UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                               ___________________

                                    FORM 10-Q


(Mark One)
X    QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF THE SECURITIES
     EXCHANGE  ACT  OF  1934

For the quarterly period ended              June 30, 2006
                               ------------------------------------------------

                                       OR

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

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

                         Commission file number  0-16079
                                                 -------

                            AIR METHODS CORPORATION
                            -----------------------
             (Exact name of Registrant as Specified in Its Charter)

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


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

       Registrant's Telephone Number, Including Area Code (303) 792-7400
                                                          --------------

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  [ ]

Indicate  by  check mark whether the registrant is a large accelerated filer, an
accelerated  filer  or  a  non-accelerated filer. See definition of "accelerated
filer  and  large  accelerated  filer"  in Rule 12b-2 of the Exchange Act (check
one):
Large accelerated Filer [ ]   Accelerated Filer [X]    Non-accelerated Filer [ ]

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

The number of shares of Common Stock, par value $.06, outstanding as of July 28,
2006,  was  11,761,613.


<PAGE>
<TABLE>
<CAPTION>
                                      TABLE OF CONTENTS


PART I.     FINANCIAL INFORMATION
<S>         <C>                                                                           <C>

            Item 1.   Consolidated Unaudited Financial Statements

                      Consolidated Balance Sheets - June 30, 2006 and December 31, 2005    1

                      Consolidated Statements of Operations for the three and six
                        months ended June 30, 2006 and 2005                                3

                      Consolidated Statements of Cash Flows for the six months ended
                        June 30, 2006 and 2005                                             4

                      Notes to Unaudited Consolidated Financial Statements                 6

            Item 2.   Management's Discussion and Analysis of Financial Condition
                        and Results of Operations                                         11

            Item 3.   Quantitative and Qualitative Disclosures about Market Risk          19

            Item 4.   Controls and Procedures                                             19


PART II.    OTHER INFORMATION

            Item 1.   Legal Proceedings                                                   20

            Item 1A.  Risk Factors                                                        20

            Item 2.   Changes in Securities                                               20

            Item 3.   Defaults upon Senior Securities                                     20

            Item 4.   Submission of Matters to a Vote of Security Holders                 20

            Item 5.   Other Information                                                   20

            Item 6.   Exhibits                                                            20


SIGNATURES                                                                                21
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
                             PART I: FINANCIAL INFORMATION

                       ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

                        AIR METHODS CORPORATION AND SUBSIDIARIES

                              CONSOLIDATED BALANCE SHEETS
                      (AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
                                      (UNAUDITED)


                                                               JUNE 30,   DECEMBER 31,
                                                                 2006         2005
                                                              -------------------------
<S>                                                           <C>         <C>
Assets
------

Current assets:
  Cash and cash equivalents                                   $   2,778          3,218
  Current installments of notes receivable                           79             65
  Receivables:
    Trade                                                       157,901        129,107
    Less allowance for doubtful accounts                        (61,010)       (45,540)
                                                              -------------------------
                                                                 96,891         83,567
    Other                                                         2,138          2,524
                                                              -------------------------

          Total receivables                                      99,029         86,091
                                                              -------------------------

Inventories                                                       9,819          9,197
Work-in-process on medical interiors and products contracts       2,030            762
Assets held for sale                                             11,221          6,446
Costs and estimated earnings in excess of billings on
  uncompleted contracts                                           3,599          3,548
Deferred income taxes                                             2,525          1,133
Prepaid expenses and other                                        2,452          2,051
                                                              -------------------------

          Total current assets                                  133,532        112,511
                                                              -------------------------

Property and equipment:
  Land                                                              251            441
  Flight and ground support equipment                           148,238        143,342
  Furniture and office equipment                                 13,133         13,354
                                                              -------------------------
                                                                161,622        157,137
  Less accumulated depreciation and amortization                (68,468)       (63,607)
                                                              -------------------------

          Net property and equipment                             93,154         93,530
                                                              -------------------------

Goodwill                                                          6,485          6,485
Notes receivable, less current installments                         100             99
Other assets, net of accumulated amortization of $3,258 and
  $2,773 at June 30, 2006 and December 31, 2005, respectively     8,058          8,907
                                                              -------------------------

          Total assets                                        $ 241,329        221,532
                                                              =========================
</TABLE>

                                                                     (Continued)


                                        1
<PAGE>
<TABLE>
<CAPTION>
                        AIR METHODS CORPORATION AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS, CONTINUED
               (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                                       (UNAUDITED)


                                                               JUNE 30,     DECEMBER 31,
                                                                 2006           2005
                                                             ---------------------------
<S>                                                          <C>            <C>
Liabilities and Stockholders' Equity
------------------------------------

Current liabilities:
  Notes payable                                              $      11,221         6,446
  Current installments of long-term debt                             7,789         9,399
  Current installments of obligations under capital leases             818           657
  Accounts payable                                                   9,553         8,405
  Deferred revenue                                                   1,928         3,913
  Billings in excess of costs and estimated earnings on
    uncompleted contracts                                              552           332
  Accrued wages and compensated absences                             5,519         7,217
  Due to third party payers                                          2,472         1,858
  Other accrued liabilities                                          8,514         7,445
                                                             ---------------------------

          Total current liabilities                                 48,366        45,672

Long-term debt, less current installments                           67,089        57,704
Obligations under capital leases, less current installments            529           688
Deferred income taxes                                               19,641        19,997
Other liabilities                                                   10,905        11,260
                                                             ---------------------------

          Total liabilities                                        146,530       135,321
                                                             ---------------------------

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 11,761,613 and 11,605,590 shares at
    June 30, 2006, and December 31, 2005, respectively                 706           696
  Additional paid-in capital                                        68,404        66,219
  Retained earnings                                                 25,689        19,296
                                                             ---------------------------

          Total stockholders' equity                                94,799        86,211
                                                             ---------------------------

          Total liabilities and stockholders' equity         $     241,329       221,532
                                                             ===========================
</TABLE>


See accompanying notes to unaudited consolidated financial statements.


                                        2
<PAGE>
<TABLE>
<CAPTION>
                                  AIR METHODS CORPORATION AND SUBSIDIARIES

                                    CONSOLIDATED STATEMENTS OF OPERATIONS
                         (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
                                                 (UNAUDITED)


                                                            THREE MONTHS ENDED          SIX MONTHS ENDED
                                                                  JUNE 30,                 JUNE 30,
                                                         ---------------------------------------------------
                                                             2006         2005         2006         2005
                                                         ---------------------------------------------------
<S>                                                      <C>           <C>          <C>          <C>
Revenue:
  Flight revenue                                         $   103,795       85,865      191,626      152,823
  Sales of medical interiors and products                      1,334        1,800        2,903        3,324
  Parts and maintenance sales and services                       106           20          142           46
  Other, net                                                     647           --          562           --
                                                         ---------------------------------------------------
                                                             105,882       87,685      195,233      156,193
                                                         ---------------------------------------------------
Operating expenses:
  Flight centers                                              32,972       26,531       64,321       52,277
  Aircraft operations                                         19,621       16,809       36,831       31,738
  Aircraft rental                                              5,365        4,482       10,369        8,762
  Medical interiors and products sold                            542        1,153        1,413        1,996
  Cost of parts and maintenance sales and services                 9           18           43           65
  Depreciation and amortization                                3,194        2,971        6,365        5,868
  Bad debt expense                                            26,758       16,236       43,165       26,347
  Loss on disposition of assets, net                              --          274           --          381
  General and administrative                                  10,021        9,065       19,848       17,828
                                                         ---------------------------------------------------
                                                              98,482       77,539      182,355      145,262
                                                         ---------------------------------------------------

          Operating income                                     7,400       10,146       12,878       10,931

Other income (expense):
  Interest expense                                            (1,470)      (1,525)      (2,826)      (3,418)
  Loss on early extinguishment of debt                            --       (3,104)          --       (3,104)
  Other, net                                                     394          (40)         740          333
                                                         ---------------------------------------------------

Income before income taxes                                     6,324        5,477       10,792        4,742

Income tax expense                                            (2,511)      (2,153)      (4,399)      (1,886)

                                                         ---------------------------------------------------
          Net income                                     $     3,813        3,324        6,393        2,856
                                                         ===================================================

Basic income per common share (note 2)                   $       .32          .30          .55          .26
                                                         ===================================================

Diluted income per common share (note 2)                 $       .31          .29          .52          .25
                                                         ===================================================

Weighted average number of common shares outstanding -
basic                                                     11,760,986   11,029,421   11,698,504   11,013,912
                                                         ===================================================

Weighted average number of common shares outstanding -
diluted                                                   12,318,161   11,519,944   12,300,428   11,511,675
                                                         ===================================================
</TABLE>


See accompanying notes to unaudited consolidated financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                                  AIR METHODS CORPORATION AND SUBSIDIARIES

                                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                                           (AMOUNTS IN THOUSANDS)
                                                (UNAUDITED)

                                                                                 SIX MONTHS ENDED JUNE 30,
                                                                                 --------------------------
                                                                                     2006          2005
                                                                                 --------------------------
<S>                                                                              <C>           <C>
Cash flows from operating activities:
  Net income                                                                     $     6,393   $     2,856
  Adjustments to reconcile net income to net cash provided (used)
    by operating activities:
    Depreciation and amortization expense                                              6,365         5,868
    Bad debt expense                                                                  43,165        26,347
    Deferred income tax expense (benefit)                                             (1,748)        1,876
    Stock-based compensation                                                             186            --
    Tax benefit from exercise of stock options                                          (833)           --
    Loss (gain) on retirement and sale of equipment, net                                (562)          381
    Loss on early extinguishment of debt                                                  --         3,104
    Changes in assets and liabilities:
      Decrease in prepaid expenses and other current assets                              272           139
      Increase in receivables                                                        (56,103)      (32,129)
      Increase in parts inventories                                                     (622)         (410)
      Decrease (increase) in work-in-process on medical interiors and costs in        (1,319)        1,599
        excess of billings
      Increase in accounts payable, other accrued liabilities, and other
        liabilities                                                                    1,910           633
      Increase (decrease) in deferred revenue and billings in excess of costs         (1,465)          152
                                                                                 --------------------------
          Net cash provided (used) by operating activities                            (4,361)       10,416
                                                                                 --------------------------

Cash flows from investing activities:
  Acquisition of property and equipment                                               (6,663)       (3,664)
  Proceeds from disposition and sale of equipment and assets held for sale             1,803         1,070
  Decrease in notes receivable and other assets                                           97           298
                                                                                 --------------------------
          Net cash used by investing activities                                       (4,763)       (2,296)
                                                                                 --------------------------
</TABLE>


                                                                     (Continued)


                                        4
<PAGE>
<TABLE>
<CAPTION>
                         AIR METHODS CORPORATION AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
                                  (AMOUNTS IN THOUSANDS)
                                        (UNAUDITED)


                                                              SIX MONTHS ENDED JUNE 30,
                                                            ------------------------------
                                                                 2006            2005
                                                            ------------------------------
<S>                                                         <C>              <C>
Cash flows from financing activities:
  Proceeds from issuance of common stock, net               $        1,176            166
  Tax benefit from exercise of stock options                           833             --
  Net borrowings under line of credit                               11,939          5,594
  Proceeds from issuance of long-term debt                           2,749         20,000
  Payments for debt issue costs                                        (80)          (365)
  Payments of long-term debt                                        (7,586)       (26,591)
  Debt retirement costs                                                 --         (1,380)
  Payments of capital lease obligations                               (347)          (307)
                                                            ------------------------------
          Net cash provided (used) by financing activities           8,684         (2,883)
                                                            ------------------------------

Increase (decrease) in cash and cash equivalents                      (440)         5,237

Cash and cash equivalents at beginning of period                     3,218          2,603
                                                            ------------------------------

Cash and cash equivalents at end of period                  $        2,778          7,840
                                                            ==============================

Interest paid in cash during the year                       $        2,506          3,743
                                                            ==============================

Income taxes paid in cash during the year                   $        2,927             43
                                                            ==============================
</TABLE>


Non-cash investing and financing activities:

In  the  six  months  ended  June 30, 2006, the Company settled notes payable of
$6,446  in exchange for the aircraft securing the debt. The Company also entered
into notes payable of $11,221 to finance the purchase of aircraft which are held
for  sale  as  of  June  30,  2006.

In  the  six months ended June 30, 2006, the Company entered into a note payable
of $673 to finance insurance policies and into capital lease obligations of $349
to  finance  the  purchase  of  equipment.

In  the  six  months  ended  June 30, 2005, the Company settled notes payable of
$5,105  in exchange for the aircraft securing the debt. The Company also settled
a  note  payable  totaling  $85  by  applying  a purchase deposit against it and
entered  into  a  note  payable of $396 to finance insurance policies and into a
capital  lease  obligation  of  $81  to  finance  the  purchase  of  equipment.

In  the  six  months  ended  June 30, 2005, the Company wrote off $1,724 in debt
origination  costs  and  note  discount  related  to  the  retirement  of  its
subordinated  debt.


See accompanying notes to unaudited consolidated financial statements.


                                        5
<PAGE>
AIR METHODS CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(1)  BASIS  OF  PRESENTATION
     -----------------------

     The  accompanying  unaudited  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  consolidated
     financial  statements  contain  all  adjustments (consisting of only normal
     recurring  accruals) necessary to present fairly the consolidated financial
     statements  for the respective periods. Interim results are not necessarily
     indicative  of  results  for  a  full  year.  The  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,  2005.

     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,
     uncollectible  receivables,  deferred  income  taxes,  and depreciation and
     residual  values.  Actual  results  could  differ  from  those  estimates.

(2)  INCOME  PER  SHARE
     ------------------

     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 common
     shares  and dilutive potential common shares outstanding during the period.

     The  reconciliation  of  basic  to  diluted  weighted average common shares
     outstanding  is  as  follows:

<TABLE>
<CAPTION>
                                                                     2006        2005
                                                                  ----------  ----------
<S>                                                               <C>         <C>
FOR QUARTER ENDED JUNE 30:
  Weighted average number of common shares outstanding - basic    11,760,986  11,029,421
  Dilutive effect of:
    Common stock options                                             477,800      26,275
    Common stock warrants                                             79,375     464,248
                                                                  ----------------------
  Weighted average number of common shares outstanding - diluted  12,318,161  11,519,944
                                                                  ======================

FOR SIX MONTHS ENDED JUNE 30:
  Weighted average number of common shares outstanding - basic    11,698,504  11,013,912
  Dilutive effect of:
    Common stock options                                             516,198      32,269
    Common stock warrants                                             85,726     465,494
                                                                  ----------------------
  Weighted average number of common shares outstanding - diluted  12,300,428  11,511,675
                                                                  ======================
</TABLE>

     Common  stock  options  of  55,000  were not included in the diluted income
     per  share  calculation for the quarter and six months ended June 30, 2006,
     because their effect would have been anti-dilutive. Common stock options of
     774,500  were  not included in the diluted income per share calculation for
     the  quarter and six months ended June 30, 2005, because their effect would
     have  been  anti-dilutive.


                                        6
<PAGE>
AIR METHODS CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(3)  STOCKHOLDERS'  EQUITY
     ---------------------

     Changes  in  stockholders'  equity  for  the  six  months  ended  June  30,
     2006,  consisted  of  the  following  (amounts  in  thousands  except share
     amounts):

<TABLE>
<CAPTION>
                                                                     Shares
                                                                   Outstanding  Amount
                                                                   --------------------
<S>                                                                <C>          <C>
          Balances at January 1, 2006                               11,605,590  $86,211

          Issuance of common shares for options and warrants
              exercised                                                156,023    1,176
          Tax benefit from exercise of stock options                        --      833
          Stock-based compensation                                          --      186
          Net income                                                        --    6,393
                                                                  ---------------------

          Balances at June 30, 2006                                11,761,613  $94,799
                                                                  =====================
</TABLE>

(4)  STOCK-BASED COMPENSATION
     ------------------------

     Effective  January 1, 2006, the Company implemented FASB Statement No. 123R
     (Statement  123R), Accounting for Stock-Based Compensation, an amendment of
     FASB  Statement  No.  123,  adopting  the  modified  prospective  method of
     implementation.  Statement 123R requires recognition of the grant-date fair
     value  of  stock  options  and  other  equity-based  compensation issued to
     employees  in  the income statement. Under the modified prospective method,
     compensation cost has been recognized in the financial statements beginning
     with the effective date based on the requirements of Statement 123R for all
     share-based  payments granted after that date and based on the requirements
     of  Statement  123  for  all unvested awards granted prior to the effective
     date  of  Statement  123R. During the quarter and six months ended June 30,
     2006,  the  Company  recognized  $107,000  and  $185,000,  respectively, in
     compensation  expense  related  to  outstanding  stock  options.  Total
     unrecognized compensation cost related to unvested stock-based awards as of
     June  30,  2006,  was  $1,132,000 and is expected to be recognized over the
     remaining weighted average vesting term of 2.5 years. Any future excess tax
     benefits  derived  from  the  exercise  of  stock  options will be recorded
     prospectively  and  reported  as  cash  flows  from financing activities in
     accordance  with  FAS  123R.

     Prior  to  January  1,  2006,  the Company accounted for its employee stock
     compensation  plans as prescribed under Accounting Principles Board Opinion
     No.  25, Accounting for Stock Issued to Employees (APB Opinion 25). Because
     the  Company  granted its options at or above market value, no compensation
     cost  was  recognized  relating to the plans. Had compensation cost for the
     Company's  stock-based compensation plans been determined based on the fair
     value  at  the grant dates for awards under those plans consistent with the
     provisions  of Statement 123, the Company's net income and income per share
     would  have  been  reduced to the pro forma amounts indicated below for the
     quarter  and  six  months ended June 30, 2005 (amounts in thousands, except
     per  share  amounts):

<TABLE>
<CAPTION>
                                           As Reported   Pro Forma
                                           -----------------------
          Quarter ended June 30, 2005:
<S>                                        <C>           <C>
            Net income                     $      3,324      3,248
            Basic income per share                  .30        .29
            Diluted income per share                .29        .28

          Six months ended June 30, 2005:
            Net income                     $      2,856      2,705
            Basic income per share                  .26        .25
            Diluted income per share                .25        .23
</TABLE>


                                        7
<PAGE>
AIR METHODS CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(4)  STOCK-BASED COMPENSATION, CONTINUED
     -----------------------------------

     The  Company  has  a  Stock  Option  Plan (the Plan) which provides for the
     granting  of incentive stock options (ISO's) and nonqualified stock options
     (NSO's),  stock  appreciation rights, and supplemental stock bonuses. Under
     the  Plan,  3,500,000  shares  of  common  stock  are reserved for options.
     Generally,  the options granted under the Plan have an exercise price equal
     to  the market value on the date of grant, vest in three equal installments
     beginning  one  year from the date of grant, and expire five years from the
     date  of grant. However, option grants to certain officers and employees in
     2004  included  460,000  options which vest after five years and expire six
     years  from  the  date  of  grant.

     The  Company  also  has  a  Nonemployee  Director  Stock  Option  Plan (the
     Director Plan) which authorizes the grant of NSO's to purchase an aggregate
     of  300,000 shares of common stock to nonemployee directors of the Company.
     Through  2004,  each  nonemployee  director  completing  one fiscal year of
     service  received a five-year option to purchase 10,000 shares, exercisable
     at the then current market value of the Company's common stock. All options
     under  this  plan  were  vested  immediately  upon  issue.

     The  fair  value  of  each  option  grant is estimated on the date of grant
     using  the  Black-Scholes option-pricing model. The Company uses historical
     option  exercise  data  for similar employee groups, as well as the vesting
     period  and  contractual  term,  to  estimate  the expected term of options
     granted;  the  expected  term  represents  the  period of time that options
     granted  are  expected  to  be outstanding. Expected volatility is based on
     historical  volatility  of  the  Company's  stock.  The  risk-free rate for
     periods  within  the  contractual  life  of the option is based on the U.S.
     Treasury yield curve in effect at the time of the grant. During the quarter
     and  six  months  ended June 30, 2006, options to purchase 55,000 shares of
     stock were granted at a weighted average fair value of $9.46. The following
     assumptions  were  used  in  valuing the grant: expected term of 3.5 years;
     expected  volatility of 36%; risk-free interest rate of 4.89%; and dividend
     yield  of  0%.  No  options  were granted during the quarter and six months
     ended  June  30,  2005.

     The  following  is  a  summary  of  option  activity under the Plan and the
     Director  Plan  during  the  six  months  ended  June  30,  2006:

<TABLE>
<CAPTION>
                                                               Weighted-      Aggregate
                                                                Average       Intrinsic
                                                Weighted       Remaining        Value
                                                 Average      Contractual    (amounts in
                                   Shares    Exercise Price   Life (Years)   thousands)
                                  ---------  ---------------  ------------  -------------
<S>                               <C>        <C>              <C>           <C>
Outstanding at December 31, 2005   961,522   $          8.48
Granted                             55,000             28.70
Exercised                         (131,023)             7.67
Canceled                           (75,000)             8.98
                                  ---------
Outstanding at June 30, 2006       810,499              9.94           3.1  $      13,162
                                  =========

Exercisable at June 30, 2006       362,500              8.15           2.4          6,537
                                  =========
</TABLE>

     During  the  six  months  ended June 30, 2006 and 2005, options to purchase
     131,023  and  37,048  shares were exercised with aggregate intrinsic values
     totaling  approximately  $2,352,000  and  $110,000,  respectively.


                                        8
<PAGE>
AIR METHODS CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(5)  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  Hospital-Based  Model (HBM),
     Products,  and  Corporate Activities for internal reporting and performance
     evaluation  purposes.  Operating  segments  and their principal products or
     services  are  as  follows:

     -    Community-Based  Model  (CBM)  -  provides  air medical transportation
          services  to  the  general  population as an independent service in 18
          states.  Services  include aircraft operation and maintenance, medical
          care, dispatch and communications, and medical billing and collection.
     -    Hospital-Based  Model  (HBM)  -  provides  air  medical transportation
          services  to  hospitals  in  26  states  under  exclusive  operating
          agreements.  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.

<TABLE>
<CAPTION>
                                                                 Products    Corporate   Intersegment
     FOR QUARTER ENDED JUNE 30:                CBM       HBM     Division   Activities   Eliminations   Consolidated
     ---------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>       <C>        <C>          <C>            <C>
     2006
     External revenue                       $ 75,433    28,505      1,334          610             --        105,882
     Intersegment revenue                         --        --      2,908           --         (2,908)            --
                                            -------------------------------------------------------------------------
     Total revenue                            75,433    28,505      4,242          610         (2,908)       105,882
                                            -------------------------------------------------------------------------

     Operating expenses                      (40,179)  (25,501)    (2,990)      (2,174)         2,314        (68,530)
     Depreciation & amortization              (1,596)   (1,406)      (108)         (84)            --         (3,194)
     Bad debt expense                        (25,834)     (924)        --           --             --        (26,758)
     Interest expense                           (771)     (677)        --          (22)            --         (1,470)
     Other income, net                           375        --         --           19             --            394
     Income tax expense                           --        --         --       (2,511)            --         (2,511)
                                            -------------------------------------------------------------------------
     Segment net income (loss)              $  7,428        (3)     1,144       (4,162)          (594)         3,813
                                            =========================================================================

     Total assets                           $ 99,506   N/A       N/A           143,987         (2,164)       241,329
                                            =========================================================================

     2005
     External revenue                       $ 60,577    25,308      1,800           --             --         87,685
     Intersegment revenue                         --        --      1,658           --         (1,658)            --
                                            -------------------------------------------------------------------------
     Total revenue                            60,577    25,308      3,458           --         (1,658)        87,685
                                            -------------------------------------------------------------------------

     Operating expenses                      (34,704)  (20,222)    (2,531)      (2,062)         1,187        (58,332)
     Depreciation & amortization              (1,547)   (1,243)      (115)         (66)            --         (2,971)
     Bad debt expense                        (15,885)     (351)        --           --             --        (16,236)
     Interest expense                           (793)     (704)        --          (28)            --         (1,525)
     Loss on early extinguishment of debt         --        --         --       (3,104)            --         (3,104)
     Other income, net                           233        --         --         (273)            --            (40)
     Income tax expense                           --        --         --       (2,153)            --         (2,153)
                                            -------------------------------------------------------------------------
     Segment net income (loss)              $  7,881     2,788        812       (7,686)          (471)         3,324
                                            =========================================================================

     Total assets                           $ 74,901   N/A       N/A           132,610         (2,164)       205,347
                                            =========================================================================
</TABLE>


                                        9
<PAGE>
AIR METHODS CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

(5)  BUSINESS SEGMENT INFORMATION, CONTINUED
     ---------------------------------------

<TABLE>
<CAPTION>
                                                                 Products    Corporate   Intersegment
     FOR SIX MONTHS ENDED JUNE 30:             CBM       HBM     Division   Activities   Eliminations   Consolidated
     ----------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>       <C>        <C>          <C>            <C>
     2006
     External revenue                       $136,658    55,062      2,903          610             --        195,233
     Intersegment revenue                         --        --      6,152           --         (6,152)            --
                                            -------------------------------------------------------------------------
     Total revenue                           136,658    55,062      9,055          610         (6,152)       195,233
                                            -------------------------------------------------------------------------

     Operating expenses                      (76,748)  (49,642)    (6,483)      (4,718)         4,766       (132,825)
     Depreciation & amortization              (3,248)   (2,744)      (215)        (158)            --         (6,365)
     Bad debt expense                        (41,607)   (1,558)        --           --             --        (43,165)
     Interest expense                         (1,499)   (1,276)        --          (51)            --         (2,826)
     Other, net                                  668        --         --           72             --            740
     Income tax expense                           --        --         --       (4,399)            --         (4,399)
                                            -------------------------------------------------------------------------
     Segment net income (loss)              $ 14,224      (158)     2,357       (8,644)        (1,386)         6,393
                                            =========================================================================

     Total assets                           $ 99,506   N/A       N/A           143,987         (2,164)       241,329
                                            =========================================================================

     2005
     External revenue                       $105,195    47,674      3,324           --             --        156,193
     Intersegment revenue                         --        --      4,445           --         (4,445)            --
                                            -------------------------------------------------------------------------
     Total revenue                           105,195    47,674      7,769           --         (4,445)       156,193
                                            -------------------------------------------------------------------------

     Operating expenses                      (66,539)  (39,786)    (5,852)      (4,374)         3,504       (113,047)
     Depreciation & amortization              (2,944)   (2,591)      (206)        (127)            --         (5,868)
     Bad debt expense                        (25,993)     (354)        --           --             --        (26,347)
     Interest expense                         (1,769)   (1,596)        --          (53)            --         (3,418)
     Loss on early extinguishment of debt         --        --         --       (3,104)            --         (3,104)
     Other income, net                           459        --         --         (126)            --            333
     Income tax expense                           --        --         --       (1,886)            --         (1,886)
                                            -------------------------------------------------------------------------
     Segment net income (loss)              $  8,409     3,347      1,711       (9,670)          (941)         2,856
                                            =========================================================================

     Total assets                           $ 74,901   N/A       N/A           132,610         (2,164)       205,347
                                            =========================================================================
</TABLE>


                                       10
<PAGE>
ITEM 2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL CONDITION AND
            RESULTS OF OPERATIONS

The  following  discussion  of the results of operations and financial condition
should  be  read  in  conjunction with our consolidated financial statements and
notes  thereto  included  in  Item  1 of this report. This report, including the
information  incorporated  by  reference, contains forward-looking statements as
defined  in the Private Securities Litigation Reform Act of 1995. The use of any
of  the words "believe," "expect," "anticipate," "plan," "estimate," and similar
expressions are intended to identify such statements. Forward-looking statements
include  statements  concerning  our  possible  or assumed future results; size,
structure  and  growth  of our air medical services and products markets; flight
volume  and  collection rates for CBM operations; continuation and/or renewal of
HBM  contracts;  acquisition  of new and profitable Products Division contracts;
and other matters. The actual results that we achieve may differ materially from
those  discussed  in  such  forward-looking  statements  due  to  the  risks and
uncertainties  described  in  the  Risk  Factors  section  of  this  report,  in
Management's  Discussion  and  Analysis  of  Financial  Condition and Results of
Operations,  and  in  other  sections  of  this report, as well as in our annual
report  on  Form  10-K. We undertake no obligation to update any forward-looking
statements.

OVERVIEW

We  provide air medical transportation services throughout the United States and
design,  manufacture, and install medical aircraft interiors and other aerospace
products  for  domestic  and international customers. Our divisions, or business
segments, are organized according to the type of service or product provided and
consist  of  the  following:
-    Community-Based  Model (CBM) - 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 six months of 2006 the CBM Division generated 70%
     of  our  total  revenue,  compared  to 67% in the first six months of 2005.
-    Hospital-Based  Model  (HBM) - provides air medical transportation services
     to  hospitals  throughout  the  U.S.  under exclusive operating agreements.
     Revenue consists of fixed monthly fees (approximately 62% of total contract
     revenue)  and  hourly  flight  fees  (approximately  38%  of total contract
     revenue) billed to hospital customers. The division also has two contracts,
     both  expansions  of  contracts with hospital-based customers, for which it
     bills  patients  or  insurers  directly  and is at risk for collection from
     these  parties.  In  the  six  months ended June 30, 2006, the HBM Division
     generated 28% of our total revenue, compared to 31% in the six months ended
     June  30,  2005.
-    Products  Division  -  designs, manufactures, and installs aircraft medical
     interiors  and  other aerospace and medical transport products for domestic
     and  international  customers.  The  Products  Division generated 2% of our
     total revenue in the six months ended June 30, 2006 and 2005.

See  Note  5 to the consolidated financial statements included in Item 1 of this
report  for  operating  results  by  segment.

We believe that the following factors have the greatest impact on our results of
operations  and  financial  condition:

-    FLIGHT  VOLUME.  Fluctuations in flight volume have a greater impact on CBM
     operations  than HBM operations because 100% of CBM revenue is derived from
     hourly  flight  fees,  as  compared  to  38%  of  HBM revenue. By contrast,
     approximately  58% of our costs primarily associated with flight operations
     (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 CBM operations were
     approximately  8,900  and  16,500 for the quarter and six months ended June
     30,  2006, respectively, compared to approximately 8,600 and 15,300 for the
     quarter  and  six  months  ended  June  30,  2005,  respectively.  Patient
     transports  for  CBM bases open longer than one year (Same-Base Transports)
     were  approximately  8,400  and  15,800 in the quarter and six months ended
     June  30, 2006, respectively, compared to approximately 8,400 and 14,900 in
     the quarter and six months ended June 30, 2005, respectively. Cancellations
     due  to  unfavorable  weather conditions for CBM bases open longer than one
     year were 435, or 12.0%, lower in the first six months of 2006, compared to
     the  first  six months of 2005, with most of the improvement experienced in
     the  first  quarter.


                                       11
<PAGE>
-    REIMBURSEMENT  PER  TRANSPORT.  Net reimbursement per transport for CBM and
     HBM  at-risk  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.  We  respond  to  calls  for  air  medical  transports  without
     pre-screening  the  creditworthiness  of  the  patient. Bad debt expense is
     estimated  during  the  period  the related services are performed based on
     historical  collection  experience.  The  provision is adjusted as required
     based  on  actual  collections  in  subsequent  periods.  We have increased
     average  prices  for  our CBM operations a total of 27.5% since March 2005,
     contributing  to an increase of 11.1% in net revenue after bad debt expense
     per  transport  in  the six months ended June 30, 2006, compared to the six
     months  ended June 30, 2005. The total provision for expected uncollectible
     amounts,  including  contractual  discounts  for  Medicare/Medicaid and bad
     debts,  increased  from 46.3% and 45.8% of related gross flight revenue for
     the  quarter and six months ended June 30, 2005, respectively, to 50.7% and
     52.4%  for  the  quarter  and six months ended June 30, 2006, respectively.
     Although  price  increases  generally  increase  the  net reimbursement per
     transport  from insurance payers, the amount per transport collectible from
     private  patient  payers  and  Medicare  and  Medicaid  does  not  increase
     proportionately  with  price  increases.  Therefore, depending upon overall
     payer  mix,  price  increases  will  usually  result  in an increase in the
     percentage  of  uncollectible  accounts.

-    AIRCRAFT  MAINTENANCE. Both CBM and HBM 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.  Five models of aircraft within our fleet, representing 37%
     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. We entered into two long-term purchase commitments in 2004 for a
     total  of  25 aircraft and into two additional purchase commitments in 2005
     for  a  total of ten aircraft. The majority of new aircraft delivered under
     these  commitments is expected to replace the discontinued models and other
     older  aircraft  over the next five to seven years. As of June 30, 2006, we
     had taken delivery of fifteen aircraft under these commitments. Replacement
     models  of  aircraft  typically have higher ownership costs than the models
     targeted  for  replacement  but  lower maintenance costs. Total maintenance
     expense for CBM and HBM operations increased 15.1% and 14.7% in the quarter
     and  six  months ended June 30, 2006, respectively, compared to 2005, while
     total flight volume for CBM and HBM operations increased 2.9% and 7.4% over
     the  same  periods.  The  number  of  engine  events,  including overhauls,
     increased  approximately  10.8% in the first six months of 2006 compared to
     the  first  six  months  of  2005.

-    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. Deploying
     multiple  aircraft  in  a  market  may also serve as a barrier to entry for
     lower  cost  providers.

-    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.  Employees  who  meet  these standards are in great
     demand  and  are  likely  to  remain  a limited resource in the foreseeable
     future.  In  September  2003,  our  pilots  voted  to  be  represented by a
     collective bargaining unit, and we signed a collective bargaining agreement
     (CBA)  on  March  31,  2006.  The  agreement  is effective January 1, 2006,
     through April 30, 2009. Significant changes from our previous wage rates or
     benefits  include  increases in initial base pay rates; increase in pay for
     overtime  shifts from regular pay rates to 1.5 times regular pay rates; and
     changes in our contributions to defined contribution retirement plans (401k
     plans). Previously, under one 401k plan, we contributed 2% of gross pay for
     all  eligible  employees and matched 60% of the employees' contributions up
     to  6%  of  their  gross  pay.  Under the other plan, we matched 30% of the
     employees'  contributions up to 6% of their gross pay. The CBA provides for
     Company contributions up to 5.6% of gross pay to both 401k plans, depending
     on  the  level  of each


                                       12
<PAGE>
     employee's  participation.  We  recorded  approximately  $2,113,000  and
     $3,767,000  in  incremental salary and benefit costs during the quarter and
     six  months  ended June 30, 2006, respectively, as a result of implementing
     the  CBA provisions. Other employee groups may also elect to be represented
     by  unions  in  the  future.

RESULTS  OF  OPERATIONS

We  reported  net  income  of  $3,813,000 and $6,393,000 for the quarter and six
months  ended June 30, 2006, respectively, compared to $3,324,000 and $2,856,000
for the quarter and six months ended June 30, 2005, respectively. Net income for
the  quarter  and  six  months  ended  June  30,  2005, included a loss on early
extinguishment  of  debt  of  $3,104,000  (with  a  tax  effect of approximately
$1,211,000). Operating income was $7,400,000 and $12,878,000 for the quarter and
six  months  ended  June  30,  2006,  respectively,  compared to $10,146,000 and
$10,931,000  for  the  quarter and six months ended June 30, 2005, respectively.
Net  reimbursement  (revenue  after  Medicare/Medicaid  discounts  and  bad debt
expense)  for  CBM  operations  improved  6.6% and 11.1% for the quarter and six
months  ended  June  30,  2006,  respectively, compared to the prior year, while
Same-Base  Transports  for  both CBM and HBM bases remained relatively constant.
The improvement in net reimbursement during 2006 was offset in part by increases
in the cost of aircraft maintenance and in salaries and benefits, primarily as a
result  of  the  implementation  of  the  CBA.

FLIGHT OPERATIONS - COMMUNITY-BASED MODEL AND HOSPITAL-BASED MODEL

FLIGHT  REVENUE  increased $17,930,000, or 20.9%, and $38,803,000, or 25.4%, for
the  quarter and six months ended June 30, 2006, respectively, compared to 2005.
Flight  revenue  is generated by both CBM and HBM operations and is recorded net
of  contractual  allowances  under  agreements  with  third-party  payers  and
Medicare/Medicaid  discounts.

-    CBM  -  Flight  revenue increased $14,894,000, or 24.6%, to $75,451,000 for
     the  second  quarter of 2006 and $31,565,000, or 30.0%, to $136,721,000 for
     the six months ended June 30, 2006, for the following reasons:
     -    Average  price increases of approximately 27.5% for all CBM operations
          since  March  2005,  including  6.5%  in  mid-June  2006.
     -    Incremental  revenue of $6,676,000 and $10,200,000 for the quarter and
          six  months  ended  June  30,  2006,  respectively, generated from the
          addition  of fourteen new CBM bases either during or subsequent to the
          first  six  months  of  2005  and  from  the  provision of air medical
          transportation  services in Gulfport, Mississippi, in the aftermath of
          Hurricane  Katrina,  pursuant  to  a  contract  with  the  State  of
          Mississippi.
     -    Closure  of  one  base  during  the  first  quarter  of  2005  and two
          bases  in the first quarter of 2006, resulting in decreases in revenue
          of  approximately  $1,168,000  and  $2,475,000 for the quarter and six
          months  ended  June  30,  2006.
     -    Increase  in  Same-Base  Transports.  Excluding  the impact of the new
          bases  and  base closures discussed above, total flight volume for all
          CBM  operations  for the six months ended June 30, 2006, increased 859
          transports,  or 5.8%, compared to the prior year. Cancellations due to
          unfavorable weather conditions for CBM bases open longer than one year
          were 435, or 12.0%, lower in the first six months of 2006, compared to
          the first six months of 2005, with most of the improvement experienced
          in  the  first quarter. Same-Base Transports were relatively unchanged
          in  the  second  quarter  of  2006  compared  to  2005.
     -    Decrease  caused  by  a  change in payer mix to a higher percentage of
          Medicare/Medicaid  transports,  resulting  in  higher  contractual
          discounts  which  are  offset  against  flight  revenue.  Contractual
          discounts  were  27.5%  and  28.9%  of  related  flight revenue in the
          quarter  and six months ended June 30, 2006, respectively, compared to
          27.0%  and  27.9%  in  the quarter and six months ended June 30, 2005,
          respectively.  See  discussion  of  total  provision for uncollectible
          accounts,  including contractual discounts and bad debt expense, below
          under  Bad  Debt  Expense.

-    HBM - Flight revenue increased $3,036,000, or 12.0%, to $28,344,000 for the
     second quarter of 2006 and $7,238,000, or 15.2%, to $54,905,000 for the six
     months  ended  June  30,  2006,  for  the  following  reasons:
     -    Incremental  revenue  of  $1,338,000  and  $3,270,000, for the quarter
          and six months ended June 30, 2006, respectively, from the addition of
          two  new  bases  and  the expansion of five contracts either during or
          subsequent  to  the  first  quarter  of  2005.
     -    Discontinuation  of  service  under  one  contract  during  the second
          quarter  of  2006, resulting in a decrease in revenue of approximately
          $220,000 in the quarter and six months ended June 30, 2006.
     -    Annual  price  increases in the majority of contracts based on changes
          in  the  Consumer  Price  Index  and  in  hull  insurance  rates.


                                       13
<PAGE>
     -    Decrease  of  3.7%  in  flight  volume  for the quarter ended June 30,
          2006,  compared to 2005, for all contracts excluding the new contracts
          and  contract expansions discussed above. Flight volume was relatively
          unchanged  in  the  six  months ended June 30, 2006, compared to 2005.

FLIGHT  CENTER COSTS (consisting primarily of pilot, mechanic, and medical staff
salaries  and  benefits)  increased  $6,441,000,  or  24.3%, and $12,044,000, or
23.0%,  for  the  quarter  and  six  months  ended  June 30, 2006, respectively,
compared  to  2005.  Changes  by  business  segment  are  as  follows:

-    CBM - Flight  center  costs  increased $4,320,000, or 25.1%, to $21,564,000
     for the second quarter of 2006 and $7,620,000, or 22.4%, to $41,579,000 for
     the six months ended June 30, 2006, for the following reasons:
     -    Increases  of  approximately $2,783,000 and $4,304,000 for the quarter
          and  six months ended June 30, 2006, respectively, for the addition of
          personnel  to  staff  new  base  locations  described  above.
     -    Decreases of approximately $494,000 and $1,189,000 for the quarter and
          six  months  ended  June 30, 2006, respectively, due to the closure of
          base  locations  described  above.
     -    Increases of approximately $1,271,000 and $1,975,000 in pilot salaries
          and  benefits  for  the  quarter  and  six months ended June 30, 2006,
          respectively,  related  to  the  implementation  of  the CBA effective
          January  1,  2006.
     -    Increases in salaries for merit pay raises.
     -    Increases in our cost of medical insurance premiums.

-    HBM - Flight  center  costs  increased $2,121,000, or 22.9%, to $11,408,000
     for the second quarter of 2006 and $4,424,000, or 24.2%, to $22,742,000 for
     the  six  months  ended  June  30,  2006,  primarily  due to the following:
     -    Approximately  $360,000  and  $892,000  for the quarter and six months
          ended  June  30,  2006, respectively, for the addition of personnel to
          staff  new  base  locations  described  above.
     -    Increases  of  approximately $842,000 and $1,792,000 in pilot salaries
          and  benefits  for  the  quarter  and  six months ended June 30, 2006,
          related  to  the  implementation of the CBA effective January 1, 2006.
     -    Increases in salaries for merit pay raises.
     -    Increases in our cost of medical insurance premiums.

AIRCRAFT  OPERATING  EXPENSES increased $2,812,000, or 16.7%, and $5,093,000, or
16.0%,  for  the  quarter  and  six months ended June 30, 2006, respectively, in
comparison to the quarter and six months ended June 30, 2005. Aircraft operating
expenses  consist  of fuel, insurance, and maintenance costs and generally are a
function of the size of the fleet, the type of aircraft flown, and the number of
hours  flown.  The  increase  in  costs  is  due  to  the  following:
-    Addition  of  fifteen  helicopters  for  CBM  operations  and  ten  for HBM
     operations  either  during  or  subsequent to the first six months of 2005,
     resulting in increases of approximately $447,000 and $839,000 for the three
     and  six  months  ended  June  30,  2006,  respectively.
-    Increases of approximately 19.4% and 19.2% in the cost of aircraft fuel per
     hour  flown  for  the  quarter  and  six  months  ended  June  30,  2006,
     respectively.
-    Decrease in hull insurance rates effective July 2005.
-    Changes  in  flight  volume  for  both  CBM  and  HBM  as  described above.
-    Increases  in  the  number  of  engine  and  transmission events, including
     overhauls,  experienced  during  the  quarter and six months ended June 30,
     2006,  compared  to  the  prior  year.
-    Annual  price  increases  in the cost of spare parts and overhauls, most of
     which  exceeded  the  rate  of  inflation.

AIRCRAFT  RENTAL EXPENSE increased $883,000, or 19.7%, and $1,607,000, or 18.3%,
for  the quarter and six months ended June 30, 2006, respectively, in comparison
to  the  quarter  and six months ended June 30, 2005. Incremental rental expense
for  twenty  leased  aircraft added to our fleet, either during or subsequent to
the  first  six months of 2005, totaled $1,209,000 and $2,276,000 in the quarter
and  six months ended June 30, 2006, respectively. The increase for new aircraft
was  offset  in  part by refinancing twelve aircraft at lower lease rates during
the  last  three  quarters  of  2005.

BAD DEBT EXPENSE increased $10,522,000, or 64.8%, and $16,818,000, or 63.8%, for
the  quarter  and six months ended June 30, 2006, respectively, compared to 2005
due  in  part  to  the increase in related flight revenue. Bad debt expense as a
percentage  of related net flight revenue also increased from 26.4% and 24.7% in
the  quarter  and  six  months  ended  June  30, 2005, to 34.6% and 30.9% in the
quarter  and  six  months ended June 30, 2006. Flight revenue is recorded net of
Medicare/Medicaid  discounts.  The  total  provision  for expected uncollectible
amounts, including contractual discounts and bad debts, increased from 46.3% and
45.8%  of  related  flight  revenue in the quarter and six months ended June 30,
2005,  to 52.4% and 50.7% in the quarter and six months ended June 30, 2006. The
increase  in  reserves  was  attributed  in


                                       14
<PAGE>
part to a shift in payer mix in the second quarter of 2006 from insured patients
to  uninsured  and  Medicaid  coverage,  as  well  as  to lower than anticipated
collections  on  other accounts. In addition, although price increases generally
increase  the  net  reimbursement  per  transport  from insurance providers, the
amount  per  transport  collectible from private patient payers and Medicare and
Medicaid  does  not  increase  proportionately  with price increases. Therefore,
depending  upon  overall  payer  mix,  price increases will usually result in an
increase  in  the percentage of uncollectible accounts. Bad debt expense related
to the Products Division was not significant in either 2006 or 2005.

PRODUCTS  DIVISION

SALES  OF  MEDICAL  INTERIORS  AND  PRODUCTS  decreased  $466,000, or 25.9%, and
$421,000,  or  12.7%,  for  the  quarter  and  six  months  ended June 30, 2006,
respectively,  compared to 2005. Significant projects in 2006 included continued
production  of  eleven Multi-Mission Medevac Systems for the U. S. Army's HH-60L
Black  Hawk  helicopter  and  21  litter  systems  for  the  U.S. Army's Medical
Evacuation  Vehicle  (MEV),  which  were  nearly  completed as of June 30, 2006.
Production  of  five modular, medical interior kits for commercial customers was
completed  during  the first two quarters of 2006, and six other kits were still
in  process as of June 30, 2006. Revenue by product line for the quarter and six
months  ended  June  30,  2006,  was  as  follows::
-    $555,000  and  $1,561,000  -  manufacture  of  multi-mission  interiors
-    $611,000  and $1,028,000 - manufacture and installation of modular, medical
     interiors
-    $168,000  and $314,000 - design and manufacture of other aerospace products

In the first quarter of 2005, we completed production of eleven HH-60L units and
nineteen  MEV  litter  systems.  In  the  second  quarter  of 2005, we continued
production  of  two  HH60L units and began production of eleven additional HH60L
units  and  21 MEV units. Other significant projects in 2005 included production
of  a  multi-mission  interior  for  a  Sikorsky FIREHAWK helicopter for the Los
Angeles  County  Fire  Department  and  two  modular  medical  interiors  for  a
commercial  customer.  Revenue  by  product  line for the quarter and six months
ended  June  30,  2005,  was  as  follows::
-    $803,000 and $1,589,000 - manufacture of multi-mission interiors
-    $398,000  and  $802,000  - manufacture and installation of modular, medical
     interiors
-    $599,000  and $933,000 - design and manufacture of other aerospace products

COST  OF  MEDICAL  INTERIORS  AND  PRODUCTS  decreased  $611,000,  or 53.0%, and
$583,000,  or  29.2%,  for  the  quarter  and  six  months  ended June 30, 2006,
respectively,  as  compared  to the previous year, consistent with the change in
sales volume. In addition, the average net margin earned on projects during 2006
was  32.3% for the second quarter and 37.3% for the six-month period compared to
24.2%  for  the  second  quarter  and  26.6%  for  the six-month period in 2005,
primarily  due  to  the  change  in  product  mix.

GENERAL  EXPENSES

DEPRECIATION AND AMORTIZATION EXPENSE increased $223,000, or 7.5%, and $497,000,
or  8.5%,  for  the  quarter  and  six months ended June 30, 2006, respectively,
compared  to  2005,  primarily as a result of upgrades to aircraft, engines, and
avionics  systems  and  the  purchase  of  rotable equipment and a new dispatch,
flight  tracking,  and  medical field data software system and related hardware.

GENERAL  AND  ADMINISTRATIVE  (G&A)  EXPENSES  increased $956,000, or 10.5%, and
$2,020,000,  or  11.3%,  for  the  quarter  and  six months ended June 30, 2006,
respectively,  compared  to  2005.  G&A  expenses  include executive management,
accounting  and  finance,  billing  and collections, information services, human
resources, aviation management, pilot training, dispatch and communications, and
CBM  program administration. We increased the number of personnel in the billing
and  collections  function  due  to  the  increase  in flight volume and, in the
short-term, to accommodate the transition of accounts from the Bountiful billing
office  to  the  San  Bernardino  billing  office.  Consolidation of the billing
function into the San Bernardino office is expected to be completed in the third
quarter.  Program  administration  costs  also increased 16.4% and 11.2% for the
quarter  and  six  months  ended  June  30,  2006,  to  manage the growth in CBM
operations.  We  increased  staffing  in  our Information Services department to
support  the  expanded  information  technology  infrastructure  and  scheduled
software  systems  upgrades. G&A expenses were 9.5% and 10.2% of revenue for the
quarter  and six months ended June 30, 2006, respectively, compared to 10.3% and
11.4%  of  revenue  for  the  quarter  and  six  months  ended  June  30,  2005,
respectively.


                                       15
<PAGE>
INTEREST  EXPENSE  decreased  $55,000,  or  3.6%, and $592,000, or 17.3%, in the
quarter  and  six  months  ended  June 30, 2006, respectively, compared to 2005,
primarily  as  a  result  of  regularly scheduled payments of long-term debt and
decreased  borrowings  against the Company's line of credit. The average balance
outstanding  against  the line was approximately $15.6 million and $12.5 million
during  the  three and six months ended June 30, 2006, respectively, compared to
$18.3  million  and $17.8 million during the three and six months ended June 30,
2005,  respectively.  In  addition,  in  May  2005  we  repaid  $23  million  in
subordinated  debt,  which  had an effective interest rate of 16.2% during 2005,
with  the  proceeds  of  $20  million  in  term  loans which bore interest at an
effective rate of approximately 9.0% during 2006. The remainder of the repayment
was  funded  by  draws  against  the  line  of  credit.

LOSS  ON  EARLY EXTINGUISHMENT OF DEBT for the quarter and six months ended June
30,  2005,  totaled  $3,104,000  and  related to the repayment of $23 million in
subordinated  debt  in  May  2005. We wrote off approximately $1,724,000 in debt
origination  costs and note discount related to the subordinated debt and paid a
prepayment  penalty  of  $1,380,000  to  the  holders  of the subordinated debt.

INCOME  TAX  EXPENSE was $2,511,000 and $4,399,000 in the quarter and six months
ended  June 30, 2006, respectively, and $2,153,000 and $1,886,000 in the quarter
and  six  months  ended  June 30, 2005, respectively. The effective tax rate was
approximately  41%  for 2006, compared to approximately 40% for 2005. The higher
effective  tax  rate  in  2006 is the result of an increase in certain permanent
book-tax  differences.


LIQUIDITY  AND  CAPITAL  RESOURCES

Our  working  capital position as of June 30, 2006, was $85,166,000, compared to
$66,839,000  at  December  31,  2005.  The change in working capital position is
primarily  attributable  to  the  following:
-    Increase  of  $12,938,000  in  net  receivables  consistent  with increased
     revenue  for  the CBM and HBM divisions and increased net reimbursement for
     CBM  operations.  In  addition, days' sales outstanding for CBM operations,
     measured  by  comparing  net  revenue  after  bad  debt  for the annualized
     previous  3-month  period  to  outstanding  open  net  accounts receivable,
     increased from 119 days at December 31, 2005, to 130 days at June 30, 2006.
     The  increase in days' sales outstanding is primarily due to an initiative,
     beginning  in  the fourth quarter of 2005 and continuing through the second
     quarter  of  2006, to centralize the billing and collection function into a
     single  location  which  we  believe  slowed  the  pace  of  collections
     temporarily.
-    Decrease of $1,698,000 in accrued wages and compensated absences, primarily
     because  of  the  payment  during  the  six  months ended June 30, 2006, of
     performance  bonuses  accrued  as  of  December  31,  2005.

SOURCES  AND  USES  OF  CASH

We  had cash and cash equivalents of $2,778,000 as of June 30, 2006, compared to
$3,218,000  at  December 31, 2005. Operating activities used $4,361,000 in 2006,
compared to generating $10,416,000 in 2005. Receivable balances, net of bad debt
expense,  increased  $12,938,000  in  2006  compared  to  $5,782,000  in  2005,
reflecting  continued  growth in CBM and HBM revenue, improved net reimbursement
per  transport  for  CBM operations, and the increase in days' sales outstanding
described  above.  Costs  in  excess  of billings and work-in-process on medical
interiors  increased  $1,319,000  in  2006, compared to decreasing $1,599,000 in
2005.  The  balance of costs in excess of billings as of June 30, 2006, included
$3,318,000  related  to  HH60L  units  which  will  be billed later in 2006 when
completed  units  are  shipped.

Cash  used  by  investing  activities  totaled  $4,763,000  in  2006 compared to
$2,296,000  in  2005. Equipment acquisitions in 2006 consist primarily of a $1.4
million  aircraft  and  information  systems  hardware  and software, as well as
medical  interior  and avionics installations. In 2006, we received $1.5 million
from  the  sale  of  land  and  buildings  which  had  previously  served as the
headquarters  for  Rocky Mountain Holdings, LLC, prior to the acquisition by the
Company  in  2002. Equipment acquisitions in 2005 consisted primarily of rotable
equipment, medical and office equipment for new bases, and upgrades to aircraft,
engines,  and  avionics  systems.  In  2005  we  received  $463,000 in insurance
proceeds  for  an  aircraft  destroyed  in  an  accident  and  sold  an aircraft
previously  classified  as  held  for  sale  for  $607,000.


                                       16
<PAGE>
Financing  activities  generated $8,684,000 in 2006 compared to using $2,883,000
in  2005.  The primary use of cash in both 2006 and 2005 was regularly scheduled
payments of long-term debt and capital lease obligations. In 2006 these payments
were  offset  by draws against our line of credit and proceeds from the issuance
of  common  stock  upon  the  exercise  of  stock  options. In 2005, we used $20
million of term loan proceeds and additional draws against our line of credit to
fund  the  early  repayment  of $23 million in subordinated debt and the related
prepayment  penalty of $1,380,000. We also paid $365,000 in debt issuance costs,
primarily  associated  with  the  amendment to our senior credit facility in May
2005.

In  April 2006 we originated a note payable of $2,749,000 with interest at 6.66%
to refinance balloon payments due under other notes payable. The note is payable
through  June  2011.


OUTLOOK  FOR  2006

The  statements  contained  in  this  Outlook are based on current expectations.
These  statements are forward-looking, and actual results may differ materially.
We undertake no obligation to update any forward-looking statements.

Community-Based  Model

In the first quarter of 2006, we began services under a one-year contract with a
military  base  in California and ceased operations at a base in Arizona. During
the  second  quarter of 2006, we opened three new bases in the southeast region,
two  in  the  northeast  region,  and  one  in  California. In July 2006, an HBM
contract  in  Florida converted to CBM operations, and we ceased operations at a
base  in South Carolina. We expect to open two new bases in the northeast region
prior  to  the end of 2006. CBM flight volume at all other locations during 2006
is  expected  to  be  consistent  with  historical  levels, subject to seasonal,
weather-related  fluctuations.  Effective  June 6, 2006, we increased prices for
our  CBM  operations  an  average  of  approximately  6.5%.

Hospital-Based  Model

During  the  second  quarter  of 2006, we began rotor wing operations in Montana
under a 3-year contract and discontinued operations under our contract in Puerto
Rico.  We expect three other contracts to open satellite bases in 2006. Thirteen
hospital  contracts are due for renewal in 2006, four of which have been renewed
for  terms  ranging  from one to three years. We expect 2006 flight activity for
continuing  hospital  contracts  to  remain  consistent  with historical levels.

Products  Division

As  of  June  30,  2006,  eleven  HH-60L units for the U.S. Army and six modular
medical  interiors  for  commercial customers were in process. Remaining revenue
for  all  contracts  in  process  is  estimated  at  $2.2  million.

The  current U.S. Army Aviation Modernization Plan defines a requirement for 180
HH-60L Multi-Mission Medevac units in total over an unspecified number of years.
We  have already completed 28 HH-60L units under the program, in addition to the
eleven currently under contract. The U.S. Army has also forecasted a requirement
for  a  total  of 119 MEV units over four years; we have previously delivered 82
units,  in  addition  to  the  21  units  currently  under contract. There is no
assurance  that  orders for additional units will be received in future periods.

All  Segments

We  expect to begin the implementation of new software for inventory tracking in
2006,  with  completion  projected  in  2007.

There  can  be  no  assurance that we will continue to maintain flight volume or
current  levels  of  collections on receivables for CBM operations, successfully
complete  planned  expansions  of  CBM  and  HBM  operations,  renew  operating
agreements  for our HBM operations, or generate new profitable contracts for the
Products  Division.  Based  on  the  anticipated  levels  of  HBM and CBM flight
activity  and  the  projects  in process for the Products Division, we expect to
generate  sufficient  cash  flow  to  meet  our operational needs throughout the
remainder  of 2006. We also have approximately $14,800,000 in borrowing capacity
available under our revolving credit facility as of June 30, 2006.


                                       17
<PAGE>
CRITICAL  ACCOUNTING  POLICIES

Our  consolidated  financial  statements  have  been prepared in accordance with
accounting  principles  generally accepted in the United States. The preparation
of  these  financial  statements  requires  management  to  make  estimates  and
assumptions  that  affect the reported amounts of assets and liabilities and the
disclosure  of  contingent  assets  and liabilities at the date of the financial
statements  and  the  reported  amounts  of  revenues  and  expenses  during the
reporting  period.

On  an  on-going  basis,  management  evaluates  our  estimates  and  judgments,
including  those  related  to  revenue  recognition,  uncollectible receivables,
deferred  income  taxes,  and depreciation and residual values. Management bases
its  estimates  and  judgments  on  historical  experience  and on various other
factors  that are believed to be reasonable under the circumstances, the results
of which form the basis for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results
may  differ  from  these  estimates  under  different assumptions or conditions.
Management  believes  the following critical accounting policies affect its more
significant  judgments and estimates used in the preparation of our consolidated
financial  statements.

Revenue  Recognition

Fixed  flight  fee  revenue  under  our  operating  agreements with hospitals is
recognized  monthly over the terms of the agreements. Flight revenue relating to
patient  transports  is  recognized upon completion of the services. Revenue and
accounts  receivable  are recorded net of estimated contractual allowances under
agreements  with  third-party payers (i.e., Medicare and Medicaid). Estimates of
contractual  allowances  are  initially  determined based on historical discount
percentages  for  Medicare and Medicaid patients and adjusted periodically based
on  actual  discounts.  If actual discounts realized are more or less than those
projected  by management, adjustments to contractual allowances may be required.
Based on related flight revenue for the six months ended June 30, 2006, a change
of  100  basis points in the percentage of estimated contractual discounts would
have resulted in a change of approximately $1,960,000 in flight revenue.

Revenue related to fixed fee medical interior and products contracts is recorded
as  costs  are incurred using the percentage of completion method of accounting.
We  estimate  the  percentage of completion based on costs incurred to date as a
percentage  of an estimate of the total costs to complete the project. Losses on
contracts  in process are recognized when determined. If total costs to complete
a  project  are  greater or less than estimated, the gross margin on the project
may  be  greater  or  less  than  originally  recorded  under  the percentage of
completion  method.

Uncollectible  Receivables

We  respond to calls for air medical transports without pre-screening the credit
worthiness  of  the  patient.  Uncollectible  trade  receivables  are charged to
operations  using  the  allowance method. Estimates of uncollectible receivables
are determined monthly based on historical collection rates and adjusted monthly
thereafter based on actual collections. If actual future collections are more or
less  than  those  projected  by  management,  adjustments  to  allowances  for
uncollectible  accounts  may be required. There can be no guarantee that we will
continue to experience the same collection rates that we have in the past. Based
on  related  net flight revenue for the six months ended June 30, 2006, a change
of  100 basis points in the percentage of estimated uncollectible accounts would
have resulted in a change of approximately $1,398,000 in flight revenue.

Deferred  Income  Taxes

In  preparation  of  the  consolidated  financial statements, we are required to
estimate  income  taxes  in  each of the jurisdictions in which we operate. This
process  involves estimating actual current tax exposure together with assessing
temporary  differences  resulting  from  differing  treatment  of items, such as
depreciable assets, for tax and accounting purposes. These differences result in
deferred  tax  assets  and  liabilities,  which are included in the consolidated
balance  sheets.  We then assess the likelihood that deferred tax assets will be
recoverable  from  future  taxable  income  and record a valuation allowance for
those  amounts  we  believe  are  not  likely  to  be  realized. Establishing or
increasing  a  valuation  allowance in a period increases income tax expense. We
consider  estimated  future  taxable  income,  tax  planning strategies, and the
expected  timing of reversals of existing temporary differences in assessing the
need for a valuation allowance against deferred tax assets. In the event we were
to  determine  that  we  would  not  be  able  to realize all or part of our net
deferred  tax  assets  in  the  future, an adjustment to the valuation allowance
would  be charged to income in the period such determination was made. Likewise,
should  we determine that we would be able to realize our deferred tax assets in
the  future  in  excess  of  our  net  recorded


                                       18
<PAGE>
amount,  an  adjustment  to the valuation allowance would increase income in the
period  such  determination  was  made.

Depreciation  and  Residual  Values

In accounting for long-lived assets, we make estimates about the expected useful
lives,  projected residual values and the potential for impairment. Estimates of
useful  lives  and  residual  values  of aircraft are based upon actual industry
experience  with  the same or similar aircraft types and anticipated utilization
of  the  aircraft.  Changing  market prices of new and used aircraft, government
regulations and changes in our maintenance program or operations could result in
changes  to  these  estimates.  Long-lived  assets  are evaluated for impairment
whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. Recoverability of long-lived assets is measured
by  a  comparison  of  the  carrying amount of an asset to future net cash flows
expected  to  be  generated  by  the  asset.


ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

Market  risk  is the potential loss arising from adverse changes in market rates
and  prices,  such  as  foreign currency exchange and interest rates. All of our
sales  and  related  receivables  are payable in U.S. dollars. We are subject to
interest  rate  risk on our debt obligations and notes receivable, some of which
have  fixed  interest  rates, except $18,794,000 outstanding against the line of
credit  and  $25,842,000  in  notes payable. Based on the amounts outstanding at
June  30,  2006,  the  annual impact of a change of 100 basis points in interest
rates  would  be  approximately  $446,000.  Interest  rates on these instruments
approximate  current  market  rates  as  of  June  30,  2006.

Periodically we enter into interest rate risk hedges to minimize exposure to the
effect  of  an increase in interest rates. As of June 30, 2006, we were party to
one interest rate swap agreement. The swap agreement provides that we will pay a
3.62%  fixed  interest  rate  on  $841,000  of  notional principal and receive a
floating  interest  rate  (LIBOR  plus  2.50%)  on  the  same amount of notional
principal  from  the  counterparty.

ITEM  4.  CONTROLS  AND  PROCEDURES

DISCLOSURE  CONTROLS  AND  PROCEDURES

We  maintain disclosure controls and procedures that are designed to ensure that
information  required  to  be disclosed in our reports filed or submitted to the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as
amended, is recorded, processed, summarized and reported within the time periods
specified  by  the  Commission's  rules  and  forms,  and  that  information  is
accumulated  and  communicated  to management, including the principal executive
and  financial officers (referred to in this report as the Certifying Officers),
as  appropriate  to  allow  timely  decisions  regarding  required  disclosure.
Management,  under  the supervision and with the participation of the Certifying
Officers,  evaluated  the effectiveness of disclosure controls and procedures as
of  June  30,  2006, pursuant to Rule 13a-15(b) under the Exchange Act. Based on
that  evaluation,  the  Certifying  Officers have concluded that, as of June 30,
2006,  our  disclosure  controls  and  procedures  were  effective.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There  were  no  significant  changes  in  our  internal  control over financial
reporting  that  occurred during the most recently completed fiscal quarter that
have  materially  affected,  or  are reasonably likely to materially affect, our
internal  control  over  financial  reporting.


                                       19
<PAGE>
                           PART II: OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

          Not Applicable

ITEM 1A.  RISK FACTORS

There  have  been  no  material  changes in our risk factors as disclosed in our
annual report on Form 10-K for the year ended December 31, 2005, except as noted
below:

-    Employee  unionization  -  In  September  2003,  our  pilots  voted  to  be
     represented  by  a collective bargaining unit, and we signed a CBA on March
     31,  2006.  The  agreement  is effective January 1, 2006, through April 30,
     2009.  The  CBA establishes procedures for training, addressing grievances,
     discipline  and  discharge,  among  other  matters,  and  defines vacation,
     holiday,  sick, health insurance, and other employee benefits. The CBA also
     establishes  wage  scales,  including adjustments for geographic locations,
     covering  each year of the agreement. Significant changes from our previous
     wage  rates  or  benefits  include  increases  in  initial  base pay rates,
     dependent  upon  each  pilot's  level  of  seniority;  increase  in pay for
     overtime  shifts from regular pay rates to 1.5 times regular pay rates; and
     changes in our contributions to defined contribution retirement plans (401k
     plans). Previously, under one 401k plan, we contributed 2% of gross pay for
     all  eligible  employees and matched 60% of the employees' contributions up
     to  6%  of  their  gross  pay.  Under the other plan, we matched 30% of the
     employees'  contributions up to 6% of their gross pay. The CBA provides for
     Company contributions up to 5.6% of gross pay to both 401k plans, depending
     on  the  level  of each employee's participation. We recorded approximately
     $2,113,000  and  $3,767,000  in incremental salary and benefit costs during
     the  quarter  and six months ended June 30, 2006, respectively, as a result
     of implementing the CBA provisions. Other employee groups may also elect to
     be  represented  by  unions  in  the  future.

ITEM 2.   CHANGES IN SECURITIES

          Not Applicable

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          Not Applicable

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

          None

ITEM 5.   OTHER INFORMATION

          None

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


                                       20
<PAGE>
SIGNATURES

     Pursuant  to  the  requirements of the Securities Exchange Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.


                                        AIR  METHODS  CORPORATION


Date:  August 9, 2006                   By  /s/  Aaron  D.  Todd
                                          ------------------------------------
                                          Aaron D. Todd
                                          Chief Executive  Officer


Date:  August 9, 2006                   By  /s/  Trent  J.  Carman
                                          ------------------------------------
                                          Trent J. Carman
                                          Chief Financial  Officer


Date:  August 9, 2006                   By  /s/  Sharon  J.  Keck
                                          ------------------------------------
                                          Sharon J. Keck
                                          Chief Accounting  Officer


                                       21