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**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**___________________**

**FORM      10-Q**

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

| For the quarterly period ended |  September                30, 2007 |
|----------------------------------------------------|-----------------------------------------|

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

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

**AIR      METHODS CORPORATION**

| Delaware                                                                      | 84-0915893                                             |
|-------------------------------------------------------------------------------|--------------------------------------------------------|
| (State                or Other Jurisdiction of Incorporation or Organization) | (I.R.S.                Employer Identification Number) |
|                                                                          |                                                   |
| 7301                South Peoria, Englewood, Colorado                         | 80112                                                  |
| (Address                of Principal Executive Offices)                       | (Zip                Code)                              |

| Large                accelerated Filer o | Accelerated                Filer x | Non-accelerated                Filer o |
|------------------------------------------|------------------------------------|----------------------------------------|

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**TABLE      OF CONTENTS**

| PART                I.  | FINANCIAL                INFORMATION |                                                                                                                                                           |
|-------------------------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |                                 |                                                                                                                                                           |   |
|                    | Item                1.               | Consolidated                Financial Statements                                                                                                               |   |
|                    |                                 |                                                                                                                                                           |   |
|                    |                                 | Consolidated                Balance Sheets – September 30, 2007 and                December 31, 2006 (unaudited)                                         | 1 |
|                    |                                 |                                                                                                                                                           |   |
|                    |                                 | Consolidated                Statements of Operations for the three and                nine months ended September 30, 2007 and 2006                (unaudited) | 3 |
|                    |                                 |                                                                                                                                                           |   |
|                    |                                 | Consolidated                Statements of Cash Flows for the nine months                ended September 30, 2007 and 2006 (unaudited)                          | 4 |
|                    |                                 |                                                                                                                                                           |   |
|                    |                                 | Notes                to Consolidated Financial Statements                (unaudited)                                                                           | 6 |
|                    |                                 |                                                                                                                                                           |   |
|                    | Item                2.               | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations                                      |  10 |
|                    |                                 |                                                                                                                                                           |   |
|                    | Item                3.               | Quantitative                and Qualitative Disclosures about Market                Risk                                                                       | 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                                   |

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***Table            of Contents***

**PART      I: FINANCIAL INFORMATION**

**Item      1. Consolidated Financial Statements**

**Air      Methods Corporation and Subsidiaries**

**CONSOLIDATED      BALANCE SHEETS**

**(Amounts      in thousands, except share amounts)**

**(unaudited)**

|                                                                                                                                                       |   | **September 30,** |    |   | **December 31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                       |   | **2007**               |    |   | **2006**              |   |
| Assets                                                                                                                                                     |   |                   |    |   |                  |   |
|                                                                                                                                                       |   |                   |    |   |                  |   |
| Current                assets:                                                                                                                             |   |                   |    |   |                  |   |
| Cash                and cash equivalents                                                                                                                   |   | $                      | 10,477  |   |                  |   | 4,219 |   |
| Current                installments of notes receivable                                                                                                    |   |                   | 121     |   |                  |   | 161 |   |
| Receivables:                                                                                                                                               |   |                   |    |   |                  |   |   |   |
| Trade,                net                                                                                                                                  |   |                   | 110,315 |   |                  |   | 100,559 |   |
| Refundable                income taxes                                                                                                                     |   |                   | --      |   |                  |   | 4,898 |   |
| Other                                                                                                                                                      |   |                   | 4,470   |   |                  |   | 2,298 |   |
|                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Total                receivables                                                                                                                           |   |                   | 114,785 |   |                  |   | 107,755 |   |
|                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Inventories                                                                                                                                                |   |                   | 11,735  |   |                  |   | 10,819 |   |
| Work-in-process                on medical interiors and products contracts                                                                                 |   |                   | 3,019   |   |                  |   | 2,026 |   |
| Assets                held for sale                                                                                                                        |   |                   | 15,540  |   |                  |   | 9,560 |   |
| Costs                and estimated earnings in excess of billings on uncompleted                contracts                                                  |   |                   | 3,365   |   |                  |   | 2,982 |   |
| Deferred                income taxes (note 5)                                                                                                              |   |                   | 1,031   |   |                  |   | 421 |   |
| Prepaid                expenses and other                                                                                                                  |   |                   | 2,485   |   |                  |   | 1,918 |   |
|                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Total                current assets                                                                                                                        |   |                   | 162,558 |   |                  |   | 139,861 |   |
|                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Property                and equipment:                                                                                                                     |   |                   |    |   |                  |   |   |   |
| Land                                                                                                                                                       |   |                   | 251     |   |                  |   | 251 |   |
| Flight                and ground support equipment                                                                                                         |   |                   | 161,905 |   |                  |   | 155,478 |   |
| Furniture                and office equipment                                                                                                              |   |                   | 14,146  |   |                  |   | 13,868 |   |
|                                                                                                                                                       |   |                   | 176,302 |   |                  |   | 169,597 |   |
| Less                accumulated depreciation and amortization                                                                                              |   |                   | (79,061 | )      |                  |   | (74,022 | ) |
|                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Net                property and equipment                                                                                                                  |   |                   | 97,241  |   |                  |   | 95,575 |   |
|                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Goodwill                                                                                                                                                   |   |                   | 6,485   |   |                  |   | 6,485 |   |
| Notes                receivable, less current installments                                                                                                 |   |                   | 251     |   |                  |   | 198 |   |
| Other                assets, net of accumulated amortization of $1,729 and $3,710 at September                30, 2007 and December 31, 2006, respectively |   |                   | 10,406  |   |                  |   | 8,038 |   |
|                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Total                assets                                                                                                                                |   | $                      | 276,941 |   |                  |   | 250,157 |   |

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***Table            of Contents***

**Air      Methods Corporation and Subsidiaries**

**CONSOLIDATED      BALANCE SHEETS, Continued**

**(Amounts      in thousands, except share and per share amounts)**

**(unaudited)**

|                                                                                                                                                                                                                       |   | **September 30,** |    |   | **December 31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                                                                                       |   | **2007**               |    |   | **2006**              |   |
| Liabilities                and Stockholders' Equity                                                                                                                                                                        |   |                   |    |   |                  |   |
|                                                                                                                                                                                                                       |   |                   |    |   |                  |   |
| Current                liabilities:                                                                                                                                                                                        |   |                   |    |   |                  |   |
| Notes                payable                                                                                                                                                                                               |   | $                      | 15,540  |   |                  |   | 9,560 |   |
| Current                installments of long-term debt                                                                                                                                                                      |   |                   | 11,536  |   |                  |   | 8,749 |   |
| Current                installments of obligations under capital leases                                                                                                                                                    |   |                   | 912     |   |                  |   | 1,214 |   |
| Accounts                payable                                                                                                                                                                                            |   |                   | 9,576   |   |                  |   | 8,532 |   |
| Deferred                revenue                                                                                                                                                                                            |   |                   | 3,070   |   |                  |   | 2,329 |   |
| Billings                in excess of costs and estimated earnings on uncompleted                contracts                                                                                                                  |   |                   | 939     |   |                  |   | 329 |   |
| Accrued                wages and compensated absences                                                                                                                                                                      |   |                   | 11,027  |   |                  |   | 6,894 |   |
| Due                to third party payers                                                                                                                                                                                   |   |                   | 3,301   |   |                  |   | 2,709 |   |
| Other                accrued liabilities                                                                                                                                                                                   |   |                   | 10,014  |   |                  |   | 7,513 |   |
|                                                                                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Total                current liabilities                                                                                                                                                                                   |   |                   | 65,915  |   |                  |   | 47,829 |   |
|                                                                                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Long-term                debt, less current installments                                                                                                                                                                   |   |                   | 43,783  |   |                  |   | 60,566 |   |
| Obligations                under capital leases, less current installments                                                                                                                                                 |   |                   | 1,587   |   |                  |   | 1,780 |   |
| Deferred                income taxes (note 5)                                                                                                                                                                              |   |                   | 20,121  |   |                  |   | 21,062 |   |
| Other                liabilities                                                                                                                                                                                           |   |                   | 11,408  |   |                  |   | 11,606 |   |
|                                                                                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Total                liabilities                                                                                                                                                                                           |   |                   | 142,814 |   |                  |   | 142,843 |   |
|                                                                                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Stockholders'                equity (note 2):                                                                                                                                                                              |   |                   |    |   |                  |   |   |   |
| Preferred                stock, $1 par value.  Authorized 5,000,000 shares, none                issued                                                                                                           |   |                   | --      |   |                  |   | -- |   |
| Common                stock, $.06 par value. Authorized 16,000,000 shares; issued 12,025,446                and                11,874,613 shares at September 30, 2007, and December 31, 2006,                respectively |   |                   | 722     |   |                  |   | 712 |   |
| Additional                paid-in capital                                                                                                                                                                                  |   |                   | 73,634  |   |                  |   | 70,106 |   |
| Retained                earnings                                                                                                                                                                                           |   |                   | 59,771  |   |                  |   | 36,496 |   |
|                                                                                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Total                stockholders' equity                                                                                                                                                                                  |   |                   | 134,127 |   |                  |   | 107,314 |   |
|                                                                                                                                                                                                                       |   |                   |    |   |                  |   |   |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                            |   | $                      | 276,941 |   |                  |   | 250,157 |   |

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***Table            of Contents***

**Air      Methods Corporation and Subsidiaries**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

**(Amounts      in thousands, except share and per share amounts)**

**(unaudited)**

|                                                                                |   | **Three Months Ended****September 30,** |       |   | **Nine Months Ended****September 30,** |   |
|-------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|--------|-------------------------------------------------------|--------|
|                                                                                |   | **2007**                                               |       |   | **2006**                                              |   |   | **2007** |   |   | **2006** |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |
| Revenue:                                                                            |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |
| Flight                revenue, net (note 1)                                         |   | $                                                      | 98,587     |   |                                                  |   | 88,949 |   |   |   | 267,443 |   |   |   | 237,410 |   |
| Sales                of medical interiors and products                              |   |                                                   | 2,962      |   |                                                  |   | 1,571 |   |   |   | 6,297 |   |   |   | 4,616 |   |
|                                                                                |   |                                                   | 101,549    |   |                                                  |   | 90,520 |   |   |   | 273,740 |   |   |   | 242,026 |   |
| Operating                expenses:                                                  |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Flight                centers                                                       |   |                                                   | 38,398     |   |                                                  |   | 34,380 |   |   |   | 111,193 |   |   |   | 98,701 |   |
| Aircraft                operations                                                  |   |                                                   | 19,482     |   |                                                  |   | 20,450 |   |   |   | 52,145 |   |   |   | 57,281 |   |
| Aircraft                rental                                                      |   |                                                   | 6,327      |   |                                                  |   | 5,490 |   |   |   | 18,153 |   |   |   | 15,859 |   |
| Cost                of medical interiors and products sold                          |   |                                                   | 1,944      |   |                                                  |   | 899 |   |   |   | 4,070 |   |   |   | 2,355 |   |
| Depreciation                and amortization                                        |   |                                                   | 3,395      |   |                                                  |   | 3,239 |   |   |   | 10,285 |   |   |   | 9,604 |   |
| Loss                (gain) on disposition of assets, net                            |   |                                                   | (1,201     | )      |                                                  |   | 16 |   |   |   | (1,546 | ) |   |   | (546 | ) |
| Litigation                settlement                                                |   |                                                   | --         |   |                                                  |   | (1,417 | ) |   |   | -- |   |   |   | (1,417 | ) |
| General                and administrative                                           |   |                                                   | 12,861     |   |                                                  |   | 10,341 |   |   |   | 37,579 |   |   |   | 30,189 |   |
|                                                                                |   |                                                   | 81,206     |   |                                                  |   | 73,398 |   |   |   | 231,879 |   |   |   | 212,026 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                     |   |                                                   | 20,343     |   |                                                  |   | 17,122 |   |   |   | 41,861 |   |   |   | 30,000 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                                              |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                                                     |   |                                                   | (1,169     | )      |                                                  |   | (1,522 | ) |   |   | (3,909 | ) |   |   | (4,348 | ) |
| Loss                on early extinguishment of debt                                 |   |                                                   | (757       | )      |                                                  |   | -- |   |   |   | (757 | ) |   |   | -- |   |
| Other,                net                                                           |   |                                                   | 612        |   |                                                  |   | 452 |   |   |   | 1,558 |   |   |   | 1,192 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                                           |   |                                                   | 19,029     |   |                                                  |   | 16,052 |   |   |   | 38,753 |   |   |   | 26,844 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense                                                   |   |                                                   | 7,838      |   |                                                  |   | 6,446 |   |   |   | 16,039 |   |   |   | 10,845 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                           |   | $                                                      | 11,191     |   |                                                  |   | 9,606 |   |   |   | 22,714 |   |   |   | 15,999 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic                income per common share (note 4)                               |   | $                                                      | .94        |   |                                                  |   | .82 |   |   |   | 1.91 |   |   |   | 1.36 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                income per common share (note 4)                             |   | $                                                      | .89        |   |                                                  |   | .78 |   |   |   | 1.82 |   |   |   | 1.30 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares outstanding – basic   |   |                                                   | 11,954,332 |   |                                                  |   | 11,774,700 |   |   |   | 11,906,211 |   |   |   | 11,724,182 |   |
|                                                                                |   |                                                   |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average number of common shares outstanding – diluted |   |                                                   | 12,542,816 |   |                                                  |   | 12,275,968 |   |   |   | 12,448,801 |   |   |   | 12,291,559 |   |

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***Table            of Contents***

**AirMethods      Corporation and Subsidiaries**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Amounts      in thousands)**

**(unaudited)**

|                                                                                                            |   | **Nine Months Ended September 30,** |    |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                                                                            |   | **2007**                                                |    |   | **2006** |   |
|                                                                                                            |   |                                                    |    |   |   |   |
| Cash                flows from operating activities:                                                            |   |                                                    |    |   |   |   |
| Net                income                                                                                       |   | $                                                       | 22,714  |   |   |   | 15,999 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                                    |    |   |   |   |   |   |
| Depreciation                and amortization expense                                                            |   |                                                    | 10,285  |   |   |   | 9,604 |   |
| Deferred                income tax benefit                                                                      |   |                                                    | (990    | ) |   |   | (1,201 | ) |
| Stock-based                compensation                                                                         |   |                                                    | 1,467   |   |   |   | 311 |   |
| Tax                benefit from exercise of stock options                                                       |   |                                                    | (588    | ) |   |   | (833 | ) |
| Gain                on disposition of assets, net                                                               |   |                                                    | (1,546  | ) |   |   | (546 | ) |
| Loss                on early extinguishment of debt                                                             |   |                                                    | 757     |   |   |   | -- |   |
| Changes                in assets and liabilities:                                                               |   |                                                    |    |   |   |   |   |   |
| Decrease                (increase) in prepaid expenses and other current assets                                 |   |                                                    | (580    | ) |   |   | 217 |   |
| Increase                in receivables                                                                          |   |                                                    | (7,030  | ) |   |   | (23,904 | ) |
| Increase                in inventories                                                                          |   |                                                    | (916    | ) |   |   | (923 | ) |
| Increase                in work-in-process on medical interiors and costs in excess of                billings  |   |                                                    | (1,376  | ) |   |   | (938 | ) |
| Increase                in accounts payable, other accrued liabilities, and other                liabilities    |   |                                                    | 8,290   |   |   |   | 7,000 |   |
| Increase                (decrease) in deferred revenue and billings in excess of                costs           |   |                                                    | 1,351   |   |   |   | (1,964 | ) |
| Net                cash provided by operating activities                                                        |   |                                                    | 31,838  |   |   |   | 2,822 |   |
|                                                                                                            |   |                                                    |    |   |   |   |   |   |
| Cash                flows from investing activities:                                                            |   |                                                    |    |   |   |   |   |   |
| Acquisition                of property and equipment                                                            |   |                                                    | (13,866 | ) |   |   | (13,228 | ) |
| Proceeds                from disposition and sale of equipment                                                  |   |                                                    | 4,852   |   |   |   | 1,803 |   |
| Increase                in notes receivable and other assets                                                    |   |                                                    | (2,864  | ) |   |   | (100 | ) |
| Net                cash used by investing activities                                                            |   |                                                    | (11,878 | ) |   |   | (11,525 | ) |

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***Table            of Contents***

**Air      Methods Corporation and Subsidiaries**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS, Continued**

**(Amounts      in thousands)**

**(unaudited)**

|                                                            |   | **Nine Months Ended September 30,** |    |
|-----------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                            |   | **2007**                                                |    |   | **2006** |   |
|                                                            |   |                                                    |    |   |   |   |
| Cash                flows from financing activities:            |   |                                                    |    |   |   |   |
| Proceeds                from issuance of common stock, net      |   | $                                                       | 1,483   |   |   |   | 1,526 |   |
| Tax                benefit from exercise of stock options       |   |                                                    | 588     |   |   |   | 833 |   |
| Net                borrowings (repayments) under line of credit |   |                                                    | (11,135 | ) |   |   | 14,057 |   |
| Proceeds                from issuance of long-term debt         |   |                                                    | 26,573  |   |   |   | 2,749 |   |
| Payments                for debt issue costs                    |   |                                                    | (618    | ) |   |   | (87 | ) |
| Payments                of long-term debt                       |   |                                                    | (29,434 | ) |   |   | (9,246 | ) |
| Debt                retirement costs                            |   |                                                    | (112    | ) |   |   | -- |   |
| Payments                of capital lease obligations            |   |                                                    | (1,047  | ) |   |   | (542 | ) |
| Net                cash provided (used) by financing activities |   |                                                    | (13,702 | ) |   |   | 9,290 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Increase                in cash and cash equivalents            |   |                                                    | 6,258   |   |   |   | 587 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Cash                and cash equivalents at beginning of period |   |                                                    | 4,219   |   |   |   | 3,218 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Cash                and cash equivalents at end of period       |   | $                                                       | 10,477  |   |   |   | 3,805 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Interest                paid in cash during the year            |   | $                                                       | 4,176   |   |   |   | 3,924 |   |
|                                                            |   |                                                    |    |   |   |   |   |   |
| Income                taxes paid in cash during the year        |   | $                                                       | 12,444  |   |   |   | 8,577 |   |

*Accounting for Uncertainty in Income Taxes,*

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***Table            of Contents***

**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, 2006. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Effective                December 31, 2006, the Company changed its method of accounting for                revenue and estimated uncompensated care. The Company now presents                revenue                exclusive of estimated uncompensated care within the consolidated                statement of operations. Previously the Company recorded revenue                at full                established rates and recorded a provision for estimated amounts                not                expected to be realized as an operating expense. All prior period                financial statements included in this report have been adjusted to                reflect                the new method of accounting. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | Changes                in stockholders’ equity for the nine months ended September 30, 2007,                consisted of the following (amounts in thousands except share                amounts): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                           |   | Shares      |       |   |   |   |
|----------------------------------------------------------------|--------|-------------|------------|--------|--------|--------|
|                                                           |   | Outstanding |       |   | Amount |   |
|                                                           |   |        |       |   |   |   |
| Balances                at January 1, 2007                     |   |        | 11,874,613 |   |   | $      | 107,314 |   |
|                                                           |   |        |       |   |   |   |   |   |
| Adoption                of FIN 48                              |   |        | --         |   |   |   | 561 |   |
| Issuance                of common shares for options exercised |   |        | 150,833    |   |   |   | 1,483 |   |
| Tax                benefit from exercise of stock options      |   |        | --         |   |   |   | 588 |   |
| Stock-based                compensation                        |   |        | --         |   |   |   | 1,467 |   |
| Net                income                                      |   |        | --         |   |   |   | 22,714 |   |
|                                                           |   |        |       |   |   |   |   |   |
| Balances                at September 30, 2007                  |   |        | 12,025,446 |   |   | $      | 134,127 |   |

| **(3)** | **Stock-based                Compensation** |
|---------|---------------------------------------------|

|   | The                Company recognized $362,000 and $1,467,000 in stock-based compensation                expense during the quarter and nine months ended September 30, 2007,                respectively, and $125,000 and $311,000 during the quarter and nine                months                ended September 30, 2006, respectively. During the nine months ended                September 30, 2007, options to purchase 208,000 shares were granted                at a                weighted average fair value of $9.74. During the nine months ended                September 30, 2006, options to purchase 70,000 shares of stock were                granted at a weighted average fair value of $9.14. During the nine                months                ended September 30, 2007 and 2006, options to purchase 84,833 and                175,023                shares were exercised with aggregate intrinsic values totaling                approximately $2,310,000 and $2,999,000,                respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Table            of Contents***

**Air      Methods Corporation and Subsidiaries**

**Notes      to Unaudited Consolidated Financial Statements, continued**

| **(4)** | **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: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                |   | 2007   |       |   | 2006   |   |
|-------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| **For                quarter ended September 30:**                                  |   |   |       |   |   |   |
| Weighted                average number of common shares outstanding – basic   |   |   | 11,954,332 |   |   |   | 11,774,700 |   |
| Dilutive                effect of:                                                  |   |   |       |   |   |   |   |   |
| Common                stock options                                                 |   |   | 531,275    |   |   |   | 425,279 |   |
| Common                stock warrants                                                |   |   | 57,209     |   |   |   | 75,989 |   |
| Weighted                average number of common shares outstanding – diluted |   |   | 12,542,816 |   |   |   | 12,275,968 |   |
|                                                                                |   |   |       |   |   |   |   |   |
| **For                nine months ended September 30:**                              |   |   |       |   |   |   |   |   |
| Weighted                average number of common shares outstanding – basic   |   |   | 11,906,211 |   |   |   | 11,724,182 |   |
| Dilutive                effect of:                                                  |   |   |       |   |   |   |   |   |
| Common                stock options                                                 |   |   | 468,231    |   |   |   | 484,937 |   |
| Common                stock warrants                                                |   |   | 74,359     |   |   |   | 82,440 |   |
| Weighted                average number of common shares outstanding – diluted |   |   | 12,448,801 |   |   |   | 12,291,559 |   |

|   | Common                stock options of 13,500 were not included in the diluted income per                share                calculation for the quarter and nine months ended September 30, 2007,                because their effect would have been anti-dilutive. Common stock                options                of 70,000 and 55,000 were not included in the diluted income per                share                calculation for the quarter and nine months ended September 30, 2006,                respectively, because their effect would have been                anti-dilutive. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(5)** | **Income                Taxes** |
|---------|---------------------------------|

*Accounting for Uncertainty in Income Taxes*

----

***Table            of Contents***

**Air      Methods Corporation and Subsidiaries**

**Notes      to Unaudited Consolidated Financial Statements, continued**

| **(6)** | **New                Accounting                Pronouncements** |
|---------|-----------------------------------------------------------------|

*The Fair Value Option for Financial Assets and      Financial Liabilities *

| **(7)** | **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 Services (HBS), Products,                and Corporate Activities for internal reporting and performance evaluation                purposes. Operating segments and their principal products or services                are                as follows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Community-Based                Services (CBS) - provides air medical transportation services to                the                general population as an independent service in 18 states. Services                include aircraft operation and maintenance, medical care, dispatch                and                communications, and medical billing and                collection. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hospital-Based                Services (HBS) - provides air medical transportation services to                hospitals                in 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. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **For                quarter ended September 30:**  |   | CBS    |    |   | HBS    |   |    | ProductsDivision |   |   | CorporateActivities |   |    | IntersegmentEliminations |    |   | Consolidated |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|------------------|--------|--------|---------------------|--------|---------|--------------------------|---------|--------|--------------|--------|
| **2007**                                            |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |
| External                revenue                     |   | $      | 69,237  |   |   |   | 29,410  |             |   |   | 2,902               |   |    |                     | --      |   |         |   | -- |   |   |   | 101,549 |   |
| Intersegment                revenue                 |   |   | 18      |   |   |   | --      |             |   |   | 4,913               |   |    |                     | --      |   |         |   | (4,931 | ) |   |   | -- |   |
| Total                revenue                        |   |   | 69,255  |   |   |   | 29,410  |             |   |   | 7,815               |   |    |                     | --      |   |         |   | (4,931 | ) |   |   | 101,549 |   |
|                                                |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Operating                expenses                   |   |   | (46,658 | )      |   |   | (25,820 | )                |   |   | (5,886              | )      |    |                     | (3,308  | )      |         |   | 3,861 |   |   |   | (77,811 | ) |
| Depreciation                & amortization      |   |   | (2,103  | )      |   |   | (1,036  | )                |   |   | (147                | )      |    |                     | (109    | )      |         |   | -- |   |   |   | (3,395 | ) |
| Interest                expense                     |   |   | (589    | )      |   |   | (516    | )                |   |   | --                  |   |    |                     | (64     | )      |         |   | -- |   |   |   | (1,169 | ) |
| Loss                on early extinguishment of debt |   |   | --      |   |   |   | --      |             |   |   | --                  |   |    |                     | (757    | )      |         |   |   |   |   |   | (757 | ) |
| Other                income, net                    |   |   | 565     |   |   |   | --      |             |   |   | --                  |   |    |                     | 47      |   |         |   | -- |   |   |   | 612 |   |
| Income                tax expense                   |   |   | --      |   |   |   | --      |             |   |   | --                  |   |    |                     | (7,838  | )      |         |   | -- |   |   |   | (7,838 | ) |
| Segment                net income (loss)            |   | $      | 20,470  |   |   |   | 2,038   |             |   |   | 1,782               |   |    |                     | (12,029 | )      |         |   | (1,070 | ) |   |   | 11,191 |   |
|                                                |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Total                assets                         |   | $      | 165,431 |   |   | N/A    |    |             | N/A    |   |                |   | 113,674 |                     |    |   | (2,164       | )      |   |   | 276,941 |   |
|                                                |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| **2006**                                            |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| External                revenue                     |   | $      | 61,701  |   |   |   | 27,445  |             |   |   | 1,374               |   |    |                     | --      |   |         |   | -- |   |   |   | 90,520 |   |
| Intersegment                revenue                 |   |   | --      |   |   |   | 382     |             |   |   | 5,586               |   |    |                     | --      |   |         |   | (5,968 | ) |   |   | -- |   |
| Total                revenue                        |   |   | 61,701  |   |   |   | 27,827  |             |   |   | 6,960               |   |    |                     | --      |   |         |   | (5,968 | ) |   |   | 90,520 |   |
|                                                |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Operating                expenses                   |   |   | (40,960 | )      |   |   | (25,963 | )                |   |   | (5,336              | )      |    |                     | (2,800  | )      |         |   | 4,900 |   |   |   | (70,159 | ) |
| Depreciation                & amortization      |   |   | (1,748  | )      |   |   | (1,303  | )                |   |   | (109                | )      |    |                     | (79     | )      |         |   | -- |   |   |   | (3,239 | ) |
| Interest                expense                     |   |   | (815    | )      |   |   | (700    | )                |   |   | --                  |   |    |                     | (7      | )      |         |   | -- |   |   |   | (1,522 | ) |
| Other                income, net                    |   |   | 432     |   |   |   | --      |             |   |   | --                  |   |    |                     | 20      |   |         |   | -- |   |   |   | 452 |   |
| Income                tax expense                   |   |   | --      |   |   |   | --      |             |   |   | --                  |   |    |                     | (6,446  | )      |         |   | -- |   |   |   | (6,446 | ) |
| Segment                net income (loss)            |   | $      | 18,610  |   |   |   | (139    | )                |   |   | 1,515               |   |    |                     | (9,312  | )      |         |   | (1,068 | ) |   |   | 9,606 |   |
|                                                |   |   |    |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Total                assets                         |   | $      | 116,380 |   |   | N/A    |    |             | N/A    |   |                |   | 150,315 |                     |    |   | (2,164       | )      |   |   | 264,531 |   |

----

***Table            of Contents***

**Air      Methods Corporation and Subsidiaries**

**Notes      to Unaudited Consolidated Financial Statements, continued**

| **(7)** | **Business                Segment Information,                continued** |
|---------|---------------------------------------------------------------------------|

| **For                nine months ended September 30:** |   | CBS    |     |   | HBS    |   |    | ProductsDivision |   |   | CorporateActivities |   |    | IntersegmentEliminations |    |   | Consolidated |   |
|--------------------------------------------------------|--------|--------|----------|--------|--------|--------|---------|------------------|--------|--------|---------------------|--------|---------|--------------------------|---------|--------|--------------|--------|
| **2007**                                               |   |   |     |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |
| External                revenue                        |   | $      | 184,482  |   |   |   | 83,042  |             |   |   | 6,216               |   |    |                     | --      |   |         |   | -- |   |   |   | 273,740 |   |
| Intersegment                revenue                    |   |   | 54       |   |   |   | 473     |             |   |   | 13,892              |   |    |                     | --      |   |         |   | (14,419 | ) |   |   | -- |   |
| Total                revenue                           |   |   | 184,536  |   |   |   | 83,515  |             |   |   | 20,108              |   |    |                     | --      |   |         |   | (14,419 | ) |   |   | 273,740 |   |
|                                                   |   |   |     |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Operating                expenses                      |   |   | (135,558 | )      |   |   | (72,790 | )                |   |   | (15,644             | )      |    |                     | (9,305  | )      |         |   | 11,703 |   |   |   | (221,594 | ) |
| Depreciation                & amortization         |   |   | (5,763   | )      |   |   | (3,783  | )                |   |   | (443                | )      |    |                     | (296    | )      |         |   | -- |   |   |   | (10,285 | ) |
| Interest                expense                        |   |   | (1,955   | )      |   |   | (1,775  | )                |   |   | --                  |   |    |                     | (179    | )      |         |   | -- |   |   |   | (3,909 | ) |
| Loss                on early extinguishment of debt    |   |   | --       |   |   |   | --      |             |   |   | --                  |   |    |                     | (757    | )      |         |   |   |   |   |   | (757 | ) |
| Other                income, net                       |   |   | 1,475    |   |   |   | --      |             |   |   | --                  |   |    |                     | 83      |   |         |   | -- |   |   |   | 1,558 |   |
| Income                tax expense                      |   |   | --       |   |   |   | --      |             |   |   | --                  |   |    |                     | (16,039 | )      |         |   | -- |   |   |   | (16,039 | ) |
| Segment                net income (loss)               |   | $      | 42,735   |   |   |   | 5,167   |             |   |   | 4,021               |   |    |                     | (26,493 | )      |         |   | (2,716 | ) |   |   | 22,714 |   |
|                                                   |   |   |     |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Total                assets                            |   | $      | 165,431  |   |   | N/A    |    |             | N/A    |   |                |   | 113,674 |                     |    |   | (2,164       | )      |   |   | 276,941 |   |
|                                                   |   |   |     |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| **2006**                                               |   |   |     |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| External                revenue                        |   | $      | 156,839  |   |   |   | 80,910  |             |   |   | 4,277               |   |    |                     | --      |   |         |   | -- |   |   |   | 242,026 |   |
| Intersegment                revenue                    |   |   | --       |   |   |   | 382     |             |   |   | 11,738              |   |    |                     | --      |   |         |   | (12,120 | ) |   |   | -- |   |
| Total                revenue                           |   |   | 156,839  |   |   |   | 81,292  |             |   |   | 16,015              |   |    |                     | --      |   |         |   | (12,120 | ) |   |   | 242,026 |   |
|                                                   |   |   |     |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Operating                expenses                      |   |   | (117,795 | )      |   |   | (75,566 | )                |   |   | (11,819             | )      |    |                     | (6,908  | )      |         |   | 9,666 |   |   |   | (202,422 | ) |
| Depreciation                & amortization         |   |   | (4,996   | )      |   |   | (4,047  | )                |   |   | (324                | )      |    |                     | (237    | )      |         |   | -- |   |   |   | (9,604 | ) |
| Interest                expense                        |   |   | (2,314   | )      |   |   | (1,976  | )                |   |   | --                  |   |    |                     | (58     | )      |         |   | -- |   |   |   | (4,348 | ) |
| Other                income, net                       |   |   | 1,100    |   |   |   | --      |             |   |   | --                  |   |    |                     | 92      |   |         |   | -- |   |   |   | 1,192 |   |
| Income                tax expense                      |   |   | --       |   |   |   | --      |             |   |   | --                  |   |    |                     | (10,845 | )      |         |   | -- |   |   |   | (10,845 | ) |
| Segment                net income (loss)               |   | $      | 32,834   |   |   |   | (297    | )                |   |   | 3,872               |   |    |                     | (17,956 | )      |         |   | (2,454 | ) |   |   | 15,999 |   |
|                                                   |   |   |     |   |   |   |    |             |   |   |                |   |    |                     |    |   |         |   |   |   |   |   |   |   |
| Total                assets                            |   | $      | 116,380  |   |   | N/A    |    |             | N/A    |   |                |   | 150,315 |                     |    |   | (2,164       | )      |   |   | 264,531 |   |

| **(8)** | **Subsequent                Event** |
|---------|-------------------------------------|

----

***Table            of Contents***

| **ITEM                2.** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

**OVERVIEW**

| · | Community-Based                Services (CBS) - provides air medical transportation services to                the                general population as an independent service. Revenue consists of                flight                fees billed directly to patients, their insurers, or governmental                agencies, and cash flow is dependent upon collection from these                individuals or entities. In the nine                months                ended September 30, 2007, the CBS Division generated 68% of our total                revenue, increasing from 65% in the nine months ended September 30,                2006. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Hospital-Based                Services (HBS) - provides air medical transportation services to                hospitals                throughout the U.S. under exclusive operating agreements. Revenue                consists                of fixed monthly fees (approximately 65% of total contract revenue)                and                hourly flight fees (approximately 35% of total contract revenue)                billed to                hospital customers. In the nine months ended September 30, 2007,                the HBS                Division generated 30% of our total revenue, decreasing from 33%                in                2006. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 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 nine months ended September 30, 2007 and                2006. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Flight                volume.** Fluctuations in flight volume have a greater impact on                CBS operations than HBS operations because almost all of CBS revenue                is                derived from flight fees, as compared to approximately 35% of HBS                revenue.                By contrast, 79% of our costs primarily associated with flight operations                (including salaries, aircraft ownership costs, hull insurance, and                general                and administrative expenses) incurred during the nine months ended                September 30, 2007 are mainly fixed in nature. While flight volume                is                affected by many factors, including competition and the effectiveness                of                marketing and business development initiatives, the greatest single                variable has historically been weather conditions. Adverse weather                conditions—such as fog, high winds, or heavy precipitation—hamper our                ability to operate our aircraft safely and, therefore, result in                reduced                flight volume. Total patient transports for CBS operations were 10,466                and                28,519 for the quarter and nine months ended September 30, 2007,                respectively, compared to 9,187 and 25,734 for the quarter and nine                months                ended September 30, 2006, respectively. Patient transports for CBS                bases                open longer than one year (Same-Base Transports) were 8,969 and 24,525                in                the quarter and nine months ended September 30, 2007, respectively,                compared to 8,953 and 25,018 in the quarter and nine months ended                September 30, 2006, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Reimbursement                per transport.** We respond to calls for air medical transports                without pre-screening the creditworthiness of the patient and are                subject                to collection risk on services provided to insured and uninsured                patients.                Medicare and Medicaid also receive contractual discounts from our                standard                charges for flight services. Flight revenue is recorded net of provisions                for contractual discounts and estimated uncompensated care. Both                provisions are estimated during the period the related services are                performed based on historical collection experience and any known                trends                or changes in reimbursement rate schedules and payer mix. The provisions                are adjusted as required based on actual collections in subsequent                periods. Net reimbursement per transport for CBS operations is primarily                a                function of price, payer mix, and timely and effective collection                efforts.                Both the pace of collections and the ultimate collection rate are                affected                by the overall health of the U.S. economy, which impacts the number                of                indigent patients and funding for state-run programs, such as Medicaid.                Medicaid reimbursement rates in many jurisdictions have remained                well                below the cost of providing air medical transportation. In addition,                the                collection rate is impacted by changes in the cost of healthcare                and                health insurance; as the cost of healthcare increases, health insurance                coverage provided by employers may be reduced or eliminated entirely,                resulting in an increase in the uninsured population. The average                gross                charge per transport increased 12.8% in the nine months ended September                30, 2007, compared to 2006, contributing to an increase of 6.8% in                net                reimbursement per transport in the nine months ended September 30,                2007,                compared to the nine months ended September 30, 2006. Provisions                for                contractual discounts and estimated uncompensated care for CBS operations                are as follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Table            of Contents***

|                                               |   | For quarters endedSeptember 30, |   |   | For nine months endedSeptember 30, |   |
|----------------------------------------------------|--------|------------------------------------------------|--------|--------|--------------------------------------------------------|--------|
|                                               |   | 2007                                           |   |   | 2006                                                   |   |   | 2007 |   |   | 2006 |   |
| Gross                billings                      |   |                                           | 100    | %      |                                                   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |
| Provision                for contractual discounts |   |                                           | 31     | %      |                                                   |   | 23 | % |   |   | 31 | % |   |   | 27 | % |
| Provision                for uncompensated care    |   |                                           | 20     | %      |                                                   |   | 22 | % |   |   | 20 | % |   |   | 22 | % |

| · | **Aircraft                maintenance.** Both CBS and HBS operations are directly affected by                fluctuations in aircraft maintenance costs. Proper operation of the                aircraft by flight crews and standardized maintenance practices can                help                to contain maintenance costs. Increases in spare parts prices from                original equipment manufacturers tend to be higher for aircraft which                are                no longer in production. As of September 30, 2007, five models of                aircraft                within our fleet, representing 32% of the rotor wing fleet, are no                longer                in production and are, therefore, susceptible to spare parts price                increases which outpace general inflationary trends. In addition,                on-condition components are more likely to require replacement with                age.                From January 1, 2006 through September 30, 2007, we have taken delivery                of                29 new aircraft and have the option to purchase twelve additional                aircraft                through the end of 2007. We plan to replace discontinued models and                other                older aircraft with the new aircraft expected to be delivered under                these                options, as well as to provide capacity for base expansion. Replacement                models of aircraft typically have higher ownership costs than the                models                targeted for replacement but lower maintenance costs. Total maintenance                expense for CBS and HBS operations decreased 8.1% and 13.0% for the                quarter and nine months ended September 30, 2007, respectively, compared                to 2006, while total flight volume for CBS and HBS operations increased                7.4% and 2.4% in the quarter and nine months ended September 30,                2007,                compared to 2006. During the nine months ended September 30, 2007,                we                incurred costs on fewer significant maintenance events related to                older                models of aircraft than during the corresponding period in 2006.                Maintenance cost per hour on newer aircraft has remained relatively                constant on an annual basis. Maintenance cost per hour on older models                of                aircraft, however, may vary more widely on a quarterly basis depending                on                component overhaul and replacement and aircraft refurbishment                cycles. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | **Aircraft                availability.** The recent high rate of growth in the air medical                transportation and other helicopter services industries has generated                strong demand for new models of helicopters. Quality used aircraft                are                also in short supply worldwide. We have endeavored to mitigate the                shortage of suitable aircraft primarily through long-term arrangements                with a single aircraft manufacturer which provides us options to                purchase                up to ten aircraft each year for the next several years. We also                have a                purchase commitment with another manufacturer for fifteen aircraft,                with                deliveries scheduled to begin in 2008, as well as options for an                additional fifteen aircraft in future                years. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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***Table            of Contents***

| · | **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 on March 31, 2006. The agreement is effective                January                1, 2006, through April 30, 2009. Other employee groups may also elect                to                be represented by unions in the                future. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RESULTS OF      OPERATIONS**

***Flight      Operations – Community-based Services and Hospital-based      Services***

**Net      flight revenue**

| · | CBS                – Net flight revenue increased $7,534,000, or 12.2%, to $69,225,000                for                the third quarter of 2007 and $27,645,000, or 17.6%, to $184,450,000                for                the nine months ended September 30, 2007, for the following                reasons: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase                of 12.8% in average gross charge per transport for the nine months                ended                September 30, 2007, compared to the nine months ended September 30,                2006.                Net reimbursement per transport increased approximately 6.8% in the                nine                months ended September 30, 2007, compared to 2006, and remained relatively                unchanged for the third quarter of 2007 compared to the third quarter                of                2006. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental                net revenue of $10,053,000 and $23,783,000 for the quarter and nine                months                ended September 30, 2007, respectively, generated from the addition                of 21                new CBS bases either during or subsequent to the nine months ended                September 30, 2006, and pursuant to a contract to support the Federal                Emergency Management Agency (FEMA) in disaster recovery efforts.                During                the third quarter of 2007, we mobilized thirteen aircraft to respond                to                the threat posed by Hurricane Dean in                Texas. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Closure                of one base during the fourth quarter of 2006 and the conversion                of                another base to HBS operations during the first quarter of 2007,                resulting                in decreases in net revenue of approximately $1,084,000 and $2,197,000                for                the quarter and nine months ended September 30,                2007. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decrease                of 2.0% in Same-Base Transports for the nine months ended September                30,                2007, compared to the prior year. Same-Base Transports for the third                quarter of 2007 were relatively unchanged compared to the third quarter                of                2006. The decrease in Same-Base Transports has been partially attributed                to shifting of transports to newly-opened bases in adjacent                locations. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | HBS                – Net flight revenue increased $2,104,000, or 7.7%, to $29,362,000                for the                third quarter of 2007 and $2,388,000, or 3.0%, to $82,993,000 for                the nine                months ended September 30, 2007, for the following                reasons: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Incremental                net revenue of $1,192,000 and $3,516,000, for the quarter and nine                months                ended September 30, 2007, respectively, from the addition of three                new                contracts, the expansion of two contracts, and the conversion of                one CBS                location to HBS operations during or subsequent to the nine months                ended                September 30, 2006. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cessation                of service under two contracts and the conversion of two contracts                to CBS                operations during or subsequent to the nine months ended September                30,                2006, resulting in decreases in net revenue of approximately $642,000                and                $3,174,000 for the quarter and nine months ended September 30, 2007,                respectively. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | Increases                of 6.2% and 0.4% in flight volume for the quarter and nine months                ended                September 30, 2007, respectively, compared to 2006, for all contracts                excluding the new contracts, expansions, and closed contracts discussed                above. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Flight      center costs**

| · | CBS                – Flight center costs increased $3,097,000, or 13.6% to $25,851,000                and                $9,642,000, or 15.0%, to $73,975,000 for the quarter and nine months                ended                September 30, 2007, respectively, for the following                reasons: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases                of approximately $3,879,000 and $10,165,000 for the quarter and nine                months ended September 30, 2007, respectively, for the addition of                personnel to staff new base locations and contracts described                above. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases                of approximately $363,000 and $1,224,000 for the quarter and nine                months                ended September 30, 2007, respectively, due to the closure of base                locations described above. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | HBS                - Flight center costs increased $921,000, or 7.9%, to $12,547,000                and                $2,850,000, or 8.3%, to $37,218,000 for the quarter and nine months                ended                September 30, 2007, respectively, primarily due to the                following: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increases                of approximately $550,000 and $1,496,000 for the quarter and nine                months                ended September 30, 2007, respectively, for the addition of personnel                to                staff new base locations described                above. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Decreases                of approximately $233,000 and $1,007,000 for the quarter and nine                months                ended September 30, 2007, respectively, due to the base closures                described                above. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**Aircraft      operating expenses**

| · | Decreases                of $1,319,000 and $5,812,000 in the cost of aircraft maintenance                for the                quarter and nine months ended September 30, 2007, respectively. Annual                price increases in the cost of spare parts and overhauls were offset                in                part during the periods by our ability to use exchange components                rather                than new parts in certain instances and by increased life-cycle intervals                approved on certain life-limited components. Since the first quarter                of                2006, we have placed 41 new helicopters into service and eliminated                twelve                aircraft which were older models. Maintenance cost per hour on newer                aircraft has remained relatively constant on an annual basis. Maintenance                cost per hour on older models of aircraft, however, may vary more                widely                on a quarterly basis depending on component overhaul and replacement                and                aircraft refurbishment cycles. During 2007 we incurred costs on fewer                significant maintenance events related to older models of aircraft                than                during 2006. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Changes                in flight volume for bases open longer than one year for both CBS                and HBS                as described above. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Increases                of approximately 20.1% and 17.3% in the cost of aircraft fuel per                hour                flown for the quarter and nine months ended September 30, 2007,                respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Decrease                in hull insurance rates effective July 2007 and                2006. |
|--------|----------------------------------------------------------------------------------------------|

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***Table            of Contents***

**Aircraft      rental expense**

***Products      Division***

**Sales      of medical interiors and products **

| · | $1,094,000                and $1,645,000 - multi-mission                interiors |
|--------|-----------------------------------------------------------------------------------|

| · | $1,675,000                and $2,756,000 - modular medical                interiors |
|--------|-------------------------------------------------------------------------------------|

| · | $193,000                and $1,896,000 - other aerospace                products |
|--------|----------------------------------------------------------------------------------|

| · | $237,000                and $1,798,000 - multi-mission                interiors |
|--------|---------------------------------------------------------------------------------|

| · | $1,058,000                and $2,086,000 - modular medical                interiors |
|--------|-------------------------------------------------------------------------------------|

| · | $276,000                and $732,000 - other aerospace                products |
|--------|--------------------------------------------------------------------------------|

**Cost      of medical interiors and products**

***General      Expenses***

**Depreciation      and amortization expense**

**Net      gain on disposition of assets **

**Litigation      settlement**

**General      and administrative (G&A) expenses**

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***Table            of Contents***

**Interest      expense**

**Loss      on early extinguishment of debt**

**Income      tax expense**

**LIQUIDITY      AND CAPITAL RESOURCES**

***Sources      and Uses of Cash***

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***Table            of Contents***

**OUTLOOK      FOR 2007**

*Community-Based      Services*

*Hospital-Based      Services*

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***Table            of Contents***

*Products      Division*

*All      Segments*

**CRITICAL      ACCOUNTING POLICIES**

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***Table            of Contents***

*Revenue      Recognition*

*Deferred      Income Taxes*

*Depreciation      and Residual Values*

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***Table            of Contents***

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

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

**DISCLOSURE      CONTROLS AND PROCEDURES**

**CHANGES      IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

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***Table            of Contents***

**PART      II: OTHER INFORMATION**

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

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

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

| **Item                3.** | **Defaults                upon Senior Securities** |
|----------------------------|----------------------------------------------------|

| **Item                4.** | **Submission                of Matters to a Vote of Security                Holders** |
|----------------------------|---------------------------------------------------------------------------------------|

|   | The                2007 Annual Meeting of Stockholders was held on August 8, 2007. At                the                meeting, Messrs. George W. Belsey, C. David Kikumoto, and Major                General Carl H. McNair, Jr. (Ret.) were elected to Class I directorships.                Voting results were as follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | Total Vote ForEach Director |       |   | Total VoteWithheld FromEach Director |   |
|----------------------------------------------|--------|--------------------------------------------|------------|--------|-----------------------------------------------------|--------|
|                                         |   |                                       |       |   |                                                |   |
| George                W. Belsey              |   |                                       | 10,271,473 |   |                                                |   | 518,522 |   |
| C.                David Kikumoto             |   |                                       | 10,272,019 |   |                                                |   | 517,976 |   |
| MG                Carl H. McNair, Jr. (Ret.) |   |                                       | 9,276,390  |   |                                                |   | 1,513,605 |   |

|   | Following                the meeting, Ralph J. Bernstein; Samuel H. Gray; Lowell D. Miller,                Ph. D.;                Morad Tahbaz; Paul H. Tate; and Aaron D. Todd continued to serve                as                directors. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Item                5.** | **Other                Information** |
|----------------------------|--------------------------------------|

| **Item                6.** | **Exhibits** |
|----------------------------|--------------|

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

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

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

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***Table            of Contents***

**SIGNATURES**

|                                             | **AIR                METHODS CORPORATION** |
|--------------------------------------------------|--------------------------------------------|
|                                             |                                       |   |
|                                             |                                       |   |
|                                             |                                       |   |
| Date:  November                9, 2007 | By                                         |     \s\   Aaron                D. Todd |
|                                             |                                       | Aaron                D. Todd |
|                                             |                                       | Chief                Executive Officer |
|                                             |                                       | (Principal                Executive Officer) |
|                                             |                                       |   |
|                                             |                                       |   |
| Date:  November                9, 2007 | By                                         |     \s\   Trent                J. Carman |
|                                             |                                       | Trent                J. Carman |
|                                             |                                       | Chief                Financial Officer |
|                                             |                                       | (Principal                Financial Officer) |
|                                             |                                       |   |
|                                             |                                       |   |
| Date:  November                9, 2007 | By                                         |     \s\   Sharon                J. Keck |
|                                             |                                       | Sharon                J. Keck |
|                                             |                                       | Chief                Accounting Officer |
|                                             |                                       | (Principal                Accounting Officer) |

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