----

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

| For the quarterly period ended   | September 30, 2010 |
|--------------------------------------------|--------------------|

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

| For the transition period from   |   | to |   |
|--------------------------------------------|--------|----|--------|

| 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)                              |

| Large accelerated Filer £                                                        | Accelerated Filer T              |
|---------------------------------------------------------------------------------------|----------------------------------|
| Non-accelerated Filer £  (Do not check if a smaller reporting company) | Smaller reporting company £ |

----

----

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TABL

| PART I.    | FINANCIAL INFORMATION |                                                                                                                    |
|------------|-----------------------|-------------------------------------------------------------------------------------------------------------------------|
|       |                  |                                                                                                                    |   |
|       | Item 1.               | Condensed Consolidated Financial Statements                                                                             |   |
|       |                  |                                                                                                                    |   |
|       |                  | Condensed Consolidated Balance Sheets – September 30, 2010 and December 31, 2009 (unaudited)                      | 1 |
|       |                  |                                                                                                                    |   |
|       |                  | Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2010 and 2009 (unaudited) | 3 |
|       |                  |                                                                                                                    |   |
|       |                  | Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 (unaudited)       | 4 |
|       |                  |                                                                                                                    |   |
|       |                  | Notes to Condensed Consolidated Financial Statements (unaudited)                                                        | 6 |
|       |                  |                                                                                                                    |   |
|       | Item 2.               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                             | 10 |
|       |                  |                                                                                                                    |   |
|       | Item 3.               | Quantitative and Qualitative Disclosures about Market Risk                                                              | 18 |
|       |                  |                                                                                                                    |   |
|       | Item 4.               | Controls and Procedures                                                                                                 | 18 |
|       |                  |                                                                                                                    |   |
|       |                  |                                                                                                                    |   |
| PART II.   | OTHER INFORMATION     |                                                                                                                    |
|       |                  |                                                                                                                    |   |
|       | Item 1.               | Legal Proceedings                                                                                                       | 19 |
|       |                  |                                                                                                                    |   |
|       | Item 1A.              | Risk Factors                                                                                                            | 19 |
|       |                  |                                                                                                                    |   |
|       | Item 2.               | Changes in Securities                                                                                                   | 19 |
|       |                  |                                                                                                                    |   |
|       | Item 3.               | Defaults upon Senior Securities                                                                                         | 19 |
|       |                  |                                                                                                                    |   |
|       | Item 4.               | Reserved                                                                                                                | 19 |
|       |                  |                                                                                                                    |   |
|       | Item 5.               | Other Information                                                                                                       | 19 |
|       |                  |                                                                                                                    |   |
|       | Item 6.               | Exhibits                                                                                                                | 19 |
|       |                  |                                                                                                                    |   |
|       |                  |                                                                                                                    |   |
| SIGNATURES | 20                    |

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Table of Contents

Air 

|                                                                                                                         |   | September 30, |    |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                                                                         |   | 2010               |    |   | 2009              |   |
| Assets                                                                                                                       |   |               |    |   |              |   |
|                                                                                                                         |   |               |    |   |              |   |
| Current assets:                                                                                                              |   |               |    |   |              |   |
| Cash and cash equivalents                                                                                                    |   | $                  | 45,597  |   |              |   | 38,073 |   |
| Current installments of notes receivable                                                                                     |   |               | 4       |   |              |   | 467 |   |
| Receivables:                                                                                                                 |   |               |    |   |              |   |   |   |
| Trade, net                                                                                                                   |   |               | 131,274 |   |              |   | 113,563 |   |
| Refundable income taxes                                                                                                      |   |               | --      |   |              |   | 995 |   |
| Other                                                                                                                        |   |               | 1,891   |   |              |   | 2,264 |   |
|                                                                                                                         |   |               |    |   |              |   |   |   |
| Total receivables                                                                                                            |   |               | 133,165 |   |              |   | 116,822 |   |
|                                                                                                                         |   |               |    |   |              |   |   |   |
| Inventories, including work-in-process on medical interiors and products contracts                                           |   |               | 26,488  |   |              |   | 27,670 |   |
| Assets held for sale                                                                                                         |   |               | 13,965  |   |              |   | 10,425 |   |
| Costs and estimated earnings in excess of billings on uncompleted contracts                                                  |   |               | 1,325   |   |              |   | 6,614 |   |
| Prepaid expenses and other                                                                                                   |   |               | 8,870   |   |              |   | 7,025 |   |
|                                                                                                                         |   |               |    |   |              |   |   |   |
| Total current assets                                                                                                         |   |               | 229,414 |   |              |   | 207,096 |   |
|                                                                                                                         |   |               |    |   |              |   |   |   |
| Property and equipment:                                                                                                      |   |               |    |   |              |   |   |   |
| Land                                                                                                                         |   |               | 251     |   |              |   | 251 |   |
| Flight and ground support equipment                                                                                          |   |               | 218,142 |   |              |   | 202,282 |   |
| Aircraft rotable spare parts                                                                                                 |   |               | 36,312  |   |              |   | 28,295 |   |
| Buildings and office equipment                                                                                               |   |               | 37,401  |   |              |   | 34,274 |   |
|                                                                                                                         |   |               | 292,106 |   |              |   | 265,102 |   |
| Less accumulated depreciation and amortization                                                                               |   |               | (89,520 | )      |              |   | (83,360 | ) |
|                                                                                                                         |   |               |    |   |              |   |   |   |
| Net property and equipment                                                                                                   |   |               | 202,586 |   |              |   | 181,742 |   |
|                                                                                                                         |   |               |    |   |              |   |   |   |
| Goodwill                                                                                                                     |   |               | 20,291  |   |              |   | 20,291 |   |
| Notes receivable, less current installments                                                                                  |   |               | 122     |   |              |   | 125 |   |
| Other assets, net of accumulated amortization of $2,511 and $2,279 at September 30, 2010 and December 31, 2009, respectively |   |               | 14,015  |   |              |   | 14,878 |   |
|                                                                                                                         |   |               |    |   |              |   |   |   |
| Total assets                                                                                                                 |   | $                  | 466,428 |   |              |   | 424,132 |   |

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Table of Contents

|                                                                                                                                                                                                                                                                    |   | September 30, |    |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                    |   | 2010               |    |   | 2009              |   |
| Liabilities and Stockholders' Equity                                                                                                                                                                                                                                    |   |               |    |   |              |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |
| Current liabilities:                                                                                                                                                                                                                                                    |   |               |    |   |              |   |
| Notes payable                                                                                                                                                                                                                                                           |   | $                  | 10,322  |   |              |   | 4,510 |   |
| Current installments of long-term debt                                                                                                                                                                                                                                  |   |               | 14,531  |   |              |   | 14,882 |   |
| Current installments of obligations under capital leases                                                                                                                                                                                                                |   |               | 850     |   |              |   | 968 |   |
| Accounts payable                                                                                                                                                                                                                                                        |   |               | 12,995  |   |              |   | 11,509 |   |
| Deferred revenue                                                                                                                                                                                                                                                        |   |               | 5,489   |   |              |   | 6,482 |   |
| Billings in excess of costs and estimated earnings on uncompleted contracts                                                                                                                                                                                             |   |               | 857     |   |              |   | 759 |   |
| Accrued wages and compensated absences                                                                                                                                                                                                                                  |   |               | 15,556  |   |              |   | 12,438 |   |
| Due to third party payers                                                                                                                                                                                                                                               |   |               | 4,205   |   |              |   | 3,945 |   |
| Deferred income taxes                                                                                                                                                                                                                                                   |   |               | 4,564   |   |              |   | 8,883 |   |
| Income taxes payable                                                                                                                                                                                                                                                    |   |               | 2,779   |   |              |   | -- |   |
| Other accrued liabilities                                                                                                                                                                                                                                               |   |               | 12,330  |   |              |   | 9,354 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |   |   |
| Total current liabilities                                                                                                                                                                                                                                               |   |               | 84,478  |   |              |   | 73,730 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |   |   |
| Long-term debt, less current installments                                                                                                                                                                                                                               |   |               | 84,334  |   |              |   | 89,621 |   |
| Obligations under capital leases, less current installments                                                                                                                                                                                                             |   |               | 975     |   |              |   | 1,359 |   |
| Deferred income taxes                                                                                                                                                                                                                                                   |   |               | 40,310  |   |              |   | 35,034 |   |
| Other liabilities                                                                                                                                                                                                                                                       |   |               | 25,562  |   |              |   | 27,846 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                       |   |               | 235,659 |   |              |   | 227,590 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |   |   |
| Stockholders' equity (notes 2 and 3):                                                                                                                                                                                                                                   |   |               |    |   |              |   |   |   |
| Preferred stock, $1 par value.  Authorized 5,000,000 shares, none issued                                                                                                                                                                                      |   |               | --      |   |              |   | -- |   |
| Common stock, $.06 par value. Authorized 23,500,000 shares; issued 12,538,787 and 12,467,387 shares at September 30, 2010, and December 31, 2009, respectively; outstanding 12,533,121 and 12,459,554 shares at September 30, 2010, and December 31, 2009, respectively |   |               | 752     |   |              |   | 748 |   |
| Additional paid-in capital                                                                                                                                                                                                                                              |   |               | 85,709  |   |              |   | 82,978 |   |
| Retained earnings                                                                                                                                                                                                                                                       |   |               | 144,308 |   |              |   | 112,816 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |   |   |
| Total stockholders' equity                                                                                                                                                                                                                                              |   |               | 230,769 |   |              |   | 196,542 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |              |   |   |   |
| Total liabilities and stockholders’ equity                                                                                                                                                                                                                        |   | $                  | 466,428 |   |              |   | 424,132 |   |

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Table of Contents

Air 

|                                                                 |   | Three Months EndedSeptember 30, |       |   | Nine Months EndedSeptember 30, |   |
|----------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|------------------------------------------|--------|
|                                                                 |   | 2010                                      |       |   | 2009                                     |   |   | 2010 |   |   | 2009 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |
| Revenue:                                                             |   |                                      |       |   |                                     |   |   |   |   |   |   |   |
| Flight revenue, net                                                  |   | $                                         | 145,120    |   |                                     |   | 131,723 |   |   |   | 392,725 |   |   |   | 370,917 |   |
| Medical interiors and products revenue                               |   |                                      | 7,277      |   |                                     |   | 5,879 |   |   |   | 14,740 |   |   |   | 19,448 |   |
| Other                                                                |   |                                      | 1,537      |   |                                     |   | 972 |   |   |   | 4,153 |   |   |   | 2,613 |   |
|                                                                 |   |                                      | 153,934    |   |                                     |   | 138,574 |   |   |   | 411,618 |   |   |   | 392,978 |   |
| Operating expenses:                                                  |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Flight centers                                                       |   |                                      | 53,773     |   |                                     |   | 53,510 |   |   |   | 159,878 |   |   |   | 158,499 |   |
| Aircraft operations                                                  |   |                                      | 31,025     |   |                                     |   | 26,070 |   |   |   | 83,459 |   |   |   | 74,743 |   |
| Aircraft rental                                                      |   |                                      | 11,820     |   |                                     |   | 12,908 |   |   |   | 35,834 |   |   |   | 37,824 |   |
| Cost of medical interiors and products sold                          |   |                                      | 4,443      |   |                                     |   | 3,802 |   |   |   | 10,782 |   |   |   | 14,131 |   |
| Depreciation and amortization                                        |   |                                      | 6,381      |   |                                     |   | 4,758 |   |   |   | 18,114 |   |   |   | 13,976 |   |
| Gain on disposition of assets, net                                   |   |                                      | (147       | )      |                                     |   | (239 | ) |   |   | (257 | ) |   |   | (772 | ) |
| General and administrative                                           |   |                                      | 17,219     |   |                                     |   | 15,978 |   |   |   | 50,175 |   |   |   | 48,388 |   |
|                                                                 |   |                                      | 124,514    |   |                                     |   | 116,787 |   |   |   | 357,985 |   |   |   | 346,789 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                     |   |                                      | 29,420     |   |                                     |   | 21,787 |   |   |   | 53,633 |   |   |   | 46,189 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                              |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                     |   |                                      | (1,458     | )      |                                     |   | (1,285 | ) |   |   | (4,545 | ) |   |   | (3,643 | ) |
| Other, net                                                           |   |                                      | 390        |   |                                     |   | (37 | ) |   |   | 478 |   |   |   | 85 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                           |   |                                      | 28,352     |   |                                     |   | 20,465 |   |   |   | 49,566 |   |   |   | 42,631 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense                                                   |   |                                      | 9,723      |   |                                     |   | 7,861 |   |   |   | 18,074 |   |   |   | 16,387 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                           |   | $                                         | 18,629     |   |                                     |   | 12,604 |   |   |   | 31,492 |   |   |   | 26,244 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic income per common share (note 3)                               |   | $                                         | 1.49       |   |                                     |   | 1.02 |   |   |   | 2.52 |   |   |   | 2.15 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted income per common share (note 3)                             |   | $                                         | 1.48       |   |                                     |   | 1.01 |   |   |   | 2.51 |   |   |   | 2.12 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding – basic   |   |                                      | 12,504,382 |   |                                     |   | 12,337,120 |   |   |   | 12,476,577 |   |   |   | 12,218,369 |   |
|                                                                 |   |                                      |       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding – diluted |   |                                      | 12,583,414 |   |                                     |   | 12,498,320 |   |   |   | 12,556,788 |   |   |   | 12,397,026 |   |

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Table of Contents

Air

|                                                                              |   | Nine Months Ended September 30, |    |
|-----------------------------------------------------------------------------------|--------|--------------------------------------|---------|
|                                                                              |   | 2010                                 |    |   | 2009 |   |
| Cash flows from operating activities:                                             |   |                                 |    |   |   |   |
| Net income                                                                        |   | $                                    | 31,492  |   |   |   | 26,244 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                 |    |   |   |   |   |   |
| Depreciation and amortization expense                                             |   |                                 | 18,114  |   |   |   | 13,976 |   |
| Deferred income tax expense (benefit)                                             |   |                                 | 1,390   |   |   |   | (1,283 | ) |
| Stock-based compensation                                                          |   |                                 | 1,149   |   |   |   | 906 |   |
| Excess tax benefit from exercise of stock options                                 |   |                                 | (383    | ) |   |   | (1,347 | ) |
| Gain on disposition of assets, net                                                |   |                                 | (257    | ) |   |   | (772 | ) |
| Unrealized loss on derivative instruments                                         |   |                                 | 343     |   |   |   | 264 |   |
| Changes in assets and liabilities:                                                |   |                                 |    |   |   |   |   |   |
| Increase in prepaid expenses and other current assets                             |   |                                 | (7,575  | ) |   |   | (1,609 | ) |
| Decrease (increase) in receivables                                                |   |                                 | (16,343 | ) |   |   | 10,423 |   |
| Decrease (increase) in inventories                                                |   |                                 | 1,182   |   |   |   | (1,611 | ) |
| Decrease (increase) in costs in excess of billings                                |   |                                 | 5,289   |   |   |   | (3,380 | ) |
| Increase in accounts payable, other accrued liabilities, and other liabilities    |   |                                 | 8,403   |   |   |   | 10,953 |   |
| Decrease in deferred revenue and billings in excess of costs                      |   |                                 | (895    | ) |   |   | (659 | ) |
| Net cash provided by operating activities                                         |   |                                 | 41,909  |   |   |   | 52,105 |   |
|                                                                              |   |                                 |    |   |   |   |   |   |
| Cash flows from investing activities:                                             |   |                                 |    |   |   |   |   |   |
| Acquisition of property and equipment                                             |   |                                 | (36,762 | ) |   |   | (43,246 | ) |
| Proceeds from disposition and sale of equipment                                   |   |                                 | 6,644   |   |   |   | 8,060 |   |
| Decrease in notes receivable and other assets                                     |   |                                 | 719     |   |   |   | 2,300 |   |
| Net cash used by investing activities                                             |   |                                 | (29,399 | ) |   |   | (32,886 | ) |

|                                              |   |   |    |   |   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Cash flows from financing activities:             |   |   |    |   |   |   |
| Proceeds from issuance of common stock, net       |   |   | 1,203   |   |   |   | 3,239 |   |
| Excess tax benefit from exercise of stock options |   |   | 383     |   |   |   | 1,347 |   |
| Net repayments under line of credit               |   |   | --      |   |   |   | (19,258 | ) |
| Proceeds from issuance of long-term debt          |   |   | 6,188   |   |   |   | 34,035 |   |
| Payments for financing costs                      |   |   | (159    | )      |   |   | (573 | ) |
| Payments of long-term debt and notes payable      |   |   | (11,826 | )      |   |   | (26,544 | ) |
| Payments of capital lease obligations             |   |   | (775    | )      |   |   | (1,431 | ) |
| Net cash used by financing activities             |   |   | (4,986  | )      |   |   | (9,185 | ) |
|                                              |   |   |    |   |   |   |   |   |
| Increase in cash and cash equivalents             |   |   | 7,524   |   |   |   | 10,034 |   |
|                                              |   |   |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of period  |   |   | 38,073  |   |   |   | 13,147 |   |
|                                              |   |   |    |   |   |   |   |   |
| Cash and cash equivalents at end of period        |   | $      | 45,597  |   |   |   | 23,181 |   |
|                                              |   |   |    |   |   |   |   |   |
| Interest paid in cash during the period           |   | $      | 4,398   |   |   |   | 3,516 |   |
| Income taxes paid in cash during the period       |   | $      | 11,385  |   |   |   | 8,756 |   |

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Table of Contents

Air 

| (1) | Basis of Presentation |
|-----|-----------------------|

| (2) | Stockholders’ Equity |
|-----|----------------------------|

|                                            |   | Shares Outstanding |       |   | Amount |   |
|-------------------------------------------------|--------|--------------------|------------|--------|--------|--------|
|                                            |   |               |       |   |   |   |
| Balances at January 1, 2010                     |   |               | 12,459,554 |   |   | $      | 196,542 |   |
|                                            |   |               |       |   |   |   |   |   |
| Issuance of common shares for options exercised |   |               | 72,400     |   |   |   | 1,203 |   |
| Tax benefit from exercise of stock options      |   |               | --         |   |   |   | 383 |   |
| Stock-based compensation                        |   |               | 1,167      |   |   |   | 1,149 |   |
| Net income                                      |   |               | --         |   |   |   | 31,492 |   |
|                                            |   |               |       |   |   |   |   |   |
| Balances at September 30, 2010                  |   |               | 12,533,121 |   |   | $      | 230,769 |   |

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Table of Contents

| (3) | Income per Share |
|-----|------------------|

|                                                                 |   | 2010   |       |   | 2009   |   |
|----------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| For quarter ended September 30:                                      |   |   |       |   |   |   |
| Weighted average number of common shares outstanding – basic   |   |   | 12,504,382 |   |   |   | 12,337,120 |   |
| Dilutive effect of:                                                  |   |   |       |   |   |   |   |   |
| Common stock options                                                 |   |   | 74,721     |   |   |   | 155,524 |   |
| Unvested restricted stock                                            |   |   | 4,311      |   |   |   | 5,676 |   |
| Weighted average number of common shares outstanding – diluted |   |   | 12,583,414 |   |   |   | 12,498,320 |   |
|                                                                 |   |   |       |   |   |   |   |   |
| For nine months ended September 30:                                  |   |   |       |   |   |   |   |   |
| Weighted average number of common shares outstanding – basic   |   |   | 12,476,577 |   |   |   | 12,218,369 |   |
| Dilutive effect of:                                                  |   |   |       |   |   |   |   |   |
| Common stock options                                                 |   |   | 76,243     |   |   |   | 174,200 |   |
| Unvested restricted stock                                            |   |   | 3,968      |   |   |   | 4,457 |   |
| Weighted average number of common shares outstanding – diluted |   |   | 12,556,788 |   |   |   | 12,397,026 |   |

| (4) | New Accounting Pronouncements |
|-----|-------------------------------|

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

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Table of Contents

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

|   | · | Community-Based Services (CBS) - provides air medical transportation services to the general population as an independent service in 21 states at September 30, 2010. 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 33 states under exclusive operating agreements at September 30, 2010. 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

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

| For quarter ended September 30: |   | CBS    |    |   | HBS    |   |    | Products Division |   |   | Corporate Activities |   |   | Intersegment Eliminations |    |   | Consolidated |   |
|--------------------------------------|--------|--------|---------|--------|--------|--------|---------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|---------|--------|--------------|--------|
| 2010                                 |   |   |    |   |   |   |    |              |   |   |                 |   |   |                      |    |   |         |   |
| External revenue                     |   | $      | 96,038  |   |   |   | 50,630  |              |   |   | 7,266                |   |   |                      | --      |   |         |   | -- |   |   |   | 153,934 |   |
| Intersegment revenue                 |   |   | 56      |   |   |   | --      |              |   |   | 2,919                |   |   |                      | --      |   |         |   | (2,975 | ) |   |   | -- |   |
| Total revenue                        |   |   | 96,094  |   |   |   | 50,630  |              |   |   | 10,185               |   |   |                      | --      |   |         |   | (2,975 | ) |   |   | 153,934 |   |
|                                 |   |   |    |   |   |   |    |              |   |   |                 |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| Operating expenses                   |   |   | (65,259 | )      |   |   | (42,718 | )                 |   |   | (6,873               | )      |   |                      | (5,450  | )      |         |   | 2,167 |   |   |   | (118,133 | ) |
| Depreciation & amortization      |   |   | (3,257  | )      |   |   | (2,660  | )                 |   |   | (213                 | )      |   |                      | (251    | )      |         |   | -- |   |   |   | (6,381 | ) |
| Interest expense                     |   |   | (576    | )      |   |   | (744    | )                 |   |   | (6                   | )      |   |                      | (132    | )      |         |   | -- |   |   |   | (1,458 | ) |
| Other income, net                    |   |   | 10      |   |   |   | --      |              |   |   | --                   |   |   |                      | 380     |   |         |   | -- |   |   |   | 390 |   |
| Income tax expense                   |   |   | --      |   |   |   | --      |              |   |   | --                   |   |   |                      | (9,723  | )      |         |   | -- |   |   |   | (9,723 | ) |
| Segment net income (loss)            |   | $      | 27,012  |   |   |   | 4,508   |              |   |   | 3,093                |   |   |                      | (15,176 | )      |         |   | (808 | ) |   |   | 18,629 |   |
|                                 |   |   |    |   |   |   |    |              |   |   |                 |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| 2009                                 |   |   |    |   |   |   |    |              |   |   |                 |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| External revenue                     |   | $      | 81,166  |   |   |   | 51,553  |              |   |   | 5,855                |   |   |                      | --      |   |         |   | -- |   |   |   | 138,574 |   |
| Intersegment revenue                 |   |   | 54      |   |   |   | --      |              |   |   | 4,563                |   |   |                      | --      |   |         |   | (4,617 | ) |   |   | -- |   |
| Total revenue                        |   |   | 81,220  |   |   |   | 51,553  |              |   |   | 10,418               |   |   |                      | --      |   |         |   | (4,617 | ) |   |   | 138,574 |   |
|                                 |   |   |    |   |   |   |    |              |   |   |                 |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| Operating expenses                   |   |   | (60,102 | )      |   |   | (43,642 | )                 |   |   | (7,533               | )      |   |                      | (4,475  | )      |         |   | 3,723 |   |   |   | (112,029 | ) |
| Depreciation & amortization      |   |   | (2,505  | )      |   |   | (1,854  | )                 |   |   | (141                 | )      |   |                      | (258    | )      |         |   | -- |   |   |   | (4,758 | ) |
| Interest expense                     |   |   | (356    | )      |   |   | (730    | )                 |   |   | (9                   | )      |   |                      | (190    | )      |         |   | -- |   |   |   | (1,285 | ) |
| Other income (expense), net          |   |   | 12      |   |   |   | --      |              |   |   | --                   |   |   |                      | (49     | )      |         |   | -- |   |   |   | (37 | ) |
| Income tax expense                   |   |   | --      |   |   |   | --      |              |   |   | --                   |   |   |                      | (7,861  | )      |         |   | -- |   |   |   | (7,861 | ) |
| Segment net income (loss)            |   | $      | 18,269  |   |   |   | 5,327   |              |   |   | 2,735                |   |   |                      | (12,833 | )      |         |   | (894 | ) |   |   | 12,604 |   |

| For nine months ended September 30: |   |   |     |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |
|------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
| 2010                                     |   |   |     |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |
| External revenue                         |   | $      | 249,227  |   |   |   | 147,683  |   |   |   | 14,708  |   |   |   | --      |   |   |   | -- |   |   |   | 411,618 |   |
| Intersegment revenue                     |   |   | 167      |   |   |   | --       |   |   |   | 11,848  |   |   |   | --      |   |   |   | (12,015 | ) |   |   | -- |   |
| Total revenue                            |   |   | 249,394  |   |   |   | 147,683  |   |   |   | 26,556  |   |   |   | --      |   |   |   | (12,015 | ) |   |   | 411,618 |   |
|                                     |   |   |     |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Operating expenses                       |   |   | (190,243 | )      |   |   | (124,083 | )      |   |   | (21,059 | )      |   |   | (14,569 | )      |   |   | 10,083 |   |   |   | (339,871 | ) |
| Depreciation & amortization          |   |   | (9,120   | )      |   |   | (7,758   | )      |   |   | (509    | )      |   |   | (727    | )      |   |   | -- |   |   |   | (18,114 | ) |
| Interest expense                         |   |   | (1,764   | )      |   |   | (2,192   | )      |   |   | (20     | )      |   |   | (569    | )      |   |   | -- |   |   |   | (4,545 | ) |
| Other income, net                        |   |   | 32       |   |   |   | --       |   |   |   | --      |   |   |   | 446     |   |   |   | -- |   |   |   | 478 |   |
| Income tax expense                       |   |   | --       |   |   |   | --       |   |   |   | --      |   |   |   | (18,074 | )      |   |   | -- |   |   |   | (18,074 | ) |
| Segment net income (loss)                |   | $      | 48,299   |   |   |   | 13,650   |   |   |   | 4,968   |   |   |   | (33,493 | )      |   |   | (1,932 | ) |   |   | 31,492 |   |
|                                     |   |   |     |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| 2009                                     |   |   |     |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| External revenue                         |   | $      | 222,907  |   |   |   | 150,665  |   |   |   | 19,406  |   |   |   | --      |   |   |   | -- |   |   |   | 392,978 |   |
| Intersegment revenue                     |   |   | 162      |   |   |   | --       |   |   |   | 16,673  |   |   |   | --      |   |   |   | (16,835 | ) |   |   | -- |   |
| Total revenue                            |   |   | 223,069  |   |   |   | 150,665  |   |   |   | 36,079  |   |   |   | --      |   |   |   | (16,835 | ) |   |   | 392,978 |   |
|                                     |   |   |     |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Operating expenses                       |   |   | (176,936 | )      |   |   | (128,475 | )      |   |   | (28,327 | )      |   |   | (13,138 | )      |   |   | 14,063 |   |   |   | (332,813 | ) |
| Depreciation & amortization          |   |   | (7,379   | )      |   |   | (5,406   | )      |   |   | (436    | )      |   |   | (755    | )      |   |   | -- |   |   |   | (13,976 | ) |
| Interest expense                         |   |   | (1,074   | )      |   |   | (1,947   | )      |   |   | (18     | )      |   |   | (604    | )      |   |   | -- |   |   |   | (3,643 | ) |
| Other income, net                        |   |   | 36       |   |   |   | --       |   |   |   | --      |   |   |   | 49      |   |   |   | -- |   |   |   | 85 |   |
| Income tax expense                       |   |   | --       |   |   |   | --       |   |   |   | --      |   |   |   | (16,387 | )      |   |   | -- |   |   |   | (16,387 | ) |
| Segment net income (loss)                |   | $      | 37,716   |   |   |   | 14,837   |   |   |   | 7,298   |   |   |   | (30,835 | )      |   |   | (2,772 | ) |   |   | 26,244 |   |

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| 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 nine months ended September 30, 2010, the CBS Division generated 60% of our total revenue, increasing from 56% in the nine months ended September 30, 2009. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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 78% of total contract revenue) and hourly flight fees (approximately 22% of total contract revenue) billed to hospital customers. In the nine months ended September 30, 2010, the HBS Division generated 36% of our total revenue, decreasing from 39% in the nine months ended September 30, 2009. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Products Division - designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. Products Division generated 4% of our total revenue in the nine months ended September 30, 2010, compared to 5% in the nine months ended September 30, 2009. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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 22% of HBS revenue. By contrast, 79% of our costs primarily associated with flight operations incurred during 2010 (including salaries, aircraft ownership costs, hull insurance, and general and administrative expenses) 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 10,900 and 30,000 for the quarter and nine months ended September 30, 2010, respectively, compared to approximately 10,800 and 30,600 for the quarter and nine months ended September 30, 2009, respectively. Patient transports for CBS bases open longer than one year (Same-Base Transports) were approximately 10,100 and 27,800 in the quarter and nine months ended September 30, 2010, respectively, compared to approximately 10,600 and 29,800 in the quarter and nine months ended September 30, 2009, respectively. Cancellations due to unfavorable weather conditions for CBS bases open longer than one year were 321 and 71 lower in the quarter and nine months ended September 30, 2010, respectively, compared to 2009. Requests for community-based services decreased by 1.8% and 4.3% for the quarter and nine months ended September 30, 2010, respectively, for bases open greater than one year. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | 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. Net reimbursement per transport increased 13.1% in the nine months ended September 30, 2010, compared to 2009, attributed to recent price increases. Provisions for contractual discounts and estimated uncompensated care for CBS operations are as follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | For quarters endedSeptember 30, |   |   | For nine months endedSeptember 30, |   |
|-------------------------------------|--------|-------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                |   | 2010                                      |   |   | 2009                                              |   |   | 2010 |   |   | 2009 |   |
| Gross billings                      |   |                                      | 100    | %      |                                              |   | 100 | % |   |   | 100 | % |   |   | 100 | % |
| Provision for contractual discounts |   |                                      | 38     | %      |                                              |   | 37 | % |   |   | 39 | % |   |   | 38 | % |
| Provision for uncompensated care    |   |                                      | 20     | %      |                                              |   | 20 | % |   |   | 20 | % |   |   | 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, 2009, we have taken delivery of 21 new aircraft and expect to take delivery of five additional aircraft through the end of 2010. 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 maintenance expense for CBS and HBS operations increased 25.9% and 10.8% for the quarter and nine months ended September 30, 2010, respectively, compared to 2009. Total flight volume for CBS and HBS operations was relatively unchanged for the third quarter of 2010 compared to the third quarter of 2009 and decreased 5.2% for the nine months ended September 30, 2010, compared to 2009. During the quarter and nine months ended September 30, 2010, we incurred costs for 29 and 71 major maintenance events, such as engine and transmission overhauls, compared to 12 and 40 in the quarter and nine months ended September 30, 2009, primarily because of the timing of overhaul cycles. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | 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 regional 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. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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 3rd quarter of 2010. Other employee groups may also elect to be represented by unions in the future. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | CBS – Net flight revenue increased $14,301,000, or 17.8%, to $94,490,000 for the third quarter of 2010 and $24,767,000, or 11.2%, to $245,042,000 for the nine months ended September 30, 2010, for the following reasons: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases of 16.1% and 13.1% in net reimbursement per transport for the quarter and nine months ended September 30, 2010, respectively, compared to 2009, due to the benefit of recent price increases net of the deterioration in payer mix described above. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases of 487, or 4.6%, and 1,971, or 6.6%, in Same-Base Transports for the quarter and nine months ended September 30, 2010, respectively, compared to 2009. Cancellations due to unfavorable weather conditions for CBS bases open longer than one year were 321 and 71 lower in the quarter and nine months ended September 30, 2010, compared to 2009. Requests for community-based services decreased by 1.8% and 4.3% for the quarter and nine months ended September 30, 2010, respectively, for bases open greater than one year. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental net revenue of $7,396,000 and $18,127,000 for the quarter and nine months ended September 30, 2010, respectively, generated from the addition of nineteen new CBS bases—including seven bases resulting from the conversion of HBS contracts—during either 2010 or 2009 and from new service agreements with another air medical service provider in the Atlanta area effective February 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Closure of eight bases during either 2010 or 2009 due to insufficient flight volume, resulting in decreases in net revenue of approximately $1,160,000 and $3,569,000 during the quarter and nine months ended September 30, 2010, respectively. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | HBS – Net flight revenue decreased $904,000, or 1.8%, to $50,630,000 for the third quarter of 2010 and $2,959,000, or 2.0%, to $147,683,000 for the nine months ended September 30, 2010, for the following reasons: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cessation of service under six contracts and the conversion of three contracts to CBS operations during either 2010 or 2009, resulting in decreases in net revenue of approximately $4,128,000 and $11,955,000 for the quarter and nine months ended September 30, 2010, respectively. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Increase of 1.8% in flight volume for the quarter ended September 30, 2010, for all contracts excluding new contracts, contract expansions, and closed contracts. Flight volume decreased 1.7% for the nine months ended September 30, 2010, compared to the prior year, for the same group of contracts. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental net revenue of $1,158,000 and $1,810,000 for the quarter and nine months ended September 30, 2010, generated from the addition of one new contract during the first quarter of 2009 and the expansion of two other contracts during 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. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | CBS – Flight center costs increased $1,847,000, or 5.6%, to $34,915,000 for the third quarter of 2010 and $6,577,000, or 6.8%, to $103,199,000 for the nine months ended September 30, 2010, respectively, for the following reasons: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases of approximately $2,390,000 and $7,961,000 for the quarter and nine months ended September 30, 2010, respectively, for the addition of personnel to staff new base locations described above. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases of approximately $448,000 and $2,022,000 for the quarter and nine months ended September 30, 2010, respectively, due to the closure of base locations described above. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | HBS - Flight center costs decreased $1,584,000, or 7.7%, to $18,858,000 and $5,198,000, or 8.4%, to $56,679,000 for the quarter and nine months ended September 30, 2010, respectively, primarily due to the following: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases of approximately $1,543,000 and $4,859,000 for the quarter and nine months ended September 30, 2010, respectively, due to the closure of base locations described above. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase of approximately $191,000 for the quarter and nine months ended September 30, 2010, respectively, for the addition of personnel to staff new base locations described above. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | Increase in aircraft maintenance expense of $4,935,000, or 25.9%, to $23,951,000 and $6,055,000, or 10.8%, to $62,080,000 for the quarter and nine months ended September 30, 2010, respectively, compared to the prior year. Total flight volume for CBS and HBS operations was relatively unchanged during the third quarter of 2010 and decreased 5.2% for the nine months ended September 30, 2010, compared to prior year. During the quarter and nine months ended September 30, 2010, we incurred costs for 29 and 71 major maintenance events, such as engine and transmission overhauls, compared to 12 and 40 in the quarter and nine months ended September 30, 2009, primarily because of the timing of overhaul cycles. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Increases of approximately 1.3% and 14.5% in the cost of aircraft fuel per hour flown for the quarter and nine months ended September 30, 2010, respectively. Total fuel costs increased $229,000 to $3,513,000 and $1,239,000 to $10,000,000 for the quarter and nine months ended September 30, 2010, respectively, compared to 2009. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Increase in hull insurance rates effective July 2009, offset in part by a decrease in rates effective July 2010. |
|--------|------------------------------------------------------------------------------------------------------------------|

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| · | $5,806,000 and $10,004,000 – governmental entities |
|--------|----------------------------------------------------------|

| · | $1,471,000 and $4,736,000 – commercial customers |
|--------|--------------------------------------------------------|

| · | $3,592,000 and $14,076,000 – governmental entities |
|--------|----------------------------------------------------------|

| · | $2,287,000 and $5,372,000 – commercial customers |
|--------|--------------------------------------------------------|

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| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|---------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

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| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

| Item 2. | Changes in Securities |
|---------|-----------------------|

| 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 |
|--------|----|---------------------------------------------------------------------------------|

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SIGNATURES

|                              | AIR METHODS CORPORATION |
|-----------------------------------|-------------------------|
|                              |                    |   |
|                              |                    |   |
| Date:  November 5, 2010 | By                      | \s\   Aaron D. Todd |
|                              |                    | Aaron D. Todd |
|                              |                    | Chief Executive Officer |
|                              |                    | (Principal Executive Officer) |
|                              |                    |   |
|                              |                    |   |
| Date:  November 5, 2010 | By                      | \s\   Trent J. Carman |
|                              |                    | Trent J. Carman |
|                              |                    | Chief Financial Officer |
|                              |                    | (Principal Financial Officer) |
|                              |                    |   |
|                              |                    |   |
| Date:  November 5, 2010 | By                      | \s\   Sharon J. Keck |
|                              |                    | Sharon J. Keck |
|                              |                    | Chief Accounting Officer |
|                              |                    | (Principal Accounting Officer) |

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