 29.88  |   |                                                         |   | 27.33 |   |   |   | 4,062,967 |   |   |   | 29.70 |   |   |   | 27.70 |   |   |   | 1,100 |   |
| August                2007 |   |                                                            | 29.98  |   |                                                         |   | 25.04 |   |   |   | 3,718,755 |   |   |   | 30.00 |   |   |   | 26.00 |   |   |   | 4,000 |   |

|                          |   | High   |   |   | Low    |   |   | Volume |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fiscal                2007    |   |   |   |   |   |   |   |   |   |
| First                quarter  |   | $      | 25.60  |   |   | $      | 21.25  |   |   |   | 757,300 |   |
| Second                quarter |   |   | 23.25  |   |   |   | 18.66  |   |   |   | 1,024,500 |   |
| Third                quarter  |   |   | 23.37  |   |   |   | 19.25  |   |   |   | 874,000 |   |
| Fourth                quarter |   |   | 21.60  |   |   |   | 18.65  |   |   |   | 787,981 |   |
|                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal                2006    |   |   |   |   |   |   |   |   |   |   |   |   |
| First                quarter  |   | $      | 22.37  |   |   | $      | 18.88  |   |   |   | 852,600 |   |
| Second                quarter |   |   | 22.48  |   |   |   | 18.70  |   |   |   | 743,200 |   |
| Third                quarter  |   |   | 24.66  |   |   |   | 19.84  |   |   |   | 618,900 |   |
| Fourth                quarter |   |   | 27.00  |   |   |   | 21.02  |   |   |   | 924,400 |   |

|   |   | High   |   |   | Low    |   |   | Volume |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |   |   |   |   |
| 2003   |   | $      | 11.65  |   |   | $      | 7.38   |   |   |   | 6,568,600 |   |
| 2004   |   |   | 15.23  |   |   |   | 8.65   |   |   |   | 3,930,600 |   |
| 2005   |   |   | 24.13  |   |   |   | 13.19  |   |   |   | 4,890,500 |   |
| 2006   |   |   | 27.00  |   |   |   | 18.70  |   |   |   | 3,139,100 |   |
| 2007   |   |   | 25.60  |   |   |   | 18.65  |   |   |   | 3,443,781 |   |

----

|                       |   | High   |   |   | Low    |   |   | Volume |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                       |   |   |   |   |   |   |   |   |   |
| March                2007  |   | $      | 20.83  |   |   | $      | 18.65  |   |   |   | 257,600 |   |
| April                2007  |   |   | 21.04  |   |   |   | 20.03  |   |   |   | 110,400 |   |
| May                2007    |   |   | 24.58  |   |   |   | 20.89  |   |   |   | 362,000 |   |
| June                2007   |   |   | 26.66  |   |   |   | 21.65  |   |   |   | 813,100 |   |
| July                2007   |   |   | 28.46  |   |   |   | 25.87  |   |   |   | 471,400 |   |
| August                2007 |   |   | 28.30  |   |   |   | 23.65  |   |   |   | 772,800 |   |

| ITEM                10. | ADDITIONAL                INFORMATION |
|-------------------------|---------------------------------------|

----

----

| ITEM                11. | QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK |
|-------------------------|------------------------------------------------------------------------------------------|

----

| ITEM                12. | DESCRIPTION                OF SECURITIES OTHER THAN EQUITY                SECURITIES |
|-------------------------|--------------------------------------------------------------------------------------|

----

| ITEM                13. | DEFAULTS,                DIVIDEND ARREARAGES AND                DELINQUENCIES |
|-------------------------|-------------------------------------------------------------------------------|

| ITEM                14. | MATERIAL                MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF                PROCEEDS |
|-------------------------|------------------------------------------------------------------------------------------------------------|

| ITEM                15. | CONTROLS                AND PROCEDURES |
|-------------------------|----------------------------------------|

----

| • | Pertain                to the maintenance of records that, in reasonable detail, accurately                and                fairly reflect the transactions and dispositions of the assets of                the                Company; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Provide                reasonable assurance that transactions are recorded as necessary                to permit                preparation of financial statements in accordance with generally                accepted                accounting principles, and receipts and expenditures of the Company                are                made only in accordance with authorizations of management and the                directors of the Company; and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Provide                reasonable assurance regarding prevention or timely detection of                unauthorized acquisition, use or disposition of the Company’s assets that                could have a material effect on the annual financial statements or                interim                financial statements. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM                16A. | AUDIT                COMMITTEE FINANCIAL EXPERT |
|--------------------------|-------------------------------------------------|

| ITEM                16B. | CODE                OF ETHICS |
|--------------------------|-------------------------------|

| ITEM                16C. | PRINCIPAL                ACCOUNTANT FEES AND SERVICES |
|--------------------------|-------------------------------------------------------|

|                              |   | 2007              |   |   | 2006   |   |
|-----------------------------------|--------|-------------------|--------|--------|--------|--------|
|                              |   | ($ millions) |   |
| Audit                Fees         |   | $                 | 4.1    |   |   | $      | 2.4 |   |
| Audit-Related                Fees |   |              | 0.2    |   |   |   | 0.1 |   |
| Tax                Fees           |   |              | 0.9    |   |   |   | 0.9 |   |
| All                Other Fees     |   |              | 0.1    |   |   |   | - |   |
| Total                             |   | $                 | 5.3    |   |   | $      | 3.4 |   |

----

| ITEM                16D. | EXEMPTIONS                FROM THE LISTING STANDARDS FOR AUDIT                COMMITTEES |
|--------------------------|------------------------------------------------------------------------------------------|

| ITEM                16E. | PURCHASE                OF EQUITY SECURITIES BY ISSUER AND AFFILIATED                PURCHASERS |
|--------------------------|-------------------------------------------------------------------------------------------------|

----

| ITEM                17. | FINANCIAL                STATEMENTS |
|-------------------------|-------------------------------------|

| Contents                                                                                                                                                                                                         |   | Page   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| MANAGEMENT’S                REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING                                                                                                                            |   |   | 103    |   |
| REPORT                OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL                STATEMENTS                                                                                                    |   |   | 104    |   |
| REPORT                OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROLS                (UNDER THE STANDARDS OF THE PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD                (UNITED STATES)) |   |   | 105    |   |
| CONSOLIDATED                BALANCE SHEETS                                                                                                                                                                       |   |   | 107    |   |
| CONSOLIDATED                STATEMENTS OF EARNINGS                                                                                                                                                               |   |   | 108    |   |
| CONSOLIDATED                STATEMENTS OF SHAREHOLDERS’ EQUITY                                                                                                                                             |   |   | 109    |   |
| CONSOLIDATED                STATEMENTS OF CASH FLOWS                                                                                                                                                             |   |   | 110    |   |
| NOTES                TO THE CONSOLIDATED FINANCIAL STATEMENTS                                                                                                                                                    |   |   | 111    |   |

----

MANAGEMENT’S      REPORT ON INTERNAL      CONTROL OVER FINANCIAL REPORTING

| (a) | Pertain                to the maintenance of records that, in reasonable detail, accurately                and                fairly reflect the transactions and dispositions of the assets of                the                Company; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Provide                reasonable assurance that transactions are recorded as necessary                to permit                preparation of financial statements in accordance with generally                accepted                accounting principles, and that receipts and expenditures of the                Company                are made only in accordance with authorizations of management and                the                directors of the Company; and |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Provide                reasonable assurance regarding prevention or timely detection of                unauthorized acquisition, use, or disposition of the Company’s assets that                could have a material effect on the financial                statements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Sylvain                Allard, MBAPresident                and Chief Executive Officer | Rick                Davis, CASenior                Vice President and Chief Financial                Officer |
|----------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|

----

REPORT      OF INDEPENDENT REGISTERED      PUBLIC ACCOUNTING FIRM ON FINANCIAL STATEMENTS

----

REPORT      OF INDEPENDENT REGISTERED      PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROLS

----

----

|                                                                                                                 |   | 2007   |      |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Assets(Note                14)                                                                                       |   |   |      |   |   |   |
| Current                assets                                                                                        |   |   |      |   |   |   |
|     Cash                and cash equivalents                (Note 6)                             |   | $      | 89,511    |   |   | $      | 26,331 |   |
|     Receivables                (Note                7)                                           |   |   | 277,767   |   |   |   | 246,217 |   |
|     Future                income tax assets (Note 22)                                       |   |   | 32,169    |   |   |   | 26,859 |   |
|     Inventory                                                                                    |   |   | 126,315   |   |   |   | 91,884 |   |
|     Prepaid                expenses                                                              |   |   | 55,121    |   |   |   | 10,619 |   |
|     Assets                of discontinued operations (Note                5)                     |   |   | 3,961     |   |   |   | 3,857 |   |
|                                                                                                                 |   |   | 584,844   |   |   |   | 405,767 |   |
|                                                                                                                 |   |   |      |   |   |   |   |   |
| Property                and equipment, net (Note                8)                                                   |   |   | 1,092,664 |   |   |   | 919,364 |   |
| Investments                (Note                9)                                                                   |   |   | 7,478     |   |   |   | 5,422 |   |
| Intangible                assets (Note                10)                                                            |   |   | 17,874    |   |   |   | 640 |   |
| Goodwill                (Note                11)                                                                     |   |   | 55,276    |   |   |   | 1,224 |   |
| Other                assets (Note                12)                                                                 |   |   | 290,936   |   |   |   | 296,352 |   |
| Future                income tax assets (Note 22)                                                               |   |   | 34,678    |   |   |   | 39,848 |   |
| Assets                of discontinued operations (Note                5)                                             |   |   | 18,469    |   |   |   | 17,465 |   |
|                                                                                                                 |   | $      | 2,102,219 |   |   | $      | 1,686,082 |   |
|                                                                                                                 |   |   |      |   |   |   |   |   |
| Liabilities                and shareholders’                equity                                             |   |   |      |   |   |   |   |   |
| Current                liabilities                                                                                   |   |   |      |   |   |   |   |   |
|     Payables                and                accruals                                          |   | $      | 340,912   |   |   | $      | 227,646 |   |
|     Deferred                revenue                                                              |   |   | 2,057     |   |   |   | 2,608 |   |
|     Dividends                payable                                                             |   |   | 11,241    |   |   |   | 8,548 |   |
|     Income                taxes payable                                                          |   |   | 7,498     |   |   |   | 7,018 |   |
|     Future                income tax liabilities (Note                22)                        |   |   | 9,813     |   |   |   | 8,852 |   |
|     Current                portion of debt obligations (Note                14(a))               |   |   | 333,728   |   |   |   | 24,948 |   |
|     Liabilities                of                discontinued operations (Note                5) |   |   | 2,979     |   |   |   | 4,037 |   |
|                                                                                                                 |   |   | 708,228   |   |   |   | 283,657 |   |
|                                                                                                                 |   |   |      |   |   |   |   |   |
| Long-term                debt (Note                14(a))                                                            |   |   | 64,168    |   |   |   | 150,982 |   |
| Senior                subordinated notes (Note                14(b))                                                 |   |   | 442,680   |   |   |   | 448,120 |   |
| Other                liabilities (Note                16)                                                            |   |   | 139,791   |   |   |   | 132,431 |   |
| Future                income tax liabilities (Note                22)                                                |   |   | 193,172   |   |   |   | 176,708 |   |
| Liabilities                of discontinued operations (Note                5)                                        |   |   | 2,900     |   |   |   | 3,450 |   |
| Shareholders’                equity                                                                            |   |   | 551,280   |   |   |   | 490,734 |   |
|                                                                                                                 |   | $      | 2,102,219 |   |   | $      | 1,686,082 |   |

| Mark                DobinChairman | Jack                M. Mintz, Ph.D.Director |
|-----------------------------------|---------------------------------------------|

----

|                                                                                                                                  |   | 2007   |      |   | 2006   |   |     | 2005   |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|
| Revenue(Note                31(a))                                                                                                    |   | $      | 1,149,107 |   |   | $      | 997,087  |   |   | $ | 954,242 |   |
| Direct                costs                                                                                                           |   |   | (924,714  | )      |   |   | (788,501 | )      |   |   | (732,738 | ) |
| General                and administration                costs                                                                        |   |   | (43,388   | )      |   |   | (27,895  | )      |   |   | (35,279 | ) |
| Amortization                                                                                                                          |   |   | (65,303   | )      |   |   | (55,470  | )      |   |   | (50,184 | ) |
| Restructuring                (costs) recovery                (Note                15)                                                 |   |   | 2,341     |   |   |   | (16,150  | )      |   |   | (17,390 | ) |
| Gain                (loss) on disposals of                assets                                                                      |   |   | (2,987    | )      |   |   | (5       | )      |   |   | 4,129 |   |
| Fair                value adjustment (Note                5)                                                                          |   |   | -         |   |   |   | -        |   |   |   | (14,260 | ) |
| Operating                income                                                                                                       |   |   | 115,056   |   |   |   | 109,066  |   |   |   | 108,520 |   |
| Debt                settlement costs (Note                14(e))                                                                      |   |   | -         |   |   |   | -        |   |   |   | (2,017 | ) |
| Financing                charges (Note                14(d))                                                                          |   |   | (58,296   | )      |   |   | (52,974  | )      |   |   | (37,428 | ) |
| Earnings                    from continuing                    operations before income taxes and undernoted                    items |   |   | 56,760    |   |   |   | 56,092   |   |   |   | 69,075 |   |
| Gain                on sale of long-term                investments (Note                9)                                           |   |   | -         |   |   |   | 37,558   |   |   |   | - |   |
| Equity                    in                    earnings of associated companies and non-controlling                    interest      |   |   | 1,053     |   |   |   | 6,564    |   |   |   | 5,192 |   |
| Income                tax provision (Note                22)                                                                          |   |   | (16,826   | )      |   |   | (10,509  | )      |   |   | (27,338 | ) |
| Net                earnings from continuing                operations                                                                 |   |   | 40,987    |   |   |   | 89,705   |   |   |   | 46,929 |   |
| Net                earnings from discontinued                operations (Note                5)                                       |   |   | 2,167     |   |   |   | 1,005    |   |   |   | 9,590 |   |
| Net                earnings before extraordinary                item                                                                  |   |   | 43,154    |   |   |   | 90,710   |   |   |   | 56,519 |   |
| Extraordinary                item, net of tax                (Note                11(b))                                              |   |   | 810       |   |   |   | -        |   |   |   | - |   |
| Net                earnings                                                                                                           |   | $      | 43,964    |   |   | $      | 90,710   |   |   | $ | 56,519 |   |
| Earnings                per share (Note                23)                                                                            |   |   |      |   |   |   |     |   |   |   |   |   |
| Basic                                                                                                                                 |   |   |      |   |   |   |     |   |   |   |   |   |
| Net                earnings from continuing                operations                                                                 |   | $      | 0.97      |   |   | $      | 2.14     |   |   | $ | 1.12 |   |
| Net                earnings from discontinued                operations                                                               |   |   | 0.05      |   |   |   | 0.02     |   |   |   | 0.23 |   |
| Extraordinary                item                                                                                                     |   |   | 0.02      |   |   |   | -        |   |   |   | - |   |
| Net                earnings                                                                                                           |   |   | 1.04      |   |   |   | 2.16     |   |   |   | 1.35 |   |
| Diluted                                                                                                                               |   |   |      |   |   |   |     |   |   |   |   |   |
| Net                earnings from continuing                operations                                                                 |   | $      | 0.90      |   |   | $      | 1.95     |   |   | $ | 1.03 |   |
| Net                earnings from discontinued                operations                                                               |   |   | 0.05      |   |   |   | 0.02     |   |   |   | 0.20 |   |
| Extraordinary                item                                                                                                     |   |   | 0.02      |   |   |   | -        |   |   |   | - |   |
| Net                earnings                                                                                                           |   |   | 0.97      |   |   |   | 1.97     |   |   |   | 1.23 |   |

----

|                                                                                           |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Retained                earnings, beginning of                year                             |   |   | 312,481 |   |   |   | 238,854 |   |   |   | 195,140 |   |
| Net                earnings                                                                    |   |   | 43,964  |   |   |   | 90,710  |   |   |   | 56,519 |   |
| Dividends                                                                                      |   |   | (21,912 | )      |   |   | (17,083 | )      |   |   | (12,805 | ) |
| Retained                earnings, end of                year                                   |   |   | 334,533 |   |   |   | 312,481 |   |   |   | 238,854 |   |
| Capital                stock (Note                17)                                          |   |   | 252,505 |   |   |   | 240,152 |   |   |   | 239,469 |   |
| Contributed                surplus (Note                17)                                    |   |   | 5,042   |   |   |   | 4,363   |   |   |   | 3,291 |   |
| Foreign                currency translation                adjustment (Note                20) |   |   | (40,800 | )      |   |   | (66,262 | )      |   |   | (21,471 | ) |
| Total                shareholders’                equity                                 |   | $      | 551,280 |   |   | $      | 490,734 |   |   | $ | 460,143 |   |
| Dividends                declared per                participating voting share                |   | $      | 0.50    |   |   | $      | 0.40    |   |   | $ | 0.30 |   |

----

|                                                                                                                                                                            |   | 2007   |     |   | 2006   |   |     | 2005   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Operating                  activities                                                                                                                                           |   |   |     |   |   |   |     |   |   |
| Net                  earnings from continuing                  operations                                                                                                       |   | $      | 40,987   |   |   | $      | 89,705   |   |   | $ | 46,929 |   |
| Operating                  items not involving                  cash:                                                                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
|     Amortization                                                                                                                                            |   |   | 65,303   |   |   |   | 55,470   |   |   |   | 50,184 |   |
|     Loss                  (gain) on                  disposals of assets and long-term investments                                                          |   |   | 2,987    |   |   |   | (37,553  | )      |   |   | (4,129 | ) |
|     Equity                  earnings                  of associated companies and non-controlling                  interest                                 |   |   | (1,053   | )      |   |   | (6,564   | )      |   |   | (5,192 | ) |
|     Income                  taxes                                                                                                                           |   |   | 5,256    |   |   |   | 2,611    |   |   |   | 18,976 |   |
|     Defined                  benefit                  pension plans                                                                                         |   |   | 887      |   |   |   | (2,015   | )      |   |   | (13,280 | ) |
|     Amortization                  of                  contract credits and deferred gains                                                                   |   |   | (15,293  | )      |   |   | (15,616  | )      |   |   | (14,103 | ) |
|     Prepaid                  aircraft rental                                                                                                                |   |   | (15,326  | )      |   |   | (1,453   | )      |   |   | (7,513 | ) |
|     Claims                  reserve                                                                                                                         |   |   | (5,141   | )      |   |   | 3,408    |   |   |   | - |   |
|     Deferred                  revenue                                                                                                                       |   |   | (685     | )      |   |   | 6,083    |   |   |   | (6,618 | ) |
|     Long-term                  receivables from BHS - Brazilian Helicopter Services Taxi Aereo                  Ltda.                  prior to acquisition |   |   | (17,324  | )      |   |   | -        |   |   |   | - |   |
|     Other                                                                                                                                                   |   |   | 2,819    |   |   |   | (6,957   | )      |   |   | 13,382 |   |
|                                                                                                                                                                            |   |   | 63,417   |   |   |   | 87,119   |   |   |   | 78,636 |   |
| Change                  in non-cash working capital                  (Note                  24)                                                                                 |   |   | (37,199  | )      |   |   | (55,020  | )      |   |   | 22,726 |   |
| Cash                  flow from                  operations                                                                                                                     |   |   | 26,218   |   |   |   | 32,099   |   |   |   | 101,362 |   |
| Financing                  activities                                                                                                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
| Long-term                  debt                  proceeds                                                                                                                       |   |   | 386,889  |   |   |   | 595,345  |   |   |   | 384,684 |   |
| Long-term                  debt                  repayments                                                                                                                     |   |   | (166,344 | )      |   |   | (497,089 | )      |   |   | (242,927 | ) |
| Dividends                  paid                                                                                                                                                 |   |   | (19,211  | )      |   |   | (14,939  | )      |   |   | (11,596 | ) |
| Capital                  stock                  issued                                                                                                                          |   |   | 6,297    |   |   |   | 496      |   |   |   | 907 |   |
| Other                                                                                                                                                                           |   |   | (379     | )      |   |   | (7,338   | )      |   |   | (7,488 | ) |
|                                                                                                                                                                            |   |   | 207,252  |   |   |   | 76,475   |   |   |   | 123,580 |   |
| Investing                  activities                                                                                                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
| Property                  and equipment                  additions                                                                                                              |   |   | (393,246 | )      |   |   | (280,701 | )      |   |   | (234,742 | ) |
| Helicopter                  major                  inspections                                                                                                                  |   |   | (30,066  | )      |   |   | (23,612  | )      |   |   | (15,539 | ) |
| Proceeds                  from disposal of assets                  and long-term investments                                                                                    |   |   | 318,320  |   |   |   | 313,694  |   |   |   | 90,925 |   |
| Junior                  loans                  receivable                                                                                                                       |   |   | (17,809  | )      |   |   | 481      |   |   |   | - |   |
| Aircraft                  deposits                                                                                                                                              |   |   | (46,683  | )      |   |   | (124,990 | )      |   |   | (52,983 | ) |
| Restricted                  cash                                                                                                                                                |   |   | 6,835    |   |   |   | (5,565   | )      |   |   | (5,323 | ) |
| Investments                  in subsidiaries, net                  of cash acquired                                                                                             |   |   | -        |   |   |   | (1,123   | )      |   |   | (17,984 | ) |
| Advances                  to BHS - Brazilian                  Helicopter Services Taxi Aereo Ltda. prior to                  acquisition                                        |   |   | (1,780   | )      |   |   | (3,892   | )      |   |   | - |   |
| Cash                  on acquisition of BHS -                  Brazilian Helicopter Services Taxi Aereo Ltda., net of acquisition                  costs                        |   |   | 1,674    |   |   |   | -        |   |   |   | - |   |
| Other                                                                                                                                                                           |   |   | (6,524   | )      |   |   | 1,555    |   |   |   | (7,075 | ) |
|                                                                                                                                                                            |   |   | (169,279 | )      |   |   | (124,153 | )      |   |   | (242,721 | ) |
| Effect                  of exchange rate changes on                  cash and cash equivalents                                                                                  |   |   | (150     | )      |   |   | (10,623  | )      |   |   | (3,828 | ) |
| Cash                  provided by (used in)                  continuing operations                                                                                              |   |   | 64,041   |   |   |   | (26,202  | )      |   |   | (21,607 | ) |
| Cash                  (used in) provided by                  discontinued operations (Note                  5)                                                                  |   |   | (861     | )      |   |   | 1,142    |   |   |   | 11,919 |   |
| Change                  in cash and cash                  equivalents during the year                                                                                           |   |   | 63,180   |   |   |   | (25,060  | )      |   |   | (9,688 | ) |
| Cash                  and cash equivalents,                  beginning of year                                                                                                  |   |   | 26,331   |   |   |   | 51,391   |   |   |   | 61,079 |   |
| Cash                  and cash equivalents, end of                  year                                                                                                        |   | $      | 89,511   |   |   | $      | 26,331   |   |   | $ | 51,391 |   |

----

| 1. | DESCRIPTION                OF THE                BUSINESS |
|----|-----------------------------------------------------------|

| 2. | SUMMARY                OF SIGNIFICANT                ACCOUNTING POLICIES |
|----|--------------------------------------------------------------------------|

----

| (a) | Flying                assets |
|-----|------------------------------|

|   | (i) | Aircraft,                components and spares are recorded at cost and are amortized to their                estimated residual value on a straight-line basis to amortization                expense                over their estimated service life of 15-25 years. At pre-determined                intervals, as specified by the original manufacturer and aviation                regulatory authorities, airframes require major inspections. The                cost of                these major airframe inspections and modifications for both owned                and                leased aircraft is capitalized and amortized to amortization expense                over                the lesser of their estimated useful life and remaining lease term,                if                applicable. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Repairable                parts are recorded at cost and are amortized to their estimated residual                value on a declining balance basis. When components are retired or                otherwise disposed of in the ordinary course of business, their original                cost, net of salvage or sale proceeds, is charged to accumulated                amortization and cost. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Facilities                and                equipment |
|-----|--------------------------------------------------------|

----

----

----

| 3. | FUTURE                ACCOUNTING                CHANGES |
|----|---------------------------------------------------------|

| (a) | Financial                Instruments |
|-----|--------------------------------------|

----

----

| • | The                difference between the carrying amount and the fair value of financial                assets and financial liabilities on initial measurement, other than                financial assets classified as                available-for-sale. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                difference between the carrying amount and the fair value of derivatives,                other than those that are designated and effective hedging                items. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                ineffective portion of the gain or loss on a hedging item that is                determined to be an effective                hedge. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                impact of embedded derivatives outstanding as at May 1,                2007. |
|---------|------------------------------------------------------------------------------------------------------|

| • | The                difference between the carrying amount and the fair value of financial                assets classified as                available-for-sale. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The                portion of the gain or loss on a hedging item that is determined                to be an                effective cash flow hedge or an effective hedge of a net investment                in a                self-sustaining foreign operation. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Reclassification                of the unrealized foreign currency translation adjustment in the                financial                statements of self-sustaining foreign operations, net of hedge                transactions. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Other |
|-----|-------|

| 4. | ACCOUNTING                ESTIMATES AND                MEASUREMENT UNCERTAINTY |
|----|--------------------------------------------------------------------------------|

| (a) | Recoverability                of pre-operating expenses |
|-----|---------------------------------------------------------|

| (b) | Flying                asset amortization |
|-----|------------------------------------------|

----

| (c) | Carrying                value of aircraft |
|-----|-------------------------------------------|

| (d) | Inventory                obsolescence |
|-----|---------------------------------------|

| (e) | Defined                benefit employee pension plans |
|-----|-------------------------------------------------------|

| (f) | Utilization                of income tax losses |
|-----|-------------------------------------------------|

| (g) | Lease                aircraft return costs |
|-----|--------------------------------------------|

----

| (h) | Aircraft                operating leases |
|-----|------------------------------------------|

| (i) | Consolidation                of variable interest entities                (“VIE”s) |
|-----|------------------------------------------------------------------------------------------------|

| 5. | DISCONTINUED                OPERATIONS |
|----|----------------------------------------|

----

|                                                                       |   | As                at April                30, |   |
|----------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
| Balance                Sheets                                              |   | 2007                                          |   |   | 2006 |   |
| Assets                                                                     |   |                                          |   |   |   |   |
| Receivables                                                                |   | $                                             | 2,994  |   |   | $ | 3,109 |   |
| Future                income tax assets                                    |   |                                          | 125    |   |   |   | - |   |
| Inventory                                                                  |   |                                          | 739    |   |   |   | 638 |   |
| Prepaid                expenses                                            |   |                                          | 103    |   |   |   | 110 |   |
|                                                                       |   |                                          | 3,961  |   |   |   | 3,857 |   |
| Property                and equipment, net                                 |   |                                          | 7,289  |   |   |   | 6,720 |   |
| Intangible                assets                                           |   |                                          | 4,046  |   |   |   | 4,166 |   |
| Goodwill                                                                   |   |                                          | 7,134  |   |   |   | 6,579 |   |
| Total                assets of discontinued                operations      |   |                                          | 22,430 |   |   |   | 21,322 |   |
| Liabilities                                                                |   |                                          |   |   |   |   |   |   |
| Payables                and accruals                                       |   |                                          | 1,734  |   |   |   | 1,948 |   |
| Current                portion of debt obligations                         |   |                                          | -      |   |   |   | 746 |   |
| Income                taxes payable                                        |   |                                          | 1,245  |   |   |   | 1,343 |   |
|                                                                       |   |                                          | 2,979  |   |   |   | 4,037 |   |
| Long-term                debt                                              |   |                                          | -      |   |   |   | 157 |   |
| Future                income tax liabilities                               |   |                                          | 2,900  |   |   |   | 3,293 |   |
| Total                liabilities of                discontinued operations |   |                                          | 5,879  |   |   |   | 7,487 |   |
| Net                assets of discontinued                operations        |   | $                                             | 16,551 |   |   | $ | 13,835 |   |

|                                                         |   | Year                Ended April                30, |   |
|--------------------------------------------------------------|--------|----------------------------------------------------|--------|
| Statement                of                Earnings          |   | 2007                                               |   |   | 2006 |   |   | 2005 |   |
| Revenue                                                      |   | $                                                  | 18,799 |   |   | $ | 17,681 |   |   | $ | 25,619 |   |
| Operating                income                              |   | $                                                  | 3,508  |   |   | $ | 2,452 |   |   | $ | 23,973 |   |
| Net                earnings from discontinued operations (i) |   | $                                                  | 2,167  |   |   | $ | 1,005 |   |   | $ | 9,590 |   |

| (i) | Net                earnings from discontinued operations for the year ended April 30,                2007 includes income tax expense of $0.5 million (2006 -                $0.4 million; 2005 -                $0.3 million). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                        |   | Year                Ended April                30, |   |
|-----------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
| Statements                of Cash                Flows                      |   | 2007                                               |   |   | 2006 |   |   | 2005 |   |
| Operating                activities                                         |   | $                                                  | 4,237  |   |   | $ | 3,617 |   |   | $ | (1,052 | ) |
| Financing                activities                                         |   |                                               | (2,535 | ) |   |   | (907 | ) |   |   | (601 | ) |
| Investing                activities                                         |   |                                               | (2,686 | ) |   |   | (1,459 | ) |   |   | 12,865 |   |
|                                                                        |   |                                               | (984   | ) |   |   | 1,251 |   |   |   | 11,212 |   |
| Effect                of exchange rate changes on cash and cash equivalents |   |                                               | 123    |   |   |   | (109 | ) |   |   | 707 |   |
| Cash                provided by (used in) discontinued operations           |   | $                                                  | (861   | ) |   | $ | 1,142 |   |   | $ | 11,919 |   |

| 6. | CASH                AND CASH                EQUIVALENTS |
|----|---------------------------------------------------------|

| 7. | RECEIVABLES |
|----|-------------|

|                                                                                                                                         |   | 2007   |    |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Trade                receivables, net of allowance for doubtful accounts of $8.4 million                (2006                - $24.5 milion) |   | $      | 232,240 |   |   | $      | 192,639 |   |
| Due                from BHS - Brazilian Helicopter Services Taxi Aereo Ltda. (i)                                                             |   |   | -       |   |   |   | 9,641 |   |
| Other                receivables                                                                                                             |   |   | 45,527  |   |   |   | 43,937 |   |
|                                                                                                                                         |   | $      | 277,767 |   |   | $      | 246,217 |   |

| (i) | BHS                - Brazilian Helicopter Services Taxi Aereo Ltda. receivables are                now                eliminated upon consolidation effective March 8, 2007, the                acquisition date of BHS                (Note 11(a)). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | PROPERTY                AND                EQUIPMENT |
|----|------------------------------------------------------|

|                         |   | Cost   |      |   | Accumulated                Amortization |   |    | Net                Book                Value |   |
|------------------------------|--------|--------|-----------|--------|-----------------------------------------|--------|---------|----------------------------------------------|--------|
| 2007                         |   |   |      |   |                                    |   |    |                                         |   |
| Flying                Assets |   | $      | 1,122,641 |   |                                    | $      | 149,099 |                                         |   | $ | 973,542 |   |
| Facilities                   |   |   | 99,680    |   |                                    |   | 34,761  |                                         |   |   | 64,919 |   |
| Equipment                    |   |   | 117,972   |   |                                    |   | 63,769  |                                         |   |   | 54,203 |   |
|                         |   | $      | 1,340,293 |   |                                    | $      | 247,629 |                                         |   | $ | 1,092,664 |   |
| 2006                         |   |   |      |   |                                    |   |    |                                         |   |   |   |   |
| Flying                Assets |   | $      | 990,067   |   |                                    | $      | 158,931 |                                         |   | $ | 831,136 |   |
| Facilities                   |   |   | 88,114    |   |                                    |   | 39,811  |                                         |   |   | 48,303 |   |
| Equipment                    |   |   | 113,224   |   |                                    |   | 73,299  |                                         |   |   | 39,925 |   |
|                         |   | $      | 1,191,405 |   |                                    | $      | 272,041 |                                         |   | $ | 919,364 |   |

----

| 9. | INVESTMENTS |
|----|-------------|

|                                                                                                                    |   | 2007   |   |   | 2006   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Long-term                investments, at equity                                                                                             |   |   |   |   |   |   |
|     Luchthaven                Den                Helder C.V. (2007 - 50%, 2006 - 50%)                                   |   | $      | 5,072  |   |   | $      | 3,545 |   |
|     Aero                  Contractors Company of Nigeria Limited ("ACN") (2007 - 40%, 2006 -                  40%) |   |   | 1,406  |   |   |   | - |   |
| Other,                at cost                                                                                                               |   |   | 1,000  |   |   |   | 1,877 |   |
|                                                                                                                                        |   | $      | 7,478  |   |   | $      | 5,422 |   |

| 10. | INTANGIBLE                ASSETS |
|-----|----------------------------------|

|                                                                                                                                             |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Customer                  contracts and relationships, less accumulated amortization of $0.6                  million (2006 - $0.1 million) |   | $      | 17,121 |   |   | $      | 212 |   |
| Other,                net of accumulated amortization of $0.4 million (2006 - $0.2                million)                                       |   |   | 753    |   |   |   | 428 |   |
|                                                                                                                                             |   | $      | 17,874 |   |   | $      | 640 |   |

| 11. | ACQUISITIONS |
|-----|--------------|

| (a) | BHS                - Brazilian Helicopter Services Taxi Aereo                Ltda. |
|-----|------------------------------------------------------------------------------------|

| Fair                value of net assets                acquired                 |   |   |    |
|---------------------------------------------------------------------------------|--------|--------|---------|
|     Cash                                                    |   | $      | 2,529   |   |
|     Other                current assets                     |   |   | 5,066   |   |
|     Intangible                assets                (i)     |   |   | 17,564  |   |
|     Goodwill                (ii)                            |   |   | 55,794  |   |
|     Property                and                equipment    |   |   | 1,619   |   |
|     Current                liabilities                      |   |   | (4,155  | ) |
|     Due                to                CHC                |   |   | (32,830 | ) |
|     Long-term                debt                           |   |   | (3,555  | ) |
|     Tax                and                other liabilities |   |   | (41,177 | ) |
|                                                                            |   | $      | 855     |   |
| Purchase                price                                                   |   |   |    |   |
|     Consideration                                           |   | $      | -       |   |
|     Acquisition                costs                        |   |   | 855     |   |
|                                                                            |   | $      | 855     |   |

----

| (i) | The                intangible assets consist of customer contracts and related intangibles                which are being amortized on a straight line basis over their estimated                useful life of seven years. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii) | The                acquisition resulted in goodwill of $55.8 million, of which                $31.1 million has been allocated to Global Operations and                $24.7 million has been allocated to Heli-One. The goodwill is not                expected to be deductible for tax                purposes. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Heli-Dyne                Systems Inc. |
|-----|---------------------------------------|

| 12. | OTHER                ASSETS |
|-----|-----------------------------|

|                                                                                                                                                          |   | 2007   |    |   | 2006   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Prepaid                pension costs (i)                                                                                                                      |   | $      | 99,956  |   |   | $      | 100,101 |   |
| Prepaid                aircraft rentals (ii)                                                                                                                  |   |   | 38,277  |   |   |   | 21,042 |   |
| Aircraft                operating lease junior loans (iii)                                                                                                    |   |   | 61,517  |   |   |   | 40,502 |   |
| Deferred                    charges, less accumulated amortization of $2.0 million (April                    30, 2006 -                    $0.7 million) (iv) |   |   | 9,752   |   |   |   | 6,245 |   |
| Deferred                    financing costs, less accumulated amortization of $5.9 million                    (April 30, 2006 - $4.4 million) (v)        |   |   | 7,426   |   |   |   | 6,769 |   |
| Loans                receivable (vi)                                                                                                                          |   |   | 15,868  |   |   |   | 20,326 |   |
| Pre-operating                expenses (vii)                                                                                                                   |   |   | 6,025   |   |   |   | 3,657 |   |
| Aircraft                deposits (viii)                                                                                                                       |   |   | 32,876  |   |   |   | 70,872 |   |
| Norway                public pension scheme prepayments                                                                                                       |   |   | 4,955   |   |   |   | 6,324 |   |
| Restricted                cash (ix)                                                                                                                           |   |   | 13,669  |   |   |   | 19,705 |   |
| Other                                                                                                                                                         |   |   | 615     |   |   |   | 809 |   |
|                                                                                                                                                          |   | $      | 290,936 |   |   | $      | 296,352 |   |

| (i) | Prepaid                    pension costs represent accumulated contributions paid by the                    Company into                    its defined benefit employee pension plans in excess of the accumulated                    current and prior years’ benefit pension expense                    (Note 30). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | The                prepaid aircraft rentals are up-front rental payments made on aircraft                leased under operating leases. These rentals are being amortized                over the                related lease terms. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | The                aircraft junior loans include junior loans, deferred payments and                rebateable advance rentals, which are amounts due from lessors on                the                financing of 71 aircraft under operating leases as at April 30,                2007. Such loans bear interest at 2.5% to 7.0% (2006 - 2.5% to 7.0%)                with                principal and accrued interest due at maturity. These loans mature                between                fiscal 2008 and 2016. As at April 30, 2007, no allowance has been                recorded on these loans and accrued interest as the Company currently                believes that the aircraft will realize a value upon sale at the                end of                the lease terms sufficient to recover these                loans. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | Deferred                charges (net of accumulated amortization) at April 30, 2007 include                legal and arrangement fees directly related to lease financing activities.                These costs are being amortized to aircraft lease costs over the                term of                the related lease. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (v) | Deferred                financing costs (net of accumulated amortization) at April 30, 2007                include $11.1 million (2006 - $10.9 million) in legal, bank and                other fees directly related to long-term financing activities net                of                $3.7 million of debt premium (2006 - $4.0 million) related to                the Company’s US dollar denominated senior subordinated notes. These costs                are being amortized to financing charges over the term of the related                debt                obligations, with $1.5 million amortized in fiscal 2007 (2006 -                $1.6 million; 2005 -                $3.0 million). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi) | The                loans receivable are non-interest bearing loans with lessors for                the                financing of 25 aircraft under operating leases as at April 30,                2007. Such loans mature between fiscal 2010 and 2014, at the end                of the                lease terms. As at April 30, 2007, no allowance has been recorded on                these loans as the Company currently believes that the aircraft will                realize a value upon sale at the end of the lease terms sufficient                to                recover these loans. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii) | The                pre-operating expenses balance as of April 30, 2007 consists of costs                incurred in the start-up phase of new businesses. These costs are                being                amortized on a straight-line basis over periods not exceeding                five years. The Company has determined that the pre-operating                expenses are recoverable from future cash flows to be generated from                the                new businesses. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii) | Aircraft                deposits are paid to manufacturers to secure deliveries at future                dates,                as described in Note 26. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix) | The                restricted cash balance consists of cash that is subject to restrictions                that prevent its use for current purposes, primarily cash that the                Company’s reinsurance subsidiary must retain to fund its required claims                reserves, cash held by the bank for a SARs derivative and deposits                held as                security for guarantees and bid                bonds. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | STOCK                APPRECIATION RIGHTS,                PERFORMANCE UNITS AND LONG-TERM INCENTIVE                PLANS |
|-----|-------------------------------------------------------------------------------------------------------------------------|

----

| 14. | DEBT                OBLIGATIONS |
|-----|---------------------------------|

| (a) | Long-term                debt |
|-----|-------------------------------|

| Interest                  rates                                                                               | Principalrepayment                  terms | Maturity                  dates | 2007                            |   | 2006                            |
|---------------------------------------------------------------------------------------------------------------|-------------------------------------------|---------------------------------|---------------------------------|--------|---------------------------------|
| Senior                  credit                  facilities                                                    |                                      |                            |                            |   |                            |
| Non-revolving                  credit facilities                                                              |                                      |                            |                            |   |                            |
|     GBP                  LIBOR + margin                                                   | Quarterly                                 | December                  2009  |  $                  8,401  |   |  $                  10,846 |
|     Euro                  LIBOR + margin                                                  | Quarterly                                 | December                  2009  |  49,967                    |   | 65,451                          |
| Revolving                  credit facility                                                                    |                                      |                            |                            |   |                            |
|     CAD                  B.A. + margin                                                    | At                  maturity              | December                  2007  |  137,000                   |   | 15,000                          |
|     US                  LIBOR + margin                                                    | At                  maturity              | December                  2007  |  116,203                   |   | 44,812                          |
|     NOK                  LIBOR + margin                                                   | At                  maturity              | December                  2007  |  44,664                    |   | -                               |
|     GBP                  LIBOR + margin                                                   | At                  maturity              | December                  2007  |  7,747                     |   | -                               |
| Other                  term                  loans                                                            |                                      |                            |                            |   |                            |
|     12%                  unsecured, subordinated, convertible note (Note 31(b)) | At                  maturity              | January                  2008   |  -                         |   |  4,695                     |
|     2.50%                                                                                 | At                  maturity              | December                  2010  |  1,927                     |   |  1,733                     |
|     5.75%                                                                                 | At                  maturity              | January                  2008   |  1,157                     |   |  1,008                     |
|     8.00%                                                                                 | Monthly                                   | February                  2009  |  26                        |   | -                               |
|     Non-interest                  bearing                                                 | Monthly                                   | December                  2010  |  92                        |   |  405                       |
|     Non-interest                  bearing                                                 | At                  maturity              | April                  2012     |  1,949                     |   |  1,799                     |
|     Non-interest                  bearing                                                 | Semi-annually                             | April                  2009     |  192                       |   |  248                       |
|     12%                                                                                   | Monthly                                   | March                  2009     |  1,234                     |   | -                               |
|     9.84%                                                                                 | Monthly                                   | December                  2010  |  124                       |   | -                               |
|     Non-interest                  bearing                                                 | Monthly                                   | April                  2010     |  91                        |   | -                               |
|     B.A.                  CDOR rate + margin                                              | Semi-annually                             | June                  2014      |  8,138                     |   |  9,223                     |
|     B.A.                  CDOR rate + margin                                              | Semi-annually                             | April                  2018     |  18,984                    |   | 20,710                          |
| Total                  long-term debt                                                                         |                                      |                            |  397,896                   |   | 175,930                         |
| Less:                  current portion                                                                        |                                      |                            |  (333,728)                 |   |  (24,948)                  |
|                                                                                                          |                                      |                            |  $                  64,168 |   |  $150,982                  |

----

| (b) | Senior                subordinated notes |
|-----|------------------------------------------|

| (c) | Foreign                currency |
|-----|---------------------------------|

|                              |   | 2007                                                       |    |   | 2006                                 |   |
|-----------------------------------|--------|------------------------------------------------------------|---------|--------|--------------------------------------|--------|
|                              |   | Debt                  inoriginal                  currency |    |   | Canadian                  equivalent |   |   | Debt                  inoriginal                  currency |   |   | Canadian                  equivalent |   |
| Euro                              |   | €                                                    | 33,183  |   |                                 | $      | 50,159 |   |   | € | 46,454 |   |   | $ | 65,700 |   |
| Pound                  sterling   |   | £                                                     | 9,570   |   |                                 |   | 21,181 |   |   | £ | 7,537 |   |   |   | 15,384 |   |
| US                  dollar        |   | USD                                                        | 505,023 |   |                                 |   | 558,909 |   |   | USD | 440,000 |   |   |   | 492,932 |   |
| Norwegian                  kroner |   | NOK                                                   | 240,000 |   |                                 |   | 44,664 |   |   | NOK | - |   |   |   | - |   |
| Brazilian                  real   |   | BRL                                                        | 2,661   |   |                                 |   | 1,449 |   |   | BRL | - |   |   |   | - |   |
|                              |   |                                                       |    |   |                                 | $      | 676,362 |   |   |   |   |   |   | $ | 574,016 |   |

----

| (d) | Financing                charges |
|-----|----------------------------------|

|                                                          |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Interest                on debt obligations                   |   | $      | 51,798 |   |   | $      | 43,457 |   |   | $ | 32,469 |   |
| Amortization                of deferred financing costs       |   |   | 1,443  |   |   |   | 1,560  |   |   |   | 3,176 |   |
| Foreign                exchange losses                        |   |   | 8,210  |   |   |   | 6,234  |   |   |   | (1,200 | ) |
| Release                of currency translation adjustment (i) |   |   | (282   | )      |   |   | 2,612  |   |   |   | - |   |
| Other                interest (income) expense                |   |   | (2,873 | )      |   |   | (889   | )      |   |   | 2,983 |   |
|                                                          |   | $      | 58,296 |   |   | $      | 52,974 |   |   | $ | 37,428 |   |

| (i) | During                the year ended April 30, 2007, the Company settled                $125.9 million (2006 - $20.0 million; 2005 - $nil) of                inter-company debts denominated in foreign currencies, which were                designated as part of the Company’s net investments in self-sustaining                foreign subsidiaries, giving rise to the recognition of a portion                of the                Company’s currency translation adjustment account as financing                charges. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Debt                settlement costs |
|-----|--------------------------------------|

| (f) | Repayment                requirements |
|-----|---------------------------------------|

| 2008 |   | $      | 333,728 |   |
|------|--------|--------|---------|--------|
| 2009 |   |   | 26,920  |   |
| 2010 |   |   | 14,605  |   |
| 2011 |   |   | 4,795   |   |
| 2012 |   |   | 4,782   |   |

| 15. | RESTRUCTURING                COSTS |
|-----|------------------------------------|

|                                                                        | 2007                         |   | 2006                         |   | 2005                         |
|-----------------------------------------------------------------------------|------------------------------|--------|------------------------------|--------|------------------------------|
| Restructuring                costs accrued, beginning of year               |  $                5,876 |   |  $                7,678 |   |  $                1,833 |
| Expensed                (recovered) during the year - continuing operations | (2,341)                      |   | 16,150                       |   | 17,390                       |
| Expensed                during the year - discontinued operations           | -                            |   |  195                    |   |  199                    |
| Restructuring                costs paid during the year                     | (3,004)                      |   |  (18,147)               |   |  (11,744)               |
| Restructuring                costs accrued, end of year                     |  $                531   |   |  $                5,876 |   |  $                7,678 |

----

| 16. | OTHER                LIABILITIES |
|-----|----------------------------------|

|                                                              |   | 2007   |    |   | 2006   |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred                revenue (i)                               |   | $      | 9,083   |   |   | $      | 6,743 |   |
| Deferred                government assistance (ii)                |   |   | 2,716   |   |   |   | 3,323 |   |
| Accrued                pension obligation (iii)                   |   |   | 31,623  |   |   |   | 34,040 |   |
| Deferred                gains on sale-leasebacks of aircraft (iv) |   |   | 79,713  |   |   |   | 60,405 |   |
| Insurance                claims accrual (v)                       |   |   | 9,609   |   |   |   | 13,655 |   |
| Long-term                incentive plan (vi)                      |   |   | -       |   |   |   | 1,935 |   |
| Unfavourable                contract credits (vii)                |   |   | 1,144   |   |   |   | 6,722 |   |
| Lease                aircraft return costs (viii)                 |   |   | -       |   |   |   | 2,141 |   |
| Other                                                             |   |   | 5,903   |   |   |   | 3,467 |   |
|                                                              |   | $      | 139,791 |   |   | $      | 132,431 |   |

| (i) | Deferred                  revenue at April 30, 2007 includes $9.1 million (2006 -                  $6.8 million) of billings to customers for repair and overhaul                  services to be performed in future periods under PBH contracts.                  A                  significant number of the Company’s repair and overhaul contracts require                  customers to pay for services on an hourly flying basis. A portion                  of this                  PBH revenue is recognized on a monthly basis to reflect ongoing                  services                  being provided, with the current balance deferred and included                  in deferred                  revenue and the long-term balance deferred in other liabilities                  to be                  recognized in earnings when the services are                  performed. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | The                Government of Newfoundland and Labrador has provided CHC Composites                Inc.                with financial assistance to partially offset construction costs                of                property and equipment. The assistance for construction costs is                not                repayable but is subject to specified conditions that, if not met,                could                result in the conversion of the assistance to fully paid common shares                of                Composites. However, as these specified conditions have been fully                met by                Composites as at April 30, 2007, the risk of conversion of the                assistance to common shares no longer exists. This assistance is                being                amortized over the life of the related assets on the same basis as                such                assets are themselves amortized. At April 30, 2007 government                assistance of $2.7 million (April 2006 - $3.3 million)                relating to plant and equipment has been deferred to other                liabilities. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | The                Company has a supplementary retirement pension plan (“SERP”) in Canada for                certain of its executives. This plan had accrued benefit obligations                at                April 30, 2007 of $17.8 million (2006 - $20.6 million). The                Company also has an unfunded early retirement pension plan in Norway.                The                accrued pension obligation related to this unfunded plan and related                amounts included in other liabilities at April 30, 2007 was                $6.7 million (2006 - $5.7 million). Included in the accrued                pension obligation at April 30, 2007 was $7.1 million (2006 -                $7.7 million) related to funded defined benefit pension plans in the                Netherlands that had a funding deficit upon acquisition in fiscal                2004                (Note 30). |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | The                deferred gains arising from certain aircraft sale-leaseback and lease-out                lease-in transactions are being amortized over the lease terms.The                Company                has disposed of aircraft at amounts greater than book value resulting                in                deferred gains of $29.5 million for fiscal 2007 (2006 -                $22.1 million). Deferred gain amortization of $10.2 million                (2006 - $8.9 million; 2005 - $7.1 million) was recorded as a                reduction of operating lease expense during fiscal 2007. On certain                leases                a portion of the proceeds are deferred as part of the sale-leaseback                transaction agreement and have been netted against the deferred gains                for                the purpose of calculating the amount of the gain to be amortized.                Under                these lease agreements, if the aircraft are sold by the lessors at                the                termination of the leases for proceeds greater than the unamortized                amount                under the lease for such aircraft, the deferred payments may be fully                payable to the Company and recorded as a gain at that                time. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v) | The                insurance claims accrual relates solely to the Company’s reinsurance                subsidiary, CHC Reinsurance S.A. The amount represents reinsurance                premiums received but unearned, accruals for losses that have been                reported but not yet paid and accruals for losses that have been                incurred                but not yet reported. The reinsurance subsidiary reinsures death                and                disability benefits and loss of license insurance for the Company’s                Norwegian helicopter and repair and overhaul operations and for certain                other external parties. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi) | See                discussion in Note 13. |
|------|------------------------------------------------|

| (vii) | As                part of the acquisition of Schreiner in fiscal 2004, the Company                valued                the long-term contracts of Schreiner and recorded unfavourable contract                credits for those contracts for which the return is below market.                The                unfavourable contract credits are being amortized over the term of                the                contract, for a maximum of five years. During fiscal 2007                amortization of these unfavourable contract credits of $5.9 million                (2006 -$5.7 million; 2005 - $6.7 million) was recorded as a                reduction of operating expenses. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii) | Lease                  aircraft return costs are obligations that arise under the terms                  of the                  Company’s operating lease agreements, which require that an aircraft be                  returned with major components in a specified condition. At April 30,                  2007 the Company had provided $nil (2006 - $2.1 million) in respect                  of these obligations. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 17. | CAPITAL                STOCK AND CONTRIBUTED                SURPLUS |
|-----|---------------------------------------------------------------------|

|                                                                                                        |   | Number                of Shares |   |   | Consideration |   |
|-------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------|--------|
|                                                                                                        |   | 2007                            |   |   | 2006          |   |   | 2005 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Class                A subordinate voting shares                                                            |   |                            | 39,858 |   |          |   | 36,860 |   |   |   | 36,833 |   |   | $ | 235,346 |   |   | $ | 223,241 |   |   | $ | 222,727 |   |
| Class                B multiple voting shares                                                               |   |                            | 5,863  |   |          |   | 5,861 |   |   |   | 5,866 |   |   |   | 18,413 |   |   |   | 18,413 |   |   |   | 18,431 |   |
| Ordinary                shares                                                                              |   |                            | 22,000 |   |          |   | 22,000 |   |   |   | 22,000 |   |   |   | 33,000 |   |   |   | 33,000 |   |   |   | 33,000 |   |
| Ordinary                share loan                                                                          |   |                            | -      |   |          |   | - |   |   |   | - |   |   |   | (33,000 | ) |   |   | (33,000 | ) |   |   | (33,000 | ) |
| Class                A subordinate voting employee share purchase loans       |   |                            |   |   |          |   |   |   | (1,254 | ) |   |   | (1,502 | ) |   |   | (1,689 | ) |
|                                                                                                        |   |                            |   |   |          |   |   |   |   |   |   |   |   | $ | 252,505 |   |   | $ | 240,152 |   |   | $ | 239,469 |   |
| Contributed                surplus                                                                          |   |                            |   |   |          |   |   |   |   |   |   |   |   | $ | 5,042 |   |   | $ | 4,363 |   |   | $ | 3,291 |   |

|                                                        |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Class                B multiple voting shares               |   |   | 5,863  |   |   |   | 5,861  |   |   |   | 5,866 |   |
| Share                options (Note                18)       |   |   | 2,232  |   |   |   | 3,819  |   |   |   | 2,815 |   |
| Convertible                debt (Note                31(b)) |   |   | -      |   |   |   | 1,379  |   |   |   | 1,379 |   |

----

| Number                of shares                                                   |   | Class                A subordinate voting                shares |   |   | Class                B multiple                voting                shares |   |   | Ordinary                shares |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|--------------------------------|--------|
| Balance,                April 30,                2004                        |   |                                                            | 36,756 |   |                                                                        |   | 5,877  |                           |   |   | 22,000 |   |
|                                                                              |   |                                                            |   |   |                                                                        |   |   |                           |   |   |   |   |
| Shares                issued to employees for cash                                |   |                                                            |   |   |                                                                        |   |   |                           |   |   |   |   |
|     Share                option plan                          |   |                                                            | 55     |   |                                                                        |   | -      |                           |   |   | - |   |
|     Share                purchase plan                        |   |                                                            | 11     |   |                                                                        |   | -      |                           |   |   | - |   |
| Share                conversions                                                  |   |                                                            | 11     |   |                                                                        |   | (11    | )                              |   |   | - |   |
| Balance,                April 30,                2005                        |   |                                                            | 36,833 |   |                                                                        |   | 5,866  |                           |   |   | 22,000 |   |
|                                                                              |   |                                                            |   |   |                                                                        |   |   |                           |   |   |   |   |
| Shares                issued to employees for cash                                |   |                                                            |   |   |                                                                        |   |   |                           |   |   |   |   |
|     Share                purchase plan                        |   |                                                            | 22     |   |                                                                        |   | -      |                           |   |   | - |   |
| Share                conversions                                                  |   |                                                            | 5      |   |                                                                        |   | (5     | )                              |   |   | - |   |
| Balance,                April 30,                2006                        |   |                                                            | 36,860 |   |                                                                        |   | 5,861  |                           |   |   | 22,000 |   |
|                                                                              |   |                                                            |   |   |                                                                        |   |   |                           |   |   |   |   |
| Share                issued to employees for cash                                 |   |                                                            |   |   |                                                                        |   |   |                           |   |   |   |   |
|     Share                option plan (Note                18) |   |                                                            | 1,584  |   |                                                                        |   | -      |                           |   |   | - |   |
|     Share                purchase plan                        |   |                                                            | 35     |   |                                                                        |   | 2      |                           |   |   | - |   |
| Conversion                of debt (Note                31(b))                     |   |                                                            | 1,379  |   |                                                                        |   | -      |                           |   |   | - |   |
| Balance,                April 30,                2007                        |   | $                                                               | 39,858 |   |                                                                        | $      | 5,863  |                           |   | $ | 22,000 |   |

| Stated                value                                                         |   | Class                A subordinate voting                shares |    |   | Class                B multiple                voting                shares |   |   | Contributed                surplus |   |
|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|---------|--------|-----------------------------------------------------------------------------|--------|--------|------------------------------------|--------|
| Balance,                April 30,                2004                          |   | $                                                               | 221,532 |   |                                                                        | $      | 18,719 |                               |   | $ | 3,291 |   |
|                                                                                |   |                                                            |    |   |                                                                        |   |   |                               |   |   |   |   |
| Shares                issued to employees for cash                                  |   |                                                            |    |   |                                                                        |   |   |                               |   |   |   |   |
|     Share                option plan                            |   |                                                            | 668     |   |                                                                        |   | -      |                               |   |   | - |   |
|     Share                purchase plan                          |   |                                                            | 239     |   |                                                                        |   | -      |                               |   |   | - |   |
| Share                conversions                                                    |   |                                                            | 288     |   |                                                                        |   | (288   | )                                  |   |   | - |   |
| Balance,                April 30,                2005                          |   | $                                                               | 222,727 |   |                                                                        | $      | 18,431 |                               |   | $ | 3,291 |   |
|                                                                                |   |                                                            |    |   |                                                                        |   |   |                               |   |   |   |   |
| Shares                issued to employees for cash                                  |   |                                                            |    |   |                                                                        |   |   |                               |   |   |   |   |
|     Share                purchase plan                          |   |                                                            | 496     |   |                                                                        |   | -      |                               |   |   | - |   |
| Share                conversions                                                    |   |                                                            | 18      |   |                                                                        |   | (18    | )                                  |   |   | - |   |
| Stock                based compensation expense                                     |   |                                                            | -       |   |                                                                        |   | -      |                               |   |   | 1,072 |   |
| Balance,                April 30,                2006                          |   |                                                            | 223,241 |   |                                                                        |   | 18,413 |                               |   |   | 4,363 |   |
|                                                                                |   |                                                            |    |   |                                                                        |   |   |                               |   |   |   |   |
| Shares                issued to employees for cash                                  |   |                                                            |    |   |                                                                        |   |   |                               |   |   |   |   |
|     Share                option plan (Note                18)   |   |                                                            | 5,611   |   |                                                                        |   | -      |                               |   |   | - |   |
|     Share                purchase plan (Note                18) |   |                                                            | 686     |   |                                                                        |   | -      |                               |   |   | - |   |
| Conversion                of debt (Note                31(b))                       |   |                                                            | 5,808   |   |                                                                        |   | -      |                               |   |   | (951 | ) |
| Stock                based compensation expense (Note                18)            |   |                                                            | -       |   |                                                                        |   | -      |                               |   |   | 1,630 |   |
| Balance,                April 30,                2007                          |   | $                                                               | 235,346 |   |                                                                        | $      | 18,413 |                               |   | $ | 5,042 |   |

----

| 18. | SHARE                OPTION                PLAN |
|-----|-------------------------------------------------|

|                                   |                   |
|----------------------------------------|------------------------|
| Expected                life           | 4                years |
| Expected                dividend yield | 1.2%                   |
| Risk-free                interest rate | 3.2%                   |
| Stock                volatility        | 31%                    |

----

|                                                                            |   | Number                of options - Exercise price range $4.26 - $4.30 |   |   | Weighted                average exercise price |   |    | Number                of options - Exercise price range $7.35 - $9.00 |                     |   | Weighted                average exercise price |   |   | Number                of options - Exercise price range $26.11 - $30.70 |    |                     | Weighted                average exercise price |   |    | Number                of options - Exercise price$49.10                - $53.86 |   |   | Weighted                average exercise price |   |   | Total                number of options |   |   | Total                weighted average exercise price |                     |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|--------|------------------------------------------------|--------|---------|-----------------------------------------------------------------------|--------------------------|--------|------------------------------------------------|--------|--------|-------------------------------------------------------------------------|---------|--------------------------|------------------------------------------------|--------|---------|---------------------------------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------------------------------------|--------------------------|
| Class                A subordinate voting share     options |   |                                                                  |   |   |                                           |   |    |                                                                  |                     |   |                                           |   |   |                                                                    |    |                     |                                           |   |    |                                                                            |   |   |                                           |   |   |                                   |   |   |                                                 |                     |
| Beginning                of year                                                |   |                                                                  | 485    |   |                                           | $      | 4.28    |                                                                  |                     |   | 470                                            |   |   | $                                                                       | 8.96    |                     |                                           |   | 452     |                                                                            |   | $      | 30.44                                          |   |   |                                   | 502    |   |                                                 | $                        | 49.60 |   |   |   | 1,909 |   |   | $ | 23.54 |   |
| Granted                                                                         |   |                                                                  | -      |   |                                           |   | -       |                                                                  |                     |   | -                                              |   |   |                                                                    | -       |                     |                                           |   | -       |                                                                            |   |   | -                                              |   |   |                                   | 30     |   |                                                 |                     | 52.25 |   |   |   | 30 |   |   |   | 52.25 |   |
| Forfeited                                                                       |   |                                                                  | -      |   |                                           |   | -       |                                                                  |                     |   | -                                              |   |   |                                                                    | -       |                     |                                           |   | -       |                                                                            |   |   | -                                              |   |   |                                   | (16    | )      |                                                 |                     | (49.60 | ) |   |   | (16 | ) |   |   | (49.60 | ) |
| Expired                                                                         |   |                                                                  | -      |   |                                           |   |  - |                                                                  |                     |   |  -                                        |   |   |                                                                    |  - |                     |                                           |   |  - |                                                                            |   |   |  -                                        |   |   |                                   | (15    | )      |                                                 |                     | (49.60 | ) |   |   | (15 | ) |   |   | (49.60 | ) |
| Exercised                                                                       |   |                                                                  | (340   | )      |                                           |   | (4.30   | )                                                                     |                     |   | (450                                           | )      |   |                                                                    | (9.00   | )                   |                                           |   | -       |                                                                            |   |   | -                                              |   |   |                                   | (2     | )      |                                                 |                     | (49.60 | ) |   |   | (792 | ) |   |   | (7.08 | ) |
| End                of year                                                      |   |                                                                  | 145    |   |                                           | $      | 4.27    |                                                                  |                     |   | 20                                             |   |   | $                                                                       | 8.18    |                     |                                           |   | 452     |                                                                            |   | $      | 30.44                                          |   |   |                                   | 499    |   |                                                 | $                        | 49.76 |   |   |   | 1,116 |   |   | $ | 35.27 |   |
|                                                                            |   |                                                                  |   |   |                                           |   |    |                                                                  |                     |   |                                           |   |   |                                                                    |    |                     |                                           |   |    |                                                                            |   |   |                                           |   |   |                                   |   |   |                                                 |                     |   |   |   |   |   |   |   |   |   |   |
| Weighted                average contractual life of options outstanding         |   | 1.5                years                                              |   |   |                                           |   |    |                                                                  | 0.4                years |   |                                           |   |   |                                                                    |    | 5.0                years |                                           |   |    |                                                                            |   |   | 8.3                years                       |   |   |                                   |   |   |                                                 | 5.9                years |   |   |   |   |   |

|                                                                            |   | Number                of options - Exercise price range $4.26 - $4.30 |   |   | Weighted                average exercise price |   |   | Number                of options - Exercise price range $7.35 - $9.00 |                     |   | Weighted                average exercise price |   |   | Number                of options - Exercise price range $26.11 - $30.70 |   |                     | Weighted                average exercise price |   |   | Number                of options - Exercise price $49.60 |   |   | Weighted                average exercise price |   |   | Total                number of options |   |   | Total                weighted average exercise price |                     |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|-----------------------------------------------------------------------|--------------------------|--------|------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|--------------------------|------------------------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------------------------------------|--------------------------|
| Class                A subordinate voting share     options |   |                                                                  |   |   |                                           |   |   |                                                                  |                     |   |                                           |   |   |                                                                    |   |                     |                                           |   |   |                                                          |   |   |                                           |   |   |                                   |   |   |                                                 |                     |
| Beginning                of year                                                |   |                                                                  | 485    |   |                                           | $      | 4.28   |                                                                  |                     |   | 470                                            |   |   | $                                                                       | 8.96   |                     |                                           |   | 452    |                                                          |   | $      | 30.44                                          |   |   |                                   | -      |   |                                                 | $                        | - |   |   |   | 1,407 |   |   | $ | 14.25 |   |
| Granted                                                                         |   |                                                                  | -      |   |                                           |   | -      |                                                                  |                     |   | -                                              |   |   |                                                                    | -      |                     |                                           |   | -      |                                                          |   |   | -                                              |   |   |                                   | 510    |   |                                                 |                     | 49.60 |   |   |   | 510 |   |   |   | 49.60 |   |
| Forfeited                                                                       |   |                                                                  | -      |   |                                           |   | -      |                                                                  |                     |   | -                                              |   |   |                                                                    | -      |                     |                                           |   | -      |                                                          |   |   | -                                              |   |   |                                   | (8     | )      |                                                 |                     | (49.60 | ) |   |   | (8 | ) |   |   | (49.60 | ) |
| End                of year                                                      |   |                                                                  | 485    |   |                                           | $      | 4.28   |                                                                  |                     |   | 470                                            |   |   | $                                                                       | 8.96   |                     |                                           |   | 452    |                                                          |   | $      | 30.44                                          |   |   |                                   | 502    |   |                                                 | $                        | 49.60 |   |   |   | 1,909 |   |   | $ | 23.54 |   |
| Weighted                average contractual life of options outstanding         |   | 2.5                years                                              |   |   |                                           |   |   |                                                                  | 1.4                years |   |                                           |   |   |                                                                    |   | 6.0                years |                                           |   |   |                                                          |   |   | 9.2                years                       |   |   |                                   |   |   |                                                 | 4.8                years |   |   |   |   |   |

| 19. | SUPPLEMENTAL                CASH FLOW                INFORMATION |
|-----|------------------------------------------------------------------|

|                              |   | 2007 |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Cash                interest paid |   | $    | 49,074 |   |   | $      | 39,451 |   |   | $ | 23,007 |   |
| Cash                taxes paid    |   | $    | 11,571 |   |   | $      | 13,550 |   |   | $ | 11,143 |   |

----

| 20. | FOREIGN                CURRENCY |
|-----|---------------------------------|

| (a) | Foreign                currency translation adjustment |
|-----|--------------------------------------------------------|

|                                                                                  |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|---------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Balance,                beginning of year                                             |   | $      | (66,262 | )      |   | $      | (21,471 | )      |   | $ | (17,605 | ) |
| Release                of currency translation adjustment (Note                15(d)) |   |   | (282    | )      |   |   | 2,612   |   |   |   | - |   |
| Translation                adjustment during year                                     |   |   | 25,744  |   |   |   | (47,403 | )      |   |   | (3,866 | ) |
| Balance,                end of year                                                   |   | $      | (40,800 | )      |   | $      | (66,262 | )      |   | $ | (21,471 | ) |

| (b) | Year-end                exchange rates |
|-----|----------------------------------------|

|                              |   | 2007   |   |   | 2006   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
| US                dollar          |   | $      | 1.11   |   |   | $      | 1.12 |   |
| UK                pound sterling  |   |   | 2.21   |   |   |   | 2.04 |   |
| Norwegian                kroner   |   |   | 0.19   |   |   |   | 0.18 |   |
| South                African rand |   |   | 0.16   |   |   |   | 0.19 |   |
| Australian                dollar  |   |   | 0.92   |   |   |   | 0.85 |   |
| Euro                              |   |   | 1.51   |   |   |   | 1.41 |   |
| Brazilian                real     |   |   | 0.54   |   |   |   | 0.54 |   |

|                              |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| US                dollar          |   | $      | 1.14   |   |   | $      | 1.19   |   |   | $ | 1.27 |   |
| UK                pound sterling  |   |   | 2.17   |   |   |   | 2.11   |   |   |   | 2.35 |   |
| Norwegian                kroner   |   |   | 0.18   |   |   |   | 0.18   |   |   |   | 0.19 |   |
| South                African rand |   |   | 0.16   |   |   |   | 0.19   |   |   |   | 0.20 |   |
| Australian                dollar  |   |   | 0.88   |   |   |   | 0.89   |   |   |   | 0.94 |   |
| Euro                              |   |   | 1.47   |   |   |   | 1.44   |   |   |   | 1.61 |   |
| Brazilian                real     |   |   | 0.53   |   |   |   | 0.52   |   |   |   | 0.45 |   |

----

|  | 21. | FINANCIAL                INSTRUMENTS |
|--|-----|--------------------------------------|

| (a) | Primary                Financial Instruments |
|-----|----------------------------------------------|

|                                               |   | April                30,                2007 |    |   | April                30, 2006 |   |
|----------------------------------------------------|--------|----------------------------------------------|---------|--------|-------------------------------|--------|
|                                               |   | Fairvalue                                    |    |   | Carryingvalue                 |   |   | Fairvalue |   |   | Carrying                value |   |
| 73⁄8%                Senior subordinated notes |   | $                                            | 429,400 |   |                          | $      | 442,680 |   |   | $ | 454,282 |   |   | $ | 448,120 |   |

| (b) | Derivative                Financial Instruments Used for Risk                Management |
|-----|-----------------------------------------------------------------------------------------|

| Hedging                item                                                               | Maturity                 |   | Notionalamount               |   | Fair                market value |
|-------------------------------------------------------------------------------------------|--------------------------|--------|------------------------------|--------|----------------------------------|
| Forward                foreign exchange contracts                                         |                     |   |                         |   |                             |
|     Sell                US                dollar; buy Canadian dollar | Various                  | (i)    | $118,010                     |   |  $                5,002     |
|     Sell                pound sterling; buy euro                      | Various                  | (i)    | €  30,517    |   |  (1,216)                    |
|     Sell                Norwegian kroner; buy pound sterling          | May                2007  |   | £                12,388 |   |  15                         |
|     Sell                Norwegian kroner; buy Australian dollar       | May                2007  |   | AUD                28,000    |   |  (23)                       |
|     Sell                Norwegian kroner; buy euro                    | May                2007  |   | €  26,893    |   |  (43)                       |
|     Sell                Canadian dollar; buy euro                     | May                2007  |   | €  2,740     |   |  (21)                       |
|     Sell                Brazilian real; buy US dollar                 | May                2007  |   | USD                28,000    |   |  144                        |
|     Sell                Canadian dollar; buy Norwegian kroner         | May                2007  |   | NOK                150,000   |   | (142)                            |
|     Sell                Canadian dollar; buy US dollar                | June                2007 |   | USD                150,000   |   | (201)                            |
|                                                                                      |                     |   |                         |   |  $                3,515     |

| (i) | With                expiration dates through to fiscal                2010. |
|-----|-----------------------------------------------------------------------------|

| (c) | Credit                Risk on Financial Instruments |
|-----|-----------------------------------------------------|

----

| (d) | Interest                Rate Risk |
|-----|-----------------------------------|

| (e) | Trade                Credit Risk |
|-----|----------------------------------|

| 22. | INCOME                TAXES |
|-----|-----------------------------|

|                                                                                                                                                |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Current                income tax (provision) recovery                                                                                              |   |   |    |   |   |   |    |   |   |
|     Canada                                                                                                                      |   | $      | (3,793  | )      |   | $      | (2,800  | )      |   | $ | (3,810 | ) |
|     Foreign                                                                                                                     |   |   | 1,262   |   |   |   | 6,790   |   |   |   | (25,632 | ) |
|                                                                                                                                                |   |   | (2,531  | )      |   |   | 3,990   |   |   |   | (29,442 | ) |
| Future                income tax (provision) recovery                                                                                               |   |   |    |   |   |   |    |   |   |   |   |   |
|     Canada                                                                                                                      |   |   |    |   |   |   |    |   |   |   |   |   |
|         Recovery                related to origination and reversal of temporary                differences |   |   | 5,837   |   |   |   | 14,646  |   |   |   | 9,022 |   |
|     Foreign                                                                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
|         Provision related                to origination and reversal of temporary differences          |   |   | (20,132 | )      |   |   | (29,145 | )      |   |   | (6,918 | ) |
|                                                                                                                                                |   |   | (14,295 | )      |   |   | (14,499 | )      |   |   | 2,104 |   |
| Income                tax provision                                                                                                                 |   | $      | (16,826 | )      |   | $      | (10,509 | )      |   | $ | (27,338 | ) |

|                                                                              |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Earnings                from continuing operations before income taxes            |   | $      | 57,813  |   |   | $      | 100,214 |   |   | $ | 74,267 |   |
| Combined                Canadian federal and provincial statutory income tax rate |   |   | 34      | %      |   |   | 34      | %      |   |   | 35 | % |
| Income                tax provision calculated at statutory rate                  |   |   | (19,656 | )      |   |   | (34,073 | )      |   |   | (25,993 | ) |
| (Increase)                decrease in income tax provision resulting from:        |   |   |    |   |   |   |    |   |   |   |   |   |
|     Rate                differences in various jurisdictions  |   |   | 12,857  |   |   |   | 13,515  |   |   |   | 16,043 |   |
|     Effect                of change in tax legislation        |   |   | (1,285  | )      |   |   | (220    | )      |   |   | (4,224 | ) |
|     Non-deductible                items                       |   |   | (637    | )      |   |   | (1,187  | )      |   |   | (3,193 | ) |
|     Large                corporations tax                     |   |   | -       |   |   |   | (470    | )      |   |   | (457 | ) |
|     Other                foreign taxes paid                   |   |   | (7,761  | )      |   |   | (3,471  | )      |   |   | (1,745 | ) |
|     Non-taxable                portion of capital gains       |   |   | 575     |   |   |   | 13,617  |   |   |   | 1,154 |   |
|     Non-taxable                income                         |   |   | 1,857   |   |   |   | 2,669   |   |   |   | 1,274 |   |
|     Valuation                allowance                        |   |   | 717     |   |   |   | (334    | )      |   |   | (7,049 | ) |
|     Other                                                     |   |   | (3,493  | )      |   |   | (555    | )      |   |   | (3,148 | ) |
| Income                tax provision                                               |   | $      | (16,826 | )      |   | $      | (10,509 | )      |   | $ | (27,338 | ) |

----

|                                                                           |   | 2007   |     |   | 2006   |   |
|--------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Future                income tax (liabilities)                assets           |   |   |     |   |   |   |
| Property                and equipment                                          |   | $      | (77,027  | )      |   | $      | (99,406 | ) |
| Long-term                investments                                           |   |   | (13,547  | )      |   |   | (10,261 | ) |
| Pension                and other employee benefits                             |   |   | (14,410  | )      |   |   | (9,253 | ) |
| Deferred                capital gains and deferred revenue                     |   |   | (37,615  | )      |   |   | (30,699 | ) |
| Losses                carried forward                                          |   |   | 52,303   |   |   |   | 41,463 |   |
| Deferred                costs                                                  |   |   | (1,013   | )      |   |   | 348 |   |
| Long-term                debt                                                  |   |   | (42,243  | )      |   |   | (19,380 | ) |
| Current                accounts payable and receivable                         |   |   | 15,994   |   |   |   | 11,486 |   |
| Other                                                                          |   |   | (2,372   | )      |   |   | 4,232 |   |
| Total                future income tax liabilities                             |   |   | (119,930 | )      |   |   | (111,470 | ) |
| Valuation                allowance                                             |   |   | (16,208  | )      |   |   | (7,383 | ) |
| Net                future income tax liabilities                               |   | $      | (136,138 | )      |   | $      | (118,853 | ) |
| Distributed                as follows:                                         |   |   |     |   |   |   |   |   |
|     Current                future income tax assets        |   |   | 32,169   |   |   |   | 26,859 |   |
|     Current                future income tax liabilities   |   |   | (9,813   | )      |   |   | (8,852 | ) |
|     Long-term                future income tax assets      |   |   | 34,678   |   |   |   | 39,848 |   |
|     Long-term                future income tax liabilities |   |   | (193,172 | )      |   |   | (176,708 | ) |
|                                                                           |   | $      | (136,138 | )      |   | $      | (118,853 | ) |

| (a) | Tax                losses |
|-----|---------------------------|

| (in                thousands of Canadian dollars) |   |   |    |
|---------------------------------------------------|--------|--------|---------|
| 2008                                              |   | $      | 5,067   |   |
| 2009                                              |   |   | 8,937   |   |
| 2014                                              |   |   | 2,994   |   |
| 2015                                              |   |   | 19,328  |   |
| 2026                                              |   |   | 33,052  |   |
| 2027                                              |   |   | 4,179   |   |
| Indefinitely                                      |   |   | 80,192  |   |
|                                              |   | $      | 153,749 |   |

----

| 23. | PER                SHARE                INFORMATION |
|-----|-----------------------------------------------------|

| 2007                                                                                                                                                                                                                                  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                  |   | Net                  earnings |   |   | Weighted |   |   | Net                  earningsper                  share |   |
|                                                                                                                                                                                                                                  |   | Cont.ops. |   |   | Disc.ops. |   |   | Extra-ordinary                  item |   |   | Total |   |   | average                  number of shares |   |   | Cont.ops. |   |   | Disc.ops. |   |   | Extra-ordinary                  item |   |   | Total |   |
|                                                                                                                                                                                                                                  |   | $ | 40,987 |   |   | $ | 2,167 |   |   | $ | 810 |   |   | $ | 43,964 |   |   |   | 42,819 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                  as security for Class A subordinate voting employee share     purchase                  loans                  (Note                  17)                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (626 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                 |   | $ | 40,987 |   |   | $ | 2,167 |   |   | $ | 810 |   |   | $ | 43,964 |   |   |   | 42,193 |   |   | $ | 0.97 |   |   | $ | 0.05 |   |   | $ | 0.02 |   |   | $ | 1.04 |   |
| Effect                  of potential dilutive                  securities:                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Share                  options (Note                  18)                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,978 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Convertible                  debt (Note                  31(b))                                                                                                                                               |   |   | 379 |   |   |   | - |   |   |   | - |   |   |   | 379 |   |   |   | 1,323 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Shares                  as security for Class A subordinate voting employee share         purchase                  loans                  (Note                  17) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 626 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                                                               |   | $ | 41,366 |   |   | $ | 2,167 |   |   | $ | 810 |   |   | $ | 44,343 |   |   |   | 46,120 |   |   | $ | 0.90 |   |   | $ | 0.05 |   |   | $ | 0.02 |   |   | $ | 0.97 |   |

| 2006                                                                                                                                                                                                                         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                         |   | Net                earnings |   |   | Weighted |   |   | Net                earningsper                share |   |
|                                                                                                                                                                                                                         |   | Cont.ops. |   |   | Disc.ops. |   |   | Extra-ordinary                item |   |   | Total |   |   | average                number of shares |   |   | Cont.ops. |   |   | Disc.ops. |   |   | Extra-ordinary                item |   |   | Total |   |
|                                                                                                                                                                                                                         |   | $ | 89,705 |   |   | $ | 1,005 |   |   | $ | - |   |   | $ | 90,710 |   |   |   | 42,708 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                as security for Class A subordinate voting employee share    purchase                loans                (Note                17)                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (709 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                        |   | $ | 89,705 |   |   | $ | 1,005 |   |   | $ | - |   |   | $ | 90,710 |   |   |   | 41,999 |   |   | $ | 2.14 |   |   | $ | 0.02 |   |   | $ | - |   |   | $ | 2.16 |   |
| Effect                of potential dilutive                securities:                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Share                options (Note                18)                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,076 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Convertible                debt (Note                31(b))                                                                                                                                          |   |   | 386 |   |   |   | - |   |   |   | - |   |   |   | 386 |   |   |   | 1,379 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Shares                as security for Class A subordinate voting employee share        purchase                loans                (Note                17) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 709 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                                                      |   | $ | 90,091 |   |   | $ | 1,005 |   |   | $ | - |   |   | $ | 91,096 |   |   |   | 46,163 |   |   | $ | 1.95 |   |   | $ | 0.02 |   |   | $ | - |   |   | $ | 1.97 |   |

----

| 2005                                                                                                                                                                                                                          |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                          |   | Net                earnings |   |   | Weighted |   |   | Net                earningsper                share |   |
|                                                                                                                                                                                                                          |   | Cont.ops. |   |   | Disc.ops. |   |   | Extra-ordinary                item |   |   | Total |   |   | average                number of shares |   |   | Cont.ops. |   |   | Disc.ops. |   |   | Extra-ordinary                item |   |   | Total |   |
|                                                                                                                                                                                                                          |   | $ | 46,929 |   |   | $ | 9,590 |   |   | $ | - |   |   | $ | 56,519 |   |   |   | 42,673 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares                as security for Class A subordinate voting employee share    purchase                loans                (Note                17)                                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (736 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                         |   | $ | 46,929 |   |   | $ | 9,590 |   |   | $ | - |   |   | $ | 56,519 |   |   |   | 41,937 |   |   | $ | 1.12 |   |   | $ | 0.23 |   |   | $ | - |   |   | $ | 1.35 |   |
| Effect                of potential dilutive                securities:                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Share                options (Note                18)                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,975 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Convertible                debt (Note                31(b))                                                                                                                                           |   |   | 386 |   |   |   | - |   |   |   | - |   |   |   | 386 |   |   |   | 1,379 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Shares                as security for Class A subordinate voting employee share         purchase                loans                (Note                17) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 736 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                                                                                                                                       |   | $ | 47,315 |   |   | $ | 9,590 |   |   | $ | - |   |   | $ | 56,905 |   |   |   | 46,027 |   |   | $ | 1.03 |   |   | $ | 0.20 |   |   | $ | - |   |   | $ | 1.23 |   |

| 24. | CHANGE                IN NON-CASH WORKING                CAPITAL |
|-----|------------------------------------------------------------------|

|                                 |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|--------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Receivables                          |   | $      | (50,755 | )      |   | $      | (37,285 | )      |   | $ | (40,291 | ) |
| Inventory                            |   |   | (39,902 | )      |   |   | (29,936 | )      |   |   | 1,765 |   |
| Prepaid                expenses      |   |   | (30,449 | )      |   |   | (6,170  | )      |   |   | 1,709 |   |
| Payables                and accruals |   |   | 83,907  |   |   |   | 18,371  |   |   |   | 59,543 |   |
|                                 |   | $      | (37,199 | )      |   | $      | (55,020 | )      |   | $ | 22,726 |   |

| 25. | SEGMENT                INFORMATION |
|-----|------------------------------------|

| • | Global                Operations; |
|---------|-----------------------------------|

| • | European                Operations; |
|---------|-------------------------------------|

| • | Heli-One;                and |
|---------|------------------------------|

| • | Corporate                and Other. |
|---------|-------------------------------------|

----

----

|                                                                                                                                                 |   | Global                operations |     |   | European                operations |   |     | Heli-One |   |   | Corporate                and other |   |   | Inter-segment                eliminations |    |   | Consolidated |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|----------|--------|------------------------------------|--------|----------|----------|--------|--------|------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------------|--------|
| Revenue                from external                customers                                                                                        |   | $                                | 427,956  |   |                               | $      | 539,921  |     |   | $      | 180,613                            |   |   | $                                         | 617     |   |         | $      | - |   |   | $ | 1,149,107 |   |
| Add:                Inter-segment revenues                                                                                                           |   |                             | 1,093    |   |                               |   | 6,634    |     |   |   | 391,520                            |   |   |                                      | 1,433   |   |         |   | (400,680 | ) |   |   | - |   |
| Total                revenue                                                                                                                         |   |                             | 429,049  |   |                               |   | 546,555  |     |   |   | 572,133                            |   |   |                                      | 2,050   |   |         |   | (400,680 | ) |   |   | 1,149,107 |   |
| Direct                costs(i)                                                                                                                       |   |                             | (293,918 | )      |                               |   | (451,213 | )        |   |   | (298,959                           | )      |   |                                      | -       |   |         |   | 219,823 |   |   |   | (824,267 | ) |
| General                and administration                                                                                                            |   |                             | -        |   |                               |   | -        |     |   |   | -                                  |   |   |                                      | (43,388 | )      |         |   | - |   |   |   | (43,388 | ) |
| Segment                EBITDAR(ii)                                                                                                                   |   |                             | 135,131  |   |                               |   | 95,342   |     |   |   | 273,174                            |   |   |                                      | (41,338 | )      |         |   | (180,857 | ) |   |   | 281,452 |   |
| Aircraft                lease and associated costs                                                                                                   |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   |   |   |
| -                Internal                                                                                                                            |   |                             | (92,052  | )      |                               |   | (89,148  | )        |   |   | 343                                |   |   |                                      | -       |   |         |   | 180,857 |   |   |   | - |   |
| -                External                                                                                                                            |   |                             | (8,928   | )      |                               |   | (3,959   | )        |   |   | (87,560                            | )      |   |                                      | -       |   |         |   | - |   |   |   | (100,447 | ) |
| Segment                EBITDA(iii)                                                                                                                   |   |                             | 34,151   |   |                               |   | 2,235    |     |   |   | 185,957                            |   |   |                                      | (41,338 | )      |         |   | - |   |   |   | 181,005 |   |
| Amortization                                                                                                                                         |   |                             | (4,116   | )      |                               |   | (3,424   | )        |   |   | (56,474                            | )      |   |                                      | (1,289  | )      |         |   | - |   |   |   | (65,303 | ) |
| Restructuring                costs                                                                                                                   |   |                             | -        |   |                               |   | -        |     |   |   | 991                                |   |   |                                      | 1,350   |   |         |   | - |   |   |   | 2,341 |   |
| Gain                (loss) on disposals of assets                                                                                                    |   |                             | 16       |   |                               |   | (101     | )        |   |   | (2,769                             | )      |   |                                      | (133    | )      |         |   | - |   |   |   | (2,987 | ) |
| Operating                income                (loss)                                                                                                |   | $                                | 30,051   |   |                               | $      | (1,290   | )        |   | $      | 127,705                            |   |   | $                                         | (41,410 | )      |         | $      | - |   |   |   | 115,056 |   |
| Financing                charges                                                                                                                     |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | (58,296 | ) |
| Earnings                from continuing                operations before income taxes and undernoted items        |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    | 56,760 |         |
| Equity                earnings of associated companies and non-controlling interest                               |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    | 1,053  |         |
| Income                tax provision                                                                                                                  |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | (16,826 | ) |
| Net                earnings from continuing                operations                                                                                |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 40,987 |   |
| Net                earnings from discontinued                operations (Note                5)                                                 |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   | 2,167 |   |
| Net                earnings before                extraordinary item                                                                                 |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 43,154 |   |
| Extraordinary                item, net of tax                (Note                11(b))                                                             |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 810 |   |
| Net                earnings                                                                                                                          |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   | $ | 43,964 |   |
|                                                                                                                                                 |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   |   |   |
| Segment                assets - continuing operations                                                                                                |   | $                                | 271,321  |   |                               | $      | 234,182  |     |   | $      | 1,460,177                          |   |   | $                                         | 114,109 |   |         |   |   |   |   | $ | 2,079,789 |   |
| Segment                assets - discontinued operations (Note                5)                                                                      |   |                             | -        |   |                               |   | -        |     |   |   | -                                  |   |   |                                      | -       |   |         |   |   |   |   |   | 22,430 |   |
| Total                Assets                                                                                                                          |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 2,102,219 |   |
| Segment                capital asset expenditures                                                                                                    |   |                             | 7,096    |   |                               |   | 3,855    |     |   |   | 380,397                            |   |   |                                      | 1,898   |   |         |   |   |   |   |   | 393,246 |   |
| Segment                helicopter major inspections                                                                                                  |   |                             | -        |   |                               |   | -        |     |   |   | 30,066                             |   |   |                                      | -       |   |         |   |   |   |   |   | 30,066 |   |
| Segment                goodwill                                                                                                                      |   |                             | 30,686   |   |                               |   | -        |     |   |   | 24,590                             |   |   |                                      | -       |   |         |   |   |   |   |   | 55,276 |   |

----

|                                                                                                                                                 |   | Global                operations |     |   | European                operations |   |     | Heli-One |   |   | Corporate                and other |   |   | Inter-segment                eliminations |    |   | Consolidated |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|----------|--------|------------------------------------|--------|----------|----------|--------|--------|------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------------|--------|
| Revenue                from external                customers                                                                                        |   | $                                | 330,877  |   |                               | $      | 520,367  |     |   | $      | 145,668                            |   |   | $                                         | 175     |   |         | $      | - |   |   | $ | 997,087 |   |
| Add:                Inter-segment revenues                                                                                                           |   |                             | 350      |   |                               |   | 12,773   |     |   |   | 355,013                            |   |   |                                      | 58      |   |         |   | (368,194 | ) |   |   | - |   |
| Total                revenue                                                                                                                         |   |                             | 331,227  |   |                               |   | 533,140  |     |   |   | 500,681                            |   |   |                                      | 233     |   |         |   | (368,194 | ) |   |   | 997,087 |   |
| Direct                costs(i)                                                                                                                       |   |                             | (240,305 | )      |                               |   | (425,659 | )        |   |   | (271,206                           | )      |   |                                      | -       |   |         |   | 214,145 |   |   |   | (723,025 | ) |
| General                and administration                                                                                                            |   |                             | -        |   |                               |   | -        |     |   |   | -                                  |   |   |                                      | (27,895 | )      |         |   | - |   |   |   | (27,895 | ) |
| Segment                EBITDAR(ii)                                                                                                                   |   |                             | 90,922   |   |                               |   | 107,481  |     |   |   | 229,475                            |   |   |                                      | (27,662 | )      |         |   | (154,049 | ) |   |   | 246,167 |   |
| Aircraft                lease and associated costs                                                                                                   |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   |   |   |
| -                Internal                                                                                                                            |   |                             | (76,447  | )      |                               |   | (74,408  | )        |   |   | (3,194                             | )      |   |                                      | -       |   |         |   | 154,049 |   |   |   | - |   |
| -                External                                                                                                                            |   |                             | (6,769   | )      |                               |   | (1,216   | )        |   |   | (57,491                            | )      |   |                                      | -       |   |         |   | - |   |   |   | (65,476 | ) |
| Segment                EBITDA(iii)                                                                                                                   |   |                             | 7,706    |   |                               |   | 31,857   |     |   |   | 168,790                            |   |   |                                      | (27,662 | )      |         |   | - |   |   |   | 180,691 |   |
| Amortization                                                                                                                                         |   |                             | (4,113   | )      |                               |   | (5,946   | )        |   |   | (44,363                            | )      |   |                                      | (1,048  | )      |         |   | - |   |   |   | (55,470 | ) |
| Restructuring                costs                                                                                                                   |   |                             | (975     | )      |                               |   | (1,597   | )        |   |   | (7,445                             | )      |   |                                      | (6,133  | )      |         |   | - |   |   |   | (16,150 | ) |
| Gain                on disposals of assets                                                                                                           |   |                             | 295      |   |                               |   | 407      |     |   |   | (685                               | )      |   |                                      | (22     | )      |         |   | - |   |   |   | (5 | ) |
| Operating                income                (loss)                                                                                                |   | $                                | 2,913    |   |                               | $      | 24,721   |     |   | $      | 116,297                            |   |   | $                                         | (34,865 | )      |         | $      | - |   |   |   | 109,066 |   |
| Financing                charges                                                                                                                     |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | (52,974 | ) |
| Earnings                from continuing                operations before income taxes and undernoted items        |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    | 56,092 |         |
| Gain                on sale of long-term investments                                                                                                 |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 37,558 |   |
| Equity                earnings of associated companies and non-controlling interest                               |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    | 6,564  |         |
| Income                tax provision                                                                                                                  |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | (10,509 | ) |
| Net                earnings from continuing                operations                                                                                |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 89,705 |   |
| Net                earnings from discontinued                operations (Note                5)                                                 |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   | 1,005 |   |
| Net                earnings                                                                                                                          |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   | $ | 90,710 |   |
|                                                                                                                                                 |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   |   |   |
| Segment                assets - continuing operations                                                                                                |   | $                                | 167,268  |   |                               | $      | 235,158  |     |   | $      | 1,095,048                          |   |   | $                                         | 167,286 |   |         |   |   |   |   | $ | 1,664,760 |   |
| Segment                assets - discontinued operations (Note                5)                                                                      |   |                             | -        |   |                               |   | -        |     |   |   | -                                  |   |   |                                      | -       |   |         |   |   |   |   |   | 21,322 |   |
| Total                Assets                                                                                                                          |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 1,686,082 |   |
| Segment                capital asset expenditures                                                                                                    |   |                             | 4,477    |   |                               |   | 2,281    |     |   |   | 273,485                            |   |   |                                      | 458     |   |         |   |   |   |   |   | 280,701 |   |
| Segment                helicopter major inspections                                                                                                  |   |                             | -        |   |                               |   | -        |     |   |   | 23,612                             |   |   |                                      | -       |   |         |   |   |   |   |   | 23,612 |   |
| Segment                goodwill                                                                                                                      |   |                             | -        |   |                               |   | -        |     |   |   | 1,224                              |   |   |                                      | -       |   |         |   |   |   |   |   | 1,224 |   |

----

|                                                                                                                                                             |   | Global                operations |     |   | European                operations |   |     | Heli-One |   |   | Corporate                and other |   |   | Inter-segment                eliminations |    |   | Consolidated |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|----------|--------|------------------------------------|--------|----------|----------|--------|--------|------------------------------------|--------|--------|-------------------------------------------|---------|--------|--------------|--------|
|                                                                                                                                                             |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |
| Revenue                from external                customers                                                                                                    |   | $                                | 292,066  |   |                               | $      | 530,897  |     |   | $      | 130,844                            |   |   | $                                         | 435     |   |         | $      | - |   |   | $ | 954,242 |   |
| Add:                Inter-segment revenues                                                                                                                       |   |                             | -        |   |                               |   | 10,697   |     |   |   | 380,573                            |   |   |                                      | 2,741   |   |         |   | (394,562 | ) |   |   | (551 | ) |
| Total                revenue                                                                                                                                     |   |                             | 292,066  |   |                               |   | 541,594  |     |   |   | 511,417                            |   |   |                                      | 3,176   |   |         |   | (394,562 | ) |   |   | 953,691 |   |
| Direct                costs(i)                                                                                                                                   |   |                             | (204,782 | )      |                               |   | (430,802 | )        |   |   | (280,401                           | )      |   |                                      | -       |   |         |   | 241,335 |   |   |   | (674,650 | ) |
| General                and administration                                                                                                                        |   |                             | -        |   |                               |   | -        |     |   |   | -                                  |   |   |                                      | (35,279 | )      |         |   | - |   |   |   | (35,279 | ) |
| Segment                EBITDAR(ii)                                                                                                                               |   |                             | 87,284   |   |                               |   | 110,792  |     |   |   | 231,016                            |   |   |                                      | (32,103 | )      |         |   | (153,227 | ) |   |   | 243,762 |   |
| Aircraft                lease and associated costs                                                                                                               |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   |   |   |
| -                Internal                                                                                                                                        |   |                             | (64,411  | )      |                               |   | (88,816  | )        |   |   | -                                  |   |   |                                      | -       |   |         |   | 153,227 |   |   |   | - |   |
| -                External                                                                                                                                        |   |                             | (6,984   | )      |                               |   | -        |     |   |   | (50,553                            | )      |   |                                      | -       |   |         |   | - |   |   |   | (57,537 | ) |
| Segment                EBITDA(iii)                                                                                                                               |   |                             | 15,889   |   |                               |   | 21,976   |     |   |   | 180,463                            |   |   |                                      | (32,103 | )      |         |   | - |   |   |   | 186,225 |   |
| Amortization                                                                                                                                                     |   |                             | (3,632   | )      |                               |   | (5,539   | )        |   |   | (39,765                            | )      |   |                                      | (1,248  | )      |         |   | - |   |   |   | (50,184 | ) |
| Restructuring                costs                                                                                                                               |   |                             | (1,358   | )      |                               |   | (2,864   | )        |   |   | (3,108                             | )      |   |                                      | (10,060 | )      |         |   | - |   |   |   | (17,390 | ) |
| Gain                on disposals of assets                                                                                                                       |   |                             | -        |   |                               |   | -        |     |   |   | 4,129                              |   |   |                                      | -       |   |         |   | - |   |   |   | 4,129 |   |
| Fair                value adjustment                                                                                                                             |   |                             | -        |   |                               |   | -        |     |   |   | (14,260                            | )      |   |                                      | -       |   |         |   | - |   |   |   | (14,260 | ) |
| Operating                income                (loss)                                                                                                            |   | $                                | 10,899   |   |                               | $      | 13,573   |     |   | $      | 127,459                            |   |   | $                                         | (43,411 | )      |         | $      | - |   |   |   | 108,520 |   |
| Debt                settlement costs                                                                                                                             |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | (2,017 | ) |
| Financing                charges                                                                                                                                 |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | (37,428 | ) |
| Earnings                from continuing                operations before income taxes and undernoted items          |   |                             |     |   |                               |   |     |     |   |   |                               |   |   | 69,075                                    |    |
| Equity                earnings of associated companies and non-controlling interest                                      |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      | 5,192   |   |
| Income                tax provision                                                                                                                              |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | (27,338 | ) |
| Net                earnings from continuing                operations                                                                                            |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   | 46,929 |   |
| Net                earnings from discontinued                operations (Note                5)                                                             |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   | 9,590 |   |
| Net                earnings                                                                                                                                      |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   | $ | 56,519 |   |
|                                                                                                                                                             |   |                             |     |   |                               |   |     |     |   |   |                               |   |   |                                      |    |   |         |   |   |   |   |   |   |   |
| Segment                capital asset expenditures                                                                                                                |   |                             | 13,021   |   |                               |   | 2,829    |     |   |   | 218,509                            |   |   |                                      | 383     |   |         |   |   |   |   |   | 234,742 |   |
| Segment                helicopter major inspections                                                                                                              |   |                             | -        |   |                               |   | -        |     |   |   | 15,539                             |   |   |                                      | -       |   |         |   |   |   |   |   | 15,539 |   |

| (i) | Direct                costs in the segment information presented excludes aircraft lease                and                associated costs. In the consolidated income statement these costs                are                combined. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Segment                EBITDAR is defined as segment EBITDA before aircraft lease and associated                costs. |
|------|------------------------------------------------------------------------------------------------------------------------|

| (iii) | Segment                      EBITDA is defined as operating income before amortization,                      restructuring                      costs, and gain (loss) on disposals of                      assets. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv) | Comparative                    information has been reclassified to reflect the classification                    of                    Survival-One in discontinued operations as described in                    Note 2. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | Revenues                (i) |      |   | Property                and equipment (ii) |   |    | Goodwill |   |
|-----------------------------------------|--------|-----------------------------|-----------|--------|--------------------------------------------|--------|---------|----------|--------|
|                                    |   | 2007                        |      |   | 2006                                       |   |    | 2005     |   |   | 2007 |   |   | 2006 |   |   | 2007 |   |   | 2006 |   |
| Canada                                  |   | $                           | 48,214    |   |                                       | $      | 32,909  |     |   | $ | 23,956 |   |   | $ | 104,699 |   |   | $ | 87,912 |   |   | $ | 55,276 |   |   | $ | 1,224 |   |
| United                Kingdom           |   |                        | 248,752   |   |                                       |   | 209,355 |     |   |   | 237,683 |   |   |   | 140,804 |   |   |   | 71,230 |   |   |   | - |   |   |   | - |   |
| Norway                                  |   |                        | 202,020   |   |                                       |   | 206,693 |     |   |   | 182,927 |   |   |   | 273,042 |   |   |   | 341,683 |   |   |   | - |   |   |   | - |   |
| Africa                                  |   |                        | 189,895   |   |                                       |   | 150,110 |     |   |   | 124,337 |   |   |   | 189,500 |   |   |   | 140,875 |   |   |   | - |   |   |   | - |   |
| Australia                               |   |                        | 74,641    |   |                                       |   | 64,536  |     |   |   | 62,157 |   |   |   | 84,864 |   |   |   | 73,349 |   |   |   | - |   |   |   | - |   |
| Denmark                                 |   |                        | 29,095    |   |                                       |   | 28,144  |     |   |   | 35,473 |   |   |   | 25,668 |   |   |   | 25,452 |   |   |   | - |   |   |   | - |   |
| The                Netherlands          |   |                        | 72,133    |   |                                       |   | 67,160  |     |   |   | 65,915 |   |   |   | 63,165 |   |   |   | 32,338 |   |   |   | - |   |   |   | - |   |
| Other                Asian countries    |   |                        | 68,096    |   |                                       |   | 52,661  |     |   |   | 88,473 |   |   |   | 125,870 |   |   |   | 79,419 |   |   |   | - |   |   |   | - |   |
| Other                European countries |   |                        | 120,884   |   |                                       |   | 107,964 |     |   |   | 88,694 |   |   |   | 11,894 |   |   |   | 36,144 |   |   |   | - |   |   |   | - |   |
| Other                countries          |   |                        | 95,377    |   |                                       |   | 77,555  |     |   |   | 44,627 |   |   |   | 73,158 |   |   |   | 30,962 |   |   |   | - |   |   |   | - |   |
| Consolidated                total       |   | $                           | 1,149,107 |   |                                       | $      | 997,087 |     |   | $ | 954,242 |   |   | $ | 1,092,664 |   |   | $ | 919,364 |   |   | $ | 55,276 |   |   | $ | 1,224 |   |

| (i) | Revenues                are attributed to countries based on the location of the customer                for                repair and overhaul services and the location of service for flying                revenue. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Property                  and equipment is attributed to countries based on the physical                  location of                  the asset at the fiscal year-end. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 26. | COMMITMENTS |
|-----|-------------|

|                          |   | Aircraftoperating                leases |    |   | Building,                landand                equipmentoperating                leases |   |   | Totaloperating                leases |   |
|-------------------------------|--------|-----------------------------------------|---------|--------|------------------------------------------------------------------------------------------|--------|--------|--------------------------------------|--------|
| 2008                          |   | $                                       | 103,438 |   |                                                                                     | $      | 5,706  |                                 |   | $ | 109,144 |   |
| 2009                          |   |                                    | 96,628  |   |                                                                                     |   | 4,844  |                                 |   |   | 101,472 |   |
| 2010                          |   |                                    | 90,922  |   |                                                                                     |   | 4,141  |                                 |   |   | 95,063 |   |
| 2011                          |   |                                    | 82,579  |   |                                                                                     |   | 3,807  |                                 |   |   | 86,386 |   |
| 2012                          |   |                                    | 69,085  |   |                                                                                     |   | 3,692  |                                 |   |   | 72,777 |   |
| and                thereafter |   |                                    | 113,659 |   |                                                                                     |   | 22,416 |                                 |   |   | 136,075 |   |
|                          |   | $                                       | 556,311 |   |                                                                                     | $      | 44,606 |                                 |   | $ | 600,917 |   |

| 27. | VARIABLE                INTEREST                ENTITIES |
|-----|----------------------------------------------------------|

----

| 28. | GUARANTEES |
|-----|------------|

| 29. | CONTINGENCIES |
|-----|---------------|

| (a) | Contingent                liabilities |
|-----|---------------------------------------|

| (b) | General                tax contingencies |
|-----|------------------------------------------|

| 30. | EMPLOYEE                PENSION                PLANS |
|-----|------------------------------------------------------|

----

| Category                         | Percentage                maximum |
|----------------------------------|-----------------------------------|
| UK                equities       | 42%                to 48%         |
| Overseas                equities | 27%                to 33%         |
| UK                bonds          | 22%                to 28%         |

| Category                                           |   | Percentage                maximum |   |
|----------------------------------------------------|--------|-----------------------------------|--------|
| Norwegian                equities                  |   |                              | 15     | % |
| International                equities              |   |                              | 35     | % |
| Total                equities (i)                  |   |                              | 35     | % |
| Norwegian                bonds                     |   |                              | 70     | % |
| High                yield bonds (i)                |   |                              | 25     | % |
| Emerging                markets bonds (i)          |   |                              | 25     | % |
| Global                government bonds             |   |                              | 25     | % |
|     Total                bonds |   |                              | 100    | % |
| Money                market                        |   |                              | 100    | % |
| Property                funds                      |   |                              | 15     | % |
| Hedge                funds (i)                     |   |                              | 10     | % |
| Private                equity funds (i)            |   |                              | 10     | % |

| (i) | The                total of equities, emerging markets bonds, high yield bonds, hedge                funds                and private equity funds can be maximum 60% of total                assets. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            |   | 2007   |    |   | 2006   |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Change                in benefit                obligations     |   |   |    |   |   |   |
| Benefit                obligations, beginning of year           |   | $      | 599,161 |   |   | $      | 620,398 |   |
| Current                service cost                             |   |   | 21,455  |   |   |   | 19,328 |   |
| Interest                cost                                    |   |   | 30,804  |   |   |   | 28,702 |   |
| Amendments                                                      |   |   | 2,269   |   |   |   | (354 | ) |
| Net                actuarial and experience (gains) losses      |   |   | (3,207  | )      |   |   | 18,450 |   |
| Past                service obligation                          |   |   | 983     |   |   |   | - |   |
| Benefits                paid                                    |   |   | (22,261 | )      |   |   | (15,726 | ) |
| Foreign                exchange                                 |   |   | 31,311  |   |   |   | (71,637 | ) |
| Benefit                obligations, end of year                 |   | $      | 660,515 |   |   | $      | 599,161 |   |
| Change                in plan                assets             |   |   |    |   |   |   |   |   |
| Fair                value of plan assets, beginning of year     |   | $      | 525,010 |   |   | $      | 490,501 |   |
| Actual                return on plan assets                     |   |   | 29,709  |   |   |   | 75,408 |   |
| Employer                contributions                           |   |   | 18,612  |   |   |   | 30,775 |   |
| Participant                contributions                        |   |   | 2,884   |   |   |   | 2,638 |   |
| Benefits                paid                                    |   |   | (20,402 | )      |   |   | (14,977 | ) |
| Foreign                exchange                                 |   |   | 27,563  |   |   |   | (59,335 | ) |
| Fair                value of plan assets, end of year           |   | $      | 583,376 |   |   | $      | 525,010 |   |
| Funded                status                                    |   | $      | (77,139 | )      |   | $      | (74,151 | ) |
| Unrecognized                net actuarial and experience losses |   |   | 138,367 |   |   |   | 134,467 |   |
| Unrecognized                prior service costs                 |   |   | 1,146   |   |   |   | (149 | ) |
| Unrecognized                transition amounts                  |   |   | 655     |   |   |   | 715 |   |
| Pension                guarantee deposits                       |   |   | 5,304   |   |   |   | 5,179 |   |
| Total                recognized net pension asset               |   | $      | 68,333  |   |   | $      | 66,061 |   |

|                                                            |   | As                at April 30, 2007 |    |
|-----------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                            |   | Funded                plans              |    |   | SERP                &Unfunded |   |   |   |   |   | Other                assets |   |   | Other                liabilities |   |
|                                                            |   | Surplus                                  |    |   | Deficit |   |   | Plans |   |   | Total |   |   | (Note                12) |   |   | (Note                16) |   |
| Benefit                obligations                              |   | $                                        | 210,442 |   |   | $ | 384,812 |   |   | $ | 65,261 |   |   | $ | 660,515 |   |   | $ | 527,318 |   |   | $ | 133,197 |   |
| Fair                value of plan assets                        |   |                                     | 232,383 |   |   |   | 339,320 |   |   |   | 11,673 |   |   |   | 583,376 |   |   |   | 508,988 |   |   |   | 74,388 |   |
| Funded                status                                    |   |                                     | 21,941  |   |   |   | (45,492 | ) |   |   | (53,588 | ) |   |   | (77,139 | ) |   |   | (18,330 | ) |   |   | (58,809 | ) |
| Unrecognized                net actuarial and experience losses |   |                                     | 36,201  |   |   |   | 79,574 |   |   |   | 22,592 |   |   |   | 138,367 |   |   |   | 111,286 |   |   |   | 27,081 |   |
| Unrecognized                prior service costs                 |   |                                     | 1,696   |   |   |   | (6,338 | ) |   |   | 5,788 |   |   |   | 1,146 |   |   |   | 1,696 |   |   |   | (550 | ) |
| Unrecognized                transition amounts                  |   |                                     | -       |   |   |   | - |   |   |   | 655 |   |   |   | 655 |   |   |   | - |   |   |   | 655 |   |
| Pension                guarantee deposits                       |   |                                     | 4,508   |   |   |   | 796 |   |   |   | - |   |   |   | 5,304 |   |   |   | 5,304 |   |   |   | - |   |
|                                                            |   | $                                        | 64,346  |   |   | $ | 28,540 |   |   | $ | (24,553 | ) |   | $ | 68,333 |   |   | $ | 99,956 |   |   | $ | (31,623 | ) |

----

|                                                            |   | As                at April 30, 2006             |    |
|-----------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|---------|
|                                                            |   | Funded                plans                                                                                      |    |   | SERP                &Unfunded |   |   |   |   |   | Other                assets |   |   | Other                liabilities |   |
|                                                            |   | Surplus                                                                                                          |    |   | Deficit |   |   | Plans |   |   | Total |   |   | (Note                12) |   |   | (Note                16) |   |
| Benefit                obligations                              |   | $                                                                                                                | 195,556 |   |   | $ | 351,679 |   |   | $ | 51,926 |   |   | $ | 599,161 |   |   | $ | 486,569 |   |   | $ | 112,592 |   |
| Fair                value of plan assets                        |   |                                                                                                             | 223,018 |   |   |   | 296,264 |   |   |   | 5,728 |   |   |   | 525,010 |   |   |   | 459,442 |   |   |   | 65,568 |   |
| Funded                status                                    |   |                                                                                                             | 27,462  |   |   |   | (55,415 | ) |   |   | (46,198 | ) |   |   | (74,151 | ) |   |   | (27,127 | ) |   |   | (47,024 | ) |
| Unrecognized                net actuarial and experience losses |   |                                                                                                             | 33,219  |   |   |   | 87,437 |   |   |   | 13,811 |   |   |   | 134,467 |   |   |   | 120,923 |   |   |   | 13,544 |   |
| Unrecognized                prior service costs                 |   |                                                                                                             | 1,126   |   |   |   | (6,701 | ) |   |   | 5,426 |   |   |   | (149 | ) |   |   | 1,126 |   |   |   | (1,275 | ) |
| Unrecognized                transition amounts                  |   |                                                                                                             | -       |   |   |   | - |   |   |   | 715 |   |   |   | 715 |   |   |   | - |   |   |   | 715 |   |
| Pension                guarantee deposits                       |   |                                                                                                             | 4,402   |   |   |   | 777 |   |   |   | - |   |   |   | 5,179 |   |   |   | 5,179 |   |   |   | - |   |
|                                                            |   | $                                                                                                                | 66,209  |   |   | $ | 26,098 |   |   | $ | (26,246 | ) |   | $ | 66,061 |   |   | $ | 100,101 |   |   | $ | (34,040 | ) |

|                                         |   | 2007   |   |   | 2006   |   |   | 2005 |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Discount                rate                 |   |   | 5.32   | %      |   |   | 4.94   | %    |   |   | 5.15 | % |
| Rate                of compensation increase |   |   | 3.80   | %      |   |   | 3.50   | %    |   |   | 3.38 | % |

|                                                            |   | 2007   |   |   | 2006   |   |   | 2005 |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Discount                rate                                    |   |   | 5.35   | %      |   |   | 5.08   | %    |   |   | 5.74 | % |
| Expected                long-term rate of return on plan assets |   |   | 6.69   | %      |   |   | 6.66   | %    |   |   | 6.70 | % |

|                                                               |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|--------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Current                service cost                                |   | $      | 21,455  |   |   | $      | 19,328  |   |   | $ | 19,508 |   |
| Interest                cost                                       |   |   | 30,804  |   |   |   | 28,702  |   |   |   | 29,015 |   |
| Actual                return on plan assets                        |   |   | (29,709 | )      |   |   | (75,408 | )      |   |   | (29,936 | ) |
| Excess                of actual return over expected return        |   |   | (6,583  | )      |   |   | 47,769  |   |   |   | 347 |   |
| Amortization                of net actuarial and experience losses |   |   | 6,999   |   |   |   | 10,114  |   |   |   | 7,985 |   |
| Amortization                of prior service costs                 |   |   | 751     |   |   |   | (1      | )      |   |   | (376 | ) |
| Amortization                of transition amounts                  |   |   | 60      |   |   |   | 48      |   |   |   | 268 |   |
| Participant                contributions                           |   |   | (2,884  | )      |   |   | (2,638  | )      |   |   | (3,595 | ) |
| Net                defined benefit pension plan expense            |   | $      | 20,893  |   |   | $      | 27,914  |   |   | $ | 23,216 |   |

| 2008      |   | $      | 20,349  |   |
|-----------|--------|--------|---------|--------|
| 2009      |   |   | 21,446  |   |
| 2010      |   |   | 23,140  |   |
| 2011      |   |   | 24,257  |   |
| 2012      |   |   | 25,414  |   |
| 2013-2017 |   |   | 145,105 |   |

----

| 31. | RELATED                PARTY                TRANSACTIONS |
|-----|----------------------------------------------------------|

| (a) | In                the course of its regular business activities, the Company enters                into                routine transactions with companies subject to significant influence                by                the Company (most significantly ACN) as well as parties affiliated                with                the controlling shareholder. These transactions are measured at the                amounts exchanged, which is the amount of consideration determined                and                agreed to by the related parties. Transactions with related parties                for                the years ended April 30 are summarized as                follows: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                      |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Revenues                  from ACN                                                                                                        |   | $      | 90,256 |   |   | $      | 70,738 |   |   | $ | 43,518 |   |
| Direct                  costs                                                                                                             |   |   | 432    |   |   |   | 446    |   |   |   | 1,298 |   |
| Inventory                  additions                                                                                                      |   |   | -      |   |   |   | 10,679 |   |   |   | - |   |
| Capital                  asset additions                                                                                                  |   |   | -      |   |   |   | 5,692  |   |   |   | 8,160 |   |
| Net                  amounts receivable and payable in respect of such revenues, expenses                  and                  additions |   |   | 25,351 |   |   |   | 21,878 |   |   |   | 15,044 |   |

| (b) | During                fiscal 2000, in connection with securing tender credit facilities,                the                Company received an unsecured, subordinated, convertible 12% loan                from an                affiliate of the controlling shareholder in the amount of                $5.0 million. This loan was subordinated to the Company’s senior                credit facilities and its senior subordinated notes (Note 14). The                loan was convertible at the option of the shareholder into Class A                subordinate voting shares at $3.63 per share. The estimated value of                the loan proceeds attributable to the conversion feature of                $1.0 million was allocated to contributed surplus. The equivalent                reduction in the carrying value of the loan is amortized to earnings                over                the term of the loan. Interest expense of $0.6 million (2006 -                $0.6 million, 2005 - $0.7 million), including amortization of                the above noted discount, was recorded on the loan during the fiscal                year                ended April 30, 2007. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32. | RECONCILIATION                TO ACCOUNTING                PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF                AMERICA |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                     |   | Year                    EndedApril 30,2007 |   |   | Year                    EndedApril 30,2006 |   |   | Year                    EndedApril 30,2005 |   |
|------------------------------------------------------------------------------------------|--------|-------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|-------------------------------------------------|--------|
| Financing                    Charges                                                     |   | $                                               | 2,510  |   |                                            | $      | (717   | )                                               |   | $ | (8,683 | ) |
| Operating                    Income                                                      |   |                                            | 2,510  |   |                                            |   | (717   | )                                               |   |   | (8,683 | ) |
| Income                    tax recovery                    (provision)                    |   |                                            | (706   | )      |                                            |   | 201    |                                            |   |   | 2,432 |   |
| Net                    earnings (loss) according to                    US GAAP           |   | $                                               | 1,804  |   |                                            | $      | (516   | )                                               |   | $ | (6,251 | ) |
| Comprehensive                    earnings (loss)                    according to US GAAP |   | $                                               | 1,804  |   |                                            | $      | (516   | )                                               |   | $ | (6,251 | ) |
| Net                    earnings (loss) per share                    according to US GAAP |   |                                            |   |   |                                            |   |   |                                            |   |   |   |   |
|     Basic                                                            |   | $                                               | 0.04   |   |                                            | $      | (0.01  | )                                               |   | $ | (0.15 | ) |
|     Diluted                                                          |   | $                                               | 0.04   |   |                                            | $      | (0.01  | )                                               |   | $ | (0.14 | ) |

|                                                                     |   | As                      atApril 30,2007 |   |   | As                      atApril 30,2006 |   |   | As                      atApril 30,2005 |   |
|--------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|----------------------------------------------|--------|--------|----------------------------------------------|--------|
| Assets                                                                   |   |                                         |   |   |                                         |   |   |                                         |   |
| Future                      income tax                      assets       |   | $                                            | 2,168  |   |                                         | $      | 2,874  |                                         |   | $ | 2,673 |   |
|                                                                     |   | $                                            | 2,168  |   |                                         | $      | 2,874  |                                         |   | $ | 2,673 |   |
| Liabilities                                                              |   |                                         |   |   |                                         |   |   |                                         |   |   |   |   |
| Other                      liabilities                                   |   |                                         | 7,751  |   |                                         |   | 10,261 |                                         |   |   | 9,544 |   |
| Retained                      earnings, end of                      year |   |                                         | (5,583 | )      |                                         |   | (7,387 | )                                            |   |   | (6,871 | ) |
|                                                                     |   | $                                            | 2,168  |   |                                         | $      | 2,874  |                                         |   | $ | 2,673 |   |

----

| (a) | Consolidated                statements of earnings and comprehensive                earnings |
|-----|----------------------------------------------------------------------------------------------|

|                                                                                                                                                            |   | Year                  Ended April                  30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                                                                                                            |   | 2007(Restated)                                         |   |   | 2006(Restated) |   |   | 2005(Restated) |   |
| Net                  earnings according to Canadian                  GAAP                                                                                       |   | $                                                      | 43,964 |   |   | $ | 90,710 |   |   | $ | 56,519 |   |
| Pre-operating                  expenses                  (i)                                                                                                    |   |                                                   | (2,369 | ) |   |   | 3,261 |   |   |   | (3,515 | ) |
|     Tax                  impact of                  pre-operating expenses                  (ix)                                            |   |                                                   | 684    |   |   |   | (1,065 | ) |   |   | 1,168 |   |
| Unrealized                  gain (loss) on                  ineffective hedges (ii)                                                                             |   |                                                   | (9,765 | ) |   |   | 43,803 |   |   |   | (4,796 | ) |
|     Tax                  impact of                  unrealized gain (loss) on ineffective hedges                  (ix)                      |   |                                                   | 1,738  |   |   |   | (7,256 | ) |   |   | 778 |   |
| Amortization                  of guarantees                  recognized                  (iii)                                                                  |   |                                                   | (2,002 | ) |   |   | (1,365 | ) |   |   | (827 | ) |
|     Tax                  impact of                  amortization of guarantees recognized                  (ix)                             |   |                                                   | 602    |   |   |   | 533 |   |   |   | 225 |   |
| Proportionate                    foreign currency translation ("CTA") (gain) loss due to                    partial reduction in subsidiary net investments(iv) |   |                                                   | (282   | ) |   |   | 2,612 |   |   |   | - |   |
|     Tax                  impact of                  CTA (gain) loss (ix)                                                                    |   |                                                   | 96     |   |   |   | (891 | ) |   |   | - |   |
| Foreign                  currency embedded                  derivatives (xi)                                                                                    |   |                                                   | 2,510  |   |   |   | (717 | ) |   |   | (8,683 | ) |
|     Tax                  impact of                  foreign currency embedded derivatives (ix)                                              |   |                                                   | (706   | ) |   |   | 201 |   |   |   | 2,432 |   |
| Other,                  net of                  tax                                                                                                             |   |                                                   | 243    |   |   |   | 277 |   |   |   | (448 | ) |
| Net                  earnings according to US                  GAAP                                                                                             |   |                                                   | 34,713 |   |   |   | 130,103 |   |   |   | 42,853 |   |
| Other                  comprehensive                  earnings                                                                                                  |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|     Foreign                  currency translation (v)                                                                                       |   |                                                   | 42,059 |   |   |   | (79,713 | ) |   |   | 8,588 |   |
|     Minimum                  pension                  liability (vi)                                                                        |   |                                                   | 14,989 |   |   |   | 23,702 |   |   |   | (78,117 | ) |
|         Tax                  impact of minimum pension liability (ix)                                                   |   |                                                   | (4,580 | ) |   |   | (7,242 | ) |   |   | 23,412 |   |
|     Foreign                  currency cash flow hedges (vii)                                                                                |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|         Unrealized                  holding gains arising during the period                                             |   |                                                   | 252    |   |   |   | 8,166 |   |   |   | 7,052 |   |
|         Less:  reclassification                  adjustment for gains included in net earnings                |   |                                                   | (3,480 | ) |   |   | (3,857 | ) |   |   | (4,487 | ) |
|         Tax                  impact on                  foreign currency cash flow hedges (ix)                          |   |                                                   | 1,180  |   |   |   | (1,575 | ) |   |   | (1,052 | ) |
|     Unrealized                  gains on securities (viii)                                                                                  |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|         Unrealized                  holding gains arising during the period                                             |   |                                                   | -      |   |   |   | 2,319 |   |   |   | 1,688 |   |
|         Less:  reclassification                  adjustment for gains included in net earnings                |   |                                                   | -      |   |   |   | (4,007 | ) |   |   | - |   |
|         Tax                  impact on                  unrealized gains on securities (ix)                             |   |                                                   | -      |   |   |   | 301 |   |   |   | (301 | ) |
| Comprehensive                  earnings according                  to US GAAP                                                                                   |   | $                                                      | 85,133 |   |   | $ | 68,197 |   |   | $ | (364 | )  |
| Net                  earnings per share according                  to US GAAP                                                                                   |   |                                                   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                                                                                                                   |   | $                                                      | 0.82   |   |   | $ | 3.10 |   |   | $ | 1.02 |   |
|     Diluted                                                                                                                                 |   | $                                                      | 0.75   |   |   | $ | 2.82 |   |   | $ | 0.93 |   |

----

| (b) | Consolidated                balance sheets |
|-----|--------------------------------------------|

|                                                                                           |   | April 30,                  2007 |      |   | April                  30,                  2006 |   |
|------------------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|--------|--------------------------------------------------|--------|
|                                                                                           |   | Canadian                  GAAP       |      |   | US                  GAAP(Restated)               |   |   | Canadian                  GAAP |   |   | US                  GAAP(Restated) |   |
| Current                  future income tax assets                  (ii)                        |   | $                                    | 32,169    |   |                                             | $      | 30,958 |   |   | $ | 26,859 |   |   | $ | 25,648 |   |
| Other                  current assets (iii)                                                    |   |                                 | 552,675   |   |                                             |   | 554,677 |   |   |   | 378,908 |   |   |   | 379,985 |   |
| Property                  and equipment, net                  (x)                              |   |                                 | 1,092,664 |   |                                             |   | 1,273,566 |   |   |   | 919,364 |   |   |   | 920,613 |   |
| Long-term                  future income tax assets                  (i,iii,iv,vi,xi)          |   |                                 | 34,678    |   |                                             |   | 72,410 |   |   |   | 39,848 |   |   |   | 56,657 |   |
| Other                  assets (i,iii,vi,viii)                                                  |   |                                 | 390,033   |   |                                             |   | 370,042 |   |   |   | 321,103 |   |   |   | 307,520 |   |
|                                                                                           |   | $                                    | 2,102,219 |   |                                             | $      | 2,301,653 |   |   | $ | 1,686,082 |   |   | $ | 1,690,423 |   |
| Current                  future income tax                  liabilities (ii,vii)               |   | $                                    | 9,813     |   |                                             | $      | 10,561 |   |   | $ | 8,852 |   |   | $ | 10,177 |   |
| Other                  current liabilities                  (vii,x)                            |   |                                 | 698,415   |   |                                             |   | 876,081 |   |   |   | 274,805 |   |   |   | 271,437 |   |
| Long-term                  debt                                                                |   |                                 | 64,168    |   |                                             |   | 64,168 |   |   |   | 150,982 |   |   |   | 151,287 |   |
| Senior                  subordinated                  notes                                    |   |                                 | 442,680   |   |                                             |   | 442,680 |   |   |   | 448,120 |   |   |   | 448,120 |   |
| Other                  liabilities (ii,iii,vi,vii,xi)                                          |   |                                 | 142,691   |   |                                             |   | 275,735 |   |   |   | 135,881 |   |   |   | 204,020 |   |
| Long-term                  future income tax                  liabilities (ii,vi,vii,viii)     |   |                                 | 193,172   |   |                                             |   | 182,848 |   |   |   | 176,708 |   |   |   | 170,331 |   |
| Shareholders’                  equity                                                    |   |                                 |      |   |                                             |   |   |   |   |   |   |   |   |   |   |   |
| Class                  A subordinate voting                  shares                            |   |                                 | 235,346   |   |                                             |   | 234,538 |   |   |   | 223,241 |   |   |   | 223,241 |   |
| Class                    A                    subordinate voting employee share purchase loans |   |                                 | (1,254    | )      |                                             |   | (1,254 | ) |   |   | (1,502 | ) |   |   | (1,502 | ) |
| Class                  B multiple voting                  shares                               |   |                                 | 18,413    |   |                                             |   | 18,413 |   |   |   | 18,413 |   |   |   | 18,413 |   |
| Contributed                  surplus                                                           |   |                                 | 5,042     |   |                                             |   | 5,042 |   |   |   | 4,363 |   |   |   | 3,412 |   |
| Foreign                  currency translation                  adjustment (ii,iv,v)            |   |                                 | (40,800   | )      |                                             |   | - |   |   |   | (66,262 | ) |   |   | - |   |
| Accumulated                  other comprehensive                  loss (v,vi,vii,viii)         |   |                                 | -         |   |                                             |   | (147,486 | ) |   |   | - |   |   |   | (136,039 | ) |
| Retained                  earnings (i,ii,iii,iv,xi)                                            |   |                                 | 334,533   |   |                                             |   | 340,327 |   |   |   | 312,481 |   |   |   | 327,526 |   |
|                                                                                           |   | $                                    | 2,102,219 |   |                                             | $      | 2,301,653 |   |   | $ | 1,686,082 |   |   | $ | 1,690,423 |   |

| (i) | Pre-operating                  expenses |
|-----|-----------------------------------------|

| (ii) | Unrealized                  gain (loss) on ineffective hedges |
|------|---------------------------------------------------------------|

| (iii) | Amortization                  of guarantees recognized |
|-------|--------------------------------------------------------|

| (iv) | Proportionate                  foreign currency translation loss due to partial reduction in subsidiary                  net investment |
|------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

| (v) | Foreign                  currency translation |
|-----|-----------------------------------------------|

| (vi) | Minimum                  pension liability |
|------|--------------------------------------------|

|                                                |   | Prior                to Adopting Statement 158(i) |   |   | Effect                of Adopting Statement 158 |   |   | As                Reported |   |
|-----------------------------------------------------|--------|---------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|----------------------------|--------|
| Other                assets                         |   | $                                                 | 5,788  |   |                                            | $      | (3,940 | )                          |   | $ | 1,848 |   |
| Other                liabilities                    |   |                                              | 58,185 |   |                                            |   | 83,832 |                       |   |   | 142,017 |   |
| Future                income taxes                  |   |                                              | 16,009 |   |                                            |   | 25,905 |                       |   |   | 41,914 |   |
| Accumulated                other comprehensive loss |   |                                              | 46,797 |   |                                            |   | 61,867 |                       |   |   | 108,664 |   |

|   | (i) | Includes                  the effect of recognizing an additional minimum pension liability                  (reduction of $10.4 million and $16.5 million, net of tax for                  fiscal 2007 and fiscal 2006, respectively) included in other comprehensive                  earnings had the Company not been required to adopt Statement 158 at                  April 30, 2007. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii) | Foreign                  currency cash flow hedges |
|-------|----------------------------------------------------|

| (viii) | Unrealized                  gains on securities |
|--------|-------------------------------------------------|

----

| (ix) | Income                      taxes |
|------|-----------------------------------|

|                           |   | 2007   |   |   | 2006   |   |   | 2005 |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Canada                         |   |   | 34.12  | %      |   |   | 34.12  | %    |   |   | 35.62 | % |
| United                Kingdom  |   |   | 30.00  | %      |   |   | 30.00  | %    |   |   | 30.00 | % |
| Norway                         |   |   | 28.00  | %      |   |   | 28.00  | %    |   |   | 28.00 | % |
| The                Netherlands |   |   | 29.60  | %      |   |   | 30.50  | %    |   |   | 30.46 | % |
| Australia                      |   |   | 30.00  | %      |   |   | 30.00  | %    |   |   | 30.00 | % |
| Barbados                       |   |   | 2.46   | %      |   |   | 2.04   | %    |   |   | 2.00 | % |

| (x) | Assets                    under construction |
|-----|----------------------------------------------|

| (xi) | Foreign                    currency embedded dervatives |
|------|---------------------------------------------------------|

| (c) | Consolidated                    statements of cash flows |
|-----|----------------------------------------------------------|

----

| (d) | Consolidated                statements of changes in shareholders’equity |
|-----|--------------------------------------------------------------------------------|

|                                                                                    |   | 2007(Restated) |     |   | 2006(Restated) |   |     | 2005(Restated) |   |
|-----------------------------------------------------------------------------------------|--------|----------------|----------|--------|----------------|--------|----------|----------------|--------|
| Capital                  Stock                                                          |   |           |     |   |           |   |     |           |   |
| Balance,                  beginning of                  year                            |   | $              | 240,152  |   |           | $      | 239,469  |           |   | $ | 238,428 |   |
| Shares                  issued to employees for                  cash                   |   |           |     |   |           |   |     |           |   |   |   |   |
|     Share                  option                  plan             |   |           | 5,611    |   |           |   | -        |           |   |   | 668 |   |
|     Share                  purchase                  plan           |   |           | 686      |   |           |   | 496      |           |   |   | 239 |   |
| Debt                  conversion                                                        |   |           | 5,000    |   |           |   | -        |           |   |   | - |   |
| Change                  in employee share purchase                  loans               |   |           | 248      |   |           |   | 187      |           |   |   | 134 |   |
| Balance,                  end of                  year                                  |   |           | 251,697  |   |           |   | 240,152  |           |   |   | 239,469 |   |
| Contributed                  Surplus                                                    |   |           |     |   |           |   |     |           |   |   |   |   |
| Balance,                  beginning of                  year                            |   |           | 3,412    |   |           |   | 2,340    |           |   |   | 2,340 |   |
| Stock                  based compensation                  expense                      |   |           | 1,630    |   |           |   | 1,072    |           |   |   | - |   |
| Balance,                  end of                  year                                  |   |           | 5,042    |   |           |   | 3,412    |           |   |   | 2,340 |   |
| Retained                  Earnings                                                      |   |           |     |   |           |   |     |           |   |   |   |   |
| Balance,                  beginning of                  year                            |   |           | 327,526  |   |           |   | 214,506  |           |   |   | 184,458 |   |
| Net                  earnings                                                           |   |           | 34,713   |   |           |   | 130,103  |           |   |   | 42,853 |   |
| Dividends                                                                               |   |           | (21,912  | )      |           |   | (17,083  | )              |   |   | (12,805 | ) |
| Balance,                  end of                  year                                  |   |           | 340,327  |   |           |   | 327,526  |           |   |   | 214,506 |   |
| Accumulated                  Other Comprehensive                  Loss, Net of Tax      |   |           |     |   |           |   |     |           |   |   |   |   |
| Balance,                  beginning of                  year                            |   |           | (136,039 | )      |           |   | (74,133  | )              |   |   | (30,916 | ) |
| Foreign                  currency translation                  adjustment               |   |           | 42,059   |   |           |   | (79,713  | )              |   |   | 8,588 |   |
| Minimum                  pension                  liability                             |   |           | 10,409   |   |           |   | 16,460   |           |   |   | (54,705 | ) |
| Unrealized                  gains on foreign                  currency cash flow hedges |   |           | (2,048   | )      |           |   | 2,734    |           |   |   | 1,513 |   |
| Unrealized                  gains on                  securities                        |   |           | -        |   |           |   | (1,387   | )              |   |   | 1,387 |   |
| FAS                  158 cumulative                  adjustment                         |   |           | (61,867  | )      |           |   | -        |           |   |   | - |   |
| Balance,                  end of                  year                                  |   | $              | (147,486 | )      |           | $      | (136,039 | )              |   | $ | (74,133 | ) |
| Shareholders'                  equity, end of                  year                     |   | $              | 449,580  |   |           | $      | 435,051  |           |   | $ | 382,182 |   |

| (e) | Other                supplemental disclosures |
|-----|-----------------------------------------------|

|                                       |   | 2007   |    |   | 2006   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|
| Payables                - trade            |   | $      | 238,641 |   |   | $      | 138,800 |   |
| Accruals                                   |   |   | 85,468  |   |   |   | 71,965 |   |
| Interest                accrual            |   |   | 16,803  |   |   |   | 16,881 |   |
| Total                payables and accruals |   | $      | 340,912 |   |   | $      | 227,646 |   |

| (i) | Fair                  Value Measurements |
|-----|------------------------------------------|

----

| (ii) | Uncertainty                  in Income Taxes |
|------|----------------------------------------------|

| (iii) | Quantifying                  Misstatements in the Financial                  Statements |
|-------|-----------------------------------------------------------------------------------------|

| 33. | SUPPLEMENTAL                GUARANTOR                FINANCIAL INFORMATION |
|-----|----------------------------------------------------------------------------|

----

|                                                                                             |   | 2007(Restated)                             |      |
|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
|                  As                  at                  April 30                      |   | CHC                  HelicopterCorporation |      |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
| Assets                                                                                           |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  assets                                                                  |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|     Cash                  and cash                  equivalents              |   | $                                          | 9,981     |   |   | $ | 47,681 |   |   | $ | 31,849 |   |   | $ | - |   |   | $ | 89,511 |   |
|     Receivables                                                              |   |                                       | 36,800    |   |   |   | 194,100 |   |   |   | 79,009 |   |   |   | (32,142 | ) |   |   | 277,767 |   |
|     Inventory                                                                |   |                                       | -         |   |   |   | 15,873 |   |   |   | 110,442 |   |   |   | - |   |   |   | 126,315 |   |
|     Other                  current                  assets                   |   |                                       | 2,098     |   |   |   | 43,482 |   |   |   | 16,454 |   |   |   | 26,047 |   |   |   | 88,081 |   |
|     Assets                  of                  discontinued operations      |   |                                       | -         |   |   |   | 3,961 |   |   |   | - |   |   |   | - |   |   |   | 3,961 |   |
|                                                                                             |   |                                       | 48,879    |   |   |   | 305,097 |   |   |   | 237,754 |   |   |   | (6,095 | ) |   |   | 585,635 |   |
| Property                  and equipment,                  net                                    |   |                                       | -         |   |   |   | 794,229 |   |   |   | 482,337 |   |   |   | (3,000 | ) |   |   | 1,273,566 |   |
| Investments                                                                                      |   |                                       | 655,905   |   |   |   | 336,173 |   |   |   | 73,565 |   |   |   | (1,058,165 | ) |   |   | 7,478 |   |
| Long-term                  intercompany                                                          |   |                                       | 543,623   |   |   |   | (222,885 | ) |   |   | (236,307 | ) |   |   | (84,431 | ) |   |   | - |   |
| Other                  long-term                  assets                                         |   |                                       | 36,031    |   |   |   | 214,510 |   |   |   | 166,233 |   |   |   | (269 | ) |   |   | 416,505 |   |
| Assets                  of discontinued                  operations                              |   |                                       | -         |   |   |   | 18,469 |   |   |   | - |   |   |   | - |   |   |   | 18,469 |   |
|                                                                                             |   | $                                          | 1,284,438 |   |   | $ | 1,445,593 |   |   | $ | 723,582 |   |   | $ | (1,151,960 | ) |   | $ | 2,301,653 |   |
|                                                                                             |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                  and shareholders'                  equity                           |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  liabilities                                                             |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Payables                  and                  accruals                  |   | $                                          | 15,979    |   |   | $ | 150,226 |   |   | $ | 167,367 |   |   | $ | 7,340 |   |   | $ | 340,912 |   |
|     Other                  current                  liabilities              |   |                                       | 155,970   |   |   | $ | 322,743 |   |   | $ | 49,847 |   |   | $ | 14,191 |   |   |   | 542,751 |   |
|     Liabilities                  of                  discontinued operations |   |                                       | -         |   |   |   | 2,979 |   |   |   | - |   |   |   | - |   |   |   | 2,979 |   |
|                                                                                             |   |                                       | 171,949   |   |   |   | 475,948 |   |   |   | 217,214 |   |   |   | 21,531 |   |   |   | 886,642 |   |
| Long-term                  debt                                                                  |   |                                       | 57,651    |   |   |   | 4,018 |   |   |   | 2,499 |   |   |   | - |   |   |   | 64,168 |   |
| Senior                  subordinated                  notes                                      |   |                                       | 442,680   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 442,680 |   |
| Other                  liabilities                                                               |   |                                       | (1,483    | ) |   |   | 160,003 |   |   |   | 166,519 |   |   |   | (52,204 | ) |   |   | 272,835 |   |
| Future                  income tax                  liabilities                                  |   |                                       | 7,126     |   |   |   | 34,724 |   |   |   | 73,249 |   |   |   | 67,749 |   |   |   | 182,848 |   |
| Liabilities                  of discontinued                  operations                         |   |                                       | -         |   |   |   | 2,900 |   |   |   | - |   |   |   | - |   |   |   | 2,900 |   |
| Shareholders'                  equity                                                            |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Capital                  stock                                           |   |                                       | 251,697   |   |   |   | 88,424 |   |   |   | 44,876 |   |   |   | (133,300 | ) |   |   | 251,697 |   |
|     Contributed                  surplus                                     |   |                                       | 5,042     |   |   |   | 137,689 |   |   |   | (54,381 | ) |   |   | (83,308 | ) |   |   | 5,042 |   |
|     Accumulated                  other comprehensive earnings (loss)         |   |                                       | 9,449     |   |   |   | (169,565 | ) |   |   | 19,437 |   |   |   | (6,807 | ) |   |   | (147,486 | ) |
|     Retained                  earnings                                       |   |                                       | 340,327   |   |   |   | 711,452 |   |   |   | 254,169 |   |   |   | (965,621 | ) |   |   | 340,327 |   |
|                                                                                             |   | $                                          | 1,284,438 |   |   | $ | 1,445,593 |   |   | $ | 723,582 |   |   | $ | (1,151,960 | ) |   | $ | 2,301,653 |   |

----

|                                                                                                                                                                           |   |                       2007(Restated) |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
| For                    the year ended                    April 30                                                                                                    |   | CHC                    HelicopterCorporation   |    |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                                                                                                                      |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                                                                                                                   |   | $                                              | -       |   |   | $ | 752,229 |   |   | $ | 586,597 |   |   | $ | (189,719 | ) |   | $ | 1,149,107 |   |
| Direct                    costs                                                                                                                                           |   |                                           | 1,207   |   |   |   | (657,756 | ) |   |   | (443,124 | ) |   |   | 172,590 |   |   |   | (927,083 | ) |
| General                    and administration                    costs                                                                                                    |   |                                           | -       |   |   |   | (43,388 | ) |   |   | - |   |   |   | - |   |   |   | (43,388 | ) |
| Amortization                                                                                                                                                              |   |                                           | -       |   |   |   | (20,662 | ) |   |   | (45,482 | ) |   |   | 1,041 |   |   |   | (65,103 | ) |
| Restructuring                    recovery                                                                                                                                 |   |                                           | -       |   |   |   | 1,350 |   |   |   | 991 |   |   |   | - |   |   |   | 2,341 |   |
| Gain                    (loss) on disposals of                    assets                                                                                                  |   |                                           | (6      | ) |   |   | (4,618 | ) |   |   | 3,313 |   |   |   | (1,676 | ) |   |   | (2,987 | ) |
| Operating                    income                                                                                                                                       |   |                                           | 1,201   |   |   |   | 27,155 |   |   |   | 102,295 |   |   |   | (17,764 | ) |   |   | 112,887 |   |
| Financing                    charges                                                                                                                                      |   |                                           | (6,384  | ) |   |   | (37,965 | ) |   |   | (27,315 | ) |   |   | 3,991 |   |   |   | (67,673 | ) |
| Earnings                      (loss) from continuing operations                      before income taxes and    undernoted                      items |   |                                           | (5,183  | ) |   |   | (10,810 | ) |   |   | 74,980 |   |   |   | (13,773 | ) |   |   | 45,214 |   |
| Equity                      in earnings of associated companies                                                                                                           |   |                                           | 16,527  |   |   |   | 38,096 |   |   |   | - |   |   |   | (53,570 | ) |   |   | 1,053 |   |
| Intercompany                    charges                                                                                                                                   |   |                                           | 10,484  |   |   |   | 25,919 |   |   |   | (34,634 | ) |   |   | (1,769 | ) |   |   | - |   |
| Income                    tax recovery (provision)                                                                                                                        |   |                                           | 12,885  |   |   |   | (17,538 | ) |   |   | (2,970 | ) |   |   | (6,908 | ) |   |   | (14,531 | ) |
| Net                      earnings from continuing operations                                                                                                              |   |                                           | 34,713  |   |   |   | 35,667 |   |   |   | 37,376 |   |   |   | (76,020 | ) |   |   | 31,736 |   |
| Net                      earnings from discontinued operations                                                                                                            |   |                                           | -       |   |   |   | 2,167 |   |   |   | - |   |   |   | - |   |   |   | 2,167 |   |
| Net                    earnings before extraordinary item                                                                                                                 |   |                                           | 34,713  |   |   |   | 37,834 |   |   |   | 37,376 |   |   |   | (76,020 | ) |   |   | 33,903 |   |
| Extraordinary                    item, net of tax                                                                                                                         |   |                                           | -       |   |   |   | 1,268 |   |   |   | 1,500 |   |   |   | (1,958 | ) |   |   | 810 |   |
| Net                    earnings                                                                                                                                           |   |                                           | 34,713  |   |   |   | 39,102 |   |   |   | 38,876 |   |   |   | (77,978 | ) |   |   | 34,713 |   |
| Retained                    earnings, beginning of year                                                                                                                   |   |                                           | 327,526 |   |   |   | 672,350 |   |   |   | 215,293 |   |   |   | (887,643 | ) |   |   | 327,526 |   |
| Dividends                                                                                                                                                                 |   |                                           | (21,912 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (21,912 | ) |
|                                                                                                                                                                      |   |                                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retained                    earnings, end of year                                                                                                                         |   | $                                              | 340,327 |   |   | $ | 711,452 |   |   | $ | 254,169 |   |   | $ | (965,621 | ) |   | $ | 340,327 |   |

----

|                                                                                               |   |  2007                                 |    |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                  For                  the year ended                  April 30           |   | CHC                  HelicopterCorporation |    |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  activities                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  flow from                  operations                                        |   | $                                          | (8,485  | ) |   | $ | (73,075 | ) |   | $ | 107,778 |   |   | $ | - |   |   | $ | 26,218 |   |
|                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing                  activities                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt proceeds                                                           |   |                                       | 131,452 |   |   |   | 202,431 |   |   |   | 44,288 |   |   |   | 8,718 |   |   |   | 386,889 |   |
| Long-term                  debt repayments                                                         |   |                                       | (60,752 | ) |   |   | (94,020 | ) |   |   | (2,854 | ) |   |   | (8,718 | ) |   |   | (166,344 | ) |
| Dividends                  paid                                                                    |   |                                       | (19,211 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (19,211 | ) |
| Capital                  stock                  issued                                             |   |                                       | 6,297   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,297 |   |
| Other                                                                                              |   |                                       | -       |   |   |   | (80 | ) |   |   | (299 | ) |   |   | - |   |   |   | (379 | ) |
|                                                                                               |   |                                       | 57,786  |   |   |   | 108,331 |   |   |   | 41,135 |   |   |   | - |   |   |   | 207,252 |   |
|                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investing                  activities                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                  and                  equipment additions                                 |   |                                       | -       |   |   |   | (257,894 | ) |   |   | (135,352 | ) |   |   | - |   |   |   | (393,246 | ) |
| Helicopter                  major inspections                                                      |   |                                       | -       |   |   |   | (14,236 | ) |   |   | (15,830 | ) |   |   | - |   |   |   | (30,066 | ) |
| Proceeds                  from                  disposal                                           |   |                                       | -       |   |   |   | 288,529 |   |   |   | 29,791 |   |   |   | - |   |   |   | 318,320 |   |
| Junior                  loans                  receivable                                          |   |                                       | -       |   |   |   | (13,713 | ) |   |   | (4,096 | ) |   |   | - |   |   |   | (17,809 | ) |
| Aircraft                  deposits                                                                 |   |                                       | -       |   |   |   | (46,459 | ) |   |   | (224 | ) |   |   | - |   |   |   | (46,683 | ) |
| Restricted                  cash                                                                   |   |                                       | -       |   |   |   | 1,012 |   |   |   | 5,823 |   |   |   | - |   |   |   | 6,835 |   |
| Advances                  to                  BHS                                                  |   |                                       | -       |   |   |   | (1,780 | ) |   |   | - |   |   |   | - |   |   |   | (1,780 | ) |
| Other                                                                                              |   |                                       | -       |   |   |   | (2,328 | ) |   |   | (2,522 | ) |   |   | - |   |   |   | (4,850 | ) |
|                                                                                               |   |                                       | -       |   |   |   | (46,869 | ) |   |   | (122,410 | ) |   |   | - |   |   |   | (169,279 | ) |
| Effect                    of                    exchange rate changes on cash and cash equivalents |   |                                       | -       |   |   |   | 133 |   |   |   | (283 | ) |   |   | - |   |   |   | (150 | ) |
| Cash                    provided                    by (used in) continuing operations             |   |                                       | 49,301  |   |   |   | (11,480 | ) |   |   | 26,220 |   |   |   | - |   |   |   | 64,041 |   |
| Cash                  used in                  discontinued operations                             |   |                                       | -       |   |   |   | (861 | ) |   |   | - |   |   |   | - |   |   |   | (861 | ) |
| Change                    in                    cash and cash equivalents during the year          |   |                                       | 49,301  |   |   |   | (12,341 | ) |   |   | 26,220 |   |   |   | - |   |   |   | 63,180 |   |
| Cash                    and cash equivalents,                    beginning of year                 |   |                                       | (39,320 | ) |   |   | 60,022 |   |   |   | 5,629 |   |   |   | - |   |   |   | 26,331 |   |
| Cash                    and cash equivalents,                    end of year                       |   | $                                          | 9,981   |   |   | $ | 47,681 |   |   | $ | 31,849 |   |   | $ | - |   |   | $ | 89,511 |   |

----

|                                                                                               |   |  2006(Restated)                       |      |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|
| As                  at                  April 30                                         |   | CHC                  HelicopterCorporation |      |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
| Assets                                                                                        |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  assets                                                               |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  and cash                  equivalents                                   |   | $                                          | (39,320   | ) |   | $ | 60,022 |   |   | $ | 5,629 |   |   | $ | - |   |   | $ | 26,331 |   |
| Receivables                                                                                   |   |                                       | 21,645    |   |   |   | 156,404 |   |   |   | 82,750 |   |   |   | (14,582 | ) |   |   | 246,217 |   |
| Inventory                                                                                     |   |                                       | -         |   |   |   | 21,570 |   |   |   | 70,314 |   |   |   | - |   |   |   | 91,884 |   |
| Other                  current                  assets                                        |   |                                       | (1,108    | ) |   |   | 9,641 |   |   |   | 5,300 |   |   |   | 23,511 |   |   |   | 37,344 |   |
| Assets                  of discontinued                  operations                           |   |                                       | -         |   |   |   | 3,857 |   |   |   | - |   |   |   | - |   |   |   | 3,857 |   |
|                                                                                          |   |                                       | (18,783   | ) |   |   | 251,494 |   |   |   | 163,993 |   |   |   | 8,929 |   |   |   | 405,633 |   |
| Property                  and equipment,                  net                                 |   |                                       | 7         |   |   |   | 523,385 |   |   |   | 405,808 |   |   |   | (8,587 | ) |   |   | 920,613 |   |
| Investments                                                                                   |   |                                       | 639,112   |   |   |   | 225,649 |   |   |   | 105,928 |   |   |   | (965,267 | ) |   |   | 5,422 |   |
| Long-term                  intercompany                                                       |   |                                       | 539,055   |   |   |   | (257,432 | ) |   |   | (138,892 | ) |   |   | (142,731 | ) |   |   | - |   |
| Other                  long-term                  assets                                      |   |                                       | 39,933    |   |   |   | 183,370 |   |   |   | 118,047 |   |   |   | (60 | ) |   |   | 341,290 |   |
| Assets                  of discontinued                  operations                           |   |                                       | -         |   |   |   | 17,465 |   |   |   | - |   |   |   | - |   |   |   | 17,465 |   |
|                                                                                          |   | $                                          | 1,199,324 |   |   | $ | 943,931 |   |   | $ | 654,884 |   |   | $ | (1,107,716 | ) |   | $ | 1,690,423 |   |
|                                                                                          |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                  and shareholders'                  equity                        |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                  liabilities                                                          |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Payables                  and                  accruals                                       |   | $                                          | 25,572    |   |   | $ | 104,588 |   |   | $ | 94,103 |   |   | $ | 3,383 |   |   | $ | 227,646 |   |
| Other                  current                  liabilities                                   |   |                                       | 24,539    |   |   |   | 4,694 |   |   |   | 9,825 |   |   |   | 10,873 |   |   |   | 49,931 |   |
| Liabilities                  of discontinued                  operations                      |   |                                       | -         |   |   |   | 4,037 |   |   |   | - |   |   |   | - |   |   |   | 4,037 |   |
|                                                                                          |   |                                       | 50,111    |   |   |   | 113,319 |   |   |   | 103,928 |   |   |   | 14,256 |   |   |   | 281,614 |   |
| Long-term                  debt                                                               |   |                                       | 101,620   |   |   |   | 49,575 |   |   |   | 92 |   |   |   | - |   |   |   | 151,287 |   |
| Senior                  subordinated                  notes                                   |   |                                       | 448,120   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 448,120 |   |
| Other                  liabilities                                                            |   |                                       | 13,740    |   |   |   | 124,044 |   |   |   | 118,561 |   |   |   | (55,775 | ) |   |   | 200,570 |   |
| Future                  income tax                  liabilities                               |   |                                       | 13,902    |   |   |   | 28,953 |   |   |   | 71,229 |   |   |   | 56,247 |   |   |   | 170,331 |   |
| Liabilities                  of discontinued                  operations                      |   |                                       | -         |   |   |   | 3,450 |   |   |   | - |   |   |   | - |   |   |   | 3,450 |   |
| Shareholders'                  equity                                                         |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Capital                  stock                                                    |   |                                       | 240,152   |   |   |   | 88,157 |   |   |   | 42,118 |   |   |   | (130,275 | ) |   |   | 240,152 |   |
|   Contributed                  surplus                                              |   |                                       | 3,412     |   |   |   | 30,782 |   |   |   | 48,934 |   |   |   | (79,716 | ) |   |   | 3,412 |   |
|   Accumulated                  other                  comprehensive earnings (loss) |   |                                       | 741       |   |   |   | (166,699 | ) |   |   | 54,729 |   |   |   | (24,810 | ) |   |   | (136,039 | ) |
|   Retained                  earnings                                                |   |                                       | 327,526   |   |   |   | 672,350 |   |   |   | 215,293 |   |   |   | (887,643 | ) |   |   | 327,526 |   |
|                                                                                          |   | $                                          | 1,199,324 |   |   | $ | 943,931 |   |   | $ | 654,884 |   |   | $ | (1,107,716 | ) |   | $ | 1,690,423 |   |

----

|                                                                                                                                                                   |   |                   2006(Restated) |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
| For                  the year ended                  April 30                                                                                                     |   | CHC                  HelicopterCorporation |    |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                                                                                                                   |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                                                                                                                |   | $                                          | -       |   |   | $ | 699,532 |   |   | $ | 475,807 |   |   | $ | (178,252 | ) |   | $ | 997,087 |   |
| Direct                  costs                                                                                                                                          |   |                                       | (670    | ) |   |   | (623,553 | ) |   |   | (387,343 | ) |   |   | 223,295 |   |   |   | (788,271 | ) |
| General                  and administration                  costs                                                                                                     |   |                                       | -       |   |   |   | (27,895 | ) |   |   | - |   |   |   | - |   |   |   | (27,895 | ) |
| Amortization                                                                                                                                                           |   |                                       | -       |   |   |   | (26,637 | ) |   |   | (27,156 | ) |   |   | (1,413 | ) |   |   | (55,206 | ) |
| Restructuring                  costs                                                                                                                                   |   |                                       | -       |   |   |   | (11,904 | ) |   |   | (4,246 | ) |   |   | - |   |   |   | (16,150 | ) |
| Gain                  (loss) on disposals of                  assets                                                                                                   |   |                                       | -       |   |   |   | 12,404 |   |   |   | 8,258 |   |   |   | (20,667 | ) |   |   | (5 | ) |
| Operating                  income                  (loss)                                                                                                              |   |                                       | (670    | ) |   |   | 21,947 |   |   |   | 65,320 |   |   |   | 22,963 |   |   |   | 109,560 |   |
| Financing                  charges                                                                                                                                     |   |                                       | 23,228  |   |   |   | (10,265 | ) |   |   | (18,922 | ) |   |   | 495 |   |   |   | (5,464 | ) |
| Earnings                    from continuing operations before income taxes and                    undernoted    items                              |   |                                       | 22,558  |   |   |   | 11,682 |   |   |   | 46,398 |   |   |   | 23,458 |   |   |   | 104,096 |   |
| Gain                  on sale of long-term                  investments                                                                                                |   |                                       | -       |   |   |   | 37,558 |   |   |   | - |   |   |   | - |   |   |   | 37,558 |   |
| Equity                    in earnings of associated                    companies                    and                    non-controlling                    interest |   |                                       | 107,906 |   |   |   | 25,084 |   |   |   | (66 | ) |   |   | (126,360 | ) |   |   | 6,564 |   |
| Intercompany                  charges                                                                                                                                  |   |                                       | -       |   |   |   | 20,690 |   |   |   | (20,690 | ) |   |   | - |   |   |   | - |   |
| Income                  tax                  provision                                                                                                                 |   |                                       | (361    | ) |   |   | (12,963 | ) |   |   | (7,673 | ) |   |   | 1,877 |   |   |   | (19,120 | ) |
| Net                    earnings from continuing operations                                                                                                             |   |                                       | 130,103 |   |   |   | 82,051 |   |   |   | 17,969 |   |   |   | (101,025 | ) |   |   | 129,098 |   |
| Netearnings                    from discontinued                    operations                                                                                         |   |                                       | -       |   |   |   | 1,005 |   |   |   | - |   |   |   | - |   |   |   | 1,005 |   |
| Net                  earnings                                                                                                                                          |   |                                       | 130,103 |   |   |   | 83,056 |   |   |   | 17,969 |   |   |   | (101,025 | ) |   |   | 130,103 |   |
| Retained                  earnings, beginning of                  year                                                                                                 |   |                                       | 214,506 |   |   |   | 589,294 |   |   |   | 197,324 |   |   |   | (786,618 | ) |   |   | 214,506 |   |
| Dividends                                                                                                                                                              |   |                                       | (17,083 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (17,083 | ) |
|                                                                                                                                                                   |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retained                  earnings, end of                  year                                                                                                       |   | $                                          | 327,526 |   |   | $ | 672,350 |   |   | $ | 215,293 |   |   | $ | (887,643 | ) |   | $ | 327,526 |   |

----

|                                                                                               |   | 2006                                       |     |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------|
|                  For                  the year ended                  April 30           |   | CHC                  HelicopterCorporation |     |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  activities                                                              |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  flow                  from operations                                        |   | $                                          | (31,754  | ) |   | $ | 144,275 |   |   | $ | (80,422 | ) |   | $ | - |   |   | $ | 32,099 |   |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing                  activities                                                              |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt proceeds                                                           |   |                                       | 289,636  |   |   |   | 175,265 |   |   |   | 152,236 |   |   |   | (21,792 | ) |   |   | 595,345 |   |
| Long-term                  debt repayments                                                         |   |                                       | (372,562 | ) |   |   | (146,006 | ) |   |   | (313 | ) |   |   | 21,792 |   |   |   | (497,089 | ) |
| Dividends                  paid                                                                    |   |                                       | (14,939  | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (14,939 | ) |
| Capital                  stock                  issued                                             |   |                                       | 496      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 496 |   |
| Other                                                                                              |   |                                       | (6,888   | ) |   |   | (450 | ) |   |   | - |   |   |   | - |   |   |   | (7,338 | ) |
|                                                                                               |   |                                       | (104,257 | ) |   |   | 28,809 |   |   |   | 151,923 |   |   |   | - |   |   |   | 76,475 |   |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investing                  activities                                                              |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                  and                  equipment additions                                 |   |                                       | -        |   |   |   | (166,080 | ) |   |   | (114,621 | ) |   |   | - |   |   |   | (280,701 | ) |
| Helicopter                  major inspections                                                      |   |                                       | -        |   |   |   | (7,354 | ) |   |   | (16,258 | ) |   |   | - |   |   |   | (23,612 | ) |
| Proceeds                  from                  disposal                                           |   |                                       | -        |   |   |   | 258,483 |   |   |   | 55,211 |   |   |   | - |   |   |   | 313,694 |   |
| Aircraft                  deposits                                                                 |   |                                       | -        |   |   |   | (124,990 | ) |   |   | - |   |   |   |   |   |   |   | (124,990 | ) |
| Restricted                  cash                                                                   |   |                                       |     |   |   |   | 16 |   |   |   | (5,581 | ) |   |   | - |   |   |   | (5,565 | ) |
| Advances                  to                  BHS                                                  |   |                                       | -        |   |   |   | (3,892 | ) |   |   | - |   |   |   | - |   |   |   | (3,892 | ) |
| Other                                                                                              |   |                                       |     |   |   |   | (141 | ) |   |   | 1,054 |   |   |   |   |   |   |   | 913 |   |
|                                                                                               |   |                                       | -        |   |   |   | (43,958 | ) |   |   | (80,195 | ) |   |   | - |   |   |   | (124,153 | ) |
| Effect                    of                    exchange rate changes on cash and cash equivalents |   |                                       | -        |   |   |   | (11,389 | ) |   |   | 766 |   |   |   | - |   |   |   | (10,623 | ) |
| Cash                    provided                    by (used in) discontinued operations           |   |                                       | (136,011 | ) |   |   | 117,737 |   |   |   | (7,928 | ) |   |   | - |   |   |   | (26,202 | ) |
| Cash                  provided                  by discontinued operations                         |   |                                       | -        |   |   |   | 1,142 |   |   |   | - |   |   |   | - |   |   |   | 1,142 |   |
| Change                    in                    cash and cash equivalents during the year          |   |                                       | (136,011 | ) |   |   | 118,879 |   |   |   | (7,928 | ) |   |   | - |   |   |   | (25,060 | ) |
| Cash                    and cash equivalents,                    beginning of year                 |   |                                       | 96,691   |   |   |   | (58,856 | ) |   |   | 13,556 |   |   |   | - |   |   |   | 51,391 |   |
| Cash                    and cash equivalents,                    end of year                       |   | $                                          | (39,320  | ) |   | $ | 60,023 |   |   | $ | 5,628 |   |   | $ | - |   |   | $ | 26,331 |   |

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|                                                                                                                                                                                                    |   |  2005(Restated)                       |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
| For                  the year ended                  April 30                                                                                                                                 |   | CHC                  HelicopterCorporation |    |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                                                                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                                                                                                                                            |   | $                                          | -       |   |   | $ | 673,940 |   |   | $ | 387,296 |   |   | $ | (106,994 | ) |   | $ | 954,242 |   |
| Direct                  costs                                                                                                                                                                      |   |                                       | 471     |   |   |   | (538,631 | ) |   |   | (308,995 | ) |   |   | 109,345 |   |   |   | (737,810 | ) |
| General                  and administration                  costs                                                                                                                                 |   |                                       | -       |   |   |   | (35,279 | ) |   |   | - |   |   |   | - |   |   |   | (35,279 | ) |
| Amortization                                                                                                                                                                                       |   |                                       | 123     |   |   |   | (24,313 | ) |   |   | (25,705 | ) |   |   | (221 | ) |   |   | (50,116 | ) |
| Restructuring                  costs                                                                                                                                                               |   |                                       | -       |   |   |   | (15,110 | ) |   |   | (2,280 | ) |   |   | - |   |   |   | (17,390 | ) |
| Gain                  (loss) on disposals of                  assets                                                                                                                               |   |                                       | -       |   |   |   | (223 | ) |   |   | 4,101 |   |   |   | 251 |   |   |   | 4,129 |   |
| Fair                  value                  adjustment                                                                                                                                            |   |                                       | -       |   |   |   | - |   |   |   | (14,260 | ) |   |   | - |   |   |   | (14,260 | ) |
| Operating                  income                                                                                                                                                                  |   |                                       | 594     |   |   |   | 60,384 |   |   |   | 40,157 |   |   |   | 2,381 |   |   |   | 103,516 |   |
| Debt                  settlement                  costs                                                                                                                                            |   |                                       | (1,043  | ) |   |   | (974 | ) |   |   | - |   |   |   | - |   |   |   | (2,017 | ) |
| Financing                  charges                                                                                                                                                                 |   |                                       | (9,903  | ) |   |   | (12,752 | ) |   |   | (27,990 | ) |   |   | (262 | ) |   |   | (50,907 | ) |
| Earnings                    (loss) from continuing  operations before                    income taxes                    and     undernoted                    items |   |                                       | (10,352 | ) |   |   | 46,658 |   |   |   | 12,167 |   |   |   | 2,119 |   |   |   | 50,592 |   |
| Equity                    in earnings of associated companies and non-controlling                    interest                                                                                      |   |                                       | 50,805  |   |   |   | 31,261 |   |   |   | (288 | ) |   |   | (76,586 | ) |   |   | 5,192 |   |
| Intercompany                  charges                                                                                                                                                              |   |                                       | -       |   |   |   | 9,451 |   |   |   | (9,451 | ) |   |   | - |   |   |   | - |   |
| Income                  tax recovery (provision)                                                                                                                                                   |   |                                       | 2,400   |   |   |   | (14,336 | ) |   |   | (7,321 | ) |   |   | (3,264 | ) |   |   | (22,521 | ) |
| Net                    earnings from continuing operations                                                                                                                                    |   |                                       | 42,853  |   |   |   | 73,034 |   |   |   | (4,893 | ) |   |   | (77,731 | ) |   |   | 33,263 |   |
| Net                    earnings from discontinued operations                                                                                                                                  |   |                                       | -       |   |   |   | 9,590 |   |   |   | - |   |   |   | - |   |   |   | 9,590 |   |
| Net                  earnings                                                                                                                                                                      |   |                                       | 42,853  |   |   |   | 82,624 |   |   |   | (4,893 | ) |   |   | (77,731 | ) |   |   | 42,853 |   |
| Retained                  earnings, beginning of year                                                                                                                                              |   |                                       | 184,458 |   |   |   | 506,670 |   |   |   | 202,217 |   |   |   | (708,887 | ) |   |   | 184,458 |   |
| Dividends                                                                                                                                                                                          |   |                                       | (12,805 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (12,805 | ) |
|                                                                                                                                                                                               |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retained                  earnings, end of year                                                                                                                                                    |   | $                                          | 214,506 |   |   | $ | 589,294 |   |   | $ | 197,324 |   |   | $ | (786,618 | ) |   | $ | 214,506 |   |

----

|                                                                                               |   | 2005                                       |     |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------|
|                  For                  the year ended                  April 30           |   | CHC                  HelicopterCorporation |     |   | Guarantorsubsidiaries |   |   | Non-Guarantorsubsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  activities                                                              |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  flow                  from operations                                        |   | $                                          | (151     | ) |   | $ | 124,856 |   |   | $ | (23,343 | ) |   | $ | - |   |   | $ | 101,362 |   |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing                  activities                                                              |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                  debt proceeds                                                           |   |                                       | 356,258  |   |   |   | (24 | ) |   |   | 32,209 |   |   |   | (3,759 | ) |   |   | 384,684 |   |
| Long-term                  debt repayments                                                         |   |                                       | (242,588 | ) |   |   | (3,304 | ) |   |   | (794 | ) |   |   | 3,759 |   |   |   | (242,927 | ) |
| Dividends                  paid                                                                    |   |                                       | (11,596  | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (11,596 | ) |
| Capital                  stock                  issued                                             |   |                                       | 907      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 907 |   |
| Other                                                                                              |   |                                       | (7,363   | ) |   |   | - |   |   |   | (125 | ) |   |   | - |   |   |   | (7,488 | ) |
|                                                                                               |   |                                       | 95,618   |   |   |   | (3,328 | ) |   |   | 31,290 |   |   |   | - |   |   |   | 123,580 |   |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investing                  activities                                                              |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                  and                  equipment additions                                 |   |                                       | -        |   |   |   | (167,005 | ) |   |   | (67,737 | ) |   |   | - |   |   |   | (234,742 | ) |
| Helicopter                  major inspections                                                      |   |                                       | -        |   |   |   | (11,939 | ) |   |   | (3,600 | ) |   |   | - |   |   |   | (15,539 | ) |
| Proceeds                  from                  disposal                                           |   |                                       | -        |   |   |   | 39,798 |   |   |   | 51,127 |   |   |   | - |   |   |   | 90,925 |   |
| Aircraft                  deposits                                                                 |   |                                       | -        |   |   |   | (53,360 | ) |   |   | 377 |   |   |   | - |   |   |   | (52,983 | ) |
| Restricted                  cash                                                                   |   |                                       | -        |   |   |   | (1,985 | ) |   |   | (3,338 | ) |   |   | - |   |   |   | (5,323 | ) |
| Investment                    in                    subsidiaries, net of cash acquired             |   |                                       | -        |   |   |   | (17,984 | ) |   |   | - |   |   |   | - |   |   |   | (17,984 | ) |
| Other                                                                                              |   |                                       | 56       |   |   |   | (7,161 | ) |   |   | 30 |   |   |   | - |   |   |   | (7,075 | ) |
|                                                                                               |   |                                       | 56       |   |   |   | (219,636 | ) |   |   | (23,141 | ) |   |   | - |   |   |   | (242,721 | ) |
| Effect                    of                    exchange rate changes on cash and cash equivalents |   |                                       | -        |   |   |   | (4,116 | ) |   |   | 288 |   |   |   | - |   |   |   | (3,828 | ) |
|                                                                                               |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                    provided                    by (used in) continuing operations             |   |                                       | 95,523   |   |   |   | (102,224 | ) |   |   | (14,906 | ) |   |   | - |   |   |   | (21,607 | ) |
| Cash                  provided                  by discontinued operations                         |   |                                       | -        |   |   |   | 105 |   |   |   | 11,814 |   |   |   | - |   |   |   | 11,919 |   |
| Change                    in                    cash and cash equivalents during the year          |   |                                       | 95,523   |   |   |   | (102,119 | ) |   |   | (3,092 | ) |   |   | - |   |   |   | (9,688 | ) |
| Cash                    and cash equivalents,                    beginning of year                 |   |                                       | 1,168    |   |   |   | 43,263 |   |   |   | 16,648 |   |   |   | - |   |   |   | 61,079 |   |
| Cash                    and cash equivalents,                    end of year                       |   | $                                          | 96,691   |   |   | $ | (58,856 | ) |   | $ | 13,556 |   |   | $ | - |   |   | $ | 51,391 |   |

| 34. | SUBSEQUENT                EVENT |
|-----|---------------------------------|

| (a) | Sale                of Survival-One |
|-----|-------------------------------------|

| (b) | Renewal                of Credit Facility |
|-----|-------------------------------------------|

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| ITEM                  18. | FINANCIAL                  STATEMENTS |
|---------------------------|---------------------------------------|

----

| ITEM                19. | EXHIBITS |
|-------------------------|----------|

| 1.1  | Articles                of Amalgamation - filed as Exhibit 3.1 to the Company's Amendment                #1 to                Registration Statement on Form F-1 dated October 20, 1993 and                incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.2  | Certificates                  of Amendment to Articles of Amalgamation dated November 2, 1993,                  February 23, 1994, December 24, 1996, December 9, 1997,                  November 18, 2003 and April 14, 2005 filed as Exhibit 1.2                  to the Original Annual Report on Form 20-F and incorporated herein by                  reference.                                                                                                                                                                                                                                                                                                         |
| 1.3  | Bylaws,                as amended - filed as Exhibit 1.2 to the Company’s Form 20-F for fiscal                2002 dated September 17, 2002 and incorporated herein by                reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 1.4  | Amendments                  to By-laws filed as Exhibit 1.4 to the Original Annual Report on                  Form 20-F and incorporated herein by                  reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 2.1  | Indenture                dated as of April 27, 2004 among the Company, each of the Subsidiary                Guarantors named therein, and The Bank of New York, as Trustee, relating                to the 7 3/8% Senior Subordinated Notes due 2014 filed as Exhibit                4.5 to                the Company’s Registration Statement on Form F-4 dated June 30, 2004                and incorporated herein by reference.                                                                                                                                                                                                                                                                 |
| 2.2  | First                Supplemental Indenture dated as of December 23, 2004 among the Company,                each of the Additional Guarantors named therein and The Bank of New                York,                as Trustee, to the Indenture dated as of April 27, 2004 among the                Company,                each of the Subsidiary Guarantors named therein and the Trustee.                Filed as                Exhibit 2.2 to the Company’s Annual Report on Form 20-F for                fiscal 2006 and incorporated herein by reference.                                                                                                                                     |
| 2.3  | Form                of 7 3/8% Senior Subordinated Notes due 2014 filed as Exhibit 4.6                to the                Company’s Registration Statement on Form F-4 dated June 30, 2004 and                incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.3  | Purchase                Agreement dated April 21, 2004 among the Company, each of the                Subsidiary Guarantors named therein, Merrill Lynch & Co., Merrill                Lynch, Pierce, Fenner & Smith Incorporated and Scotia Capital (USA)                Inc. - filed as Exhibit 4.7 to the Company’s Registration Statement on                Form F-4 dated June 30, 2004 and incorporated herein by                reference.                                                                                                                                                                                                                                              |
| 4.4  | Second                Amended and Restated US $225,000,000 Senior Credit Agreement dated as                of December 22, 2004 among The Bank of Nova Scotia, as Administrative                Agent, The Lenders from time to time party to this Agreement and                the                Company, as amended by the amending agreements dated as of                February 2, 2005, March 11, 2005, June 10, 2005,                June 19, 2006, September 12, 2006, March 9, 2007 and                April 26, 2007 filed as Exhibit 4.4 to the Original Annual Report                on Form                20-F and incorporated herein by reference. |
| 4.6  | Employee                  Share Option Plan, as amended March 3, 2003 and September 28,                  2006 filed as Exhibit 4.6 to the Original Annual Report on                  Form 20-F and incorporated herein by                  reference.                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.9  | Employee                Share Purchase Plan, filed as Exhibit 4.9 to the Company’s Form 20-F for                fiscal 2001 dated September 13, 2001 and incorporated herein by                reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.10 | Share                Appreciation Rights Plan, filed as Exhibit 4.10 to the Company’s Form 20-F                for fiscal 2001 dated September 13, 2001 and incorporated herein by                reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 7.1  | Statement                Regarding Computation of Ratio of Earnings to Fixed Charges filed                as                Exhibit 7.1 to the Original Annual Report on Form 20-F and incorporated                herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 8.1  | Significant                  Subsidiaries filed as Exhibit 8.1 to the Original Annual Report on                  Form 20-F and incorporated herein by                  reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 12.1 | Section                302 Certification by Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 12.2 | Section                302 Certification by Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 13.1 | Section 906                Certification by Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 13.2 | Section                906 Certification by Chief Financial                Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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| Date:                January 24, 2008  | CHC                HELICOPTER                CORPORATION   BY: /s/                Rick Davis                                        Rick                DavisSenior                Vice-President & Chief Financial                Officer |
|---------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----