----

----

| x |  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------------|

| o |  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------------|

| Delaware                                                       |   | 84-0915893                              |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification Number) |

| 7301 South Peoria, Englewood, Colorado         |   | 80112      |
|------------------------------------------------|--------|------------|
| (Address of Principal Executive Offices)  |   | (Zip Code) |

| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes x  No o |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o Noo |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer,” “large accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated Filer o                                                                                              Accelerated Filer xNon-accelerated Filer o  (Do not check if a smaller reporting company)             Smaller reporting company o |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)Yes o  No x |
|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

TABLE OF CONTENTS

| PART I.     | FINANCIAL INFORMATION                                                                                                                                                                              |         |
|---------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
|                            |                                                                                                                                                                                               |         |
|                            | Item 1.                Condensed Consolidated Financial Statements                                                      |         |
|                            |                                                                                                                                                                                               |         |
|                            | Condensed Consolidated Balance Sheets - March 31, 2011 and December 31, 2010                                                                                                                  | 1            |
|                            |                                                                                                                                                                                               |         |
|                            | Condensed Consolidated Statements of Income for the three months ended March 31, 2011 and 2010                                                                                                | 3            |
|                            |                                                                                                                                                                                               |         |
|                            | Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010                                                                                            | 4            |
|                            |                                                                                                                                                                                               |         |
|                            | Notes to Condensed Consolidated Financial Statements                                                                                                                                          | 6            |
|                            |                                                                                                                                                                                               |         |
|                            | Item 2.                Management's Discussion and Analysis of Financial Condition and Results of Operations  | 9            |
|                            |                                                                                                                                                                                               |         |
|                            | Item 3.                Quantitative and Qualitative Disclosures about Market Risk                             | 16           |
|                            |                                                                                                                                                                                               |         |
|                            | Item 4.                Controls and Procedures                                                                     | 16           |
|                            |                                                                                                                                                                                               |         |
| PART II.              | OTHER INFORMATION                                                                                                                                                                                  |         |
|                            |                                                                                                                                                                                               |         |
|                            | Item 1.                Legal Proceedings                                                                           | 17           |
|                            |                                                                                                                                                                                               |         |
|                            | Item 1A.             Risk Factors                                                                                                      | 17           |
|                            |                                                                                                                                                                                               |         |
|                            | Item 2.                Unregistered Sales of Equity Securities and Use of Proceeds                                 | 17           |
|                            |                                                                                                                                                                                               |         |
|                            | Item 3.                Defaults upon Senior Securities                                                             | 17           |
|                            |                                                                                                                                                                                               |    |
|                            | Item 4.                Reserved                                                                                    | 17           |
|                            |                                                                                                                                                                                               |    |
|                            | Item 5.                Other Information                                                                           | 17           |
|                            |                                                                                                                                                                                               |         |
|                            | Item 6.                Exhibits                                                                                    | 17           |
|                            |                                                                                                                                                                                               |         |
|                            | SIGNATURES                                                                                                                                                                                    | 18           |

----

Table of Contents

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                     |   | March 31, |    |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                                                                                     |   | 2011           |    |   | 2010              |   |
| Assets                                                                                                                   |   |           |    |   |              |   |
|                                                                                                                     |   |           |    |   |              |   |
| Current assets:                                                                                                          |   |           |    |   |              |   |
| Cash and cash equivalents                                                                                                |   | $              | 56,412  |   |              |   | 60,710 |   |
| Current installments of notes receivable                                                                                 |   |           | 4       |   |              |   | 4 |   |
| Receivables:                                                                                                             |   |           |    |   |              |   |   |   |
| Trade                                                                                                                    |   |           | 128,342 |   |              |   | 132,329 |   |
| Refundable income taxes                                                                                                  |   |           | 2,262   |   |              |   | 2,403 |   |
| Other                                                                                                                    |   |           | 1,691   |   |              |   | 3,510 |   |
|                                                                                                                     |   |           | 132,295 |   |              |   | 138,242 |   |
|                                                                                                                     |   |           |    |   |              |   |   |   |
| Inventories, including work-in-process on medical interiors and products contracts                                       |   |           | 26,086  |   |              |   | 26,820 |   |
| Assets held for sale                                                                                                     |   |           | 7,376   |   |              |   | 2,523 |   |
| Costs and estimated earnings in excess of billings on uncompleted contracts                                              |   |           | 456     |   |              |   | 160 |   |
| Prepaid expenses and other                                                                                               |   |           | 14,116  |   |              |   | 9,614 |   |
|                                                                                                                     |   |           |    |   |              |   |   |   |
| Total current assets                                                                                                     |   |           | 236,745 |   |              |   | 238,073 |   |
|                                                                                                                     |   |           |    |   |              |   |   |   |
| Property and equipment:                                                                                                  |   |           |    |   |              |   |   |   |
| Land                                                                                                                     |   |           | 251     |   |              |   | 251 |   |
| Flight and ground support equipment                                                                                      |   |           | 233,134 |   |              |   | 220,591 |   |
| Aircraft rotable spare parts                                                                                             |   |           | 37,504  |   |              |   | 35,375 |   |
| Buildings and other equipment                                                                                            |   |           | 38,491  |   |              |   | 37,371 |   |
|                                                                                                                     |   |           | 309,380 |   |              |   | 293,588 |   |
| Less accumulated depreciation and amortization                                                                           |   |           | (98,780 | )      |              |   | (92,713 | ) |
|                                                                                                                     |   |           |    |   |              |   |   |   |
| Net property and equipment                                                                                               |   |           | 210,600 |   |              |   | 200,875 |   |
|                                                                                                                     |   |           |    |   |              |   |   |   |
| Goodwill                                                                                                                 |   |           | 22,659  |   |              |   | 20,291 |   |
| Notes and other receivables, less current installments                                                                   |   |           | 120     |   |              |   | 121 |   |
| Other assets, net of accumulated amortization of $2,964 and $2,716 at March 31, 2011 and December 31, 2010, respectively |   |           | 15,783  |   |              |   | 15,319 |   |
|                                                                                                                     |   |           |    |   |              |   |   |   |
| Total assets                                                                                                             |   | $              | 485,907 |   |              |   | 474,679 |   |

----

Table of Contents

|                                                                                                                                                                                                                                                                 |   | March 31, |                     |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------------------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                 |   | 2011           |                     |   | 2010              |   |
| Liabilities and Stockholders' Equity                                                                                                                                                                                                                                 |   |           |                     |   |              |   |
|                                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |
| Current liabilities:                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |
| Notes payable                                                                                                                                                                                                                                                        |   | $              | 6,714                    |   |              |   | -- |   |
| Current installments of long-term debt                                                                                                                                                                                                                               |   |           | 14,731                   |   |              |   | 14,871 |   |
| Current installments of obligations under capital leases                                                                                                                                                                                                             |   |           | 880                      |   |              |   | 964 |   |
| Accounts payable                                                                                                                                                                                                                                                     |   |           | 12,485                   |   |              |   | 13,633 |   |
| Deferred revenue                                                                                                                                                                                                                                                     |   |           | 4,818                    |   |              |   | 6,089 |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts                                                                                                                                                                                          |   |           | 2,037                    |   |              |   | 638 |   |
| Accrued wages and compensated absences                                                                                                                                                                                                                               |   |           | 15,723                   |   |              |   | 13,941 |   |
| Due to third party payers                                                                                                                                                                                                                                            |   |           | 4,664                    |   |              |   | 4,628 |   |
| Deferred income taxes                                                                                                                                                                                                                                                |   |           | 7,963                    |   |              |   | 7,143 |   |
| Other accrued liabilities                                                                                                                                                                                                                                            |   |           | 12,232                   |   |              |   | 12,145 |   |
|                                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                            |   |           | 82,247                   |   |              |   | 74,052 |   |
|                                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |   |   |
| Long-term debt, less current installments                                                                                                                                                                                                                            |   |           | 76,752                   |   |              |   | 80,352 |   |
| Obligations under capital leases, less current installments                                                                                                                                                                                                          |   |           | 799                      |   |              |   | 953 |   |
| Deferred income taxes                                                                                                                                                                                                                                                |   |           | 44,378                   |   |              |   | 42,392 |   |
| Other liabilities                                                                                                                                                                                                                                                    |   |           | 27,806                   |   |              |   | 31,174 |   |
|                                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                    |   |           | 231,982                  |   |              |   | 228,923 |   |
|                                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |   |   |
| Stockholders' equity (note 3):                                                                                                                                                                                                                                       |   |           |                     |   |              |   |   |   |
| Preferred stock, $1 par value.  Authorized 5,000,000 shares, none issued                                                                                                                                                                                   |   |           | --                       |   |              |   | -- |   |
| Common stock, $.06 par value. Authorized 16,000,000 shares; issued 12,694,229 and 12,602,164 shares at March 31, 2011, and December 31, 2010, respectively; outstanding 12,641,729 and 12,600,998 shares at March 31, 2011, and December 31, 2010, respectively |   |           |       759 |   |              |   |       756 |   |
| Additional paid-in capital                                                                                                                                                                                                                                           |   |           | 90,249                   |   |              |   | 88,069 |   |
| Retained earnings                                                                                                                                                                                                                                                    |   |           | 162,917                  |   |              |   | 156,931 |   |
|                                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |   |   |
| Total stockholders' equity                                                                                                                                                                                                                                           |   |           | 253,925                  |   |              |   | 245,756 |   |
|                                                                                                                                                                                                                                                                 |   |           |                     |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                                                                                                                                                                     |   | $              | 485,907                  |   |              |   | 474,679 |   |

----

Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

|                                                                 |   | Three Months Ended March 31, |       |
|----------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                 |   | 2011                              |       |   | 2010 |   |
| Revenue:                                                             |   |                              |       |   |   |   |
| Flight revenue, net                                                  |   | $                                 | 124,521    |   |   |   | 113,279 |   |
| Sales of medical interiors and products                              |   |                              | 5,801      |   |   |   | 3,905 |   |
| Other                                                                |   |                              | 1,583      |   |   |   | 1,318 |   |
|                                                                 |   |                              | 131,905    |   |   |   | 118,502 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Operating expenses:                                                  |   |                              |       |   |   |   |   |   |
| Flight centers                                                       |   |                              | 55,654     |   |   |   | 53,136 |   |
| Aircraft operations                                                  |   |                              | 24,854     |   |   |   | 26,309 |   |
| Aircraft rental                                                      |   |                              | 11,741     |   |   |   | 12,303 |   |
| Cost of medical interiors and products sold                          |   |                              | 3,978      |   |   |   | 3,672 |   |
| Depreciation and amortization                                        |   |                              | 6,709      |   |   |   | 5,595 |   |
| Gain on disposition of assets, net                                   |   |                              | (361       | ) |   |   | (29 | ) |
| General and administrative                                           |   |                              | 18,307     |   |   |   | 15,935 |   |
|                                                                 |   |                              | 120,882    |   |   |   | 116,921 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Operating income                                                     |   |                              | 11,023     |   |   |   | 1,581 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Other income (expense):                                              |   |                              |       |   |   |   |   |   |
| Interest expense                                                     |   |                              | (1,328     | ) |   |   | (1,461 | ) |
| Other, net                                                           |   |                              | 180        |   |   |   | 46 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Income before income taxes                                           |   |                              | 9,875      |   |   |   | 166 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Income tax expense                                                   |   |                              | (3,889     | ) |   |   | (63 | ) |
|                                                                 |   |                              |       |   |   |   |   |   |
| Net income                                                           |   | $                                 | 5,986      |   |   |   | 103 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Basic income per common share (note 4)                               |   | $                                 | .47        |   |   |   | .01 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Diluted income per common share (note 4)                             |   | $                                 | .47        |   |   |   | .01 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Weighted average number of common shares outstanding – basic   |   |                              | 12,607,522 |   |   |   | 12,459,592 |   |
|                                                                 |   |                              |       |   |   |   |   |   |
| Weighted average number of common shares outstanding – diluted |   |                              | 12,758,669 |   |   |   | 12,529,664 |   |

----

Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                      |   | Three Months Ended March 31, |    |
|-------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                      |   | 2011                         |    |   | 2010 |   |
|                                                                                      |   |                         |    |   |   |   |
| Cash flows from operating activities:                                                     |   |                         |    |   |   |   |
| Net income                                                                                |   | $                            | 5,986   |   |   |   | 103 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:         |   |                         |    |   |   |   |   |   |
| Depreciation and amortization expense                                                     |   |                         | 6,709   |   |   |   | 5,595 |   |
| Deferred income tax expense (benefit)                                                     |   |                         | 2,806   |   |   |   | (902 | ) |
| Stock-based compensation                                                                  |   |                         | 691     |   |   |   | 361 |   |
| Tax expense (benefit) from exercise of stock options                                      |   |                         | (375    | ) |   |   | 12 |   |
| Gain on disposition of assets, net                                                        |   |                         | (361    | ) |   |   | (29 | ) |
| Unrealized loss (gain) on derivative instrument                                           |   |                         | (1,043  | ) |   |   | 216 |   |
| Changes in assets and liabilities, net of effects of acquisitions:                        |   |                         |    |   |   |   |   |   |
| Increase in prepaid expenses and other current assets                                     |   |                         | (3,349  | ) |   |   | (1,595 | ) |
| Decrease in receivables                                                                   |   |                         | 6,871   |   |   |   | 7,642 |   |
| Decrease in inventories                                                                   |   |                         | 1,179   |   |   |   | 267 |   |
| Decrease (increase) in costs in excess of billings                                        |   |                         | (296    | ) |   |   | 2,254 |   |
| Increase (decrease) in accounts payable, other accrued liabilities, and other liabilities |   |                         | (4,311  | ) |   |   | 5,480 |   |
| Increase (decrease) in deferred revenue and billings in excess of costs                   |   |                         | 38      |   |   |   | (465 | ) |
| Net cash provided by operating activities                                                 |   |                         | 14,545  |   |   |   | 18,939 |   |
|                                                                                      |   |                         |    |   |   |   |   |   |
| Cash flows from investing activities:                                                     |   |                         |    |   |   |   |   |   |
| Acquisition of membership interest of United Rotorcraft Solutions, LLC (note 2)           |   |                         | (1,554  | ) |   |   | -- |   |
| Acquisition of equipment and leasehold improvements                                       |   |                         | (16,270 | ) |   |   | (15,049 | ) |
| Proceeds from disposition and sale of equipment and assets held for sale                  |   |                         | 2,343   |   |   |   | 543 |   |
| Increase in notes receivable and other assets, net                                        |   |                         | (356    | ) |   |   | (182 | ) |
| Net cash used by investing activities                                                     |   |                         | (15,837 | ) |   |   | (14,688 | ) |
|                                                                                      |   |                         |    |   |   |   |   |   |

----

Table of Contents

|                                                 |   | Three Months Ended March 31, |   |
|------------------------------------------------------|--------|------------------------------|--------|
|                                                 |   | 2011                         |   |   | 2010 |   |
|                                                 |   |                         |   |   |   |   |
| Cash flows from financing activities:                |   |                         |   |   |   |   |
| Proceeds from long-term debt                         |   | $                            | --     |   |   |   | 3,750 |   |
| Payments for financing costs                         |   |                         | (36    | ) |   |   | (60 | ) |
| Payments of long-term debt and notes payable         |   |                         | (4,224 | ) |   |   | (3,690 | ) |
| Payments of capital lease obligations                |   |                         | (238   | ) |   |   | (252 | ) |
| Tax benefit (expense) from exercise of stock options |   |                         | 375    |   |   |   | (12 | ) |
| Proceeds from issuance of common stock, net          |   |                         | 1,117  |   |   |   | 98 |   |
| Net cash used by financing activities                |   |                         | (3,006 | ) |   |   | (166 | ) |
|                                                 |   |                         |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents     |   |                         | (4,298 | ) |   |   | 4,085 |   |
|                                                 |   |                         |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period     |   |                         | 60,710 |   |   |   | 38,073 |   |
|                                                 |   |                         |   |   |   |   |   |   |
| Cash and cash equivalents at end of period           |   | $                            | 56,412 |   |   |   | 42,158 |   |
|                                                 |   |                         |   |   |   |   |   |   |
| Interest paid in cash during the period              |   | $                            | 1,300  |   |   |   | 1,439 |   |
|                                                 |   |                         |   |   |   |   |   |   |
| Income taxes paid in cash during the period          |   | $                            | 566    |   |   |   | 163 |   |

----

Table of Contents

Notes to Condensed Consolidated Financial Statements

|   | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the condensed consolidated financial statements for the respective periods. Interim results are not necessarily indicative of results for a full year. The condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2010. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company considers its critical accounting policies involving more significant judgments and estimates to be those related to revenue recognition, deferred income taxes, valuation of long-lived assets, and fair values of assets acquired and liabilities assumed in business combinations. Actual results could differ from those estimates. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Changes in stockholders’ equity for the three months ended March 31, 2011, consisted of the following (amounts in thousands except share amounts): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | Shares Outstanding |       |   | Amount |   |
|-------------------------------------------------|--------|--------------------|------------|--------|--------|--------|
|                                            |   |               |       |   |   |   |
| Balances at January 1, 2011                     |   |               | 12,600,998 |   |   | $      | 245,756 |   |
|                                            |   |               |       |   |   |   |   |   |
| Issuance of common shares for options exercised |   |               | 39,565     |   |   |   | 1,117 |   |
| Stock-based compensation                        |   |               | 1,166      |   |   |   | 691 |   |
| Tax benefit from exercise of stock options      |   |               | --         |   |   |   | 375 |   |
| Net income                                      |   |               | --         |   |   |   | 5,986 |   |
|                                            |   |               |       |   |   |   |   |   |
| Balances at March 31, 2011                      |   |               | 12,641,729 |   |   | $      | 253,925 |   |

----

Table of Contents

|   | Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by all outstanding and dilutive potential common shares during the period. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The reconciliation of basic to diluted weighted average common shares outstanding is as follows for the quarters ended March 31: |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

|                                                                 |   | 2011   |       |   | 2010   |   |
|----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Weighted average number of common shares outstanding – basic   |   |   | 12,607,522 |   |   |   | 12,459,592 |   |
| Dilutive effect of:                                                  |   |   |       |   |   |   |   |   |
| Common stock options                                                 |   |   | 150,129    |   |   |   | 68,140 |   |
| Unvested restricted stock                                            |   |   | 1,018      |   |   |   | 1,932 |   |
| Weighted average number of common shares outstanding – diluted |   |   | 12,758,669 |   |   |   | 12,529,664 |   |

|   | Common stock options totaling 103,500 were not included in the diluted shares outstanding for the quarter ended March 31, 2010, because their effect would have been anti-dilutive. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (5) | Fair Value of Financial Instruments |
|-----------|-------------------------------------|

|   | The following methods and assumptions were used to estimate the fair value of each class of financial instruments: |
|--------|--------------------------------------------------------------------------------------------------------------------|

|   | Cash and cash equivalents, accounts receivable, notes receivable, notes payable, accounts payable, and accrued liabilities: |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| (6) | Business Segment Information |
|-----|------------------------------|

|   | Summarized financial information for the Company’s operating segments is shown in the following table (amounts in thousands). Amounts in the “Corporate Activities” column represent corporate headquarters expenses, corporate income tax expense, and results of insignificant operations. The Company does not allocate assets between operating segments for internal reporting and performance evaluation purposes. Operating segments and their principal products or services are as follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Community-Based Services (CBS) - provides air medical transportation services to the general population as an independent service in 25 states at March 31, 2011. Services include aircraft operation and maintenance, medical care, dispatch and communications, and medical billing and collection. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hospital-Based Services (HBS) - provides air medical transportation services to hospitals in 30 states under exclusive operating agreements at March 31, 2011. Services include aircraft operation and maintenance. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Products Division - designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  For quarter ended March 31: |   | CBS    |    |   | HBS    |   |    | ProductsDivision |   |   | CorporateActivities |   |   | IntersegmentEliminations |   |   | Consolidated |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|---------|------------------|--------|--------|---------------------|--------|--------|--------------------------|--------|--------|--------------|--------|
| 2011                              |   |   |    |   |   |   |    |             |   |   |                |   |   |                     |   |   |         |   |
| External revenue                  |   | $      | 79,968  |   |   |   | 46,146  |             |   |   | 5,791               |   |   |                     | --     |   |         |   | -- |   |   |   | 131,905 |   |
| Intersegment revenue              |   |   | 57      |   |   |   | --      |             |   |   | 5,668               |   |   |                     | --     |   |         |   | (5,725 | ) |   |   | -- |   |
| Total revenue                     |   |   | 80,025  |   |   |   | 46,146  |             |   |   | 11,459              |   |   |                     | --     |   |         |   | (5,725 | ) |   |   | 131,905 |   |
|  Operating expenses          |   |   | (65,563 | )      |   |   | (38,633 | )                |   |   | (8,279              | )      |   |                     | (5,847 | )      |         |   | 4,149 |   |   |   | (114,173 | ) |
| Depreciation & amortization   |   |   | (3,498  | )      |   |   | (2,715  | )                |   |   | (223                | )      |   |                     | (273   | )      |         |   | -- |   |   |   | (6,709 | ) |
| Interest expense                  |   |   | (520    | )      |   |   | (669    | )                |   |   | (5                  | )      |   |                     | (134   | )      |         |   | -- |   |   |   | (1,328 | ) |
| Other income, net                 |   |   | 16      |   |   |   | --      |             |   |   | --                  |   |   |                     | 164    |   |         |   | -- |   |   |   | 180 |   |
| Income tax expense                |   |   | --      |   |   |   | --      |             |   |   | --                  |   |   |                     | (3,889 | )      |         |   | -- |   |   |   | (3,889 | ) |
| Segment net income (loss)         |   | $      | 10,460  |   |   |   | 4,129   |             |   |   | 2,952               |   |   |                     | (9,979 | )      |         |   | (1,576 | ) |   |   | 5,986 |   |
|                              |   |   |    |   |   |   |    |             |   |   |                |   |   |                     |   |   |         |   |   |   |   |   |   |   |
| 2010                              |   |   |    |   |   |   |    |             |   |   |                |   |   |                     |   |   |         |   |   |   |   |   |   |   |
| External revenue                  |   | $      | 66,606  |   |   |   | 48,000  |             |   |   | 3,896               |   |   |                     | --     |   |         |   | -- |   |   |   | 118,502 |   |
| Intersegment revenue              |   |   | 55      |   |   |   | --      |             |   |   | 3,887               |   |   |                     | --     |   |         |   | (3,942 | ) |   |   | -- |   |
| Total revenue                     |   |   | 66,661  |   |   |   | 48,000  |             |   |   | 7,783               |   |   |                     | --     |   |         |   | (3,942 | ) |   |   | 118,502 |   |
|  Operating expenses          |   |   | (62,475 | )      |   |   | (40,834 | )                |   |   | (7,159              | )      |   |                     | (4,237 | )      |         |   | 3,379 |   |   |   | (111,326 | ) |
| Depreciation & amortization   |   |   | (2,798  | )      |   |   | (2,415  | )                |   |   | (144                | )      |   |                     | (238   | )      |         |   | -- |   |   |   | (5,595 | ) |
| Interest expense                  |   |   | (552    | )      |   |   | (723    | )                |   |   | (7                  | )      |   |                     | (179   | )      |         |   | -- |   |   |   | (1,461 | ) |
| Other income, net                 |   |   | 18      |   |   |   | --      |             |   |   | --                  |   |   |                     | 28     |   |         |   | -- |   |   |   | 46 |   |
| Income tax expense                |   |   | --      |   |   |   | --      |             |   |   | --                  |   |   |                     | (63    | )      |         |   | -- |   |   |   | (63 | ) |
| Segment net income (loss)         |   | $      | 854     |   |   |   | 4,028   |             |   |   | 473                 |   |   |                     | (4,689 | )      |         |   | (563 | ) |   |   | 103 |   |

----

Table of Contents

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

| · | Community-Based Services (CBS) - provides air medical transportation services to the general population as an independent service. Revenue consists of flight fees billed directly to patients, their insurers, or governmental agencies, and cash flow is dependent upon collection from these individuals or entities. In the first quarter of 2011 the CBS Division generated 61% of our total revenue, compared to 56% in the first quarter of 2010. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Hospital-Based Services (HBS) - provides air medical transportation services to hospitals throughout the U.S. under exclusive operating agreements. Revenue consists of fixed monthly fees (approximately 80% of total contract revenue) and hourly flight fees (approximately 20% of total contract revenue) billed to hospital customers. In the first quarter of 2011 the HBS Division generated 35% of our total revenue, compared to 41% in 2010. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Products Division - designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. In the first quarter of 2011 the Products Division generated 4% of our total revenue, compared to 3% in 2010. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Flight volume. Fluctuations in flight volume have a greater impact on CBS operations than HBS operations because almost all of CBS revenue is derived from flight fees, as compared to approximately 20% of HBS revenue. By contrast, 82% of our costs primarily associated with flight operations (including salaries, aircraft ownership costs, hull insurance, and general and administrative expenses) incurred during the quarter ended March 31, 2011, are mainly fixed in nature. While flight volume is affected by many factors, including competition and the effectiveness of marketing and business development initiatives, the greatest single variable has historically been weather conditions. Adverse weather conditions—such as fog, high winds, or heavy precipitation—hamper our ability to operate our aircraft safely and, therefore, result in reduced flight volume. Total patient transports for CBS operations were approximately 8,900 for the first quarter of 2011 compared to approximately 8,600 for the first quarter of 2010. Patient transports for CBS bases open longer than one year (Same-Base Transports) were approximately 8,300 in the first quarter of 2011, compared to 8,400 in the first quarter of 2010. Cancellations due to unfavorable weather conditions for CBS bases open longer than one year were 324 higher in the first quarter of 2011, compared to the first quarter of 2010. Requests for community-based services increased by 3.3% for bases open greater than one year. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| · | Reimbursement per transport. We respond to calls for air medical transports without pre-screening the creditworthiness of the patient and are subject to collection risk for services provided to insured and uninsured patients. Medicare and Medicaid also receive contractual discounts from our standard charges for flight services. Flight revenue is recorded net of provisions for contractual discounts and estimated uncompensated care. Both provisions are estimated during the period the related services are performed based on historical collection experience and any known trends or changes in reimbursement rate schedules and payer mix. The provisions are adjusted as required based on actual collections in subsequent periods. Net reimbursement per transport for CBS operations is primarily a function of price, payer mix, and timely and effective collection efforts. Both the pace of collections and the ultimate collection rate are affected by the overall health of the U.S. economy, which impacts the number of indigent patients and funding for state-run programs, such as Medicaid. Medicaid reimbursement rates in many jurisdictions have remained well below the cost of providing air medical transportation. In addition, the collection rate is impacted by changes in the cost of healthcare and health insurance; as the cost of healthcare increases, health insurance coverage provided by employers may be reduced or eliminated entirely, resulting in an increase in the uninsured population. The impact of recently enacted healthcare legislation is still unknown since many of the legislation’s provisions have yet to take effect. Net reimbursement per transport increased 16.0% in the quarter ended March 31, 2011, compared to the quarter ended March 31, 2010, attributed to recent price increases. Provisions for contractual discounts and estimated uncompensated care for CBS operations were as follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | For quarters ended March 31, |   |
|-------------------------------------|--------|------------------------------|--------|
|                                |   | 2011                         |   |   | 2010 |   |
| Gross billings                      |   |                         | 100    | % |   |   | 100 | % |
| Provision for contractual discounts |   |                         | 44     | % |   |   | 40 | % |
| Provision for uncompensated care    |   |                         | 16     | % |   |   | 20 | % |

| · | Aircraft maintenance. Both CBS and HBS operations are directly affected by fluctuations in aircraft maintenance costs. Proper operation of the aircraft by flight crews and standardized maintenance practices can help to contain maintenance costs. Increases in spare parts prices from original equipment manufacturers tend to be higher for aircraft which are no longer in production. Two models of aircraft within our fleet, representing 22% of the rotor wing fleet, are no longer in production and are, therefore, susceptible to price increases which outpace general inflationary trends. In addition, on-condition components are more likely to require replacement with age. Since January 1, 2010, we have taken delivery of twelve new aircraft and expect to take delivery of a total of 35 additional aircraft during 2011 and 2012. We have replaced discontinued models and other older aircraft with the new aircraft, as well as provided capacity for base expansion. Replacement models of aircraft typically have higher ownership costs than the models targeted for replacement but lower maintenance costs. Total aircraft maintenance expense decreased 3.1% from the first quarter of 2010 to the first quarter of 2011, while total flight hours for CBS and HBS operations increased 3.1% over the same period. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Competitive pressures from low-cost providers. We are recognized within the industry for our standard of service and our use of cabin-class aircraft. Many of our competitors utilize aircraft with lower ownership and operating costs and do not require a similar level of experience for aviation and medical personnel. Reimbursement rates established by Medicare, Medicaid, and most insurance providers are not contingent upon the type of aircraft used or the experience of personnel. However, we believe that higher quality standards help to differentiate our service from competitors and, therefore, lead to higher utilization. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| · | Employee recruitment and relations. The ability to deliver quality services is partially dependent upon our ability to hire and retain employees who have advanced aviation, nursing, and other technical skills. In addition, hospital contracts typically contain minimum certification requirements for pilots and mechanics. The collective bargaining agreement covering our pilots expired on April 30, 2009. Negotiations on a new CBA commenced in the fourth quarter of 2008 and were referred for mediation during the second quarter of 2009. Under the Railway Labor Act, mediation decisions are non-binding on either party, and the duration of the process may vary depending upon the mediator assigned and the complexity of the issues negotiated. No meetings were held by the mediator during the first and second quarters of 2010, but resumed during the third quarter of 2010. Although negotiations are active, no agreement has yet been reached. Other employee groups may also elect to be represented by unions in the future. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | CBS – Net flight revenue increased $13,096,000, or 20.1%, to $78,375,000 in the three months ended March 31, 2011, compared to 2010, for the following reasons: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase of 16.0% in net reimbursement per transport for the first quarter of 2011, compared to 2010, due to the benefit of recent price increases. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decrease in Same-Base Transports of 114, or 1.4%, in the first quarter of 2011 compared to 2010. Cancellations due to unfavorable weather conditions for CBS bases open longer than one year were 324 higher in the first quarter of 2011, compared to the first quarter of 2010. Requests for community-based services increased by 3.3% for bases open greater than one year. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental net revenue of $5,384,000 generated from the addition of nine new CBS bases either during or subsequent to the first quarter of 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Closure of three bases subsequent to the first quarter of 2010 due to insufficient flight volume, resulting in a decrease in net revenue of approximately $2,008,000. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | HBS – Net flight revenue decreased $1,854,000, or 3.9%, to $46,146,000 for the quarter ended March 31, 2011, compared to 2010, for the following reasons: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cessation of service under three contracts and the conversion of three contracts to CBS operations during or subsequent to the first quarter of 2010, resulting in a decrease in net revenue of approximately $3,996,000. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase of 0.8% in flight volume for all contracts excluding new contracts, contract expansions, and closed contracts. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental net revenue of $1,413,000 generated from expansion under three contracts to additional bases of operation subsequent to the first quarter of 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Annual price increases in the majority of contracts based on stipulated contractual increases, changes in the Consumer Price Index or spare parts prices from aircraft manufacturers, and the renewal of contracts at higher rates. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| · | CBS – Flight center costs increased $2,757,000, or 8.1%, to $36,767,000 for the following reasons: |
|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Increase of approximately $2,050,000 for the addition of personnel to staff new base locations described above. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Decrease of $1,073,000 due to the closure of base locations described above. |
|--------|--------|------------------------------------------------------------------------------|

|   | · | Increase in salaries for merit pay raises. |
|--------|--------|--------------------------------------------|

| · | HBS – Flight center costs decreased $239,000, or 1.2%, to $18,887,000 primarily due to the following: |
|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | Decrease of $1,234,000 due to the closure of base locations described above. |
|--------|--------|------------------------------------------------------------------------------|

|   | · | Increase of approximately $435,000 for the addition of personnel to staff new base locations described above. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | Increase in salaries for merit pay raises. |
|--------|--------|--------------------------------------------|

| · | Decrease of $607,000, or 3.1%, in aircraft maintenance expense to $19,003,000, due primarily to the timing of aircraft component overhaul and replacement cycles. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decrease of approximately 13.2% in the cost of aircraft fuel per hour flown. Fuel cost decreased by $424,000 to a total expense of $2,526,000 for 2011. We have a financial derivative agreement to protect against aircraft fuel price increases greater than 20%, covering approximately 90% of our anticipated fuel consumption for 2011. Fuel expense for the quarter included a non-cash mark to market derivative gain of $1,043,000. Cash settlements under the terms of the agreements totaled $179,000 in the first quarter of 2011. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decrease in hull insurance rates effective July 2010. |
|--------|-------------------------------------------------------|

| · | $4,803,000 – governmental entities |
|--------|------------------------------------------|

| · | $998,000 – commercial customers |
|--------|---------------------------------------|

| · | $1,919,000 – governmental entities |
|--------|------------------------------------------|

| · | $1,986,000 – commercial customers |
|--------|-----------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

Item 4.  Controls and Procedures

----

Table of Contents

Item 1.       Legal Proceedings

Item 1A.    Risk Factors

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.       Defaults Upon Senior Securities

Item 4.       Reserved

Item 5.       Other Information

Item 6.       Exhibits

| 31.1 | Chief Executive Officer Certification adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|------|---------------------------------------------------------------------------------------------------------|

| 31.2 | Chief Financial Officer Certification adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|------|---------------------------------------------------------------------------------------------------------|

| 32 | Certification adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|----|---------------------------------------------------------------------------------|

----

Table of Contents

SIGNATURES

|                         | AIR METHODS CORPORATION |                          |
|------------------------------|-------------------------|-------------------------------|
|                         |                    |                          |   |
| Date:  May 6, 2011 | By:                     | /s/Aaron D. Todd              |   |
|                         |                    | Aaron D. Todd                 |   |
|                         |                    | Chief Executive Officer       |   |
|                         |                    | (Principal Executive Officer) |   |

| Date:  May 6, 2011  | By:    | /s/ Trent J. Carman      |   |
|------------------------------------|--------|-------------------------------|--------|
|                               |   | Trent J. Carman               |   |
|                               |   | Chief Financial Officer       |   |
|                               |   | (Principal Financial Officer) |   |

| Date:  May 6, 2011  | By:    | /s/ Sharon J. Keck        |   |
|------------------------------------|--------|--------------------------------|--------|
|                               |   | Sharon J. Keck                 |   |
|                               |   | Chief Accounting Officer       |   |
|                               |   | (Principal Accounting Officer) |   |

----