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

                               -------------------

                                    FORM 10-Q

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

For  the  quarterly  period  ended             March  31,  2007
                                  ----------------------------------------------

                                       OR

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

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


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

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

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

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

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

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

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

Large accelerated Filer [ ]   Accelerated Filer [X]   Non-accelerated Filer [ ]

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

The  number  of  shares of Common Stock, par value $.06, outstanding as of April
27,  2007,  was  11,886,613.


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

                                    Form 10-Q

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

          Item 1.     Consolidated Financial Statements

                      Consolidated Balance Sheets - March 31, 2007 and December 31, 2006   1

                      Consolidated Statements of Operations for the three months
                        ended March 31, 2007 and 2006                                      3

                      Consolidated Statements of Cash Flows for the three months ended
                        March 31, 2007 and 2006                                            4

                      Notes to Consolidated Financial Statements                           6

          Item 2.     Management's Discussion and Analysis of Financial Condition
                        and Results of Operations                                          9

          Item 3.     Quantitative and Qualitative Disclosures about Market Risk          16

          Item 4.     Controls and Procedures                                             17

PART II.  OTHER INFORMATION

          Item 1.     Legal Proceedings                                                   18

          Item 1A.    Risk Factors                                                        18

          Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds         18

          Item 3.     Defaults upon Senior Securities                                     18

          Item 4.     Submission of Matters to a Vote of Security Holders                 18

          Item 5.     Other Information                                                   18

          Item 6.     Exhibits                                                            18


          SIGNATURES                                                                      19
</TABLE>


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

                           ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

                            AIR METHODS CORPORATION AND SUBSIDIARIES
                                  CONSOLIDATED BALANCE SHEETS
                   (Amounts in thousands, except share and per share amounts)
                                          (unaudited)


                                                                      MARCH 31,   DECEMBER 31,
                                                                        2007          2006
                                                                     --------------------------
<S>                                                                  <C>          <C>
Assets
------

Current assets:
  Cash and cash equivalents                                          $    5,528          4,219
  Current installments of notes receivable                                  155            161
  Receivables:
    Trade                                                                99,500        100,559
    Refundable income taxes                                               2,363          4,898
    Other                                                                 2,266          2,298
                                                                     --------------------------
                                                                        104,129        107,755
                                                                     --------------------------

  Inventories                                                            11,354         10,819
  Work-in-process on medical interiors and products contracts             2,951          2,026
  Assets held for sale                                                    7,087          9,560
  Costs and estimated earnings in excess of billings on
    uncompleted contracts                                                 4,112          2,982
  Deferred income taxes (note 5)                                            446            421
  Prepaid expenses and other                                              2,601          1,918
                                                                     --------------------------

      Total current assets                                              138,363        139,861
                                                                     --------------------------

Property and equipment:
  Land                                                                      251            251
  Flight and ground support equipment                                   160,407        155,478
  Buildings and other equipment                                          14,152         13,868
                                                                     --------------------------
                                                                        174,810        169,597
  Less accumulated depreciation and amortization                        (77,118)       (74,022)
                                                                     --------------------------

      Net property and equipment                                         97,692         95,575
                                                                     --------------------------

Goodwill                                                                  6,485          6,485
Notes and other receivables, less current installments                      164            198
Other assets, net of accumulated amortization of $4,002 and $3,710
  at March 31, 2007 and December 31, 2006, respectively                   9,417          8,038
                                                                     --------------------------

      Total assets                                                   $  252,121        250,157
                                                                     ==========================

                                                                                    (Continued)
</TABLE>


                                        1
<PAGE>
<TABLE>
<CAPTION>
                         AIR METHODS CORPORATION AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS, CONTINUED
                (Amounts in thousands, except share and per share amounts)
                                       (unaudited)

                                                                 MARCH 31,   DECEMBER 31,
                                                                    2007         2006
                                                                 ------------------------
<S>                                                              <C>         <C>
Liabilities and Stockholders' Equity
------------------------------------

Current liabilities:
  Notes payable                                                  $    7,087         9,560
  Current installments of long-term debt                              9,757         8,749
  Current installments of obligations under capital leases            1,069         1,214
  Accounts payable                                                    9,181         8,532
  Deferred revenue                                                    2,305         2,329
  Billings in excess of costs and estimated earnings on
    uncompleted contracts                                               552           329
  Accrued wages and compensated absences                              9,165         6,894
  Due to third party payers                                           3,031         2,709
  Other accrued liabilities                                           7,268         7,513
                                                                 ------------------------

      Total current liabilities                                      49,415        47,829

Long-term debt, less current installments                            57,627        60,566
Obligations under capital leases, less current installments           1,480         1,780
Deferred income taxes (note 5)                                       20,636        21,062
Other liabilities                                                    10,466        11,606
                                                                 ------------------------

      Total liabilities                                             139,624       142,843
                                                                 ------------------------

Stockholders' equity (notes 2, 3 and 5):
  Preferred stock, $1 par value.  Authorized 5,000,000 shares,
    none issued                                                          --            --
  Common stock, $.06 par value. Authorized 16,000,000 shares;
    issued 11,886,613 and 11,874,613 shares at March 31, 2007
    and December 31, 2006, respectively                                 713           712
  Additional paid-in capital                                         71,029        70,106
  Retained earnings                                                  40,755        36,496
                                                                 ------------------------

      Total stockholders' equity                                    112,497       107,314
                                                                 ------------------------

      Total liabilities and stockholders' equity                 $  252,121       250,157
                                                                 ========================
</TABLE>

See accompanying notes to consolidated financial statements.


                                        2
<PAGE>
<TABLE>
<CAPTION>
                           AIR METHODS CORPORATION AND SUBSIDIARIES
                             CONSOLIDATED STATEMENTS OF OPERATIONS
                  (Amounts in thousands, except share and per share amounts)
                                          (unaudited)

                                                                 THREE MONTHS ENDED MARCH 31,
                                                                 -----------------------------
                                                                      2007           2006
                                                                 -----------------------------
<S>                                                              <C>             <C>
Revenue:
  Flight revenue, net                                            $      79,161         71,424
  Sales of medical interiors and products                                2,297          1,605
                                                                 -----------------------------
                                                                        81,458         73,029
                                                                 -----------------------------

Operating expenses:
  Flight centers                                                        35,550         31,349
  Aircraft operations                                                   15,244         17,210
  Aircraft rental                                                        5,807          5,004
  Cost of medical interiors and products sold                            1,740            905
  Depreciation and amortization                                          3,411          3,171
  Loss on disposition of assets, net                                       152             85
  General and administrative                                            12,151          9,827
                                                                 -----------------------------
                                                                        74,055         67,551
                                                                 -----------------------------

        Operating income                                                 7,403          5,478

Other income (expense):
  Interest expense                                                      (1,422)        (1,356)
  Other, net                                                               455            346
                                                                 -----------------------------

Income before income taxes                                               6,436          4,468

Income tax expense                                                      (2,738)        (1,888)

                                                                 -----------------------------
        Net income                                               $       3,698          2,580
                                                                 =============================

Basic income per common share (note 4)                           $         .31            .22
                                                                 =============================

Diluted income per common share (note 4)                         $         .30            .21
                                                                 =============================

Weighted average number of common shares outstanding - basic        11,876,835     11,635,327
                                                                 =============================

Weighted average number of common shares outstanding - diluted      12,362,198     12,278,738
                                                                 =============================
</TABLE>

See accompanying notes to consolidated financial statements.


                                        3
<PAGE>
<TABLE>
<CAPTION>
                                   AIR METHODS CORPORATION AND SUBSIDIARIES
                                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                            (Amounts in thousands)
                                                 (unaudited)

                                                                                THREE MONTHS ENDED MARCH 31,
                                                                                -----------------------------
                                                                                     2007           2006
                                                                                -----------------------------
<S>                                                                             <C>             <C>
Cash flows from operating activities:
  Net income                                                                    $       3,698          2,580
  Adjustments to reconcile net income to net cash provided by operating
    activities:
    Depreciation and amortization expense                                               3,411          3,171
    Deferred income tax expense (benefit)                                                 110           (151)
    Stock-based compensation                                                              753             78
    Tax benefit from exercise of stock options                                            (68)          (833)
    Loss on retirement of equipment, net                                                  152             85
    Changes in assets and liabilities:
      Increase in prepaid expenses and other current assets                              (683)           (98)
      Decrease (increase) in receivables                                                3,694         (5,357)
      Increase in inventories                                                            (535)          (318)
      Increase in work-in-process on medical interiors and costs in excess of
        billings                                                                       (2,055)          (769)
      Increase in accounts payable, other accrued liabilities, and other
        liabilities                                                                     1,857          3,545
      Increase (decrease) in deferred revenue and billings in excess of costs             199           (715)
                                                                                -----------------------------
          Net cash provided by operating activities                                    10,533          1,218
                                                                                -----------------------------

Cash flows from investing activities:
  Acquisition of equipment and leasehold improvements                                  (5,389)        (3,669)
  Increase in notes receivable and other assets, net                                   (1,590)          (199)
                                                                                -----------------------------
          Net cash used by investing activities                                        (6,979)        (3,868)
                                                                                -----------------------------
</TABLE>

                                                                     (Continued)


                                        4
<PAGE>
<TABLE>
<CAPTION>
                      AIR METHODS CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
                               (Amounts in thousands)
                                    (unaudited)

                                                      THREE MONTHS ENDED MARCH 31,
                                                      -----------------------------
                                                           2007           2006
                                                      -----------------------------
<S>                                                   <C>             <C>
Cash flows from financing activities:
  Net borrowings (payments) under line of credit      $      (1,313)         4,119
  Payments for debt issue costs                                 (40)           (18)
  Proceeds from long-term debt                                1,573             --
  Payments of long-term debt                                 (2,191)        (3,291)
  Payments of capital lease obligations                        (445)          (161)
  Tax benefit from exercise of stock options                     68            833
  Proceeds from issuance of common stock, net                   103          1,001
                                                      -----------------------------
    Net cash provided (used) by financing activities         (2,245)         2,483
                                                      -----------------------------

Increase (decrease) in cash and cash equivalents              1,309           (167)

Cash and cash equivalents at beginning of period              4,219          3,218
                                                      -----------------------------

Cash and cash equivalents at end of period            $       5,528          3,051
                                                      =============================


Interest paid in cash during the period               $       1,441          1,227
                                                      =============================

Income taxes paid in cash during the period           $          25            102
                                                      =============================
</TABLE>

Non-cash investing and financing activities:

In the quarter ended March 31, 2007, the Company settled notes payable of $8,053
in  exchange  for  the aircraft securing the debt. The Company also entered into
notes  payable  of $5,580 to finance the purchase of aircraft which are held for
sale  as  of  March  31,  2007.

As  described in note 5, effective January 1, 2007, the Company implemented FASB
Interpretation  No.  48  (FIN  48),  Accounting for Uncertainty in Income Taxes,
resulting  in  an  increase of $561 in deferred tax assets and in the January 1,
2007,  balance  of  retained  earnings.

In the quarter ended March 31, 2006, the Company settled notes payable of $4,778
in  exchange  for  the aircraft securing the debt. The Company also entered into
notes  payable of $3,733 to finance the purchase of aircraft which were held for
sale  as  of  March  31,  2006.

In  the quarter ended March 31, 2006, the Company entered into a note payable of
$673 to finance insurance policies and into capital lease obligations of $349 to
finance  the  purchase  of  equipment.


See accompanying notes to consolidated financial statements.


                                        5
<PAGE>
AIR METHODS CORPORATION AND SUBSIDIARIES
NOTES TO 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  three  months ended March 31,
     2007,  consisted  of  the  following  (amounts  in  thousands  except share
     amounts):

<TABLE>
<CAPTION>
                                                             Shares
                                                           Outstanding   Amount
                                                           ---------------------
<S>                                                        <C>          <C>
          Balances at January 1, 2007                       11,874,613  $107,314

          Adoption of FIN 48                                        --       561
          Issuance of common shares for options exercised       12,000       103
          Tax benefit from exercise of stock options                --        68
          Stock-based compensation                                  --       753
          Net income                                                --     3,698
                                                           ---------------------

          Balances at March 31, 2007                        11,886,613  $112,497
                                                           =====================
</TABLE>

(3)  STOCK-BASED COMPENSATION
     ------------------------

     The  Company  recognized  $753,000  and $78,000 in stock-based compensation
     expense  during  the  quarters  ended  March  31,  2007 and March 31, 2006,
     respectively. During the first quarter of 2007, options to purchase 194,500
     shares  were  granted  at  a  weighted fair value of $9.37. No options were
     granted  during the first quarter of 2006. The aggregate intrinsic value of
     12,000  and  131,023  options exercised during the quarters ended March 31,
     2007  and  2006,  was  approximately $194,000 and $2,352,000, respectively.


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


(4)  INCOMEPER  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
     outstanding  and  dilutive  potential  common  shares  during  the  period.

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

<TABLE>
<CAPTION>
                                                                             2007        2006
                                                                          ----------  ----------
<S>                                                                       <C>         <C>
          Weighted average number of common shares outstanding - basic    11,876,835  11,635,327
          Dilutive effect of:
            Common stock options                                             405,671     551,741
            Common stock warrants                                             79,692      91,670
                                                                          ----------------------
          Weighted average number of common shares outstanding - diluted  12,362,198  12,278,738
                                                                          ======================
</TABLE>

     Common  stock  options  totaling  249,500  were not included in the diluted
     shares  outstanding  for  the  quarter  ended March 31, 2007, because their
     effect  would  have  been  anti-dilutive.

(5)  INCOME TAXES
     ------------

     Effective  January  1,  2007,  the  Company  adopted the provisions of FASB
     Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes.
     FIN  48  prescribes  a  recognition threshold and measurement attribute for
     recognition and measurement of a tax position taken or expected to be taken
     in  a tax return. As a result of adopting FIN 48, the Company recognized an
     increase  of $561,000 in deferred tax assets, which was accounted for as an
     increase  to  the  January  1,  2007,  balance of retained earnings. At the
     adoption  date of January 1, 2007 and at March 31, 2007, the Company had no
     gross  unrecognized tax benefits. It is the Company's practice to recognize
     interest and penalties related to income tax matters in income tax expense.
     At  March  31,  2007,  the  Company had no balance accrued for interest and
     penalties  related  to  income tax. The Company does not believe that it is
     reasonably  possible  that  its estimates of unrecognized tax benefits will
     change  significantly  in  the  next  twelve  months.

     The  Company  and  its  subsidiaries  are  subject  to  U.S. federal income
     tax  as  well as income tax of multiple state jurisdictions and are open to
     federal  and  state tax audits until the applicable statutes of limitations
     expire.  The  Company is no longer subject to U.S. federal tax examinations
     by  tax authorities for tax years before 2003. The Internal Revenue Service
     recently concluded its examination of the Company's consolidated income tax
     return  for  the  year  ended June 30, 2004, and proposed no changes to the
     reported tax. The Company is no longer subject to state tax examinations by
     tax  authorities  for  tax  years before 2002. The Company is currently not
     under  examination  by  any  federal  or  state  taxing  authority.

(6)  NEW ACCOUNTING PRONOUNCEMENTS
     -----------------------------

     In  February  2007,  the Financial Accounting Standards Board (FASB) issued
     FASB  Statement  No.  159,  The  Fair Value Option for Financial Assets and
     Financial  Liabilities  (Statement 159), which provides an option to report
     selected  financial  assets  and  liabilities at fair value and establishes
     presentation and disclosure requirements. Statement 159 permits an election
     to  measure  eligible  items  at  fair value on an instrument-by-instrument
     basis  and  then  report  unrealized  gains  and  losses for those items in
     earnings.  Statement  159  is  effective  for  fiscal years beginning after
     November  15, 2007. The Company does not expect implementation of Statement
     159  to  have  a  material  effect  on its financial position or results of
     operations.


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


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

     -    Community-Based  Model  (CBM)  -  provides  air medical transportation
          services  to  the  general  population  as  an  independent service in
          eighteen  states. Services include aircraft operation and maintenance,
          medical  care,  dispatch  and  communications, and medical billing and
          collection.
     -    Hospital-Based  Model  (HBM)  -  provides  air  medical transportation
          services  to  hospitals  in  26  states  under  exclusive  operating
          agreements.  Services  include  aircraft  operation  and  maintenance.
     -    Products  Division  -  designs,  manufactures,  and  installs aircraft
          medical  interiors  and other aerospace and medical transport products
          for  domestic  and  international  customers.

<TABLE>
<CAPTION>
                                                        Products    Corporate   Intersegment
     FOR QUARTER ENDED MARCH 31:      CBM       HBM     Division   Activities   Eliminations   Consolidated
     -------------------------------------------------------------------------------------------------------
<S>                                <C>        <C>       <C>        <C>          <C>            <C>
     2007
     External revenue              $ 53,399    25,772      2,287           --             --         81,458
     Intersegment revenue                --       473      3,594           --         (4,067)            --
                                   -------------------------------------------------------------------------
     Total revenue                   53,399    26,245      5,881           --         (4,067)        81,458
                                   -------------------------------------------------------------------------

     Operating expenses             (43,395)  (22,401)    (4,509)      (3,410)         3,071        (70,644)
     Depreciation & amortization     (1,814)   (1,358)      (148)         (91)            --         (3,411)
     Interest expense                  (709)     (649)        --          (64)            --         (1,422)
     Other income, net                  437        --         --           18             --            455
     Income tax expense                  --        --         --       (2,738)            --         (2,738)
                                   -------------------------------------------------------------------------
     Segment net income (loss)     $  7,918     1,837      1,224       (6,285)          (996)         3,698
                                   =========================================================================

     Total assets                  $129,472   N/A       N/A           124,813         (2,164)       252,151
                                   =========================================================================

     2006
     External revenue              $ 45,506    25,954      1,569           --             --         73,029
     Intersegment revenue                --        --      3,244           --         (3,244)            --
                                   -------------------------------------------------------------------------
     Total revenue                   45,506    25,954      4,813           --         (3,244)        73,029
                                   -------------------------------------------------------------------------

     Operating expenses             (36,623)  (24,172)    (3,493)      (2,544)         2,452        (64,380)
     Depreciation & amortization     (1,652)   (1,338)      (107)         (74)            --         (3,171)
     Interest expense                  (728)     (599)        --          (29)            --         (1,356)
     Other income, net                  293        --         --           53             --            346
     Income tax expense                  --        --         --       (1,888)            --         (1,888)
                                   -------------------------------------------------------------------------
     Segment net income (loss)     $  6,796      (155)     1,213       (4,482)          (792)         2,580
                                   =========================================================================

     Total assets                  $ 95,511   N/A       N/A           135,096         (2,164)       228,443
                                   =========================================================================
</TABLE>


                                        8
<PAGE>
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
          RESULTS  OF  OPERATIONS

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

OVERVIEW

We  provide air medical transportation services throughout the United States and
design,  manufacture, and install medical aircraft interiors and other aerospace
products  for  domestic  and international customers. Our divisions, or business
segments, are organized according to the type of service or product provided and
consist  of  the  following:
-    Community-Based  Model (CBM) - provides air medical transportation services
     to  the  general  population as an independent service. Revenue consists of
     flight  fees  billed  directly to patients, their insurers, or governmental
     agencies, and cash flow is dependent upon collection from these individuals
     or entities. In the first quarter of 2007 the CBM Division generated 66% of
     our  total  revenue,  increasing  from  62%  in  the first quarter of 2006.
-    Hospital-Based  Model  (HBM) - provides air medical transportation services
     to  hospitals  throughout  the  U.S.  under exclusive operating agreements.
     Revenue consists of fixed monthly fees (approximately 65% of total contract
     revenue)  and  hourly  flight  fees  (approximately  35%  of total contract
     revenue) billed to hospital customers. In the first quarter of 2007 the HBM
     Division  generated  32% of our total revenue, decreasing from 36% in 2006.
-    Products  Division  -  designs, manufactures, and installs aircraft medical
     interiors  and  other aerospace and medical transport products for domestic
     and  international  customers.  In  the  first quarter of 2007 the Products
     Division  generated  2%  of  our  total  revenue,  unchanged  from  2006.

See  Note  7 to the consolidated financial statements included in Item 1 of this
report  for  operating  results  by  segment.

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

-    FLIGHT  VOLUME.  Fluctuations in flight volume have a greater impact on CBM
     operations than HBM operations because almost all of CBM revenue is derived
     from  flight  fees,  as  compared  to  approximately 35% of HBM revenue. By
     contrast,  81%  of  our  costs  primarily associated with flight operations
     (including  salaries, aircraft ownership costs, hull insurance, and general
     and  administrative expenses) incurred during the first quarter of 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
     CBM  operations  were  approximately  8,300  for  the first quarter of 2007
     compared  to  approximately  7,600  for  the first quarter of 2006. Patient
     transports  for  CBM bases open longer than one year (Same-Base Transports)
     were approximately 7,200 in the first quarter of 2007, compared to 7,500 in
     the  first  quarter  of  2006.  Cancellations  due  to  unfavorable weather
     conditions for CBM bases open longer than one year were 45, or 2.4%, higher
     in  the  first  quarter  of  2007,  compared  to the first quarter of 2006.


                                        9
<PAGE>
-    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 CBM and HBM at-risk operations is primarily
     a  function  of  price,  payer  mix,  and  timely  and effective collection
     efforts.  Both the pace of collections and the ultimate collection rate are
     affected  by  the  overall  health  of  the U.S. economy, which impacts the
     number  of  indigent  patients  and funding for state-run programs, such as
     Medicaid.  Medicaid reimbursement rates in many jurisdictions have remained
     well  below  the cost of providing air medical transportation. In addition,
     the  collection  rate  is impacted by changes in the cost of healthcare and
     health  insurance;  as  the  cost of healthcare increases, health insurance
     coverage  provided  by  employers  may  be  reduced or eliminated entirely,
     resulting  in  an  increase  in the uninsured population. We have increased
     average  prices  for  our  CBM  operations  a  total of 13% since the first
     quarter  of  2006, contributing to an increase of 7.9% in net reimbursement
     per transport in the first quarter of 2007 compared to the first quarter of
     2006. Provisions for contractual discounts and estimated uncompensated care
     for  CBM  operations  are  as  follows:

<TABLE>
<CAPTION>
                                               For quarters ended March 31,
                                                   2007           2006
                                               ----------------------------
<S>                                            <C>            <C>
          Gross billings                           100%           100%
          Provision for contractual discounts       33%            30%
          Provision for uncompensated care          18%            18%
</TABLE>

     The increase in the total percentage of uncollectible accounts is primarily
     attributable  to  price  increases.  Although  price  increases  generally
     increase  the  net  reimbursement  per transport from insurance payers, the
     amount  per  transport collectible from private patient payers and Medicare
     and  Medicaid  does  not  increase  proportionately  with  price increases.
     Therefore,  depending  upon overall payer mix, price increases will usually
     result in an increase in the percentage of uncollectible accounts. Although
     we  have not yet experienced increased limitations in the amount reimbursed
     by  insurance  companies,  continued  price  increases  may cause insurance
     companies  to limit coverage for air medical transport to amounts less than
     our  standard  rates.

     -  AIRCRAFT  MAINTENANCE. Both CBM and HBM operations are directly affected
     by  fluctuations  in  aircraft  maintenance  costs. Proper operation of the
     aircraft by flight crews and standardized maintenance practices can help to
     contain  maintenance  costs.  Increases in spare parts prices from original
     equipment manufacturers (OEM's) tend to be higher for aircraft which are no
     longer  in  production.  Five  models  of  aircraft  within  our  fleet,
     representing  35%  of the rotor wing fleet, are no longer in production and
     are,  therefore,  susceptible  to  price  increases  which  outpace general
     inflationary  trends.  In addition, on-condition components are more likely
     to  require  replacement  with  age.  Since  January 1, 2006, we have taken
     delivery  of  21  new  aircraft  and  have  the  option to purchase fifteen
     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 CBM and HBM operations
     decreased  17.1%  from  the  first  quarter of 2006 to the first quarter of
     2007,  while  total flight volume for CBM and HBM operations decreased less
     than 1% over the same period. During the first quarter of 2007, we incurred
     costs  on  fewer  significant maintenance events related to older models of
     aircraft  than during the first quarter of 2006. Maintenance costs per hour
     on  newer  aircraft  has  remained  relatively constant on an annual basis.
     Maintenance  costs  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.


                                       10
<PAGE>
-    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  aircraft manufacturer for fifteen aircraft, with
     deliveries scheduled to begin in 2008, as well as options for an additional
     fifteen  aircraft  in  future  years.

-    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 also serves as a barrier to entry for lower
     cost  providers.

-    EMPLOYEE RECRUITMENT AND RELATIONS. The ability to deliver quality services
     is  partially  dependent  upon our ability to hire and retain employees who
     have  advanced  aviation, nursing, and other technical skills. In addition,
     hospital contracts typically contain minimum certification requirements for
     pilots  and  mechanics.  Employees  who  meet  these standards are in great
     demand  and  are  likely  to  remain  a limited resource in the foreseeable
     future.  In  September  2003,  our  pilots  voted  to  be  represented by a
     collective bargaining unit, and we signed a collective bargaining agreement
     (CBA)  on  March  31,  2006.  The  agreement  is effective January 1, 2006,
     through  April  30,  2009.  Other  employee  groups  may  also  elect to be
     represented  by  unions  in  the  future.


RESULTS  OF  OPERATIONS

We  reported net income of $3,698,000 for the three months ended March 31, 2007,
compared  to  $2,580,000  for  the three months ended March 31, 2006. Net flight
revenue increased 10.8% in the first quarter of 2007 compared to 2006, primarily
because  of  the  addition  of new base locations and an increase of 7.9% in net
reimbursement per transport for CBM operations. Aircraft operating expenses also
decreased 11.4%, mainly due to a decrease in maintenance cost on older models of
aircraft.

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

NET  FLIGHT  REVENUE  increased  $7,737,000,  or  10.8%,  from  $71,424,000  to
$79,161,000  for the three months ended March 31, 2007, compared to 2006. Flight
revenue  is  generated  by  both  CBM  and HBM operations and is recorded net of
provisions  for  contractual  discounts  and  uncompensated  care.

-    CBM - Net  flight revenue increased $7,893,000, or 17.3%, to $53,390,000 in
     the  three months ended March 31, 2007, compared to 2006, for the following
     reasons:
     -    Average  price  increases  totaling  approximately  13%  for  all  CBM
          operations  since  the  first  quarter of 2006, including 7% effective
          January  1,  2007.  Net  reimbursement  per  transport  increased
          approximately  7.9%  in  the  first  quarter of 2007 compared to 2006.
     -    Incremental  net  revenue  of  $6,512,000  generated from the addition
          of  fourteen  new  CBM  bases either during or subsequent to the first
          quarter  of  2006.
     -    Decrease  in  Same-Base  Transports  of  3.5%  in the first quarter of
          2007  compared  to  2006.  Cancellations  due  to  unfavorable weather
          conditions for CBM bases open longer than one year were 2.4% higher in
          the  first  quarter  of  2007,  compared to the first quarter of 2006.


                                       11
<PAGE>
-    HBM - Net  flight  revenue  decreased $156,000, or 0.6%, to $25,771,000 for
     the  quarter  ended  March  31,  2007,  for  the  following  reasons:
     -    Incremental  revenue  of  $848,000  generated  from  the  addition  of
          one  new contract and the expansion of two contracts subsequent to the
          first  quarter  of  2006.
     -    Cessation  of  service  under  two  contracts  and  the  conversion of
          one  contract  to  CBM  in 2006, resulting in a decrease in revenue of
          approximately  $1,253,000.
     -    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.
     -    Decrease  of  5.7%  in  flight  volume for all contracts excluding the
          new  contract,  contract  expansions,  and  closed contracts discussed
          above.

FLIGHT  CENTER COSTS (consisting primarily of pilot, mechanic, and medical staff
salaries  and  benefits)  increased $4,201,000, or 13.4%, to $35,550,000 for the
quarter  ended March 31, 2007, compared to 2006. Changes by business segment are
as  follows:

-    CBM - Flight  center  costs  increased $3,405,000, or 17.0%, to $23,420,000
     for  the  following  reasons:
     -    Increase  of approximately $3,106,000 for the addition of personnel to
          staff  new  base  locations  described  above.
     -    Increases in salaries for merit pay raises.

-    HBM - Flight  center  costs  increased  $795,000,  or  7.0%, to $12,129,000
     primarily  due  to  the  following:
     -    Approximately  $252,000  for  the  addition  of personnel to staff new
          base  locations  described  above.
     -    Decrease  of approximately $425,000 due to the base closures described
          above.
     -    Increases in salaries for merit pay raises.

AIRCRAFT  OPERATING  EXPENSES  decreased  $1,966,000,  or 11.4%, for the quarter
ended  March  31,  2007,  in  comparison  to  the  quarter ended March 31, 2006.
Aircraft  operating  expenses  consist  primarily  of  fuel,  insurance,  and
maintenance costs and generally are a function of the size of the fleet, type of
aircraft  flown,  and number of hours flown. The decrease in costs is due to the
following:
-    Decrease  of  $2,317,000  in the cost of aircraft maintenance. Annual price
     increases  in  the  cost  of  spare parts and overhauls were offset in part
     during  the  quarter  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  added  35 new helicopters to our fleet and eliminated nine
     aircraft  which  were  older  models.  Maintenance  costs per hour on newer
     aircraft  has  remained relatively constant on an annual basis. Maintenance
     costs  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  the  first  quarter  of  2007, we
     incurred  costs  on  fewer  significant maintenance events related to older
     models  of  aircraft  than  during  the  first  quarter  of  2006.
-    Decreases in flight volume for bases open longer than one year for both CBM
     and  HBM  as  described  above.
-    Increase  of  approximately  17.6%  in  the  cost of aircraft fuel per hour
     flown.
-    Decrease in hull insurance rates effective July 2006.

AIRCRAFT  RENTAL  EXPENSE increased $803,000, or 16.0%, for the first quarter of
2007  compared to the first quarter of 2006. Incremental rental expense incurred
in  the  first  quarter  of 2007 for eighteen leased aircraft added to our fleet
subsequent  to March 31, 2006, totaled $1,275,000. The increase for new aircraft
was  offset  in  part  during the quarter by refinancing eight aircraft at lower
lease  rates.


                                       12
<PAGE>
MEDICAL  INTERIORS  AND  PRODUCTS

SALES  OF  MEDICAL  INTERIORS  AND  PRODUCTS  increased $692,000, or 43.1%, from
$1,605,000  for the first quarter of 2006 to $2,297,000 for the first quarter of
2007.  Significant  projects in the first quarter of 2007 included production of
27 litter systems for the U.S. Army's Medical Evacuation Vehicle (MEV) and three
modular, medical interior kits for commercial customers. Revenue by product line
was  as  follows:
-    $293,000 - multi-mission interiors
-    $577,000 - modular medical interiors
-    $1,427,000 - other aerospace and medical transport products

Significant  projects in the first quarter of 2006 included continued production
of  eleven  Multi-Mission Medevac Systems for the U. S. Army's HH-60L Black Hawk
helicopter  and  21  MEV units. We also began production of two modular, medical
interior  kits for commercial customers. Revenue by product line was as follows:
-    $1,006,000 - multi-mission interiors
-    $417,000 - modular medical interiors
-    $182,000 - other aerospace and medical transport products

COST  OF  MEDICAL  INTERIORS  AND PRODUCTS increased $835,000, or 92.3%, for the
three  months ended March 31, 2007, as compared to the previous year, due partly
to  the change in sales volume. The average net margin earned on projects during
2007 was 21.1% compared to 41.5% in 2006, primarily due to the change in product
mix.

GENERAL  EXPENSES

DEPRECIATION  AND AMORTIZATION EXPENSE increased $240,000, or 7.6% for the three
months  ended March 31, 2007, compared to 2006, primarily as a result of placing
two  aircraft  totaling  $3,640,000 into service and the purchase of new rotable
equipment  and  aircraft  interiors.

GENERAL  AND  ADMINISTRATIVE  (G&A) EXPENSES increased $2,324,000, or 23.6%, for
the  quarter ended March 31, 2007, compared to the quarter ended March 31, 2006.
G&A  expenses  include executive management, accounting and finance, billing and
collections,  information  services, human resources, aviation management, pilot
training,  dispatch and communications, and program administration. G&A expenses
for  the  quarter  ended  March 31, 2007, included stock compensation expense of
$741,000  related  to  the grant of stock options. We also increased staffing in
our  Information  Services  department to support scheduled systems upgrades and
CBM  program  administration  staffing, particularly in the southeast region, to
manage  the  growth  of  operations. G&A expenses were 14.9% of revenue in 2007,
compared  to  13.5%  in  2006.

INTEREST  EXPENSE  increased  $66,000,  or  4.9%,  in the first quarter of 2007,
compared to the first quarter of 2006. Regularly scheduled payments of long-term
debt offset increased borrowings against our line of credit. The average balance
outstanding against the line of credit was $15.2 million in the first quarter of
2007  compared  to  $9.0  million  in  the  first  quarter  of  2006.

INCOME  TAX  EXPENSE  was  $2,738,000  in the first quarter of 2006, compared to
$1,888,000  in  the  first  quarter  of  2006,  both at an effective tax rate of
approximately  42%.


LIQUIDITY  AND  CAPITAL  RESOURCES

Our  working capital position as of March 31, 2007, was $88,948,000, compared to
$92,032,000 at December 31, 2006. Net receivables decreased $3,626,000 primarily
due  to  a  decrease  in days' sales outstanding for CBM operations, measured by
comparing  net revenue for the annualized previous 3-month period to outstanding
open net accounts receivable, from 133 days at December 31, 2006, to 122 days at
March 31, 2007. In addition, receivables for refundable income taxes were offset
in  part  by  estimated  income  taxes  payable  for  first  quarter operations.


                                       13
<PAGE>
We  had  cash  and cash equivalents of $5,528,000 at March 31, 2007, compared to
$4,219,000 at December 31, 2006. Cash generated by operations was $10,533,000 in
the  first quarter of 2007, compared to $1,218,000 in the first quarter of 2006.
Net  receivable  balances  decreased  $3,626,000  in  the  first quarter of 2007
compared  to increasing $5,357,000 in the first quarter of 2006, for the reasons
described  above.  Balances for accounts payable and other liabilities increased
$1,857,000  in 2007, compared to $3,545,000 in 2006; balances at March 31, 2006,
included  an accrual of $1,654,000 for incremental salaries and benefits related
to  the  implementation  of  the  CBA  with  our  pilots.

Cash  used  by  investing  activities  totaled  $6,979,000  in  2007 compared to
$3,868,000 in 2006. Equipment acquisitions in the first quarter of 2007 included
a  $1.5 million aircraft, as well as medical interior and avionics installations
and  information  systems  hardware  and  software.  We  also paid approximately
$756,000  in  deposits for future aircraft purchases and $510,000 related to the
purchase of certain business assets from another air medical service provider in
Florida. Equipment acquisitions in the first quarter of 2006 consisted primarily
of  a  $1.4  million  aircraft,  as  well  as  medical  interior  and  avionics
installations  and  information  systems  hardware  and  software.

Financing  activities  used $2,245,000 in 2007 compared to generating $2,483,000
in  2006.  The primary use of cash in both 2007 and 2006 was regularly scheduled
payments of long-term debt and capital lease obligations. In 2006 these payments
were  offset  by draws against our line of credit and proceeds from the issuance
of  common stock. In March 2007, we originated a note payable of $1,573,000 with
interest  at  6.99%  to finance the purchase of an aircraft which was previously
leased  under  an  operating  lease agreement. The note is payable through March
2017.

OUTLOOK  FOR  2007

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

Community-Based  Model

In  the  first quarter of 2007, we acquired certain business assets from another
air  medical  service  provider in Florida, resulting in the addition of two new
base  locations,  and opened two other new bases in the southeast region and one
in the northeast region. During the second quarter of 2007, we purchased certain
business assets of another provider in South Carolina, resulting in the addition
of  two  new  base  locations.  We also expect to open three other new CBM bases
during  the second quarter. CBM flight volume at all other locations during 2007
is  expected  to  be  consistent  with  historical  levels, subject to seasonal,
weather-related fluctuations. Effective January 1, 2007, we increased prices for
our  CBM  operations  an  average  of  approximately  7%.

Hospital-Based  Model

Fifteen  hospital  contracts are due for renewal in 2007, two of which have been
renewed  for  terms ranging from one to three years. A third customer has agreed
to  convert to CBM operations during the second quarter of 2007. Also during the
second  quarter,  we  signed  two  three-year  contracts  to  begin  rotor  wing
operations  in  Portland,  Oregon,  and  Tyler, Texas, in late second quarter or
early  third  quarter.  We  expect  2007 flight activity for continuing hospital
contracts  to  remain  consistent  with  historical  levels.

Products  Division

As of March 31, 2007, 27 MEV units for the U.S. Army and four commercial medical
interiors  or  interior  kits were in process. Deliveries under all contracts in
process are expected to be completed by the third quarter of 2007, and remaining
revenue  is  estimated  at  $1.6  million.

The  current U.S. Army Aviation Modernization Plan defines a requirement for 180
HH-60M  Multi-Mission Medevac units in total over an unspecified number of years
and  has  funding  for  54  units,  in  addition to the 39 units we have already
completed,  to  be  delivered by 2012. The M Model is the new model of the Black
Hawk  helicopter,  replacing  the  HH-60L. There is no assurance that orders for
additional units will be received in future periods. The new contract for 27 MEV
units  completes  the  current  U.S.  Army  requirement  for  this  program.


                                       14
<PAGE>
All  Segments

There  can  be  no  assurance that we will continue to maintain flight volume or
current  levels  of  collections on receivables for CBM operations, successfully
complete  planned  expansions  of  CBM  and  HBM  operations,  renew  operating
agreements  for our HBM operations, or generate new profitable contracts for the
Products  Division.  Based  on  the  anticipated  levels  of  HBM and CBM flight
activity  and  the  projects  in process for the Products Division, we expect to
generate  sufficient  cash  flow  to  meet  our operational needs throughout the
remainder  of 2007. We also have approximately $27,124,000 in borrowing capacity
available  under  our  revolving  credit  facility  as  of  March  31,  2007.

CRITICAL  ACCOUNTING  POLICIES

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

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

Revenue  Recognition

Fixed  flight  fee  revenue  under  our  operating  agreements with hospitals is
recognized  monthly over the terms of the agreements. Flight revenue relating to
patient transports is recognized upon completion of the services and 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. We have
from  time  to time experienced delays in reimbursement from third-party payers.
In  addition,  third-party  payers may disallow, in whole or in part, claims for
reimbursement  based on determinations that certain amounts are not reimbursable
under  plan  coverage,  determinations  of  medical  necessity,  or the need for
additional information. Laws and regulations governing the Medicare and Medicaid
programs  are  very  complex  and  subject  to  interpretation.  We also provide
services  to patients who have no insurance or other third-party payer coverage.
There  can  be  no  guarantee  that  we  will  continue  to  experience the same
collection rates that we have in the past. If actual future collections are more
or  less  than  those  projected  by  management,  adjustments to allowances for
contractual  discounts  and uncompensated care may be required. Based on related
flight  revenue  for  the  quarter  ended  March 31, 2007, a change of 100 basis
points  in  the  percentage of estimated contractual discounts and uncompensated
care  would  have  resulted  in  a  change of approximately $1,094,000 in flight
revenue.

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


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<PAGE>
Deferred  Income  Taxes

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

Depreciation  and  Residual  Values

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


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market  risk  is the potential loss arising from adverse changes in market rates
and  prices,  such  as  foreign currency exchange and interest rates. All of our
product  sales  and  related  receivables  are  payable  in U.S. dollars. We are
subject to interest rate risk on our debt obligations and notes receivable, some
of  which  have fixed interest rates, except $14,022,000 outstanding against the
line  of  credit  and  $24,954,000  in  notes  payable.  Based  on  the  amounts
outstanding at March 31, 2007, the annual impact of a change of 100 basis points
in  interest  rates  would  be  approximately  $390,000. Interest rates on these
instruments  approximate  current  market  rates  as  of  March  31,  2007.

Periodically we enter into interest rate risk hedges to minimize exposure to the
effect  of an increase in interest rates. As of March 31, 2007, we were party to
one  interest  rate  swap  agreement  which  matures  in February 2008. The swap
agreement  provides  that we will pay a 3.62% fixed interest rate on $804,000 of
notional  principal  and  receive a floating interest rate (LIBOR plus 2.50%) on
the  same  amount  of  notional  principal  from  the  counterparty.


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<PAGE>
ITEM 4.  CONTROLS  AND  PROCEDURES

DISCLOSURE  CONTROLS  AND  PROCEDURES

We  maintain disclosure controls and procedures that are designed to ensure that
information  required  to  be disclosed in our reports filed or submitted to the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as
amended, is recorded, processed, summarized and reported within the time periods
specified  by  the  Commission's  rules  and  forms,  and  that  information  is
accumulated  and  communicated  to management, including the principal executive
and  financial officers (referred to in this report as the Certifying Officers),
as  appropriate  to  allow  timely  decisions  regarding  required  disclosure.
Management,  under  the supervision and with the participation of the Certifying
Officers,  evaluated  the effectiveness of disclosure controls and procedures as
of  March  31, 2007, pursuant to Rule 13a-15(b) under the Exchange Act. Based on
that  evaluation,  the  Certifying Officers have concluded that, as of March 31,
2007,  our  disclosure  controls  and  procedures  were  effective.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

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


                                       17
<PAGE>
                           PART II: OTHER INFORMATION

ITEM 1.  LEGAL  PROCEEDINGS

Not Applicable.

ITEM 1A.  RISK FACTORS

There  have been no material changes in our risk factors from those disclosed in
our annual report on Form 10-K for the year ended December 31, 2006.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not Applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not Applicable.

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

Not Applicable.

ITEM 5.  OTHER INFORMATION

Not Applicable.

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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<PAGE>
SIGNATURES

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


                                        AIR METHODS CORPORATION


Date:  May 10, 2007                     By    \s\   Aaron D. Todd
                                          --------------------------------------
                                          Aaron D. Todd
                                          Chief Executive Officer
                                          (Principal Executive Officer)


Date:  May 10, 2007                     By    \s\   Trent J. Carman
                                          --------------------------------------
                                          Trent J. Carman
                                          Chief Financial Officer
                                          (Principal Financial Officer)


Date:  May 10, 2007                     By    \s\   Sharon J. Keck
                                          --------------------------------------
                                          Sharon J. Keck
                                          Chief Accounting Officer
                                          (Principal Accounting Officer)


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