10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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

For the quarterly period ended September 30, 2011

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 001-31617

Bristow Group Inc.

(Exact name of registrant as specified in its charter)

Delaware	72-0679819
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
2000 W. Sam Houston Pkwy. S., Suite 1700 Houston, Texas	77042
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(713) 267-7600

None

(Former name, former address and former fiscal year, if changed since last report)

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  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer  ¨	Non-accelerated filer  ¨	Smaller reporting company  ¨
	(Do not check if a smaller reporting company)

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

Indicate the number shares outstanding of each of the issuer’s classes of Common Stock, as of November 1, 2011.

36,161,521 shares of Common Stock, $.01 par value

BRISTOW GROUP INC.

INDEX — FORM 10-Q

		Page
PART I
Item 1.	Financial Statements		1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		33
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		56
Item 4.	Controls and Procedures		56
PART II
Item 1.	Legal Proceedings		57
Item 1A.	Risk Factors		57
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		57
Item 6.	Exhibits		58
Signatures			59

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

BRISTOW GROUP INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

	Three Months Ended September 30,						Six Months Ended September 30,
	2011			2010			2011			2010
	(Unaudited)
	(In thousands, except per share amounts)
Gross revenue:
Operating revenue from non-affiliates	$	288,780		$	270,053		$	565,809		$	524,647
Operating revenue from affiliates		8,276			16,484			18,008			33,899
Reimbursable revenue from non-affiliates		33,673			25,933			67,974			45,996
Reimbursable revenue from affiliates		263			89			306			255
		330,992			312,559			652,097			604,797
Operating expense:
Direct cost		203,635			189,110			400,257			372,274
Reimbursable expense		32,770			25,020			65,904			45,198
Impairment of inventories		24,610			—			24,610			—
Depreciation and amortization		25,431			20,968			48,139			40,299
General and administrative		29,303			30,515			68,948			61,417
		315,749			265,613			607,858			519,188
Gain (loss) on disposal of assets		(1,611	)		1,897			(195	)		3,615
Earnings from unconsolidated affiliates, net of losses		(4,037	)		4,716			1,956			4,014
Operating income		9,595			53,559			46,000			93,238
Interest income		153			168			324			460
Interest expense		(9,459	)		(11,452	)		(18,414	)		(22,490	)
Other income (expense), net		727			(111	)		931			404
Income before benefit (provision) for income taxes		1,016			42,164			28,841			71,612
Benefit (provision) for income taxes		1,945			(3,316	)		(4,661	)		(11,856	)
Net income		2,961			38,848			24,180			59,756
Net income attributable to noncontrolling interests		(250	)		32			(424	)		(68	)
Net income attributable to Bristow Group	$	2,711		$	38,880		$	23,756		$	59,688
Earnings per common share:
Basic	$	0.07		$	1.07		$	0.66		$	1.66
Diluted	$	0.07		$	1.06		$	0.65		$	1.63
Cash dividends declared per common share	$	0.15		$	—		$	0.30		$	—

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

BRISTOW GROUP INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

	September 30, 2011			March 31, 2011
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	140,279		$	116,361
Accounts receivable from non-affiliates		259,204			247,135
Accounts receivable from affiliates		8,400			15,384
Inventories		157,266			196,207
Assets held for sale		31,642			31,556
Prepaid expenses and other current assets		14,431			22,118
Total current assets		611,222			628,761
Investment in unconsolidated affiliates		202,437			208,634
Property and equipment – at cost:
Land and buildings		77,701			98,054
Aircraft and equipment		2,210,853			2,116,259
		2,288,554			2,214,313
Less – Accumulated depreciation and amortization		(465,235	)		(446,431	)
		1,823,319			1,767,882
Goodwill		29,247			32,047
Other assets		34,193			38,030
Total assets	$	2,700,418		$	2,675,354
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	47,008		$	56,972
Accrued wages, benefits and related taxes		34,831			34,538
Income taxes payable		14,356			15,557
Other accrued taxes		5,276			4,048
Deferred revenue		11,560			9,613
Accrued maintenance and repairs		13,942			16,269
Accrued interest		2,268			2,279
Other accrued liabilities		19,689			19,613
Deferred taxes		7,020			12,176
Short-term borrowings and current maturities of long-term debt		13,273			8,979
Total current liabilities		169,223			180,044
Long-term debt, less current maturities		751,087			698,482
Accrued pension liabilities		97,237			99,645
Other liabilities and deferred credits		13,398			30,109
Deferred taxes		144,621			148,299
Commitments and contingencies (Note 7)
Stockholders’ investment:
Common stock, $.01 par value, authorized 90,000,000; outstanding: 36,160,047 as of September 30 and 36,311,143 as of March 31 (exclusive of 1,291,325 treasury shares)		362			363
Additional paid-in capital		696,268			689,795
Retained earnings		964,444			951,660
Accumulated other comprehensive loss		(143,627	)		(130,117	)
Total Bristow Group Inc. stockholders’ investment		1,517,447			1,511,701
Noncontrolling interests		7,405			7,074
Total stockholders’ investment		1,524,852			1,518,775
Total liabilities and stockholders’ investment	$	2,700,418		$	2,675,354

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

BRISTOW GROUP INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

	Six Months Ended September 30,
	2011			2010
	(In thousands)
Cash flows from operating activities:
Net income	$	24,180		$	59,756
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		48,139			40,299
Deferred income taxes		(10,237	)		4,385
Discount amortization on long-term debt		1,666			1,565
(Gain) loss on disposal of assets		195			(3,615	)
Impairment of inventories		24,610			—
Gain on sale of joint ventures		—			(572	)
Stock-based compensation		7,480			8,019
Equity in earnings from unconsolidated affiliates less than (in excess of) dividends received		5,285			(890	)
Tax benefit related to stock-based compensation		(109	)		(179	)
Increase (decrease) in cash resulting from changes in:
Accounts receivable		(6,352	)		(24,940	)
Inventories		7,916			(3,000	)
Prepaid expenses and other assets		3,297			(14,363	)
Accounts payable		5,382			9,774
Accrued liabilities		4,863			(2,917	)
Other liabilities and deferred credits		678			(4,138	)
Net cash provided by operating activities		116,993			69,184
Cash flows from investing activities:
Capital expenditures		(149,262	)		(63,943	)
Deposits on assets held for sale		—			1,000
Proceeds from sale of joint ventures		—			1,291
Proceeds from asset dispositions		12,040			17,178
Net cash used in investing activities		(137,222	)		(44,474	)
Cash flows from financing activities:
Proceeds from borrowings		88,493			10,012
Repayment of debt and debt redemption premiums		(32,518	)		(7,630	)
Distributions to noncontrolling interest owners		—			(637	)
Partial prepayment of put/call obligation		(31	)		(28	)
Acquisition of noncontrolling interests		(262	)		(800	)
Common stock dividends paid		(10,833	)		—
Issuance of common stock		1,629			111
Tax benefit related to stock-based compensation		109			179
Net cash provided by financing activities		46,587			1,207
Effect of exchange rate changes on cash and cash equivalents		(2,440	)		4,791
Net increase in cash and cash equivalents		23,918			30,708
Cash and cash equivalents at beginning of period		116,361			77,793
Cash and cash equivalents at end of period	$	140,279		$	108,501
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	18,937		$	22,856
Income taxes	$	9,171		$	7,559

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The condensed consolidated financial statements include the accounts of Bristow Group Inc. and its consolidated entities (“Bristow Group,” the “Company,” “we,” “us,” or “our”) after elimination of all significant intercompany accounts and transactions. Our fiscal year ends March 31, and we refer to fiscal years based on the end of such period. Therefore, the fiscal year ending March 31, 2012 is referred to as “fiscal year 2012.” Pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the information contained in the following notes to condensed consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and related notes thereto contained in our fiscal year 2011 Annual Report (the “fiscal year 2011 Financial Statements”). Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the entire fiscal year.

The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair presentation of the consolidated financial position of the Company as of September 30, 2011, the consolidated results of operations for the three and six months ended September 30, 2011 and 2010, and the consolidated cash flows for the six months ended September 30, 2011 and 2010.

Certain balance sheet amounts as of March 31, 2011 have been reclassified to conform to current period presentation.

4

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Foreign Currency

During the three and six months ended September 30, 2011 and 2010, our primary foreign currency exposure was to the British pound sterling, the euro, the Australian dollar and the Nigerian naira. The value of these currencies has fluctuated relative to the U.S. dollar as indicated in the following table:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
One British pound sterling into U.S. dollars
High		1.66		1.60		1.66		1.60
Average		1.61		1.55		1.62		1.52
Low		1.53		1.51		1.53		1.43
At period-end		1.56		1.58		1.56		1.58
One euro into U.S. dollars
High		1.45		1.37		1.49		1.37
Average		1.41		1.29		1.42		1.28
Low		1.34		1.25		1.34		1.19
At period-end		1.34		1.37		1.34		1.37
One Australian dollar into U.S. dollars
High		1.10		0.97		1.10		0.97
Average		1.05		0.91		1.06		0.89
Low		0.97		0.84		0.97		0.81
At period-end		0.97		0.97		0.97		0.97
One Nigerian naira into U.S. dollars
High		0.0068		0.0068		0.0068		0.0070
Average		0.0066		0.0067		0.0065		0.0067
Low		0.0063		0.0065		0.0063		0.0065
At period-end		0.0064		0.0066		0.0064		0.0066

Source: Bank of England and Oanda.com

We estimate that the fluctuation of these currencies versus the same period in the prior fiscal year had the following effect on our financial condition and results of operations (in thousands):

	Three Months Ended September 30, 2011			Six Months Ended September 30, 2011
Revenue	$	11,166		$	29,334
Operating expense		(9,810	)		(25,446	)
Earnings from unconsolidated affiliates, net of losses		(7,572	)		(7,550	)
Non-operating expense		(1,321	)		(1,068	)
Income before provision for income taxes		(7,537	)		(4,730	)
Provision for income taxes		1,209			542
Net income		(6,328	)		(4,188	)
Cumulative translation adjustment		(12,145	)		(11,360	)
Total stockholders’ investment	$	(18,473	)	$	(15,548	)

Other income (expense), net, in our condensed consolidated statements of income includes foreign currency transaction gains (losses) of $(0.1) million and $0.2 million for the three and six months ended September 30, 2011, respectively, and $(0.1) million and $(0.2) million for the three and six months ended September 30, 2010, respectively.

5

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Our earnings from unconsolidated affiliates, net of losses, are also affected by the impact of changes in foreign currency exchange rates on the reported results of our unconsolidated affiliates. During the three months ended September 30, 2011 and 2010, earnings from unconsolidated affiliates, net of losses, were decreased by $7.5 million and increased by $0.1 million, respectively, and during the six months ended September 30, 2011 and 2010, earnings from unconsolidated affiliates were decreased by $8.1 million and $0.5 million, respectively, as a result of the impact of changes in foreign currency exchange rates on the results of our unconsolidated affiliates, primarily our affiliate in Brazil.

Other Income (Expense), Net

In addition to the foreign currency items discussed above, other income (expense), net also includes gains on sales of two joint ventures of $0.6 million during the six months ended September 30, 2010.

Accounts Receivable

As of September 30 and March 31, 2011, the allowance for doubtful accounts for non-affiliates was $0.1 million. As of September 30 and March 31, 2011, the allowance for doubtful accounts for affiliates was zero.

Inventories

During the three and six months ended September 30, 2011, we recorded an impairment charge of $24.6 million to write-down certain spare parts within inventories to lower of cost or market. This impairment charge resulted from the identification of $48.8 million of inventory that is dormant, obsolete or excess based on a review of our future inventory needs completed during the three months ended September 30, 2011. This inventory review was driven by changes made in the three months ended September 30, 2011 to our future fleet strategy. The change in fleet strategy resulted from (1) a continued shift in demand for our aircraft to newer technology aircraft types, (2) the introduction of the Bristow Client Promise through which we will position Bristow as the premium service provider of offshore transportation services and (3) the introduction of the new financial metric of Bristow Value Added. The change in demand for our older aircraft has accelerated over the last few quarters as a result of a renewed focus on safety and reliability across the offshore energy industry after the Macondo oil spill in the U.S. Gulf of Mexico. The change in fleet strategy resulted in the determination that we will operate certain older types of aircraft for a shorter period than originally anticipated and led to the global review of spare parts inventories supporting our fleet. This impairment charge is included on a separate line within operating expense on the condensed consolidated statements of income.

Additionally, during the six months ended September 30, 2011, we sold inventory in Mexico for a loss of $1.0 million. This loss is recorded as a reduction in gain (loss) on disposal of assets on the condensed consolidated statement of income.

Property and Equipment

During the three and six months ended September 30, 2011, we recorded an impairment charge of $2.7 million resulting from the abandonment of certain assets located in Creole, Louisiana and used in our U.S. Gulf of Mexico operations as we ceased operations from that location. This impairment charge is included in depreciation and amortization expense on the condensed consolidated statement of income. We expect to incur approximately $0.1 million during the three months ended December 31, 2011 related to lease termination costs at this location. Additionally, we recorded an impairment charge of $0.4 million to reduce the carrying value of three aircraft held for sale during the three and six months ended September 30, 2011. This impairment charge is included as a reduction in gain on disposal of assets on the condensed consolidated statement of income. Also, during the three months ended September 30, 2011, we recorded a $1.1 million loss on the disposal of a fixed wing aircraft previously operating in Nigeria that was damaged in an incident upon landing. The aircraft was insured, but subject to self-insured retention and loss sensitive factors. The $1.1 million loss is included as a reduction in gain (loss) on disposal of assets in our condensed consolidated statement of income.

6

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement that provides a uniform framework for fair value measurements and related disclosures between U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and International Financial Reporting Standards (“IFRS”). This pronouncement does not extend the use of fair value but, rather, provides guidance about how fair value should be applied where it already is required or permitted under U.S. GAAP or IFRS. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity’s use of a nonfinancial asset that is different from the asset’s highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. The provisions for this pronouncement are effective for interim and annual periods beginning on or after December 15, 2011. We will adopt this pronouncement beginning January 1, 2012.

In June 2011, the FASB issued an accounting pronouncement that provides new guidance on the presentation of comprehensive income in financial statements. Entities are required to present total comprehensive income either in a single, continuous statement of comprehensive income or in two, separate, but consecutive, statements. Under the single-statement approach, entities must include the components of net income, a total for net income, the components of other comprehensive income and a total for comprehensive income. Under the two-statement approach, entities must report a statement of income and, immediately following, a statement of comprehensive income. Under either method, entities must display adjustments for items reclassified from other comprehensive income to net income in both net income and comprehensive income. The provisions for this pronouncement are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We will adopt this pronouncement for our fiscal year beginning April 1, 2012.

In September 2011, the FASB amended the accounting guidance on the annual testing of goodwill for impairment. The amended guidance will allow companies to assess qualitative factors to determine if it is more likely than not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. This guidance will be effective for our fiscal year ending March 31, 2013, with early adoption permitted. We have determined that this new guidance will not have a material impact on our consolidated financial statements.

Note 2 — ACQUISITION AND DISPOSITION

On January 14, 2011, we entered into an Equity Interest Purchase and Sale Agreement (the “Equity Agreement”) with Controladora De Servicios Aeronauticos, S.A. de C.V. (“CICSA”) and Rotorwing Financial Services, Inc. (“RFS”), the owner of the other 76% of Heliservicio Campeche S.A. de C.V. (“Heliservicio”) and the owner of the other 1% of Rotorwing Leasing Resources, L.L.C. (“RLR”), respectively. Through this agreement, we and our partners agreed that CICSA would purchase the remaining 24% interest in Heliservicio. Additionally, concurrent with the sale of our interest in Heliservicio, we would execute our option to purchase the 1% interest in RLR owned by RFS. This transaction closed on July 15, 2011 resulting in us having no ownership interest in Heliservicio and full ownership of RLR. Our ownership interest in Heliservicio transferred to CICSA for no proceeds; however, as we had impaired our investment in Heliservicio as of March 31, 2011 we recognized no gain or loss on this transaction during the three months ended September 30, 2011. We acquired the remaining 1% interest in RLR for $0.3 million.

We will continue to lease aircraft from RLR and other consolidated subsidiaries to Heliservicio under revised lease agreements.

7

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Note 3 — VARIABLE INTEREST ENTITIES AND OTHER INVESTMENTS IN SIGNIFICANT AFFILIATES

A Variable Interest Entity (“VIE”) is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary. The primary beneficiary has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. If we determine that we have operating power and the obligation to absorb losses or receive benefits, we consolidate the VIE as the primary beneficiary, and if not, we do not consolidate the VIE.

As of September 30, 2011, we had interests in three VIEs of which we are the primary beneficiary, which are described below.

Bristow Aviation Holdings Limited — We own 49% of Bristow Aviation Holdings Limited’s (“Bristow Aviation”) common stock and a significant amount of its subordinated debt. Bristow Aviation is incorporated in England and holds all of the outstanding shares in Bristow Helicopter Group Limited (“Bristow Helicopters”). Its subsidiaries provide helicopter services to clients primarily in the U.K, Norway, Australia and Nigeria. Bristow Aviation is organized with three different classes of ordinary shares having disproportionate voting rights. The Company, Caledonia Investments plc and its subsidiary, Caledonia Industrial & Services Limited (collectively, “Caledonia”) and a European Union investor (the “E.U. Investor”) own 49%, 46% and 5%, respectively, of Bristow Aviation’s total outstanding ordinary shares, although Caledonia has voting control over the E.U. Investor’s shares.

In addition to our ownership of 49% of Bristow Aviation’s outstanding ordinary shares, in May 2004, we acquired eight million shares of deferred stock, essentially a subordinated class of stock with no voting rights, from Bristow Aviation for £1 per share ($14.4 million in total). We also have £91.0 million ($141.8 million) principal amount of subordinated unsecured loan stock (debt) of Bristow Aviation bearing interest at an annual rate of 13.5% and payable semi-annually. Payment of interest on such debt has been deferred since its incurrence in 1996. Deferred interest accrues at an annual rate of 13.5% and aggregated $908.2 million as of September 30, 2011.

The Company, Caledonia, the E.U. Investor and Bristow Aviation have entered into a shareholder agreement respecting, among other things, the composition of the board of directors of Bristow Aviation. On matters coming before Bristow Aviation’s board, Caledonia’s representatives have a total of three votes and the two other directors have one vote each. In addition, Caledonia has the right to nominate two persons to our board of directors and to replace any such directors so nominated.

Caledonia, the Company and the E.U. Investor also have entered into a put/call agreement under which, upon giving specified prior notice, we have the right to buy all the Bristow Aviation shares held by Caledonia and the E.U. Investor, who, in turn, each have the right to require us to purchase such shares. Under current English law, we would be required, in order for Bristow Aviation to retain its operating license, to find a qualified E.U. investor to own any Bristow Aviation shares we have the right to acquire under the put/call agreement. The only restriction under the put/call agreement limiting our ability to exercise the put/call option is a requirement to consult with the Civil Aviation Authority (“CAA”) in the U.K. regarding the suitability of the new holder of the Bristow Aviation shares. The put/call agreement does not contain any provisions should the CAA not approve the new E.U. investor. However, we would work diligently to find a E.U. investor suitable to the CAA. The amount by which we could purchase the shares of the other investors holding 51% of the equity of Bristow Aviation is fixed under the terms of the call option, and we have reflected this amount on our condensed consolidated balance sheets as noncontrolling interest.

Furthermore, the call option provides a mechanism whereby the economic risk for the other investors is limited should the financial condition of Bristow Aviation deteriorate. The call option price is the nominal value of the ordinary shares held by the noncontrolling shareholders (£1.0 million as of September 30, 2011) plus an annual guaranteed rate of return less any prepayments of such call option price and any dividends paid on the shares concerned. We can elect to pre-pay the guaranteed return element of the call option price wholly or in part without exercising the call option. No dividends have been paid. We have accrued the annual return due to the other shareholders at a rate of sterling LIBOR plus 3%

8

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

(prior to May 2004, the rate was fixed at 12%) by recognizing noncontrolling interest expense in our condensed consolidated statements of income, with a corresponding increase in noncontrolling interest on our condensed consolidated balance sheets. Prepayments of the guaranteed return element of the call option are reflected as a reduction in noncontrolling interest on our condensed consolidated balance sheets. The other investors have an option to put their shares in Bristow Aviation to us. The put option price is calculated in the same way as the call option price except that the guaranteed rate for the period to April 2004 was 10% per annum. If the put option is exercised, any pre-payments of the call option price are set off against the put option price.

Bristow Aviation and its subsidiaries are exposed to similar operational risks and are therefore monitored and evaluated on a similar basis by management. Accordingly, the financial information reflected on our condensed consolidated balance sheets and statements of income for Bristow Aviation and subsidiaries is presented in the aggregate, including intercompany amounts with other consolidated entities, as follows (in thousands):

	September 30, 2011		March 31, 2011
Assets
Cash and cash equivalents	$	39,362	$	29,840
Accounts receivable		201,030		190,896
Inventories		93,902		108,586
Prepaid expenses and other current assets		65,478		50,296
Total current assets		399,772		379,618
Investment in unconsolidated affiliates		12,686		12,344
Property and equipment, net		184,505		221,274
Goodwill		13,167		15,915
Other assets		8,156		9,794
Total assets	$	618,286	$	638,945
Liabilities
Accounts payable	$	107,258	$	72,140
Accrued liabilities		966,200		902,570
Deferred taxes		9,437		9,816
Short-term borrowings and current maturities of long-term debt		1,982		2,724
Total current liabilities		1,084,877		987,250
Long-term debt, less current maturities		150,801		156,080
Accrued pension liabilities		97,237		99,645
Other liabilities and deferred credits		1,252		13,043
Deferred taxes		9,122		16,334
Total liabilities	$	1,343,289	$	1,272,352

	Three Months Ended September 30,					Six Months Ended September 30,
	2011			2010		2011			2010
Revenue	$	252,292		$	223,609	$	497,618		$	427,827
Operating income (loss)		(18,387	)		10,544		(16,515	)		18,133
Net loss		52,085			21,875		82,722			41,468

Bristow Helicopters Nigeria Ltd. — Bristow Helicopters Nigeria Ltd. (“BHNL”) is a joint venture in Nigeria with local partners, in which we own an interest of 40%. BHNL provides helicopter services to clients in Nigeria.

9

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

In order to have a presence in the Nigerian market, we were required to identify local citizens to participate in the ownership of entities domiciled in the region. However, these owners do not have extensive knowledge of the aviation industry and have historically deferred to our expertise in the overall management and day-to-day operation of BHNL (including the establishment of operating and capital budgets and strategic decisions regarding the potential expansion of BHNL’s operations). We have also historically provided subordinated financial support to BHNL and will need to continue to do so unless and until BHNL acquires sufficient equity to permit itself to finance its activities without that additional support from us. Thus, because we have the power to direct the most significant activities affecting the economic performance and ongoing success of BHNL and hold a variable interest in the entity in the form of our equity investment and working capital infusions, we consolidate BHNL as the primary beneficiary.

BHNL is an indirect subsidiary of Bristow Aviation; therefore, financial information for this entity is included within the amounts for Bristow Aviation and its subsidiaries presented above.

Pan African Airlines Nigeria Ltd. — Pan African Airlines Nigeria Ltd. (“PAAN”) is a joint venture in Nigeria with local partners, in which we currently own an interest of 50.17%. PAAN provides helicopter services to clients in Nigeria.

The activities that most significantly impact PAAN’s economic performance relate to the day-to-day operation of PAAN, setting of operating and capital budgets and strategic decisions regarding the potential expansion of PAAN’s operations. Throughout the history of the PAAN, our representation on the board and our secondment to PAAN of its managing director has enabled us to direct the key operational decisions of PAAN (without objection from the other board members). We have also historically provided subordinated financial support to PAAN and will need to continue to do so unless and until PAAN acquires sufficient equity to permit itself to finance its activities without that additional support from us. As we have the power to direct the most significant activities affecting the economic performance and ongoing success of PAAN and hold a variable interest in the form of our equity investment and working capital infusions, we consolidate PAAN as the primary beneficiary. However, as long as we own a majority interest in PAAN, the separate presentation of financial information in a tabular format for PAAN is not required.

Note 4 — DEBT

Debt as of September 30 and March 31, 2011 consisted of the following (in thousands):

	September 30, 2011			March 31, 2011
7 1/2% Senior Notes due 2017, including $0.4 million of unamortized premium	$	350,378		$	350,410
Term Loan		200,000			200,000
Revolving Credit Facility		87,800			30,000
3% Convertible Senior Notes due 2038, including $14.1 million and $15.8 million of unamortized discount, respectively		100,885			99,219
Bristow Norway Debt		10,207			11,454
RLR Note		14,283			14,900
Other debt		807			1,478
Total debt		764,360			707,461
Less short-term borrowings and current maturities of long-term debt		(13,273	)		(8,979	)
Total long-term debt	$	751,087		$	698,482

During fiscal year 2012, we made payments of $30.0 million to paydown our initial borrowing under the Revolving Credit Facility. Additionally, we have received proceeds from new borrowings under the Revolving Credit Facility of $87.8 million primarily for aircraft purchase payments. For further details on the Revolving Credit Facility, see Note 5 to the fiscal year 2011 Financial Statements.

10

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

The balances of the debt and equity components of the 3% Convertible Senior Notes due 2038 (“3% Convertible Senior Notes”) as of each period presented are as follows (in thousands):

	September 30, 2011			March 31, 2011
Equity component – net carrying value	$	14,905		$	14,905
Debt component:
Face amount due at maturity	$	115,000		$	115,000
Unamortized discount		(14,115	)		(15,781	)
Debt component – net carrying value	$	100,885		$	99,219

The remaining debt discount is being amortized into interest expense over the expected four year remaining life of the 3% Convertible Senior Notes using the effective interest rate. The effective interest rate for the three and six months ended September 30, 2011 and 2010 was 6.9%. Interest expense related to our 3% Convertible Senior Notes for the three and six months ended September 30, 2011 and 2010 was as follows (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2011		2010		2011		2010
Contractual coupon interest	$	863	$	863	$	1,726	$	1,726
Amortization of debt discount		844		789		1,666		1,565
Total interest expense	$	1,707	$	1,652	$	3,392	$	3,291

Note 5 — FAIR VALUE DISCLOSURES

Assets and liabilities subject to fair value measurement are categorized into one of three different levels depending on the observability of the inputs employed in the measurement, as follows:

• Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 - inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3 - unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Non-recurring Fair Value Measurements

The majority of our non-financial assets, which include inventories, property and equipment, goodwill and other intangible assets, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur such that a non-financial asset is required to be evaluated for impairment and deemed to be impaired, the impaired non-financial asset is recorded as its fair value. We had no impaired assets during the three and six months ended September 30, 2010.

11

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

The following table summarizes the assets as of September 30, 2011, which are valued at fair value on a non-recurring basis (in thousands):

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Total Gain (Loss) for the Three and Six Months Ended September 30, 2011
Inventories	$	—	$	48,801	$	—	$	48,801	$	(24,610	)
Assets held for sale		649		—		—		649		(400	)
Total assets	$	649	$	48,801	$	—	$	49,450	$	(25,010	)

The fair value of inventories using Level 2 inputs is determined by evaluating the current economic conditions for sale and disposal of spare parts, which includes estimates as to the recoverability of the carrying value of the parts based on historical experience with sales and disposal of similar spare parts, the expected timeframe of sales or disposals, the location of the spare parts to be sold and the condition of the spare parts to be sold or otherwise disposed of. See Note 1 for further discussion of the impairment of inventories. The fair value of the assets held for sale is the sales price of these aircraft which are Level 1.

Recurring Fair Value Measurements

The following table summarizes the financial instruments we had as of September 30, 2011, which are valued at fair value on a recurring basis (in thousands):

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Balance Sheet Classification
Rabbi Trust investments		3,088		—		—		3,088	Other assets
Total assets	$	3,088	$	—	$	—	$	3,088

The following table summarizes the financial instruments we had as of March 31, 2011, which are valued at fair value on a recurring basis (in thousands):

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of March 31, 2011		Balance Sheet Classification
Derivative asset	$	—	$	3,306	$	—	$	3,306	Prepaid expenses and other current assets
Rabbi Trust investments		4,091		—		—		4,091	Other assets
Total assets	$	4,091	$	3,306	$	—	$	7,397

12

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

The rabbi trust investments consist of money market and mutual funds whose fair value is based on quoted prices in active markets for identical assets, and are designated as Level 1 within the valuation hierarchy. The rabbi trust holds investments related to our non-qualified deferred compensation plan for our senior executives. The methods and assumptions used to estimate the fair values of the derivative assets in the table above include the mark-to-market statements from the counterparties, which can be validated using modeling techniques that include market inputs, such as publicly available forward market rates, and are designated as Level 2 within the valuation hierarchy.

Fair Value of Financial Instruments

The fair value of our financial instruments has been estimated in accordance with the accounting standard regarding fair value. The fair value of our fixed rate long-term debt is estimated based on quoted market prices. The carrying and fair value of our long-term debt, including the current portion, are as follows (in thousands):

	September 30, 2011				March 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
7 1/2% Senior Notes	$	350,378	$	357,000	$	350,410	$	367,500
Term Loan		200,000		200,000		200,000		200,000
Revolving Credit Facility		87,800		87,800		30,000		30,000
3% Convertible Senior Notes		100,885		113,419		99,219		114,929
Other		25,297		25,297		27,832		27,832
	$	764,360	$	783,516	$	707,461	$	740,261

Other

The fair values of our cash and cash equivalents, accounts receivable and accounts payable approximate their carrying value due to the short-term nature of these items.

NOTE 6 — DERIVATIVE FINANCIAL INSTRUMENTS

From time to time we enter into forward exchange contracts as a hedge against foreign currency asset and liability commitments and anticipated transaction exposures, including intercompany purchases. All derivatives are recognized as assets or liabilities and measured at fair value. Derivatives that are not determined to be effective hedges are adjusted to fair value with a corresponding effect on earnings. We do not use financial instruments for trading or speculative purposes.

We entered into forward contracts during the three months ended June 30, 2011 and fiscal year 2011 to mitigate our exposure to exchange rate fluctuations on our euro-denominated aircraft purchase commitments, which have been designated as cash flow hedges for accounting purposes. We had six open forward contracts as of March 31, 2011, which had rates ranging from 1.3153 U.S. dollars per euro to 1.3267 U.S. dollars per euro. These contracts had an underlying notional value of between €5,000,000 and €7,000,000, for a total of €34,300,871, with the first contract expiring in May 2011 and the last in June 2011. During the three months ended June 30, 2011, we entered into an additional open forward contract at a rate of 1.418 U.S. dollars per euro with an underlying notional value of €13,826,241 that expired in July 2011. As of September 30, 2011, we had no open forward contracts. As of March 31, 2011, the fair value of these contracts was an asset of $3.3 million and is included in prepaid expenses and other current assets in our condensed consolidated balance sheets. As of March 31, 2011, an unrecognized gain on these contracts of $2.2 million, net of tax, was included as a component of accumulated other comprehensive loss. No gains or losses relating to forward contracts are recognized in our condensed consolidated statements of income for the three or six months ended September 30, 2011 and 2010.

13

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Information on the location and amounts of derivative gains and losses on the condensed consolidated balance sheet and the condensed consolidated statement of income as of and for the three months ended September 30, 2011 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	(1,653	)	Other income (expense), net	$	—	Other income (expense), net	$	—
	$	(1,653	)		$	—		$	—

Information on the location and amounts of derivative gains and losses on the condensed consolidated balance sheet and the condensed consolidated statement of income as of and for the six months ended September 30, 2011 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	(2,150	)	Other income (expense), net	$	—	Other income (expense), net	$	—
	$	(2,150	)		$	—		$	—

14

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Information on the location and amounts of derivative gains and losses on the condensed consolidated balance sheet and the condensed consolidated statement of income as of and for the three and six September 30, 2010 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	860	Other income (expense), net	$	—	Other income (expense), net	$	—
	$	860		$	—		$	—

Note 7 — COMMITMENTS AND CONTINGENCIES

Aircraft Purchase Contracts — As shown in the table below, we expect to make additional capital expenditures over the next five fiscal years to purchase additional aircraft. As of September 30, 2011, we had 10 aircraft on order and options to acquire an additional 37 aircraft. Although a similar number of our existing aircraft may be sold during the same period, the additional aircraft on order will provide incremental fleet capacity in terms of revenue and operating income.

	Six Months Ending		Fiscal Year Ending March 31,
	March 31, 2012		2013		2014		2015		2016 and thereafter		Total
Commitments as of September 30, 2011:
Number of aircraft:
Large (1)(2)(3)		4		6		—		—		—		10
		4		6		—		—		—		10
Related expenditures (in thousands) (4)	$	119,894	$	72,061	$	—	$	—	$	—	$	191,955
Options as of September 30, 2011:
Number of aircraft:
Medium		—		2		4		6		—		12
Large		—		3		7		4		11		25
		—		5		11		10		11		37
Related expenditures (in thousands) (4)	$	62,939	$	190,158	$	239,964	$	189,251	$	268,942	$	951,254

⁽¹⁾ Signed client contracts are currently in place for 6 of these aircraft.

⁽²⁾ Includes 4 aircraft with delivery dates in fiscal year 2013 that are cancellable until November 15, 2011 with penalties of $0.8 million each.

⁽³⁾ Subsequent to September 30, 2011, we entered into agreements to purchase or lease 8 new technology large aircraft for approximately $144 million that are not reflected in the table above.

⁽⁴⁾ Includes progress payments on aircraft scheduled to be delivered in future periods.

15

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

The following chart presents an analysis of our aircraft orders and options during fiscal year 2012:

	Three Months Ended
	September 30, 2011						June 30, 2011
	Orders			Options			Orders			Options
Beginning of period		11			39			6			31
Aircraft delivered		(3	)		—			(2	)		—
Aircraft ordered		2			—			3			—
New options		—			—			—			19
Exercised options		—			3			4			(4	)
Expired options		—			(5	)		—			(7	)
End of period		10			37			11			39

Employee Agreements — Approximately 52% of our employees are represented by collective bargaining agreements and/or unions. These agreements generally include annual escalations of up to 8.8%. Periodically, certain groups of our employees who are not covered by a collective bargaining agreement consider entering into such an agreement.

Nigerian Litigation — In November 2005, two of our consolidated foreign affiliates were named in a lawsuit filed with the High Court of Lagos State, Nigeria by Mr. Benneth Osita Onwubalili and his affiliated company, Kensit Nigeria Limited, which allegedly acted as agents of our affiliates in Nigeria. The claimants allege that an agreement between the parties was terminated without justification and seek damages of $16.3 million. We responded to this claim in early 2006. There has been minimal activity on this claim since then.

Civil Class Action Lawsuit — On June 12, 2009, Superior Offshore International, Inc. v. Bristow Group Inc., et al, Case No. 1:09-cv-00438, was filed in the U.S. District Court for the District of Delaware. The purported class action complaint, which also named other providers of offshore helicopter services in the Gulf of Mexico as defendants, alleged violations of Section 1 of the Sherman Act. Among other things, the complaint alleged that the defendants unlawfully conspired to raise and maintain the price of offshore helicopter services between January 1, 2001 and December 31, 2005. The plaintiff was seeking to represent a purported class of direct purchasers of offshore helicopter services and was asking for, among other things, unspecified treble monetary damages and injunctive relief. In September 2010, the court granted our and the other defendants’ motion to dismiss the case on several grounds. The plaintiff then filed a motion seeking a rehearing and seeking leave to amend its original complaint which was partially granted to permit limited discovery. We and the other defendants again filed motions to dismiss the lawsuit which were granted. The plaintiff has since appealed the judgment in the United States Court of Appeals for the Third Circuit. We intend to file a response in the near future and continue to defend against this lawsuit vigorously. We are currently unable to determine whether it could have a material effect on our business, financial condition or results of operations.

Environmental Contingencies — The U.S. Environmental Protection Agency, also referred to as the EPA, has in the past notified us that we are a potential responsible party, or PRP, at three former waste disposal facilities that are on the National Priorities List of contaminated sites. Under the federal Comprehensive Environmental Response, Compensation and Liability Act, also known as the Superfund law, persons who are identified as PRPs may be subject to strict, joint and several liability for the costs of cleaning up environmental contamination resulting from releases of hazardous substances at National Priorities List sites. Although we have not yet obtained a formal release of liability from the EPA with respect to any of the sites, we believe that our potential liability in connection with the sites is not likely to have a material adverse affect on our business, financial condition or results of operations.

Guarantees — We have guaranteed the repayment of up to £10 million ($15.6 million) of the debt of FBS Limited, an unconsolidated affiliate, which expires December 31, 2012. See discussion of this commitment in Note 3 to our fiscal year 2011 Financial Statements.

16

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Other Matters — Although infrequent, aircraft accidents have occurred in the past, and the related losses and liability claims have been covered by insurance subject to deductible, self-insured retention and loss sensitive factors.

We are a defendant in certain claims and litigation arising out of operations in the normal course of business. In the opinion of management, uninsured losses, if any, will not be material to our financial position, results of operations or cash flows.

Note 8 — TAXES

Our income tax decreased from a provision of $3.3 million and $11.9 million for the three and six months ended September 30, 2010, respectively, to a benefit of $1.9 million and a provision of $4.7 million for the three and six months ended September 30, 2011, respectively. The three and six months ended September 30, 2011 includes a benefit due to the revaluation of our deferred taxes as a result of the enactment of a tax rate reduction of 2% in the United Kingdom effective April 1, 2012. The valuation benefit, net of other discrete items, eliminated any need to provide additional tax expense for the three months ended September 30, 2011. In addition, we continue to benefit from our global legal structure that more closely aligns with our global operational structure. As a result of this restructuring, most U.S. tax on offshore profits will be deferred until the profits are repatriated.

Our effective tax rate was also impacted by the permanent reinvestment outside the U.S. of foreign earnings, upon which no U.S. tax has been provided, and by the amount of our foreign source income and our ability to realize foreign tax credits.

During the three months ended September 30, 2011 and 2010, we accrued tax contingency related items totaling $0.7 million and $1.3 million, respectively. During the six months ended September 30, 2011 and 2010, we accrued tax contingency related items totaling $1.3 million and $1.6 million, respectively.

As of September 30, 2011, there were $13.3 million of unrecognized tax benefits, all of which would have an impact on our effective tax rate, if recognized. For the three months ended September 30, 2011 and 2010, we accrued interest and penalties of $0.2 million and $0.2 million, respectively, and for the six months ended September 30, 2011 and 2010, we accrued interest and penalties of $0.3 million and $0.3 million, respectively, in connection with uncertain tax positions.

Note 9 — EMPLOYEE BENEFIT PLANS

Pension Plans

The following table provides a detail of the components of net periodic pension cost (in thousands):

	Three Months Ended September 30,						Six Months Ended September 30,
	2011			2010			2011			2010
Service cost for benefits earned during the period	$	1,614		$	1,334		$	3,248		$	2,612
Interest cost on pension benefit obligation		7,122			6,658			14,334			13,040
Expected return on assets		(7,397	)		(6,682	)		(14,886	)		(13,087	)
Amortization of unrecognized losses		1,360			1,305			2,737			2,557
Net periodic pension cost	$	2,699		$	2,615		$	5,433		$	5,122

We pre-funded our contributions of $16.0 million to our U.K. Staff pension plan for fiscal year 2012 in the last quarter of fiscal year 2011. The current estimate of our cash contributions to our Norwegian pension plan and U.K. expatriate plan for fiscal year 2012 are $6.0 million and $1.6 million, respectively, of which $4.0 million and $1.4 million, respectively, were paid during the six months ended September 30, 2011.

17

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Incentive Compensation

Stock–based compensation awards are currently made under the Bristow Group Inc. 2007 Long-Term Incentive Plan (“2007 Plan”). A maximum of 2,400,000 shares of common stock, par value $.01 per share (“Common Stock”), are reserved. Awards granted under the 2007 Plan may be in the form of stock options, stock appreciation rights, shares of restricted stock, other stock-based awards (payable in cash or Common Stock) or performance awards, or any combination thereof, and may be made to outside directors, employees or consultants. As of September 30, 2011, 823,940 shares remained available for grant under the 2007 Plan.

We have a number of other incentive and stock option plans which are described in Note 10 to our fiscal year 2011 Financial Statements.

Stock-based compensation expense, which includes stock options, restricted stock units and restricted stock, totaled $2.3 million and $4.3 million for the three months ended September 30, 2011 and 2010, respectively, and totaled $7.5 million and $8.0 million for the six months ended September 30, 2011 and 2010, respectively. Stock-based compensation expense has been allocated to our various business units.

During the six months ended September 30, 2011, we awarded 183,384 shares of restricted stock at an average grant date fair value of $44.13 per share, which includes 18,199 shares granted to non-employee members of our board of directors. We account for awards to our non-employee directors similar to awards to employees and recognize compensation expense equal to the fair value of the awards granted over a six month vesting period. Also during the six months ended September 30, 2011, 259,521 stock options were granted to employees. The following table shows the assumptions used to compute the stock-based compensation expense for stock options granted during the six months ended September 30, 2011:

Risk free interest rate		1.52	%
Expected life (years)		6
Volatility		47.05	%
Dividend yield		1.37	%
Weighted average exercise price of options granted	$	43.79 per option
Weighted average grant-date fair value of options granted	$	17.32 per option

Performance cash awards vest and pay out in cash three years after the date of grant at varying levels depending on our performance in Total Shareholder Return against a peer group of companies. These awards were designed to tie a significant portion of total compensation to performance. One of the effects of this type of compensation is that it requires liability accounting which can result in volatility in earnings. The liability recorded for these awards as of September 30 and March 31, 2011 was $4.7 million and $1.7 million, respectively, and represents an accrual based on the fair value of the awards on those dates. The increase in the liability during the six months ended September 30, 2011 is recognized as compensation expense and primarily resulted from an increase in the fair value of the awards driven by superior stock price performance compared to the peer group during the period as well as a new award in June 2011. Any changes in fair value of the awards in future quarters will increase or decrease the liability and impact operating results in those periods. The affect, either positive or negative, on future period earnings can vary based on factors including changes in our stock price or the stock prices of the peer group companies, as well as changes in other market and company-specific assumptions that are factored into the calculation of fair value of the performance cash awards.

Compensation expense (benefit) recorded related to the performance cash awards during the three months ended September 30, 2011 and 2010 was $(0.6) million and $0.3 million, respectively, and six months ended September 30, 2011 and 2010 was $3.0 million and $0.3 million, respectively.

18

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Note 10 — COMPREHENSIVE INCOME, DIVIDENDS, SHARE REPURCHASES AND EARNINGS PER SHARE

Comprehensive Income

Comprehensive income is as follows (in thousands):

	Three Months Ended September 30,					Six Months Ended September 30,
	2011			2010		2011			2010
Net income	$	2,961		$	38,848	$	24,180		$	59,756
Other comprehensive income (loss):
Currency translation adjustments		(12,145	)		19,815		(11,360	)		9,828
Unrealized gain (loss) on cash flow hedges		(1,653	)		860		(2,150	)		860
Total comprehensive income (loss)	$	(10,837	)	$	59,523	$	10,670		$	70,444

Dividends

On May 4 and August 3, 2011, our board of directors declared dividends of $0.15 per share of Common Stock. The dividends of $5.4 million each were paid on June 10 and September 12, 2011 to shareholders of record on May 20 and August 15, 2011, respectively. On November 2, 2011, the board of directors approved another dividend of $0.15 per share of Common Stock, payable on December 12, 2011 to shareholders of record on November 18, 2011. The declaration of future dividends is at the discretion of our board of directors and subject to our results of operations, financial condition, cash requirements and other factors and restrictions under applicable law and our debt instruments.

Share Repurchases

On November 2, 2011, our board of directors authorized the expenditure of up to $100 million to repurchase shares of our Common Stock over the next 12 months. The timing and method of any repurchases under the program will depend on a variety of factors, is subject to our results of operations, financial condition, cash requirements and other factors and restrictions under applicable law and our debt instruments, and may be suspended or discontinued at any time.

19

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Earnings per Share

Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per common share excludes options to purchase shares, restricted stock units and restricted stock awards, which were outstanding during the period but were anti-dilutive, as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2011		2010		2011		2010
Options:
Outstanding		528,501		544,615		531,679		437,122
Weighted average exercise price	$	36.85	$	31.49	$	36.81	$	32.90
Restricted stock units:
Outstanding		83,925		213,980		83,937		219,651
Weighted average price	$	46.70	$	40.08	$	46.70	$	40.02
Restricted stock awards:
Outstanding		—		—		—		—
Weighted average price	$	—	$	—	$	—	$	—

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,				Six Months Ended September 30,
	2011		2010		2011		2010
Net income available to common stockholders (in thousands):
Income available to common stockholders – basic	$	2,711	$	38,880	$	23,756	$	59,688
Interest expense on assumed conversion of 3% Convertible Senior Notes, net of tax (1)		—		—		—		—
Income available to common stockholders – diluted	$	2,711	$	38,880	$	23,756	$	59,688
Shares:
Weighted average number of common shares outstanding – basic		36,157,917		36,174,615		36,165,247		35,975,141
Assumed conversion of 3% Convertible Senior Notes outstanding during the period (1)		—		—		—		—
Net effect of dilutive stock options, restricted stock units and restricted stock awards based on the treasury stock method		614,191		546,758		659,893		550,682
Weighted average number of common shares outstanding – diluted		36,772,108		36,721,373		36,825,140		36,525,823
Basic earnings per common share	$	0.07	$	1.07	$	0.66	$	1.66
Diluted earnings per common share	$	0.07	$	1.06	$	0.65	$	1.63

⁽¹⁾  Diluted earnings per common share for the three and six months ended September 30, 2011 and 2010 excludes approximately 1.5 million potentially dilutive shares initially issuable upon the conversion of our 3% Convertible Senior Notes. The 3% Convertible Senior Notes will be convertible, under certain circumstances, using a net share settlement process, into a combination of cash and our Common Stock. The initial base conversion price of the notes is approximately $77.34, based on the initial base conversion rate of 12.9307 shares of Common Stock per $1,000 principal amount of convertible notes (subject to adjustment in certain circumstances, including the payment of dividends). The payment of the $0.15 per share dividend payable on December 12, 2011 to holders of record as of November 18, 2011 may result in an adjustment to the initial base conversion rate. In general, upon conversion of a note, the holder will receive cash equal to the principal amount of the note and Common Stock to the extent of the note’s conversion value in excess of such principal amount. In addition, if at the time of conversion the applicable price of our Common Stock exceeds the base conversion price, holders will receive up to an additional 8.4049 shares of our Common Stock per $1,000 principal amount of notes, as determined pursuant to a specified formula. Such shares did not impact our calculation of diluted earnings per share for three and six months ended September 30, 2011 and 2010 as our stock price did not meet or exceed $77.34 per share.

20

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Note 11 — SEGMENT INFORMATION

We conduct our business in one segment: Helicopter Services. The Helicopter Services segment operations are conducted primarily through five business units: Europe, West Africa, North America, Australia, and Other International. Additionally, we also operate a training business unit, Bristow Academy, and provide technical services to clients in the U.S. and U.K.

The following shows reportable segment information for the three and six months ended September 30, 2011 and 2010 and as of September 30 and March 31, 2011, where applicable, reconciled to consolidated totals, and prepared on the same basis as our condensed consolidated financial statements (in thousands):

	Three Months Ended September 30,						Six Months Ended September 30,
	2011			2010			2011			2010
Segment gross revenue from external clients:
Europe	$	140,244		$	117,243		$	274,524		$	218,764
West Africa		64,041			58,110			118,548			117,206
North America		47,794			55,246			91,961			108,009
Australia		33,323			37,364			78,618			72,655
Other International		36,147			36,295			71,614			69,114
Corporate and other		9,443			8,301			16,832			19,049
Total segment gross revenue	$	330,992		$	312,559		$	652,097		$	604,797
Intrasegment gross revenue:
Europe	$	(23	)	$	352		$	235		$	522
West Africa		—			—			—			—
North America		463			35			538			83
Australia		117			—			235			—
Other International		—			—			—			—
Corporate and other		120			120			(324	)		214
Total intrasegment gross revenue	$	677		$	507		$	684		$	819
Consolidated gross revenue reconciliation:
Europe	$	140,221		$	117,595		$	274,759		$	219,286
West Africa		64,041			58,110			118,548			117,206
North America		48,257			55,281			92,499			108,092
Australia		33,440			37,364			78,853			72,655
Other International		36,147			36,295			71,614			69,114
Corporate and other		9,563			8,421			16,508			19,263
Intrasegment eliminations		(677	)		(507	)		(684	)		(819	)
Total consolidated gross revenue	$	330,992		$	312,559		$	652,097		$	604,797

21

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

	Three Months Ended September 30,						Six Months Ended September 30,
	2011			2010			2011			2010
Earnings from unconsolidated affiliates, net of losses – equity method investments:
Europe	$	2,466		$	2,789		$	5,324		$	4,740
Other International		(6,510	)		1,927			(3,375	)		(670	)
Corporate and other		7			—			7			(56	)
Total earnings from unconsolidated affiliates, net of losses – equity method investments	$	(4,037	)	$	4,716		$	1,956		$	4,014
Consolidated operating income (loss) reconciliation:
Europe	$	23,586		$	21,612		$	46,835		$	39,911
West Africa		16,120			17,158			27,351			32,794
North America		2,571			8,904			4,155			14,212
Australia		576			6,094			5,100			14,046
Other International		2,089			11,102			13,999			13,367
Corporate and other		(33,736	)		(13,208	)		(51,245	)		(24,707	)
Gain (loss) on disposal of assets		(1,611	)		1,897			(195	)		3,615
Total consolidated operating income	$	9,595		$	53,559		$	46,000		$	93,238
Depreciation and amortization:
Europe	$	8,015		$	7,054		$	15,922		$	12,207
West Africa		3,244			3,801			6,514			8,576
North America		5,947			2,737			9,634			5,445
Australia		2,816			2,704			5,938			5,357
Other International		4,070			3,114			8,033			6,277
Corporate and other		1,339			1,558			2,098			2,437
Total depreciation and amortization	$	25,431		$	20,968		$	48,139		$	40,299

	September 30, 2011		March 31, 2011
Identifiable assets:
Europe	$	848,354	$	856,448
West Africa		385,831		354,154
North America		278,371		302,081
Australia		290,694		288,036
Other International		619,074		602,243
Corporate and other		278,094		272,392
Total identifiable assets (1)	$	2,700,418	$	2,675,354

22

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

	September 30, 2011		March 31, 2011
Investments in unconsolidated affiliates – equity method investments:
Europe	$	11,807	$	11,508
Other International		183,810		190,736
Total investments in unconsolidated affiliates – equity method investments	$	195,617	$	202,244

⁽¹⁾  Includes $124.9 million and $112.4 million, respectively of construction in progress within property and equipment on our condensed consolidated balance sheets as of September 30 and March 31, 2011, respectively, which primarily represents progress payments on aircraft to be delivered in future periods.

Note 12 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

In connection with the sale of the 7 ¹/2% Senior Notes due 2017, the 6 ¹/8% Senior Notes due 2013, which we redeemed on December 23, 2010, and the 3% Convertible Senior Notes due 2038, certain of our U.S. subsidiaries (the “Guarantor Subsidiaries”) fully, unconditionally, jointly and severally guaranteed the payment obligations under these notes. The following supplemental financial information sets forth, on a consolidating basis, the balance sheets, statements of income and statements of cash flows for Bristow Group Inc. (“Parent Company Only”), for the Guarantor Subsidiaries and for our other subsidiaries (the “Non-Guarantor Subsidiaries”). We have not presented separate financial statements and other disclosures concerning the Guarantor Subsidiaries because management has determined that such information is not material to investors.

The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include all disclosures included in annual financial statements, although we believe that the disclosures made are adequate to make the information presented not misleading. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenue and expense.

The allocation of the consolidated income tax provision was made using the with and without allocation method.

23

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Statement of Income

Three Months Ended September 30, 2011

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	—		$	69,152		$	261,840		$	—		$	330,992
Intercompany revenue		1,555			12,106			—			(13,661	)		—
		1,555			81,258			261,840			(13,661	)		330,992
Operating expense:
Direct cost and reimbursable expense		730			40,743			194,932			—			236,405
Intercompany expenses		—			—			13,661			(13,661	)		—
Write-down of inventories		—			8,778			15,832			—			24,610
Depreciation and amortization		916			10,904			13,611			—			25,431
General and administrative		7,626			4,596			17,081			—			29,303
		9,272			65,021			255,117			(13,661	)		315,749
Loss on disposal of assets		—			(427	)		(1,184	)		—			(1,611	)
Earnings from unconsolidated affiliates, net of losses		(7,074	)		—			(4,037	)		7,074			(4,037	)
Operating income (loss)		(14,791	)		15,810			1,502			7,074			9,595
Interest income		24,286			10			139			(24,282	)		153
Interest expense		(9,538	)		—			(24,203	)		24,282			(9,459	)
Other income (expense), net		47			126			554			—			727
Income (loss) before provision for income taxes		4			15,946			(22,008	)		7,074			1,016
Allocation of consolidated income taxes		2,722			(2,483	)		1,706			—			1,945
Net income (loss)		2,726			13,463			(20,302	)		7,074			2,961
Net income attributable to noncontrolling interests		(15	)		—			(235	)		—			(250	)
Net income (loss) attributable to Bristow Group	$	2,711		$	13,463		$	(20,537	)	$	7,074		$	2,711

24

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Statement of Income

Six Months Ended September 30, 2011

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	—		$	136,349		$	515,748		$	—		$	652,097
Intercompany revenue		1,555			23,879			—			(25,434	)		—
		1,555			160,228			515,748			(25,434	)		652,097
Operating expense:
Direct cost and reimbursable expense		—			83,704			382,457			—			466,161
Intercompany expenses		—			—			25,434			(25,434	)		—
Write-down of inventories		—			8,778			15,832			—			24,610
Depreciation and amortization		1,759			19,086			27,294			—			48,139
General and administrative		21,801			11,359			35,788			—			68,948
		23,560			122,927			486,805			(25,434	)		607,858
Gain (loss) on disposal of assets		—			(247	)		52			—			(195	)
Earnings from unconsolidated affiliates, net of losses		15,145			—			1,956			(15,145	)		1,956
Operating income (loss)		(6,860	)		37,054			30,951			(15,145	)		46,000
Interest income		47,589			180			301			(47,746	)		324
Interest expense		(18,797	)		—			(47,363	)		47,746			(18,414	)
Other income (expense), net		61			192			678			—			931
Income (loss) before provision for income taxes		21,993			37,426			(15,433	)		(15,145	)		28,841
Allocation of consolidated income taxes		1,793			(5,146	)		(1,308	)		—			(4,661	)
Net income (loss)		23,786			32,280			(16,741	)		(15,145	)		24,180
Net income attributable to noncontrolling interests		(30	)		—			(394	)		—			(424	)
Net income (loss) attributable to Bristow Group	$	23,756		$	32,280		$	(17,135	)	$	(15,145	)	$	23,756

25

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Statement of Income

Three Months Ended September 30, 2010

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	—		$	79,283		$	233,276		$	—		$	312,559
Intercompany revenue		—			5,890			—			(5,890	)		—
		—			85,173			233,276			(5,890	)		312,559
Operating expense:
Direct cost and reimbursable expense		(477	)		48,044			166,563			—			214,130
Intercompany expenses		—			—			5,890			(5,890	)		—
Depreciation and amortization		575			7,583			12,810			—			20,968
General and administrative		5,847			6,526			18,142			—			30,515
		5,945			62,153			203,405			(5,890	)		265,613
Gain on disposal of assets		—			894			1,003			—			1,897
Earnings from unconsolidated affiliates, net of losses		33,477			—			5,030			(33,791	)		4,716
Operating income		27,532			23,914			35,904			(33,791	)		53,559
Interest income		20,887			22			140			(20,881	)		168
Interest expense		(11,373	)		(68	)		(20,892	)		20,881			(11,452	)
Other income (expense), net		(33	)		(92	)		14			—			(111	)
Income before provision for income taxes		37,013			23,776			15,166			(33,791	)		42,164
Allocation of consolidated income taxes		1,883			(2,753	)		(2,446	)		—			(3,316	)
Net income		38,896			21,023			12,720			(33,791	)		38,848
Net income attributable to noncontrolling interests		(16	)		—			48			—			32
Net income attributable to Bristow Group	$	38,880		$	21,023		$	12,768		$	(33,791	)	$	38,880

26

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Statement of Income

Six Months Ended September 30, 2010

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Revenue:
Gross revenue	$	—		$	154,010		$	450,787		$	—		$	604,797
Intercompany revenue		—			17,871			—			(17,871	)		—
		—			171,881			450,787			(17,871	)		604,797
Operating expense:
Direct cost and reimbursable expense		(940	)		99,783			318,629			—			417,472
Intercompany expenses		—			—			17,871			(17,871	)		—
Depreciation and amortization		1,139			15,742			23,418			—			40,299
General and administrative		17,327			11,194			32,896			—			61,417
		17,526			126,719			392,814			(17,871	)		519,188
Gain on disposal of assets		—			1,852			1,763			—			3,615
Earnings from unconsolidated affiliates, net of losses		62,709			—			4,706			(63,401	)		4,014
Operating income		45,183			47,014			64,442			(63,401	)		93,238
Interest income		39,782			33			424			(39,779	)		460
Interest expense		(22,057	)		(68	)		(40,144	)		39,779			(22,490	)
Other income (expense), net		(16	)		(117	)		537			—			404
Income before provision for income taxes		62,892			46,862			25,259			(63,401	)		71,612
Allocation of consolidated income taxes		(3,173	)		(4,602	)		(4,081	)		—			(11,856	)
Net income		59,719			42,260			21,178			(63,401	)		59,756
Net income attributable to noncontrolling interests		(31	)		—			(37	)		—			(68	)
Net income attributable to Bristow Group	$	59,688		$	42,260		$	21,141		$	(63,401	)	$	59,688

27

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Balance Sheet

As of September 30, 2011

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	83,152		$	2,536		$	54,591		$	—		$	140,279
Accounts receivable		12,000			95,190			211,894			(51,480	)		267,604
Inventories		—			61,698			95,568			—			157,266
Assets held for sale		—			2,505			29,137			—			31,642
Prepaid expenses and other current assets		305			3,389			54,369			(43,632	)		14,431
Total current assets		95,457			165,318			445,559			(95,112	)		611,222
Intercompany investment		1,229,027			111,435			—			(1,340,462	)		—
Investment in unconsolidated affiliates		—			150			202,287			—			202,437
Intercompany notes receivable		1,041,100			—			(6,349	)		(1,034,751	)		—
Property and equipment - at cost:
Land and buildings		211			49,075			28,415			—			77,701
Aircraft and equipment		12,654			884,461			1,313,738			—			2,210,853
		12,865			933,536			1,342,153			—			2,288,554
Less: Accumulated depreciation and amortization		(5,206	)		(175,529	)		(284,500	)		—			(465,235	)
		7,659			758,007			1,057,653			—			1,823,319
Goodwill		—			4,755			24,492			—			29,247
Other assets		123,022			4,307			174,486			(267,622	)		34,193
	$	2,496,265		$	1,043,972		$	1,898,128		$	(2,737,947	)	$	2,700,418
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	824		$	29,774		$	61,654		$	(45,244	)	$	47,008
Accrued liabilities		18,178			23,191			106,813			(46,260	)		101,922
Current deferred taxes		(2,395	)		32			9,383			—			7,020
Short-term borrowings and current maturities of long-term debt		10,000			—			3,273			—			13,273
Total current liabilities		26,607			52,997			181,123			(91,504	)		169,223
Long-term debt, less current maturities		729,063			—			22,024			—			751,087
Intercompany notes payable		—			341,246			794,524			(1,135,770	)		—
Accrued pension liabilities		—			—			97,237			—			97,237
Other liabilities and deferred credits		6,306			8,283			168,982			(170,173	)		13,398
Deferred taxes		124,644			8,660			11,317			—			144,621
Stockholders’ investment:
Common stock		362			4,996			22,826			(27,822	)		362
Additional paid-in-capital		696,268			9,290			484,038			(493,328	)		696,268
Retained earnings		964,444			618,500			33,675			(652,175	)		964,444
Accumulated other comprehensive income (loss)		(52,963	)		—			76,511			(167,175	)		(143,627	)
Total Bristow Group Inc. stockholders’ investment		1,608,111			632,786			617,050			(1,340,500	)		1,517,447
Noncontrolling interests		1,534			—			5,871			—			7,405
Total stockholders’ investment		1,609,645			632,786			622,921			(1,340,500	)		1,524,852
Total liabilities and stockholders’ investment	$	2,496,265		$	1,043,972		$	1,898,128		$	(2,737,947	)	$	2,700,418

28

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Balance Sheet

As of March 31, 2011

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	24,075		$	5,233		$	87,053		$	—		$	116,361
Accounts receivable		19,283			77,690			203,286			(37,740	)		262,519
Inventories		—			85,937			110,270			—			196,207
Assets held for sale		—			1,488			30,068			—			31,556
Prepaid expenses and other current assets		438			9,017			32,646			(19,983	)		22,118
Total current assets		43,796			179,365			463,323			(57,723	)		628,761
Intercompany investment		1,249,822			111,435			—			(1,361,257	)		—
Investment in unconsolidated affiliates		—			150			208,484			—			208,634
Intercompany notes receivable		978,221			—			(7,342	)		(970,879	)		—
Property and equipment - at cost:
Land and buildings		210			53,448			44,396			—			98,054
Aircraft and equipment		11,901			810,758			1,293,600			—			2,116,259
		12,111			864,206			1,337,996			—			2,214,313
Less: Accumulated depreciation and amortization		(3,424	)		(165,212	)		(277,795	)		—			(446,431	)
		8,687			698,994			1,060,201			—			1,767,882
Goodwill		—			4,755			27,292			—			32,047
Other assets		124,770			4,477			179,936			(271,153	)		38,030
	$	2,405,296		$	999,176		$	1,931,894		$	(2,661,012	)	$	2,675,354
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current liabilities:
Accounts payable	$	1,569		$	15,097		$	57,734		$	(17,428	)	$	56,972
Accrued liabilities		17,513			22,903			81,885			(20,384	)		101,917
Current deferred taxes		1,336			(81	)		10,921			—			12,176
Short-term borrowings and current maturities of long-term debt		5,000			—			3,979			—			8,979
Total current liabilities		25,418			37,919			154,519			(37,812	)		180,044
Long-term debt, less current maturities		674,629			—			23,853			—			698,482
Intercompany notes payable		—			318,190			772,420			(1,090,610	)		—
Accrued pension liabilities		—			—			99,645			—			99,645
Other liabilities and deferred credits		5,862			8,251			187,202			(171,206	)		30,109
Deferred taxes		119,297			9,122			19,880			—			148,299
Stockholders’ investment:
Common stock		363			4,996			22,852			(27,848	)		363
Additional paid-in-capital		689,795			9,552			470,883			(480,435	)		689,795
Retained earnings		951,660			611,146			77,281			(688,427	)		951,660
Accumulated other comprehensive income (loss)		(63,186	)		—			97,743			(164,674	)		(130,117	)
Total Bristow Group Inc. stockholder’s investment		1,578,632			625,694			668,759			(1,361,384	)		1,511,701
Noncontrolling interests		1,458			—			5,616			—			7,074
Total stockholders’ investment		1,580,090			625,694			674,375			(1,361,384	)		1,518,775
Total liabilities and stockholders’ investment	$	2,405,296		$	999,176		$	1,931,894		$	(2,661,012	)	$	2,675,354

29

BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Statement of Cash Flows

Six Months Ended September 30, 2011

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(18,520	)	$	60,830		$	74,683		$	—	$	116,993
Cash flows from investing activities:
Capital expenditures		(418	)		(78,620	)		(70,224	)		—		(149,262	)
Proceeds from asset dispositions		—			8,129			3,911			—		12,040
Net cash used in investing activities		(418	)		(70,491	)		(66,313	)		—		(137,222	)
Cash flows from financing activities:
Proceeds from borrowings		87,800			—			693			—		88,493
Repayment of debt and debt redemption premiums		(30,000	)		—			(2,518	)		—		(32,518	)
Dividends paid		40,564			(24,927	)		(26,470	)		—		(10,833	)
Increases (decreases) in cash related to intercompany advances and debt		(22,056	)		32,153			(10,097	)		—		—
Partial prepayment of put/call obligation		(31	)		—			—			—		(31	)
Acquisition of noncontrolling interest		—			(262	)		—			—		(262	)
Issuance of Common Stock		1,629			—			—			—		1,629
Tax benefit related to stock-based compensation		109			—			—			—		109
Net cash provided by (used in) financing activities		78,015			6,964			(38,392	)		—		46,587
Effect of exchange rate changes on cash and cash equivalents		—			—			(2,440	)		—		(2,440	)
Net increase (decrease) in cash and cash equivalents		59,077			(2,697	)		(32,462	)		—		23,918
Cash and cash equivalents at beginning of period		24,075			5,233			87,053			—		116,361
Cash and cash equivalents at end of period	$	83,152		$	2,536		$	54,591		$	—	$	140,279

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BRISTOW GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Supplemental Condensed Consolidating Statement of Cash Flows

Six Months Ended September 30, 2010

	Parent Company Only			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(23,393	)	$	25,304		$	68,550		$	(1,277	)	$	69,184
Cash flows from investing activities:
Capital expenditures		(1,696	)		(30,957	)		(31,290	)		—			(63,943	)
Deposit on asset held for sale		—			1,000			—			—			1,000
Proceeds from sale of joint ventures		—			—			1,291			—			1,291
Proceeds from asset dispositions		—			11,280			5,898			—			17,178
Net cash used in investing activities		(1,696	)		(18,677	)		(24,101	)		—			(44,474	)
Cash flows from financing activities:
Proceeds from borrowings		—			8,049			1,963			—			10,012
Repayment of debt		—			—			(7,630	)		—			(7,630	)
Dividends paid		13,030			(11,500	)		(1,530	)		—			—
Distributions to noncontrolling interest owners		—			—			(637	)		—			(637	)
Increases (decreases) in cash related to intercompany advances and debt		8,835			(5,010	)		(3,825	)		—			—
Partial prepayment of put/call obligation		(28	)		—			—			—			(28	)
Acquisition of noncontrolling interest		—			—			(800	)		—			(800	)
Issuance of Common Stock		111			—			—			—			111
Tax benefit related to stock-based compensation		179			—			—			—			179
Net cash provided by (used in) financing activities		22,127			(8,461	)		(12,459	)		—			1,207
Effect of exchange rate changes on cash and cash equivalents		—			—			4,791			—			4,791
Net increase (decrease) in cash and cash equivalents		(2,962	)		(1,834	)		36,781			(1,277	)		30,708
Cash and cash equivalents at beginning of period		16,555			1,834			59,404			—			77,793
Cash and cash equivalents at end of period	$	13,593		$	—		$	96,185		$	(1,277	)	$	108,501

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Bristow Group Inc.:

We have reviewed the condensed consolidated balance sheet of Bristow Group Inc. and subsidiaries (the Company) as of September 30, 2011 and the related condensed consolidated statements of income for the three- and six-month periods ended September 30, 2011 and 2010, and the related condensed consolidated statements of cash flows for the six-month periods ended September 30, 2011 and 2010. These condensed consolidated financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Company as of March 31, 2011, and the related consolidated statements of income, stockholders’ investment, and cash flows for the year then ended (not presented herein); and in our report dated May 20, 2011 we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of March 31, 2011 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ KPMG LLP

Houston, Texas

November 7, 2011

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

Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the notes thereto as well as our Annual Report on Form 10-K for the fiscal year ended March 31, 2011 (the “fiscal year 2011 Annual Report”) and the MD&A contained therein. In the discussion that follows, the terms “Current Quarter” and “Comparable Quarter” refer to the three months ended September 30, 2011 and 2010, respectively, and the terms “Current Period” and “Comparable Period” refer to the six months ended September 30, 2011 and 2010, respectively. Our fiscal year ends March 31, and we refer to fiscal years based on the end of such period. Therefore, the fiscal year ending March 31, 2012 is referred to as “fiscal year 2012.”

Forward-Looking Statements

This Quarterly Report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). Forward-looking statements are statements about our future business, strategy, operations, capabilities and results; financial projections; plans and objectives of our management; expected actions by us and by third parties, including our clients, competitors, vendors and regulators; and other matters. Some of the forward-looking statements can be identified by the use of words such as “believes”, “belief”, “expects”, “plans”, “anticipates”, “intends”, “projects”, “estimates”, “may”, “might”, “would”, “could” or other similar words; however, all statements in this Quarterly Report, other than statements of historical fact or historical financial results are forward-looking statements.

Our forward-looking statements reflect our views and assumptions on the date we are filing this Quarterly Report regarding future events and operating performance. We believe that they are reasonable, but they involve known and unknown risks, uncertainties and other factors, many of which may be beyond our control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Accordingly, you should not put undue reliance on any forward-looking statements.

You should consider the following key factors when evaluating these forward-looking statements:

• the possibility of political instability, war or acts of terrorism in any of the countries where we operate;

• fluctuations in worldwide prices of and demand for natural gas and oil;

• fluctuations in levels of natural gas and oil exploration and development activities;

• fluctuations in the demand for our services;

• the existence of competitors;

• the existence of operating risks inherent in our business, including the possibility of declining safety performance;

• the possibility of changes in tax and other laws and regulations;

• the possibility that the major oil companies do not continue to expand internationally;

• the possibility of significant changes in foreign exchange rates and controls;

• general economic conditions including the capital and credit markets;

• the possibility that we may be unable to acquire additional aircraft due to limited availability or unable to exercise aircraft purchase options;

• the possibility that we may be unable to obtain financing or we may be unable to draw on our credit facilities;

• the possibility that we may be unable to re-deploy our aircraft to regions with greater demand; and

• the possibility that we do not achieve the anticipated benefit of our fleet capacity expansion program.

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The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe are important factors to consider. For a more detailed description of risk factors, please see the risks and uncertainties described under Item1A. “Risk Factors” included in the fiscal year 2011 Annual Report.

All forward-looking statements in this Quarterly Report are qualified by these cautionary statements and are only made as of the date of this Quarterly Report. We do not undertake any obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Executive Overview

This Executive Overview only includes what management considers to be the most important information and analysis for evaluating our financial condition and operating performance. It provides the context for the discussion and analysis of the financial statements which follow and does not disclose every item impacting our financial condition and operating performance.

General

We are the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated and one of two helicopter service providers to the offshore energy industry with global operations. We have a long history in the helicopter services industry through Bristow Helicopters Ltd. and Offshore Logistics, Inc., having been founded in 1955 and 1969, respectively. We have major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, Russia and Trinidad. We generated 81% and 94% of our consolidated operating revenue and business unit operating income, respectively, from operations outside of the U.S. during the Current Period.

We conduct our business in one segment: Helicopter Services. The Helicopter Services segment operations are conducted primarily through five business units:

• Europe,

• West Africa,

• North America,

• Australia, and

• Other International.

We provide helicopter services to a broad base of major integrated, national and independent oil and gas companies. Our clients charter our helicopters primarily to transport personnel between onshore bases and offshore production platforms, drilling rigs and other installations. To a lesser extent, our clients also charter our helicopters to transport time-sensitive equipment to these offshore locations. In addition to our primary Helicopter Services operations, we also operate a training business unit, Bristow Academy, and provide technical services to clients in the U.S. and U.K. As of September 30, 2011, we operated 366 aircraft (including 327 owned aircraft and 39 leased aircraft; 19 of the owned aircraft are held for sale) and our unconsolidated affiliates operated 186 aircraft in addition to those aircraft leased from us.

The chart below presents (1) the number of helicopters in our fleet and their distribution among the business units of our Helicopter Services segment as of September 30, 2011; (2) the number of helicopters which we had on order or under option as of September 30, 2011; and (3) the percentage of operating revenue that each of our business units provided during the Current Period. For additional information regarding our commitments and options to acquire aircraft, see Note 7 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report.

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	Percentage of Current Period			Aircraft in Consolidated Fleet
	Operating			Helicopters								Fixed				Unconsolidated
	Revenue			Small		Medium		Large		Training		Wing		Total(1)		Affiliates(2)		Total
Europe		38	%		—		17		41		—		—		58		64		122
West Africa		19	%		12		26		7		—		3		48		—		48
North America		16	%		68		26		—		—		—		94		—		94
Australia		12	%		2		14		17		—		—		33		—		33
Other International		12	%		5		41		17		—		—		63		122		185
Corporate and other		3	%		—		—		—		70		—		70		—		70
Total		100	%		87		124		82		70		3		366		186		552
Aircraft not currently in fleet: (3)(4)
On order					—		—		10		—		—		10
Under option					—		12		25		—		—		37

⁽¹⁾  Includes 19 aircraft held for sale.

⁽²⁾  The 186 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us.

⁽³⁾  This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option.

⁽⁴⁾  Subsequent to September 30, 2011, we entered into agreements to purchase or lease 8 new technology large aircraft for approximately $144 million that are not reflected in the table above.

The commercial aircraft in our consolidated fleet represented in the above chart are our primary source of revenue. To normalize the consolidated operating revenue of our fleet for the different revenue productivity and cost of our commercial aircraft, we developed a common weighted factor that combines large, medium and small aircraft into a combined standardized number of revenue producing commercial aircraft assets. We call this measure Large AirCraft Equivalent (“LACE”). Our large, medium and small aircraft are weighted as 100%, 50%, and 25%, respectively, to arrive at a single LACE number. We divide our operating revenue from commercial contracts by LACE to develop a LACE rate, which is a standardized rate, similar to a day rate, on which we intend to disclose results and provide guidance. Our historical LACE and LACE rate is as follows:

	Current Period		Fiscal Year Ended March 31,
			2011		2010		2009		2008		2007
LACE		154		153		159		164		161		156
LACE Rate (in millions)	$	7.45	$	7.15	$	6.49	$	6.14	$	5.72	$	4.92

Our Strategy

Our goal is to strengthen our position as a leading helicopter services provider to the offshore energy industry. We intend to employ the following well defined business/commercial and capital allocation strategies to achieve this goal:

Business/Commercial Strategy

• Be the preferred provider of helicopter services. We position our business to be the preferred provider of helicopter services by maintaining strong relationships with our clients and providing safe and high-quality service. In order to create further differentiation and add value to our clients, we have expanded our well-established and successful global “Target Zero” safety program to also focus on additional areas related to maximizing uptime and service levels. The new expanded program called the “Bristow Client Promise” is focused on enhancing our value to our clients through the initiatives of “Target Zero Accidents,” “Target Zero Downtime” and “Target Zero Complaints.” This program is designed to deliver continuous improvement in all these important areas and demonstrate Bristow’s commitment to providing higher hours of zero-accident flight

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time with on-time and up-time helicopter transportation service. We maintain relationships with our clients’ field operations and corporate management that we believe helps us better anticipate client needs and provide our clients with the right aircraft in the right place at the right time, which in turn allows us to better manage our fleet utilization and capital investment program. We also leverage our close relationships with our clients to establish mutually beneficial operating practices and safety standards worldwide. By applying standardized-first-rate operating and safety practices across our global operations, we seek to provide our clients with consistent, high-quality service in each of their areas of operation. By better understanding and delivering on our clients’ needs with our global operations and safety standards, we believe we effectively compete against other helicopter service providers based on aircraft availability, client service, safety and reliability, and not just price.

• Grow our business while managing our assets. We plan to continue to grow our business globally and increase our revenue and profitability over time, while managing through cyclical downturns in the energy industry. We conduct flight operations in most major oil and gas producing regions of the world, and through our strong relationships with our existing clients, we are aware of future business opportunities in the markets we currently serve that would allow us to grow through new contracts. We anticipate these new opportunities will result in the deployment of new or existing aircraft into markets where we expect they will earn desirable rates of return. Additionally, new opportunities may result in growth through acquisitions and investments in existing or new markets, which may include increasing our role and participation with existing unconsolidated affiliates, investing in new companies, or creating partnerships and alliances with existing industry participants. We believe the combination of growth in existing and new markets will deliver improved shareholder returns.

Capital Allocation Strategy

Our capital allocation strategy is based on three principles as follows:

• Prudent balance sheet management. Throughout our corporate and business unit management, we proactively manage our capital allocation plan with a concentration on achieving business growth and improving rates of return, within the dictates of prudent balance sheet management. We have funded our successful growth plan and maintained adequate liquidity by raising approximately $1.3 billion of debt and equity by means of both public and private financings since fiscal year 2007, and we intend to continue managing our capital structure and liquidity position relative to our commitments with external financings when necessary. Our debt to total capitalization ratio and total liquidity were 37.1% and $226.8 million, respectively, and 35.8% and $260.7 million, respectively, as of September 30 and March 31, 2011. Currently, we have a debt to total capitalization ratio guide of approximately 40% including the imputation of certain off-balance sheet obligations, which include the net present value of certain aircraft operating leases and the unfunded pension liability.

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• Highest return. We have implemented a new internal financial management framework we call Bristow Value Added (“BVA”) to enhance our focus on the returns we deliver across our organization. BVA is computed by subtracting a capital charge for the use of gross invested capital from after tax operating cash flow. Our goal is to achieve strong improvements in BVA over time by (1) improving the returns we earn throughout our organization via cost and capital efficiency improvements as well as through better pricing based on the differentiated value we deliver to clients via aircraft safety, availability, client service and reliability; (2) deploying more capital into commercial opportunities where management believes we can deliver strong returns and when we believe it will benefit the Company and our shareholders, making strategic acquisitions or strategic equity investments; and (3) withdrawing capital from areas where returns are deemed inadequate and unable to be sufficiently improved. When appropriate, we may divest parts of the Company. Improvements in BVA is the primary financial measure in our management incentive plan starting in fiscal year 2012, aligning the interests of management with shareholders.

• Balanced shareholder return. We have invested $1.7 billion on capital expenditures to grow our business since fiscal year 2007. While we plan to continue to invest in new aircraft, we do not expect capital expenditures to continue at this level over the near term. We believe our liquidity position and cash flows from operations will be more than adequate to finance operating and maintenance capital expenditures, so we have considered our capital deployment alternatives for the future to deliver a more balanced return to our shareholders. On November 2, 2011, our board of directors approved our third consecutive quarterly dividend. Also on November 2, 2011, our board of directors authorized the expenditure of up to $100 million to repurchase shares of our Common Stock over the next 12 months. The timing and method of any repurchases under the program will depend on a variety of factors, is subject to our results of operations, financial condition, cash requirements and other factors and restrictions under applicable law and our debt instruments, and may be suspended or discontinued at any time.

Market Outlook

Our core business is providing helicopter services to the worldwide oil and gas industry. Our clients’ operating expenditures in the production sector are the principal source of our revenue, while their exploration and development capital expenditures provide a lesser portion of our revenue. Our clients typically base their capital expenditure budgets on their long-term commodity price expectations and not exclusively on the current spot price. In 2009, the credit, equity and commodity markets were quite volatile causing many of our oil and gas company clients to reduce capital spending plans and defer projects. Growing confidence among our clients has led to increased capital expenditure budgets resulting in some larger projects moving ahead that were previously on hold. This led to the recovery in our fiscal year 2011 financial performance.

While we are cautiously optimistic that the economic conditions will continue to recover over the remainder of fiscal year 2012 and in fiscal year 2013, we continue to seek ways to reduce costs and work with our clients to improve the efficiency of their operations. Our global operations and critical mass of helicopters provide us with geographic and client diversity which helps mitigate risks associated with a single market or client. This economic recovery should lead to accelerated expansion in fiscal year 2012 and beyond and increased demand in many of our core markets.

The limited availability of some new aircraft models and the need throughout the industry to retire many of the older aircraft in the worldwide fleet is a driver for our industry. Currently manufacturers have some available aircraft; however, there are some constraints on supply of new large aircraft. The aftermarket for sales of our aircraft has recovered and sale prices have improved, reflecting buyers with available capital.

Brazil continues to represent a significant part of our positive growth outlook. The recent discovery of pre-salt deepwater fields in Brazil along with the national mandate to significantly increase its production over the next five years will necessitate investment in infrastructure and associated services. As a result, we anticipate and have begun to enjoy growth in both international oil companies and Petrobras activity as they ramp up their procurement of helicopters services. Since 2009, Petrobras procured 20 large aircraft as they renewed their fleet and added incremental capacity in

37

this category. Further, Petrobras has recently issued a tender for over 25 medium sized aircraft of which a significant portion could be incremental capacity. Líder Aviação Holding S.A. (“Líder”), our investment in Brazil, was awarded contracts for 14 medium aircraft, which is the maximum amount possible. Seven will commence in fiscal year 2012 with the other seven commencing in fiscal year 2013. Aircraft being procured in this market tend to be newer and more sophisticated which is aligned with both Bristow Group’s “Client Promise” and Líder’s “Decolar” Service Differentiation Programs. More recently, Petrobras has announced a requirement for approximately eight to ten large aircraft. The above growth trend is anticipated to continue to keep pace with Brazil’s national production policies.

As discussed in “Item 1A. Risk Factors” in the fiscal year 2011 Annual Report, we are subject to competition and the political environment in the countries where we operate. In one of these markets, Nigeria, we have seen a recent increase in competitive pressure and new regulation that could impact our ability to win future work at levels previously anticipated. During fiscal year 2011, in both Nigeria and Australia, major clients re-bid contracts that we were incumbents on and awarded these contracts to competitors. The contract in Nigeria provided us with annualized revenue of approximately $42 million and ended in fiscal year 2011. The contract in Australia provided us with annualized revenue of approximately $30 million and ended in May 2011.

Despite the current competitive environments in these markets as well as the regulatory environment in Nigeria, we expect the lost revenue to eventually be offset by new contract awards with other clients and increased ad hoc flying in these regions. However, in order to properly and fully embrace new regulations, we have agreed in principle to make a number of key changes to our operating model in Nigeria, while maintaining safety as our number one priority at all times. These changes are still being finalized, with the objectives of these changes being (i) allowing each of BHNL and PAAN to have more autonomy over its own flight operations, (ii) providing technical aviation maintenance services through a new wholly-owned Bristow Group entity, BGI Aviation Technical Services (“BATS”), (iii) enabling each of BHNL and PAAN to operate freely in the market place as a completely separate entity, with its own distinct identity, management and workforce; and (iv) each of BHNL, PAAN and BATS committing to continue to apply and use all key Bristow Group standards and policies, including without limitation our Target Zero safety program, our Code of Business Integrity and our Operations Manuals. As a result of these changes, our ability to continue to consolidate BHNL and PAAN under the current accounting requirements could change. However, it is intended that achievement of these objectives should enable us to continue to be a successful and critical part of the Nigerian oil and gas and aviation industries.

We conduct business in various foreign countries, and as such, our cash flows and earnings are subject to fluctuations and related risks from changes in foreign currency exchange rates. During the Current Period, our primary foreign currency exposure was related to the euro, the British pound sterling, the Australian dollar and the Nigerian naira. For details on this exposure and the related impact on our results of operations, see “Item 3. Quantitative and Qualitative Disclosures about Market Risk” included elsewhere in this Quarterly Report.

The management of our global aircraft fleet involves a careful evaluation of the expected demand for helicopter services across global oil and gas markets, including the type of aircraft needed to meet this demand. As offshore oil and gas drilling and production globally moves to deeper water, more medium and large aircraft and newer technology aircraft may be required. As older aircraft models come off of current contracts and are replaced by new aircraft, our management evaluates our future needs for these aircraft models and ultimately the ability to recover our remaining investments in these aircraft through sales into the aftermarket. We depreciate our aircraft over their expected useful life to the expected salvage value to be received for the aircraft at the end of that life; however, depending on the market for aircraft we may record gains or losses on aircraft sales. In certain instances where a cash return can be made on newer aircraft in excess of the expected return available through the provision of helicopter services, we may sell newer aircraft. The number of aircraft sales and the amount of gains and losses recorded on these sales is unpredictable. While aircraft sales are common in our business and are reflected in our operating results, gains and losses on aircraft sales may result in our operating results not reflecting the ordinary operating performance of our primary business, which is providing helicopter services to our clients.

During the Current Quarter, changes were made to our fleet strategy as a result of (1) the introduction of the Bristow Client Promise through which we will position Bristow as the premium service provider of offshore transportation services, (2) the introduction of BVA and (3) a continued shift in demand for our aircraft to newer technology aircraft types. The change to our fleet strategy resulted in the determination to operate certain older types of aircraft for a shorter period than originally anticipated and led to a global review of spare parts inventories supporting our fleet. This review of inventories resulted in the identification of approximately $49 million of inventory that is dormant, obsolete or excess based on the review of our future inventory needs. As a result, we recorded an impairment charge of $24.6 million to write-down certain spare parts within inventories to lower of cost or market during the Current Quarter.

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Results of Operations

The following table presents our operating results and other statement of income information for the applicable periods:

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except per share amounts, percentages and flight hours)
Gross Revenue:
Operating revenue	$	297,056		$	286,537		$	10,519		3.7	%
Reimbursable revenue		33,936			26,022			7,914		30.4	%
Total gross revenue		330,992			312,559			18,433		5.9	%
Operating expense:
Direct cost		203,635			189,110			(14,525	)	(7.7	)%
Reimbursable expense		32,770			25,020			(7,750	)	(31.0	)%
Impairment of inventories		24,610			—			(24,610	)	*
Depreciation and amortization		25,431			20,968			(4,463	)	(21.3	)%
General and administrative		29,303			30,515			1,212		4.0	%
		315,749			265,613			(50,136	)	(18.9	)%
Gain (loss) on disposal of assets		(1,611	)		1,897			(3,508	)	(184.9	)%
Earnings from unconsolidated affiliates, net of losses		(4,037	)		4,716			(8,753	)	*
Operating income		9,595			53,559			(43,964	)	(82.1	)%
Interest expense, net		(9,306	)		(11,284	)		1,978		17.5	%
Other income (expense), net		727			(111	)		838		755.0	%
Income before benefit (provision) for income taxes		1,016			42,164			(41,148	)	(97.6	)%
Benefit (provision) for income taxes		1,945			(3,316	)		5,261		158.7	%
Net income		2,961			38,848			(35,887	)	(92.4	)%
Net income attributable to noncontrolling interests		(250	)		32			(282	)	(881.3	)%
Net income attributable to Bristow Group	$	2,711		$	38,880		$	(36,169	)	(93.0	)%
Diluted earnings per share	$	0.07		$	1.06		$	(0.99	)	(93.4	)%
Operating margin (1)		3.2	%		18.7	%		(15.5	) %	(82.9	)%
Flight hours (2)		56,005			63,178			(7,173	)	(11.4	)%
Non-GAAP financial measures: (3)
Adjusted EBITDA	$	62,127		$	72,687		$	(10,560	)	(14.5	)%
Adjusted operating income		38,493			51,662			(13,169	)	(25.5	)%
Adjusted net income		23,287			37,132			(13,845	)	(37.3	)%
Adjusted diluted earnings per share		0.63			1.01			(0.38	)	(37.6	)%

39

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except per share amounts, percentages and flight hours)
Gross Revenue:
Operating revenue	$	583,817		$	558,546		$	25,271		4.5	%
Reimbursable revenue		68,280			46,251			22,029		47.6	%
Total gross revenue		652,097			604,797			47,300		7.8	%
Operating expense:
Direct cost		400,257			372,274			(27,983	)	(7.5	)%
Reimbursable expense		65,904			45,198			(20,706	)	(45.8	)%
Impairment of inventories		24,610			—			(24,610	)	*
Depreciation and amortization		48,139			40,299			(7,840	)	(19.5	)%
General and administrative		68,948			61,417			(7,531	)	(12.3	)%
		607,858			519,188			(88,670	)	(17.1	)%
Gain (loss) on disposal of assets		(195	)		3,615			(3,810	)	(105.4	)%
Earnings from unconsolidated affiliates, net of losses		1,956			4,014			(2,058	)	*
Operating income		46,000			93,238			(47,238	)	(50.7	)%
Interest expense, net		(18,090	)		(22,030	)		3,940		17.9	%
Other income (expense), net		931			404			527		130.4	%
Income before provision for income taxes		28,841			71,612			(42,771	)	(59.7	)%
Provision for income taxes		(4,661	)		(11,856	)		7,195		60.7	%
Net income		24,180			59,756			(35,576	)	(59.5	)%
Net income attributable to noncontrolling interests		(424	)		(68	)		(356	)	(523.5	)%
Net income attributable to Bristow Group	$	23,756		$	59,688		$	(35,932	)	(60.2	)%
Diluted earnings per share	$	0.65		$	1.63		$	(0.98	)	(60.1	)%
Operating margin (1)		7.9	%		16.7	%		(8.8	)%	(52.7	)%
Flight hours (2)		110,061			122,027			(11,966	)	(9.8	)%
Non-GAAP financial measures: (3)
Adjusted EBITDA	$	120,199		$	130,786		$	(10,587	)	(8.1	)%
Adjusted operating income		73,482			89,623			(16,141	)	(18.0	)%
Adjusted net income		43,227			56,720			(13,493	)	(23.8	)%
Adjusted diluted earnings per share		1.18			1.55			(0.37	)	(23.9	)%

* percentage change not meaningful

⁽¹⁾  Operating margin is calculated as operating income divided by operating revenue.

⁽²⁾  Excludes flight hours from Bristow Academy and unconsolidated affiliates.

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⁽³⁾  These financial measures have not been prepared in accordance with generally accepted accounting principles (“GAAP”) and have not been audited or reviewed by our independent auditor. These financial measures are therefore considered non-GAAP financial measures. Adjusted EBITDA is calculated by taking our net income and adjusting for interest expense, depreciation and amortization, benefit (provision) for income taxes, gain (loss) on disposal of assets and any special items during the reported periods. Adjusted operating income, adjusted net income and adjusted diluted earnings per share are each adjusted for gain (loss) on disposal of assets and any special items during the reported periods. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding our results because they exclude amounts that management does not consider part of our normal and recurring operations when assessing and measuring the operational and financial performance of the organization. A description of the adjustments to and reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures is as follows:

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In thousands)
Adjusted EBITDA	$	62,127		$	72,687		$	120,199		$	130,786
Gain (loss) on disposal of assets		(1,611	)		1,897			(195	)		3,615
Special items (1)		(24,610	)		—			(24,610	)		—
Interest expense		(9,459	)		(11,452	)		(18,414	)		(22,490	)
Depreciation and amortization		(25,431	)		(20,968	)		(48,139	)		(40,299	)
Benefit (provision) for income taxes		1,945			(3,316	)		(4,661	)		(11,856	)
Net income	$	2,961		$	38,848		$	24,180		$	59,756
Adjusted operating income	$	38,493		$	51,662		$	73,482		$	89,623
Gain (loss) on disposal of assets		(1,611	)		1,897			(195	)		3,615
Special items (1)		(27,287	)		—			(27,287	)		—
Operating income	$	9,595		$	53,559		$	46,000		$	93,238
Adjusted net income	$	23,287		$	37,132		$	43,227		$	56,720
Gain (loss) on disposal of assets (2)		(1,257	)		1,748			(152	)		2,968
Special items (1) (2)		(19,319	)		—			(19,319	)		—
Net income attributable to Bristow Group	$	2,711		$	38,880		$	23,756		$	59,688
Adjusted earnings per share	$	0.63		$	1.01		$	1.18		$	1.55
Gain (loss) on disposal of assets (2)		(0.03	)		0.05			—			0.08
Special items (1) (2)		(0.53	)		—			(0.53	)		—
Earnings per share		0.07			1.06			0.65			1.63

⁽¹⁾  See information about special items during the three and six months ended September 30, 2011 and 2010 under “Current Quarter Compared to Comparable Quarter” and “Current Period Compared to Comparable Period” below.

⁽²⁾  These amounts are presented after applying the appropriate tax effect to each item and dividing earnings per share by the weighted average shares outstanding during the related period.

Current Quarter Compared to Comparable Quarter

Our results for the Current Quarter included an $18.4 million, or 5.9%, increase in gross revenue over the Comparable Quarter primarily resulting from:

• A favorable impact from changes in foreign currency exchange rates that increased gross revenue by $11.2 million and represented over 60% of the increase in gross revenue (this primarily benefitted our revenue in Europe and Australia),

• Increased revenue from the addition of new contracts and improvements in overall flight activity in our Europe and West Africa business units, and

• Increased reimbursable revenue (primarily in Europe).

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This increase was partially offset by:

• Decreased revenue in North America as a result of short-term work for BP in support of the spill control and monitoring effort in the Comparable Quarter and reduced activity as a result of the drilling moratorium in the U.S. Gulf of Mexico, and

• Decreased revenue in Australia resulting from the loss of a major contract that ended in fiscal year 2011 that to date has only been partially offset by new work.

Despite the increase in operating revenue, our operating income, net income and diluted earnings per share for the Current Quarter decreased from the Comparable Quarter. These decreases primarily resulted from the following items that more than offset the benefit of the increased revenue in the Current Quarter:

• A $24.6 million write-down of inventory spare parts to lower of cost or market as management has made the determination to operate certain types of aircraft for a shorter period than originally anticipated,

• A $8.8 million decrease in earnings from unconsolidated affiliates, primarily resulting from an unfavorable impact of foreign currency exchange rate changes on earnings from our investment in Líder in Brazil, which is reflected in our Other International business unit,

• An impairment charge of $2.7 million recorded in depreciation and amortization resulting from the abandonment of certain assets located in Creole, Louisiana and used in North America business unit as we ceased operations from that location, and

• A loss on disposal of assets of $1.6 million during the Current Quarter, primarily due to a $1.1 million loss on the disposal of a fixed wing aircraft previously operating in Nigeria that was damaged in an incident upon landing and a $0.4 million impairment charge to reduce the carrying value of three aircraft held for sale, compared to a gain on disposal of assets of $1.9 in the Comparable Quarter.

We continue to see significant growth opportunities across most of our major markets as tender activity is robust and new work is expected to start over the latter half of fiscal year 2012 and in fiscal year 2013. However, our need to incur costs in advance of this activity, either to start up new operations or to maintain resources that will be needed in future periods, has resulted in increased operating expense in excess of revenue growth in the Current Quarter. In addition to the impact of the items that specifically impacted our results for our Other International and North America business unit discussed above, the continued execution of our growth strategy has resulted in deteriorated operating results during the Current Quarter, with operating margin reduced in all of our major business units.

The significant impact of changes in foreign currency exchange rates on gross revenue was more than offset by a similar impact on operating expense and a significant impact on earnings from unconsolidated affiliates, net of losses, leading to an impact on operating income, net income and earnings per share. Changes in foreign currency exchange rates decreased operating income, net income and earnings per share by $6.2 million, $6.3 million and $0.17, respectively, compared to the Comparable Quarter.

42

The write-down of inventory spare parts and the impairment charge on the abandonment of assets at the Creole, Louisiana location discussed above have been identified as special items for the Current Quarter as they are not considered by management to be part of our normal and recurring operations when assessing and measuring the operational and financial performance of the organization. The impact of these items on our adjusted operating income, adjusted EBITDA, adjusted net income and adjusted diluted earnings per share is as follows:

	Three Months Ended September 30, 2011
	Adjusted Operating Income		Adjusted EBITDA		Adjusted Net Income		Adjusted Diluted Earnings Per Share
	(In thousands, except per share amounts)
Impairment of inventories	$	24,610	$	24,610	$	17,579	$	0.48
Impairment of assets in Creole, Louisiana		2,677		—		1,740		0.05
Total special items	$	27,287	$	24,610	$	19,319		0.53

There were no special items identified during the three months ended September 30, 2010.

Current Period Compared to Comparable Period

Our results for the Current Period included a $47.3 million, or 7.8%, increase in gross revenue over the Comparable Period primarily resulting from:

• A favorable impact from changes in foreign currency exchange rates that increased gross revenue by $29.3 million and represented over 60% of the increase in gross revenue (this primarily benefitted our revenue in Europe and Australia),

• Increased revenue from the addition of new contracts and improvements in overall flight activity in our Europe business unit, and

• Increased reimbursable revenue (primarily in Europe).

This increase was partially offset by:

• Decreased revenue in North America as a result of short-term work for BP in support of the spill control and monitoring effort in the Comparable Period and reduced activity as a result of the drilling moratorium in the U.S. Gulf of Mexico, and

• Decreased revenue in Australia resulting from the loss of a major contract that ended in fiscal year 2011 and to date has only been partially offset by new work.

Despite the increase in operating revenue, our operating income, net income and diluted earnings per share for the Current Period decreased from the Comparable Period. These decreases primarily resulted from the following items that more than offset the increased revenue in the Current Period:

• A $24.6 million write-down of inventory spare parts to lower of cost or market as management has made the determination to operate certain types of aircraft for a shorter period than originally anticipated,

• An impairment charge of $2.7 million recorded in depreciation and amortization resulting from the abandonment of certain assets located in Creole, Louisiana and used in North America business unit as we ceased operations from that location,

• An increase in compensation cost for our employees recorded in the Current Period, primarily impacting our results at the corporate level and in our Europe business unit. Increased compensation cost represented 45% of the $28.0 million increase in direct cost over the Comparable Period and 42% of the $7.5 million increase in general and administrative expense. The following items contributed to the increase:

43

• $3.0 million in expense recorded related to our performance cash compensation plan for our senior management that resulted from improved stock price performance and an additional award in June 2011 (minimal cost was recorded related to these plans in the Comparable Period),

• $0.7 million in salary increases for engineers in Norway related to prior periods as a new agreement that included retroactive pay increases was finalized in the Current Period, and

• $0.4 million in salary cost incurred in the Current Period to support operations after an aircraft was damaged in a hard landing in the Northern North Sea.

• A $3.9 million increase in professional fees primarily related to special projects designed to have longer term benefits to our organization, including the Bristow Client Promise and BVA initiatives discussed elsewhere in this Quarterly Report,

• A $1.1 million charge recorded in our Australia business unit related to training cost on a new aircraft recently introduced in that market,

• A $4.0 million decrease in earnings from unconsolidated affiliates, primarily resulting from an unfavorable impact of foreign currency exchange rate changes on earnings from our investment in Líder in Brazil, which is reflected in our Other International business unit, and

• A loss on disposal of assets of $0.2 million during the Current Period compared to a gain on disposal of assets of $3.6 million in the Comparable Period.

We continue to see significant growth opportunities across most of our major markets as tender activity is robust and new work is expected to start over the latter half of fiscal year 2012 and in fiscal year 2013. However, our need to incur costs in advance of the activity, either to start up new operations or to maintain resources that will be needed in future periods, has resulted in increased operating expense in excess of revenue growth in the Current Period. In addition to the impact of items that specifically impacted our results for our Other International and North America business unit discussed above, the continued execution of our growth strategy has resulted in deteriorated operating results during the Current Period, with operating margin reduced in a majority of our business units.

The significant impact of changes in foreign currency exchange rates on gross revenue was more offset by a similar impact on operating expenses and a significant impact on earnings from unconsolidated affiliates, net of losses, leading to an impact on operating income, net income and earnings per share. Changes in foreign currency exchange rates decreased operating income, net income and earnings per share by $3.7 million, $4.2 million and $0.11, respectively, compared to the Comparable Period.

The write-down of inventory spare parts and the impairment charge on the abandonment of assets at the Creole, Louisiana location have been identified as special items for the Current Period as they are not considered by management to be part of our normal and recurring operations when assessing and measuring the operational and financial performance of the organization. The impact of these items on our adjusted operating income, adjusted EBITDA, adjusted net income and adjusted diluted earnings per share is as follows:

	Six Months Ended September 30, 2010
	Adjusted Operating Income		Adjusted EBITDA		Adjusted Net Income		Adjusted Diluted Earnings Per Share
	(In thousands, except per share amounts)
Impairment of inventories	$	24,610	$	24,610	$	17,579	$	0.48
Impairment of assets in Creole, Louisiana		2,677		—		1,740		0.05
Total special items	$	27,287	$	24,610	$	19,319		0.53

There were no special items identified for the six months ended September 30, 2010.

44

Business Unit Operating Results

The following tables set forth certain operating information for the business units comprising our Helicopter Services segment. Intercompany lease revenue and expense are eliminated from our segment reporting, and depreciation expense of aircraft is presented in the segment that operates the aircraft.

Current Quarter Compared to Comparable Quarter

Set forth below is a discussion of operations of our business units. Our consolidated results are discussed under “Results of Operations” above.

Europe

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	113,702		$	97,967		$	15,735		16.1	%
Reimbursable revenue	$	26,519		$	19,628		$	6,891		35.1	%
Earnings from unconsolidated affiliates, net of losses	$	2,466		$	2,789		$	(323	)	(11.6	)%
Operating income	$	23,586		$	21,612		$	1,974		9.1	%
Operating margin		20.7	%		22.1	%		(1.4	)%	(6.3	)%
Flight hours		15,341			14,432			909		6.3	%

Operating revenue and flight hours for Europe increased primarily as a result of increased activity with existing clients. Additionally, changes in exchange rates contributed to $7.2 million of the increase in gross revenue.

Operating income for Europe increased primarily due to increased activity with existing clients, partially offset by increases in salaries and benefits, maintenance, insurance and fuel costs primarily resulting from the increased activity. Also, depreciation expense and lease costs increased due to addition of aircraft in this market. Despite the increase in operating revenue, operating margin declined as a result of the increase in salaries and benefits, maintenance, insurance and fuel costs

West Africa

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	61,076		$	56,225		$	4,851		8.6	%
Reimbursable revenue	$	2,965		$	1,885		$	1,080		57.3	%
Operating income	$	16,120		$	17,158		$	(1,038	)	(6.0	)%
Operating margin		26.4	%		30.5	%		(4.1	)%	(13.4	)%
Flight hours		10,620			9,572			1,048		10.9	%

Operating revenue for West Africa increased primarily as a result of three new contracts and a combination of increased activity and price increases on other contracts, which more than offset the revenue lost by the non-renewal of a major contract at the end of the Comparable Quarter.

Operating results were affected by an increase in maintenance, depreciation, training and travel expenses, which resulted in decreased operating income despite the increase in operating revenue. The increase in expense and the non-renewal of the contract with a major customer during fiscal year 2011, which earned higher rates, resulted in the decrease in operating margin in the Current Quarter.

Also, during the Current Quarter, we recorded a $1.1 million loss on the disposal of a fixed wing aircraft previously operating in Nigeria that was damaged in an incident upon landing. The aircraft was insured, but subject to self-insured retention and loss sensitive factors.

45

The $1.1 million loss is included as a reduction in gain (loss) on disposal of assets in our condensed consolidated statement of income.

As previously discussed, we have seen recent changes in the West Africa market as a result of new competitors entering this market. Additionally, increasingly active trade unions, changing regulations and the changing political environment have made and are expected to continue to make our operating results from Nigeria unpredictable.

North America

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	47,860		$	54,292		$	(6,432	)	(11.8	)%
Reimbursable revenue	$	397		$	989		$	(592	)	(59.9	)%
Operating income	$	2,571		$	8,904		$	(6,333	)	(71.1	)%
Operating margin		5.4	%		16.4	%		(11.0	)%	(67.1	)%
Flight hours		20,858			23,279			(2,421	)	(10.4	)%

Operating revenue decreased primarily as a result of short-term work for BP in support of the spill control and monitoring effort in the Comparable Quarter, partially offset by additional aircraft on contract and an increase in fuel recharges during the Current Quarter.

The decrease in operating income and operating margin from the Comparable Quarter is primarily due to the short-term work for BP that was performed during the Comparable Quarter and increase in depreciation and amortization expense as a result of an impairment charge discussed below, partially offset by a decrease in salaries and benefits and maintenance expense during the Current Quarter as a result of the reduced activity.

During the Current Quarter, we recorded an impairment charge of $2.7 million resulting from the abandonment of certain assets located in Creole, Louisiana and used in our U.S. Gulf of Mexico operations as we ceased operations from that location. This impairment charge is included in depreciation and amortization expense on the condensed consolidated statement of income. We expect to incur approximately $0.1 million during the three months ended December 31, 2011 related to lease termination costs at this location. Excluding this impairment charge, operating margin for the Current Quarter would have been 11.0%.

Australia

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	30,469		$	34,238		$	(3,769	)	(11.0	)%
Reimbursable revenue	$	2,971		$	3,126		$	(155	)	(5.0	)%
Operating income	$	576		$	6,094		$	(5,518	)	(90.5	)%
Operating margin		1.9	%		17.8	%		(15.9	)%	(89.3	)%
Flight hours		2,379			3,318			(939	)	(28.3	)%

Operating revenue for Australia decreased primarily due the loss of a major contract at the end of May 2011 and two short-term contracts performed during the Comparable Quarter, partially offset by the favorable impact from changes in foreign currency exchange rates and price escalations on existing contracts.

Operating income and operating margin declined primarily due to the lower revenue described above and an increase in salaries and benefits resulting from annual salary increases. We continue to incur costs, including salaries and benefits, depreciation, insurance and leases costs, for contracts that will start-up in the second half of fiscal year 2012. As new contract work commences in the second half of fiscal year 2012, we expect operating income and margin to improve, with most of the improvement expected in the fourth quarter.

46

Other International

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	35,191		$	35,960		$	(769	)	(2.1	)%
Reimbursable revenue	$	956		$	335		$	621		185.4	%
Earnings from unconsolidated affiliates, net of losses	$	(6,510	)	$	1,927		$	(8,437	)	(437.8	)%
Operating income	$	2,089		$	11,102		$	(9,013	)	(81.2	)%
Operating margin		5.9	%		30.9	%		(25.0	)%	(80.9	)%
Flight hours		6,807			12,577			(5,770	)	(45.9	)%

Operating revenue for Other International declined due to decreases in Mexico (due to no longer providing maintenance and support to Heliservicio Campeche S.A. de C.V. (“Heliservicio”)) and Libya (operations ceased), partially offset by an increase in Malaysia (due to increase in aircraft on contract), Suriname (new contract) and Trinidad (new contract and additional activity on existing contract).

Earnings from unconsolidated affiliates, net of losses, decreased primarily due the loss from our investment in Líder of $6.6 million during the Current Quarter compared to earnings from Líder of $2.2 million in the Comparable Quarter. The loss from our investment in Líder was negatively impacted by changes in foreign currency exchange rates, which reduced our portion of Líder’s earnings by $7.5 million in the Current Quarter.

Operating income and operating margin decreased primarily due to the decrease in earnings from Líder; however, costs incurred to start-up operations in new markets, including Equatorial Guinea and demobilization costs in Libya also had a negative impact.

On January 14, 2011, we entered into an Equity Interest Purchase and Sale Agreement (the “Equity Agreement”) with Controladora De Servicios Aeronauticos, S.A. de C.V. (“CICSA”) and Rotorwing Financial Services, Inc. (“RFS”), the owner of the other 76% of Heliservicio and the owner of the other 1% of Rotorwing Leasing Resources, L.L.C. (“RLR”), respectively. Through this agreement, we and our partners agreed that CICSA would purchase the remaining 24% interest in Heliservicio. Additionally, concurrent with the sale of our interest in Heliservicio, we would execute our option to purchase the 1% interest in RLR owned by RFS. This transaction closed on July 15, 2011 resulting in us having no ownership interest in Heliservicio and full ownership of RLR. Our ownership interest in Heliservicio transferred to CICSA for no proceeds; however, we had impaired our investment in Heliservicio as of March 31, 2011 and we recognized no gain or loss on this transaction during the three months ended September 30, 2011. We acquired the remaining 1% interest in RLR for $0.3 million.

While we continue to lease aircraft from RLR and other consolidated subsidiaries to Heliservicio under revised lease agreements, we expect to realize less revenue from Mexico under these new agreements; however, we expect our operating income and margin contribution from Mexico to remain unchanged or improve in future periods.

Corporate and Other

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages)
Operating revenue	$	9,435		$	8,362		$	1,073		12.8	%
Reimbursable revenue	$	128		$	59		$	69		116.9	%
Operating loss	$	(33,736	)	$	(13,208	)	$	(20,528	)	(155.4	)%

Corporate and other includes our Bristow Academy business unit, technical services business and corporate costs that have not been allocated out to other business units.

Operating revenue increased primarily due to an increase in revenue at Bristow Academy of $0.7 million as a result of an increase in military training activity.

47

The operating loss includes costs of our corporate office and other general and administrative costs not allocated to our business units. The operating loss also includes a $24.6 million write-down of inventory spare parts to lower of cost or market as management has made the determination to operate certain types of aircraft for a shorter period than originally anticipated. In addition to the inventory impairment, operating results were decreased by lower salaries and benefits resulting from a decrease in incentive compensation for Corporate personnel and lower salaries at Bristow Academy due to cost reduction efforts in the military training program and closure of the Concord, California campus effective July 15, 2011.

Interest Expense, Net

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages)
Interest income	$	153		$	168		$	(15	)	(8.9	)%
Interest expense		(9,430	)		(11,821	)		2,391		20.2	%
Amortization of debt discount		(844	)		(789	)		(55	)	(7.0	)%
Amortization of debt fees		(425	)		(496	)		71		14.3	%
Capitalized interest		1,240			1,654			(414	)	(25.0	)%
Interest expense, net	$	(9,306	)	$	(11,284	)	$	1,978		17.5	%

Interest expense, net decreased primarily due to the early redemption of the 6 ¹/8% Senior Notes due 2013 in December 2010 which was replaced with borrowings at a lower interest rate, partially offset by a decrease in capitalized interest resulting from our lower overall borrowing rate and lower average construction in progress balance.

Other Income (Expense), Net

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages)
Foreign currency gains (losses)	$	(35	)	$	(121	)	$	86	71.1	%
Other		762			10			752	*
Other income (expense), net	$	727		$	(111	)	$	838	*

* percentage change not meaningful

Other income (expense), net includes no significant items during the Current Quarter or Comparable Quarter.

Taxes

	Three Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages)
Effective tax rate for continuing operations		(191.3	)%		7.9	%		*		*
Net foreign tax on non-U.S. earnings	$	2,008		$	2,661		$	653		24.5	%
Benefit of foreign earnings indefinitely reinvested abroad		(393	)		(15,087	)		(14,694	)	(97.4	)%
Expense from change in tax contingency		856			1,273			417		32.8	%
Foreign statutory rate reduction		(3,189	)		(2,039	)		1,150		56.4	%

* percentage change not meaningful

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Our effective tax rate for the Current Quarter includes a benefit due to the revaluation of our deferred taxes as a result of the enactment of a tax rate reduction of 2% in the United Kingdom effective April 1, 2012. The valuation benefit, net of other discrete items, eliminated any need to provide additional tax expense for the Current Quarter. In addition, we continue to benefit from our global legal structure that more closely aligns with our global operational structure.

Current Period Compared to Comparable Period

Set forth below is a discussion of operations of our business units. Our consolidated results are discussed under “Results of Operations” above.

Europe

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	221,990		$	183,597		$	38,393		20.9	%
Reimbursable revenue	$	52,769		$	35,689		$	17,080		47.9	%
Earnings from unconsolidated affiliates, net of losses	$	5,324		$	4,740		$	584		12.3	%
Operating income	$	46,835		$	39,911		$	6,924		17.3	%
Operating margin		21.1	%		21.7	%		(0.6	)%	(2.8	)%
Flight hours		29,523			27,399			2,124		7.8	%

Operating revenue and flight hours for Europe increased primarily as a result of increased activity with existing clients. Additionally, changes in exchange rates contributed to $18.7 million of the increase in gross revenue.

Operating income for Europe increased primarily due to increased activity, partially offset by increases in salaries and benefits, maintenance and fuel costs as a result of the increased activity. Additionally, we incurred an additional $1.1 million in salary costs related to engineer retroactive pay increases as we entered into a two-year agreement with the engineers’ union in Norway during the Current Period and salary expense incurred to repair an aircraft that had been damaged in a hard landing. Also, depreciation expense and lease costs increased due to addition of aircraft in this market. Operating margin remained mostly flat despite the increase in operating revenue as a result of the additional cost incurred in the Current Period, which was partially offset by an increase in earnings from unconsolidated affiliates.

West Africa

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	113,327		$	113,875		$	(548	)	(0.5	)%
Reimbursable revenue	$	5,221		$	3,331		$	1,890		56.7	%
Operating income	$	27,351		$	32,794		$	(5,443	)	(16.6	)%
Operating margin		24.1	%		28.8	%		(4.7	)%	(16.3	)%
Flight hours		20,249			19,332			917		4.7	%

Operating revenue for West Africa decreased primarily due to the non-renewal of a major contract offset mostly by new contracts and a combination of increased activity and price increases on existing contracts.

The decrease in operating income and operating margin is primarily due to the non-renewal of the major contract in this market during fiscal year 2011. Additionally, operating results were affected by an increase in maintenance and depreciation. These higher costs were partially offset by a decrease in freight charges due to the mobilization of an aircraft to this market in the Comparable Period.

For discussion of additional matters related to operations in West Africa, see “— Current Quarter Compared to Comparable Quarter – West Africa” included elsewhere in this Quarterly Report.

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North America

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	91,773		$	106,374		$	(14,601	)	(13.7	)%
Reimbursable revenue	$	726		$	1,718		$	(992	)	(57.7	)%
Operating income	$	4,155		$	14,212		$	(10,057	)	(70.8	)%
Operating margin		4.5	%		13.4	%		(8.9	)%	(66.4	)%
Flight hours		41,292			44,683			(3,391	)	(7.6	)%

Operating revenue decreased primarily as a result of short-term work for BP in support of the spill control and monitoring effort in the Comparable Period and reduced activity as a result of impact of the drilling moratorium in the U.S. Gulf of Mexico.

The decrease in operating income and operating margin from the Comparable Period is primarily due to the short-term work for BP that was performed during the Comparable Period and increase in depreciation and amortization expense resulting from an impairment charge of $2.7 million from the abandonment of certain assets located in Creole, Louisiana as we ceased operations from this location, partially offset by a decrease in salaries and benefits and maintenance expense during the Current Period as a result of the reduced activity. Excluding the impairment charge, operating margin for the Current Period would have been 7.4%.

For discussion of additional matters related to operations in North America, see “— Current Quarter Compared to Comparable Quarter – North America” included elsewhere in this Quarterly Report.

Australia

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	71,389		$	67,993		$	3,396		5.0	%
Reimbursable revenue	$	7,464		$	4,662		$	2,802		60.1	%
Operating income	$	5,100		$	14,046		$	(8,946	)	(63.7	)%
Operating margin		7.1	%		20.7	%		(13.6	)%	(65.7	)%
Flight hours		5,761			6,558			(797	)	(12.2	)%

Operating revenue for Australia increased primarily due to a favorable impact from changes in foreign currency exchange rates and new short-term contracts in the Current Period, partially offset by reduced flying on other contracts.

Operating income and operating margin declined primarily due to an increase in training costs resulting from the introduction of a new aircraft type into this market, an increase in salaries and benefits due to annual salary increases and an increase in depreciation and amortization expense.

For discussion of additional matters related to operations in Australia, see “— Current Quarter Compared to Comparable Quarter – Australia” included elsewhere in this Quarterly Report.

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Other International

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages and flight hours)
Operating revenue	$	69,740		$	68,582		$	1,158		1.7	%
Reimbursable revenue	$	1,874		$	532		$	1,342		252.3	%
Earnings from unconsolidated affiliates, net of losses	$	(3,375	)	$	(670	)	$	(2,705	)	(403.7	)%
Operating income	$	13,999		$	13,367		$	632		4.7	%
Operating margin		20.1	%		19.5	%		0.6	%	3.1	%
Flight hours		13,236			24,055			(10,819	)	(45.0	)%

Operating revenue for Other International increased slightly due to an increase in Malaysia (due to increase in aircraft on contract), Trinidad (new contract and additional activity on existing contract), Russia (increased activity) and Brazil (increase in aircraft on contract), partially offset by a decrease in Mexico (due to no longer providing maintenance and support to Heliservicio) and Libya (operations ceased).

Earnings from unconsolidated affiliates, net of losses, decreased primarily due a loss from our investment in Líder of $3.9 million during the Current Period compared to earnings from Líder of $0.2 million in the Comparable Period. The loss from our investment in Líder was negatively impacted by changes in foreign currency exchange rates, which reduced our portion of Líder’s earnings by $8.1 million in the Current Period.

Operating income and operating margin remained mostly flat despite increased revenue as a result of the decrease in earnings from Líder.

For discussion of additional matters related to operations in Other International, see “— Current Quarter Compared to Comparable Quarter – Other International” included elsewhere in this Quarterly Report.

Corporate and Other

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages)
Operating revenue	$	16,282		$	18,944		$	(2,662	)	(14.1	)%
Reimbursable revenue	$	226		$	319		$	(93	)	(29.2	)%
Operating loss	$	(51,245	)	$	(24,707	)	$	(26,538	)	(107.4	)%

Corporate and other includes our Bristow Academy business unit, technical services business and corporate costs that have not been allocated out to other business units.

Operating revenue decreased primarily due to a decrease in revenue at Bristow Academy of $2.3 million as a result of a decrease in military and self-funded student training activity.

Corporate operating expense primarily represents costs of our corporate office and other general and administrative costs not allocated to our business units. Also, we recorded a $24.6 million write-down of inventory spare parts to lower of cost or market as management has made the determination to operate certain types of aircraft for a shorter period than originally anticipated. Additionally, corporate operating expense was increased by an increase in incentive compensation and professional fees during the Current Period. During the Current Period, we recorded $3.0 million in expense recorded related to our performance cash compensation plan for our senior management that resulted from improved stock price performance and an additional award in June 2011 (minimal cost was recorded related to these plans in the Comparable Period). The increase in professional fees primarily related to special projects designed to have longer term benefits to our organization, including the Bristow Client Promise and BVA initiatives discussed elsewhere in this Quarterly Report. These increases were partially offset by a decrease in lease and fuel costs and salaries and benefits at Bristow Academy.

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Interest Expense, Net

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages)
Interest income	$	324		$	460		$	(136	)	(29.6	)%
Interest expense		(18,642	)		(23,328	)		4,686		20.1	%
Amortization of debt discount		(1,666	)		(1,565	)		(101	)	(6.5	)%
Amortization of debt fees		(847	)		(992	)		145		14.6	%
Capitalized interest		2,741			3,395			(654	)	(19.3	)%
Interest expense, net	$	(18,090	)	$	(22,030	)	$	3,940		17.9	%

Interest expense, net decreased primarily due to the early redemption of the 6 ¹/8% Senior Notes due 2013 in December 2010 which was replaced with borrowings at a lower interest rate, partially offset by a decrease in capitalized interest resulting from our lower overall borrowing rate and lower average construction in progress balance.

Other Income (Expense), Net

	Six Months Ended September 30,					Favorable
	2011		2010			(Unfavorable)
	(In thousands, except percentages)
Foreign currency gains (losses)	$	155	$	(184	)	$	339		*
Other		776		588			188	32.0	%
Other income (expense), net	$	931	$	404		$	527	130.4	%

* percentage change not meaningful

Other income (expense), net includes no significant items during the Current Period and gains on sales of two joint ventures during the Comparable Period.

Taxes

	Six Months Ended September 30,						Favorable
	2011			2010			(Unfavorable)
	(In thousands, except percentages)
Effective tax rate for continuing operations		16.2	%		16.6	%		0.4	%	2.4	%
Net foreign tax on non-U.S. earnings	$	4,612		$	5,397		$	785		14.5	%
Benefit of foreign earnings indefinitely reinvested abroad		(7,888	)		(19,894	)		(12,006	)	(60.3	)%
Expense from change in tax contingency		1,548			1,617			69		4.3
Foreign statutory rate reduction		(3,189	)		(2,039	)		1,150		56.4	%

Our effective tax rate for the Current Period includes a benefit due to the revaluation of our deferred taxes as a result of the enactment of a tax rate reduction of 2% in the United Kingdom effective April 1, 2012. The valuation benefit, net of other discrete items, eliminated any need to provide additional tax expense for the Current Period. In addition, we continue to benefit from our global legal structure that more closely aligns with our global operational structure.

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Liquidity and Capital Resources

Cash Flows

Operating Activities

Net cash flows provided by operating activities totaled $117.0 million during the Current Period compared to $69.2 million during the Comparable Period. Changes in non-cash working capital generated $15.1 million in cash flows from operating activities for the Current Period and used $35.4 million in the Comparable Period.

Investing Activities

Cash flows used in investing activities were $137.2 million and $44.5 million for the Current Period and Comparable Period, respectively. Cash was used for capital expenditures as follows:

	Six Months Ended September 30,
	2011		2010
Number of aircraft delivered:
Medium		—		2
Large		5		—
Total aircraft		5		2
Capital expenditures (in thousands):
Aircraft and related equipment	$	141,870	$	52,038
Other		7,392		11,905
Total capital expenditures	$	149,262	$	63,943

In addition to these capital expenditures, investing cash flows were impacted by aircraft and joint venture sales. During the Current Period, we received $12.0 million proceeds from the disposal of eight aircraft and certain other equipment, which together resulted in a net gain of $2.3 million. During the Comparable Period, we received proceeds of $9.9 million primarily from the disposal of nine aircraft and certain other equipment, which together resulted in a net gain of $3.6 million, we received a $1.0 million deposit for an aircraft that was held for sale and we received insurance recoveries of $7.3 million. Also, during the Comparable Period, we received $1.3 million for the sale of two joint ventures resulting in a gain of $0.6 million.

Financing Activities

Cash flows generated from financing activities was $46.6 million during the Current Period compared to $1.2 million during the Comparable Period. During the Current Period, we received $87.8 million for borrowings on our Revolving Credit Facility, received $1.6 million for Common Stock issued upon exercise of stock options and used $32.5 million for the repayment of debt and $0.3 million for the acquisition of 1% of RLR. Additionally, we paid a dividend on our Common Stock totaling $10.8 million. During the Comparable Period, cash was used for the repayment of debt totaling $7.6 million, acquisition of 60% ownership in Bristow Caribbean Limited for $0.8 million and distribution to noncontrolling interest owners of $0.6 million. Additionally, during the Comparable Period we borrowed $8.1 million and our fully consolidated subsidiary, Aviashelf Aviation Co., received $1.9 million in borrowings.

Future Cash Requirements

Contractual Obligations, Commercial Commitments and Off Balance Sheet Arrangements

We have various contractual obligations which are recorded as liabilities on our condensed consolidated balance sheet. Other items, such as certain purchase commitments, interest payments and other executory contracts are not recognized as liabilities on our condensed consolidated balance sheet but are included in the table below. For example, we are contractually committed to make certain minimum lease payments for the use of property and equipment under operating lease agreements.

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The following tables summarize our significant contractual obligations and other commercial commitments on an undiscounted basis as of September 30, 2011 and the future periods in which such obligations are expected to be settled in cash. In addition, the table reflects the timing of principal and interest payments on outstanding borrowings. Additional details regarding these obligations are provided in Note 8 in the “Notes to Consolidated Financial Statements” included in the fiscal year 2011 Annual Report and in Note 7 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report:

	Payments Due by Period
			Six Months Ending March 31, 2012		Fiscal Year Ending March 31,
	Total				2013 - 2014		2015 - 2016		2017 and beyond		Other
	(In thousands)
Contractual obligations:
Long-term debt and short-term borrowings:
Principal (1)	$	778,096	$	7,033	$	42,350	$	168,045	$	560,668	$	—
Interest		216,517		19,602		76,572		71,489		48,854		—
Aircraft operating leases (2)		92,662		7,516		29,782		21,180		34,184		—
Other operating leases (3)		65,402		4,933		13,501		9,778		37,190		—
Pension obligations (4)		146,545		14,284		44,490		46,039		41,732		—
Aircraft purchase obligations (5)		191,955		119,894		72,061		—		—		—
Other purchase obligations (6)		20,528		20,324		204		—		—		—
Tax reserve (7)		13,261		—		—		—		—		13,261
Total contractual cash obligations	$	1,524,966	$	193,586	$	278,960	$	316,531	$	722,628	$	13,261
Other commercial commitments:
Debt guarantees (8)	$	15,579	$	15,579	$	—	$	—	$	—	$	—
Letters of credit		1,350		1,032		318		—		—		—
Contingent consideration (9)		36,125		36,125		—		—		—		—
Other commitments (10)		46,000		—		—		46,000		—		—
Total commercial commitments	$	99,054	$	52,736	$	318	$	46,000	$	—	$	—

⁽¹⁾  Excludes unamortized premium on the 7 ¹/2% Senior Notes of $0.4 million and unamortized discount on the 3% Convertible Senior Notes of $14.1 million.

⁽²⁾  Primarily represents separate operating leases for nine aircraft with a subsidiary of General Electric Capital Corporation with terms of fifteen years expiring in August 2023. For further details, see Note 8 in the “Notes to Consolidated Financial Statements” included in the fiscal year 2011 Annual Report.

⁽³⁾  Represents minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year.

⁽⁴⁾  Represents expected funding for pension benefits in future periods. These amounts are undiscounted and are based on the expectation that both the U.K. and Norway pensions will be fully funded in approximately six and ten years, respectively. As of September 30, 2011, we had recorded on our balance sheet a $97.2 million pension liability associated with these obligations. The timing of the funding is dependent on actuarial valuations and resulting negotiations with the plan trustees.

⁽⁵⁾  For further details on our aircraft purchase obligations, see Note 7 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report.

⁽⁶⁾  Other purchase obligations primarily represent unfilled purchase orders for aircraft parts, commitments associated with upgrading facilities at our bases.

⁽⁷⁾  Represents gross unrecognized tax benefits (see discussion in Note 8 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report) that may result in cash payments being made to certain tax authorities. We are not able to reasonably estimate in which future periods this amount will ultimately be settled and paid.

54

⁽⁸⁾  We have guaranteed the repayment of up to £10 million ($15.6 million) of the debt of FBS Limited, an unconsolidated affiliate.

⁽⁹⁾  The Líder purchase agreement includes incremental and cumulative earn-out payments based upon the achievement of growth targets over the three-year periods ending December 31, 2011. Based on Líder’s audited results for the years ended December 31, 2010 and 2009, $17.0 million in earn-out payments was not earned, leaving maximum total earn-out payments of $36.1 million. See Note 2 in the “Notes to Consolidated Financial Statements” included in the fiscal year 2011 Annual Report for discussion of the Líder acquisition.

⁽¹⁰⁾  In connection with the Bristow Norway acquisition (see “Part I. Item I. Business — Overview” included in the fiscal year 2011 Annual Report), we granted the former partner in this joint venture an option that if exercised would require us to acquire up to five aircraft from them at fair value upon the expiration of the lease terms for such aircraft. One of the options was exercised in December 2009 and one option expired. The remaining aircraft leases expire in June and August 2014.

We do not expect the guarantees shown in the table above to become obligations that we will have to fund.

Capital Commitments

We have commitments and options to make capital expenditures over the next five fiscal years to purchase additional aircraft, including aircraft associated with the commitments reflected in the table above. Although a similar number of our existing aircraft may be sold during the same period, the additional aircraft on order are expected to provide incremental fleet capacity in terms of revenue and operating margin. See Note 7 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report for a detail of the number of aircraft under commitments and options expected to be delivered in the current and subsequent five fiscal years by aircraft size along with the related expenditures, and for a rollforward of aircraft commitments and options for the Current Period. Also in fiscal year 2012, we expect to invest approximately $40 million in various infrastructure enhancements, including aircraft facilities, training centers and technology. Through September 30, 2011, we had incurred $7.4 million towards these projects.

Financial Condition and Sources of Liquidity

We actively manage our liquidity through generation of cash from operations while assessing our funding needs on an ongoing basis. While we have generated significant cash from operations, our principal source of liquidity over the past several years has been financing cash flows. Accordingly, since the beginning of fiscal year 2007, we raised $1.3 billion of debt and equity capital by means of both public and private financings. During this same period, we invested $1.7 billion on capital expenditures to grow our business. The significant factors that affect our overall liquidity include capital expenditure commitments, pension funding, operating leases, adequacy of bank lines of credit and our ability to attract long-term capital on satisfactory terms.

We expect that our total liquidity as of March 31, 2011 of $260.7 million, cash flow from operations and proceeds from aircraft sales, as well as available borrowing capacity under our Revolving Credit Facility, will be sufficient to satisfy our capital commitments, including our remaining aircraft purchase commitments of $192.0 million as of September 30, 2011. While we plan to continue to be disciplined concerning future capital commitments, we also intend to continue prudently managing our capital structure and liquidity position with external financings as needed. Our strategy will involve funding our short-term liquidity requirements with borrowings under our Revolving Credit Facility and funding our long-term financing needs, while maintaining a prudent capital structure, among the following alternatives: a) operating and capital leases, b) export credit agency-supported financings, c) bank debt and d) private and public debt and/or equity placements.

Critical Accounting Policies and Estimates

See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” in the fiscal year 2011 Annual Report for a discussion of our critical accounting policies. There have been no material changes to our critical accounting policies and estimates provided in the fiscal year 2011 Annual Report.

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Recent Accounting Pronouncements

See Note 1 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report for a discussion of recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

We may be exposed to certain market risks arising from the use of financial instruments in the ordinary course of business. This risk arises primarily as a result of potential changes in the fair market value of financial instruments that would result from adverse fluctuations in foreign currency exchange rates, credit risk, and interest rates as discussed in “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in the fiscal year 2011 Annual Report and Note 1 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision of and with the participation of our management, including William E. Chiles, our Chief Executive Officer (“CEO”) and Jonathan E. Baliff, our Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of September 30, 2011. Based on that evaluation, our CEO and CFO concluded that such disclosure controls and procedures were effective to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms and such information is accumulated and communicated to our management as appropriate to allow for timely decisions regarding required disclosure under the Exchange Act.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2011 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

56

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

We have certain actions or claims pending that have been discussed and previously reported in Part I. Item 3. “Legal Proceedings” in the fiscal year 2011 Annual Report. Developments in these previously reported matters are described in Note 7 in the “Notes to Condensed Consolidated Financial Statements” included elsewhere in this Quarterly Report.

Item 1A. Risk Factors.

There have been no material changes during the three and six months ended September 30, 2011 in our “Risk Factors” as discussed in our fiscal year 2011 Annual Report on Form 10-K.

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

Period	Total Number of Shares Purchased (1)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs
July 1, 2011 – July 31, 2011		91	$	50.12		—	$	—
August 1, 2011 – August 31, 2011		262		44.05		—		—
September 1, 2011 – September 30, 2011		—		—		—		—

⁽¹⁾ The total number of shares purchased in the period consists of shares withheld by us in satisfaction of withholding taxes due upon the vesting of restricted stock units and awards granted under our 2004 and 2007 Stock Incentive Plans.

57

Item 6. Exhibits.

The following exhibits are filed as part of this Quarterly Report:

Exhibit Number	Description of Exhibit
15.1*	Letter from KPMG LLP dated November 7, 2011, regarding unaudited interim information.
31.1**	Rule 13a-14(a) Certification by Chief Executive Officer of Registrant.
31.2**	Rule 13a-14(a) Certification by Chief Financial Officer of Registrant
32.1**	Certification of Chief Executive Officer of Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer of Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS±	XBRL Instance Document.
101.SCH±	XBRL Taxonomy Extension Schema Document.
101.CAL±	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF±	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB±	XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE±	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith.

** Furnished herewith.

† Compensatory Plan or Arrangement.

± Furnished herewith. In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

58

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.

BRISTOW GROUP INC.
By:	/s/ Jonathan E. Baliff
	Jonathan E. Baliff
	Senior Vice President and Chief Financial Officer
By:	/s/ Brian J. Allman
	Brian J. Allman
	Vice President, Chief Accounting Officer

November 7, 2011

59

Item 6. Exhibits.

The following exhibits are filed as part of this Quarterly Report:

Exhibit Number	Description of Exhibit
15.1*	Letter from KPMG LLP dated November 7, 2011, regarding unaudited interim information.
31.1**	Rule 13a-14(a) Certification by Chief Executive Officer of Registrant.
31.2**	Rule 13a-14(a) Certification by Chief Financial Officer of Registrant
32.1**	Certification of Chief Executive Officer of Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer of Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS±	XBRL Instance Document.
101.SCH±	XBRL Taxonomy Extension Schema Document.
101.CAL±	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF±	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB±	XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE±	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith.

** Furnished herewith.

† Compensatory Plan or Arrangement.

± Furnished herewith. In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

EX-15.1

EXHIBIT 15.1

Bristow Group Inc.

Houston, Texas

Re: Registration Statement Nos. 333-115473, 333-121207, and 333-145178 on Form S-8

With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated November 7, 2011 related to our review of interim financial information.

Pursuant to Rule 436 under the Securities Act of 1933 (the “Act”), such report is not considered part of a registration statement prepared or certified by an independent registered public accounting firm, or a report prepared or certified by an independent registered public accounting firm within the meaning of Sections 7 and 11 of the Act.

/s/ KPMG LLP

Houston, Texas

November 7, 2011

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)

I, William E. Chiles, President and Chief Executive Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Bristow Group Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 7, 2011

/s/ William E. Chiles

William E. Chiles

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

Pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a)

I, Jonathan E. Baliff, Senior Vice President and Chief Financial Officer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Bristow Group Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: November 7, 2011

/s/ Jonathan E. Baliff

Jonathan E. Baliff

Senior Vice President and

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Bristow Group Inc. (the “Company”) for the period ended September 30, 2011, as filed with the Securities and Exchange Commission as of the date hereof (the “Report”), I, William E. Chiles, President and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as appropriate, of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ William E. Chiles
Name:	William E. Chiles
Title:	President and Chief Executive Officer
Date:	November 7, 2011

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Bristow Group Inc. (the “Company”) for the period ended September 30, 2011, as filed with the Securities and Exchange Commission as of the date hereof (the “Report”), I, Jonathan E. Baliff, Senior Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as appropriate, of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/ Jonathan E. Baliff
Name:	Jonathan E. Baliff
Title:	Senior Vice President and Chief Financial Officer
Date:	November 7, 2011

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands	Sep. 30, 2011	Mar. 31, 2011
ASSETS
Cash and cash equivalents	$ 140,279	$ 116,361
Accounts receivable from non-affiliates, net of allowance for doubtful accounts	259,204	247,135
Accounts receivable from affiliates, net of allowance for doubtful accounts	8,400	15,384
Inventories	157,266	196,207
Assets held for sale	31,642	31,556
Prepaid expenses and other current assets	14,431	22,118
Total current assets	611,222	628,761
Investment in unconsolidated affiliates	202,437	208,634
Property and equipment - at cost:
Land and buildings	77,701	98,054
Aircraft and equipment	2,210,853	2,116,259
Total property and equipment, at cost	2,288,554	2,214,313
Less - Accumulated depreciation and amortization	(465,235)	(446,431)
Total property and equipment, net	1,823,319	1,767,882
Goodwill	29,247	32,047
Other assets	34,193	38,030
Total assets	2,700,418	2,675,354
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Accounts payable	47,008	56,972
Accrued wages, benefits and related taxes	34,831	34,538
Income taxes payable	14,356	15,557
Other accrued taxes	5,276	4,048
Deferred revenue	11,560	9,613
Accrued maintenance and repairs	13,942	16,269
Accrued interest	2,268	2,279
Other accrued liabilities	19,689	19,613
Current deferred taxes	7,020	12,176
Short-term borrowings and current maturities of long-term debt	13,273	8,979
Total current liabilities	169,223	180,044
Total long-term debt	751,087	698,482
Accrued pension liabilities	97,237	99,645
Other liabilities and deferred credits	13,398	30,109
Deferred taxes	144,621	148,299
Commitments and contingencies
Stockholders' investment:
Common stock	362	363
Additional paid-in capital	696,268	689,795
Retained earnings	964,444	951,660
Accumulated other comprehensive loss	(143,627)	(130,117)
Stockholders' equity	1,517,447	1,511,701
Noncontrolling interests	7,405	7,074
Total stockholders' investment	1,524,852	1,518,775
Total liabilities and stockholders' investment	$ 2,700,418	$ 2,675,354

XML

Condensed Consolidated Balance Sheets Parentheticals (USD $)	Sep. 30, 2011	Mar. 31, 2011
Condensed Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares outstanding	36,160,047	36,311,143
Treasury stock, shares	1,291,325	1,291,325

XML

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Sep. 30, 2011

Commitments and Contingencies [Abstract]

Aircraft Purchase Contracts Table

			Six Months Ending		Fiscal Year Ending March 31,
			March 31, 2012		2013		2014		2015		2016 and thereafter		Total
Commitments as of September 30, 2011:
	Number of aircraft:
		Large (1)(2)(3)		4		6		0		0		0		10
				4		6		0		0		0		10
		Related expenditures (in thousands) (4)	$	119,894	$	72,061	$	0	$	0	$	0	$	191,955
Options as of September 30, 2011:
	Number of aircraft:
		Medium		0		2		4		6		0		12
		Large		0		3		7		4		11		25
				0		5		11		10		11		37
		Related expenditures (in thousands) (4)	$	62,939	$	190,158	$	239,964	$	189,251	$	268,942	$	951,254

Rollforward schedule of aircraft purchase orders and options

		Three Months Ended
		September 30, 2011				June 30, 2011
		Orders		Options		Orders		Options
Beginning of period			11		39		6		31
	Aircraft delivered		(3)		0		(2)		0
	Aircraft ordered		2		0		3		0
	New options		0		0		0		19
	Exercised options		0		3		4		(4)
	Expired options		0		(5)		0		(7)
End of period			10		37		11		39

XML

Document and Entity Information	6 Months Ended
	Sep. 30, 2011	Nov. 01, 2011
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2011
Entity Registrant Name	Bristow Group Inc.
Entity Central Index Key	0000073887
Current Fiscal Year End Date	--03-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,161,521
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

XML

SEGMENT INFORMATION (Tables)

6 Months Ended

Sep. 30, 2011

Segments [Abstract]

Schedule of revenue by segment

			Three Months Ended September 30,				Six Months Ended September 30,
			2011		2010		2011		2010
Segment gross revenue from external clients:
	Europe		$	140,244	$	117,243	$	274,524	$	218,764
	West Africa			64,041		58,110		118,548		117,206
	North America			47,794		55,246		91,961		108,009
	Australia			33,323		37,364		78,618		72,655
	Other International			36,147		36,295		71,614		69,114
	Corporate and other			9,443		8,301		16,832		19,049
		Total segment gross revenue	$	330,992	$	312,559	$	652,097	$	604,797
Intrasegment gross revenue:
	Europe		$	(23)	$	352	$	235	$	522
	West Africa			0		0		0		0
	North America			463		35		538		83
	Australia			117		0		235		0
	Other International			0		0		0		0
	Corporate and other			120		120		(324)		214
		Total intrasegment gross revenue	$	677	$	507	$	684	$	819
Consolidated gross revenue reconciliation:
	Europe		$	140,221	$	117,595	$	274,759	$	219,286
	West Africa			64,041		58,110		118,548		117,206
	North America			48,257		55,281		92,499		108,092
	Australia			33,440		37,364		78,853		72,655
	Other International			36,147		36,295		71,614		69,114
	Corporate and other			9,563		8,421		16,508		19,263
	Intrasegment eliminations			(677)		(507)		(684)		(819)
		Total consolidated gross revenue	$	330,992	$	312,559	$	652,097	$	604,797

Schedule of earnings from unconsolidated affiliates

				Three Months Ended September 30,				Six Months Ended September 30,
				2011		2010		2011		2010
Earnings from unconsolidated affiliates, net of losses – equity method
	investments:
		Europe		$	2,466	$	2,789	$	5,324	$	4,740
		Other International			(6,510)		1,927		(3,375)		(670)
		Corporate and other			7		0		7		(56)
			Total earnings from unconsolidated affiliates, net of losses – equity method investments	$	(4,037)	$	4,716	$	1,956	$	4,014

Schedule of consolidated operating income loss

			Three Months Ended September 30,				Six Months Ended September 30,
			2011		2010		2011		2010
Consolidated operating income (loss) reconciliation:
	Europe		$	23,586	$	21,612	$	46,835	$	39,911
	West Africa			16,120		17,158		27,351		32,794
	North America			2,571		8,904		4,155		14,212
	Australia			576		6,094		5,100		14,046
	Other International			2,089		11,102		13,999		13,367
	Corporate and other			(33,736)		(13,208)		(51,245)		(24,707)
	Gain (loss) on disposal of assets			(1,611)		1,897		(195)		3,615
		Total consolidated operating income	$	9,595	$	53,559	$	46,000	$	93,238

Schedule of depreciation and amortization

			Three Months Ended September 30,				Six Months Ended September 30,
			2011		2010		2011		2010
Depreciation and amortization:
	Europe		$	8,015	$	7,054	$	15,922	$	12,207
	West Africa			3,244		3,801		6,514		8,576
	North America			5,947		2,737		9,634		5,445
	Australia			2,816		2,704		5,938		5,357
	Other International			4,070		3,114		8,033		6,277
	Corporate and other			1,339		1,558		2,098		2,437
		Total depreciation and amortization	$	25,431	$	20,968	$	48,139	$	40,299

Schedule of identifiable assets

			September 30,		March 31,
			2011		2011
Identifiable assets:
	Europe		$	848,354	$	856,448
	West Africa			385,831		354,154
	North America			278,371		302,081
	Australia			290,694		288,036
	Other International			619,074		602,243
	Corporate and other			278,094		272,392
		Total identifiable assets (1)	$	2,700,418	$	2,675,354

Schedule of equity method investments

				September 30,		March 31,
				2011		2011
Investments in unconsolidated affiliates – equity method investments:
	Europe			$	11,807	$	11,508
	Other International				183,810		190,736
		Total investments in unconsolidated affiliates – equity method		$	195,617	$	202,244
			investments

XML

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Sep. 30, 2011

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 7 — COMMITMENTS AND CONTINGENCIES

Aircraft Purchase Contracts — As shown in the table below, we expect to make additional capital expenditures over the next five fiscal years to purchase additional aircraft. As of September 30,2011, we had 10 aircraft on order and options to acquire an additional 37 aircraft. Although a similar number of our existing aircraft may be sold during the same period, the additional aircraft on order will provide incremental fleet capacity in terms of revenue and operating income.

			Six Months Ending		Fiscal Year Ending March 31,
			March 31, 2012		2013		2014		2015		2016 and thereafter		Total
Commitments as of September 30, 2011:
	Number of aircraft:
		Large (1)(2)(3)		4		6		0		0		0		10
				4		6		0		0		0		10
		Related expenditures (in thousands) (4)	$	119,894	$	72,061	$	0	$	0	$	0	$	191,955
Options as of September 30, 2011:
	Number of aircraft:
		Medium		0		2		4		6		0		12
		Large		0		3		7		4		11		25
				0		5		11		10		11		37
		Related expenditures (in thousands) (4)	$	62,939	$	190,158	$	239,964	$	189,251	$	268,942	$	951,254

_________

(1)	Signed client contracts are currently in place for 6 of these aircraft.
(2)	Includes 4 aircraft with delivery dates in fiscal year 2013 that are cancellable until November 15, 2011 with penalties of $0.8 million each.
(3)	Subsequent to September 30, 2011, we entered into agreements to purchase or lease 8 new technology large aircraft for approximately $144 million that are not reflected in the table above.
(4)	Includes progress payments on aircraft scheduled to be delivered in future periods.

The following chart presents an analysis of our aircraft orders and options during fiscal year2012:

		Three Months Ended
		September 30, 2011				June 30, 2011
		Orders		Options		Orders		Options
Beginning of period			11		39		6		31
	Aircraft delivered		(3)		0		(2)		0
	Aircraft ordered		2		0		3		0
	New options		0		0		0		19
	Exercised options		0		3		4		(4)
	Expired options		0		(5)		0		(7)
End of period			10		37		11		39

Employee Agreements —Approximately 52% of our employees are represented by collective bargaining agreements and/or unions. These agreements generally include annual escalations of up to 8.8%. Periodically, certain groups of our employees who are not covered by a collective bargaining agreement consider entering into such an agreement.

Nigerian Litigation— In November 2005, two of our consolidated foreign affiliates were named in a lawsuit filed with the High Court of Lagos State, Nigeria by Mr. Benneth Osita Onwubalili and his affiliated company, Kensit Nigeria Limited, which allegedly acted as agents of our affiliates in Nigeria. The claimants allege that an agreement between the parties was terminated without justification and seek damages of $16.3 million. We responded to this claim in early 2006. There has been minimal activity on this claim since then.

Civil Class Action Lawsuit—On June 12, 2009, Superior Offshore International, Inc. v. Bristow Group Inc., et al, Case No. 1:09-cv-00438, was filed in the U.S. District Court for the District of Delaware.  The purported class action complaint, which also named other providers of offshore helicopter services in the Gulf of Mexico as defendants, alleged violations of Section 1 of the Sherman Act.  Among other things, the complaint alleged that the defendants unlawfully conspired to raise and maintain the price of offshore helicopter services between January 1, 2001 and December 31, 2005.  The plaintiff was seeking to represent a purported class of direct purchasers of offshore helicopter services and was asking for, among other things, unspecified treble monetary damages and injunctive relief. In September 2010, the court granted our and the other defendants' motion to dismiss the case on several grounds. The plaintiff then filed a motion seeking a rehearing and seeking leave to amend its original complaint which was partially granted to permit limited discovery. We and the other defendants again filed motions to dismiss the lawsuit which were granted. The plaintiff has since appealed the judgmentin the United States Court of Appeals for the Third Circuit. We intend to file a response in the near future and continue to defend against this lawsuit vigorously. We are currently unable to determine whether it could have a material effect on our business, financial condition or results of operations.

Environmental Contingencies— The U.S. Environmental Protection Agency, also referred to as the EPA, has in the past notified us that we are a potential responsible party, or PRP, at three former waste disposal facilities that are on the National Priorities List of contaminated sites. Under the federal Comprehensive Environmental Response, Compensation and Liability Act, also known as the Superfund law, persons who are identified as PRPs may be subject to strict, joint and several liability for the costs of cleaning up environmental contamination resulting from releases of hazardous substances at National Priorities List sites. Although we have not yet obtained a formal release of liability from the EPA with respect to any of the sites, we believe that our potential liability in connection with the sites is not likely to have a material adverse affect on our business, financial condition or results of operations.

Guarantees —We have guaranteed the repayment of up to £10 million ($15.6 million) of the debt of FBS Limited, an unconsolidated affiliate, which expires December 31, 2012. See discussion of this commitment in Note 3 to our fiscal year2011 Financial Statements.

Other Matters — Although infrequent, aircraft accidents have occurred in the past, and the related losses and liability claims have been covered by insurance subject to deductible, self-insured retention and loss sensitive factors.

We are a defendant in certain claims and litigation arising out of operations in the normal course of business. In the opinion of management, uninsured losses, if any, will not be material to our financial position, results of operations or cash flows.

XML

BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended			6 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Mar. 31, 2011
Foreign Currency [Line Items]
Revenue		$ 330,992,000	$ 312,559,000	$ 652,097,000	$ 604,797,000
Operating expense		(315,749,000)	(265,613,000)	(607,858,000)	(519,188,000)
Earnings from unconsolidated affiliates, net of losses		(4,037,000)	4,716,000	1,956,000	4,014,000
Income before benefit (provision) for income taxes		1,016,000	42,164,000	28,841,000	71,612,000
Benefit (provision) for income taxes		1,945,000	(3,316,000)	(4,661,000)	(11,856,000)
Net income		2,961,000	38,848,000	24,180,000	59,756,000
Total stockholders' investment		1,524,852,000		1,524,852,000		1,518,775,000
Foreign currency transaction gain/loss		(100,000)	(100,000)	200,000	(200,000)
Gain on sales of joint ventures				0	(572,000)
Allowance for doubtful accounts, non-affiliates		100,000		100,000		100,000
Allowance for doubtful accounts, affiliates		0		0		0
Impairment of inventories		24,610,000	0	24,610,000	0
Dormant, obsolete and excess inventory		48,800,000		48,800,000
Loss on sale of inventory		1,000,000		1,000,000
Impairment from abandonment of certain assets		2,700,000		2,700,000
Lease termination costs	100,000
Impairment of held for sale aircraft		400,000		400,000
Loss on disposal of fixed wing aircraft		1,100,000		1,100,000
One British Pound Sterling Into U.S. Dollars [Member] | High [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.66	1.60	1.66	1.60
One British Pound Sterling Into U.S. Dollars [Member] | High [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.66	1.60	1.66	1.60
One British Pound Sterling Into U.S. Dollars [Member] | Average [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.61	1.55	1.61	1.55
One British Pound Sterling Into U.S. Dollars [Member] | Average [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.62	1.52	1.62	1.52
One British Pound Sterling Into U.S. Dollars [Member] | Low [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.53	1.51	1.53	1.51
One British Pound Sterling Into U.S. Dollars [Member] | Low [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.53	1.43	1.53	1.43
One British Pound Sterling Into U.S. Dollars [Member] | At period-end [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.56	1.58	1.56	1.58
One British Pound Sterling Into U.S. Dollars [Member] | At period-end [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.56	1.58	1.56	1.58
One Euro Into U.S. Dollars [Member] | High [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.45	1.37	1.45	1.37
One Euro Into U.S. Dollars [Member] | High [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.49	1.37	1.49	1.37
One Euro Into U.S. Dollars [Member] | Average [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.41	1.29	1.41	1.29
One Euro Into U.S. Dollars [Member] | Average [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.42	1.28	1.42	1.28
One Euro Into U.S. Dollars [Member] | Low [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.34	1.25	1.34	1.25
One Euro Into U.S. Dollars [Member] | Low [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.34	1.19	1.34	1.19
One Euro Into U.S. Dollars [Member] | At period-end [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.34	1.37	1.34	1.37
One Euro Into U.S. Dollars [Member] | At period-end [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.34	1.37	1.34	1.37
One Australian Dollar Into U.S. Dollars [Member] | High [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.10	0.97	1.10	0.97
One Australian Dollar Into U.S. Dollars [Member] | High [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.10	0.97	1.10	0.97
One Australian Dollar Into U.S. Dollars [Member] | Average [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.05	0.91	1.05	0.91
One Australian Dollar Into U.S. Dollars [Member] | Average [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		1.06	0.89	1.06	0.89
One Australian Dollar Into U.S. Dollars [Member] | Low [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.97	0.84	0.97	0.84
One Australian Dollar Into U.S. Dollars [Member] | Low [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.97	0.81	0.97	0.81
One Australian Dollar Into U.S. Dollars [Member] | At period-end [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.97	0.97	0.97	0.97
One Australian Dollar Into U.S. Dollars [Member] | At period-end [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.97	0.97	0.97	0.97
One Nigerian Naira Into U.S. Dollars [Member] | High [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0068	0.0068	0.0068	0.0068
One Nigerian Naira Into U.S. Dollars [Member] | High [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0068	0.0070	0.0068	0.0070
One Nigerian Naira Into U.S. Dollars [Member] | Average [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0066	0.0067	0.0066	0.0067
One Nigerian Naira Into U.S. Dollars [Member] | Average [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0065	0.0067	0.0065	0.0067
One Nigerian Naira Into U.S. Dollars [Member] | Low [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0063	0.0065	0.0063	0.0065
One Nigerian Naira Into U.S. Dollars [Member] | Low [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0063	0.0065	0.0063	0.0065
One Nigerian Naira Into U.S. Dollars [Member] | At period-end [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0064	0.0066	0.0064	0.0066
One Nigerian Naira Into U.S. Dollars [Member] | At period-end [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Foreign currency exchange rates		0.0064	0.0066	0.0064	0.0066
Impact of Changes in Foreign Currency Exchange Rates [Member] | Quarter To Date [Member]
Foreign Currency [Line Items]
Revenue		11,166,000
Operating expense		(9,810,000)
Earnings from unconsolidated affiliates, net of losses		(7,572,000)
Non-operating expense		(1,321,000)
Income before benefit (provision) for income taxes		(7,537,000)
Benefit (provision) for income taxes		1,209,000
Net income		(6,328,000)
Cumulative translation adjustment		(12,145,000)
Total stockholders' investment		(18,473,000)		(18,473,000)
Impact of Changes in Foreign Currency Exchange Rates [Member] | Year To Date [Member]
Foreign Currency [Line Items]
Revenue				29,334,000
Operating expense				(25,446,000)
Earnings from unconsolidated affiliates, net of losses				(7,550,000)
Non-operating expense				(1,068,000)
Income before benefit (provision) for income taxes				(4,730,000)
Benefit (provision) for income taxes				542,000
Net income				(4,188,000)
Cumulative translation adjustment				(11,360,000)
Total stockholders' investment		(15,548,000)		(15,548,000)
Foreign Currency Impact [Member]
Foreign Currency [Line Items]
Earnings from unconsolidated affiliates, net of losses		$ 7,500,000	$ 100,000	$ 8,100,000	$ 500,000

XML

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION IS (Details) (USD $) In Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Gross revenue	$ 330,992	$ 312,559	$ 652,097	$ 604,797
Intercompany revenue	0	0	0	0
Total consolidated gross revenue	330,992	312,559	652,097	604,797
Direct cost and reimbursable expense	236,405	214,130	466,161	417,472
Intercompany expenses	0	0	0	0
Impairment of inventories	24,610	0	24,610	0
Depreciation and amortization	25,431	20,968	48,139	40,299
General and administrative	29,303	30,515	68,948	61,417
Total operating expense	315,749	265,613	607,858	519,188
Gain on disposal of assets	(1,611)	1,897	(195)	3,615
Earnings from unconsolidated affiliates, net of losses	(4,037)	4,716	1,956	4,014
Operating income	9,595	53,559	46,000	93,238
Interest income	153	168	324	460
Interest expense	(9,459)	(11,452)	(18,414)	(22,490)
Other income (expense), net	727	(111)	931	404
Income before provision for income taxes	1,016	42,164	28,841	71,612
Benefit (provision) for income taxes	1,945	(3,316)	(4,661)	(11,856)
Net income	2,961	38,848	24,180	59,756
Net income attributable to noncontrolling interests	(250)	32	(424)	(68)
Net income attributable to Bristow Group	2,711	38,880	23,756	59,688
Parent Company [Member]
Gross revenue	0	0	0	0
Intercompany revenue	1,555	0	1,555	0
Total consolidated gross revenue	1,555	0	1,555	0
Direct cost and reimbursable expense	730	(477)	0	(940)
Intercompany expenses	0	0	0	0
Impairment of inventories	0		0
Depreciation and amortization	916	575	1,759	1,139
General and administrative	7,626	5,847	21,801	17,327
Total operating expense	9,272	5,945	23,560	17,526
Gain on disposal of assets	0	0	0	0
Earnings from unconsolidated affiliates, net of losses	(7,074)	33,477	15,145	62,709
Operating income	(14,791)	27,532	(6,860)	45,183
Interest income	24,286	20,887	47,589	39,782
Interest expense	(9,538)	(11,373)	(18,797)	(22,057)
Other income (expense), net	47	(33)	61	(16)
Income before provision for income taxes	4	37,013	21,993	62,892
Benefit (provision) for income taxes	2,722	1,883	1,793	(3,173)
Net income	2,726	38,896	23,786	59,719
Net income attributable to noncontrolling interests	(15)	(16)	(30)	(31)
Net income attributable to Bristow Group	2,711	38,880	23,756	59,688
Guarantor Subsidiaries [Member]
Gross revenue	69,152	79,283	136,349	154,010
Intercompany revenue	12,106	5,890	23,879	17,871
Total consolidated gross revenue	81,258	85,173	160,228	171,881
Direct cost and reimbursable expense	40,743	48,044	83,704	99,783
Intercompany expenses	0	0	0	0
Impairment of inventories	8,778		8,778
Depreciation and amortization	10,904	7,583	19,086	15,742
General and administrative	4,596	6,526	11,359	11,194
Total operating expense	65,021	62,153	122,927	126,719
Gain on disposal of assets	(427)	894	(247)	1,852
Earnings from unconsolidated affiliates, net of losses	0	0	0	0
Operating income	15,810	23,914	37,054	47,014
Interest income	10	22	180	33
Interest expense	0	(68)	0	(68)
Other income (expense), net	126	(92)	192	(117)
Income before provision for income taxes	15,946	23,776	37,426	46,862
Benefit (provision) for income taxes	(2,483)	(2,753)	(5,146)	(4,602)
Net income	13,463	21,023	32,280	42,260
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to Bristow Group	13,463	21,023	32,280	42,260
Non-Guarantor Subsidiaries [Member]
Gross revenue	261,840	233,276	515,748	450,787
Intercompany revenue	0	0	0	0
Total consolidated gross revenue	261,840	233,276	515,748	450,787
Direct cost and reimbursable expense	194,932	166,563	382,457	318,629
Intercompany expenses	13,661	5,890	25,434	17,871
Impairment of inventories	15,832		15,832
Depreciation and amortization	13,611	12,810	27,294	23,418
General and administrative	17,081	18,142	35,788	32,896
Total operating expense	255,117	203,405	486,805	392,814
Gain on disposal of assets	(1,184)	1,003	52	1,763
Earnings from unconsolidated affiliates, net of losses	(4,037)	5,030	1,956	4,706
Operating income	1,502	35,904	30,951	64,442
Interest income	139	140	301	424
Interest expense	(24,203)	(20,892)	(47,363)	(40,144)
Other income (expense), net	554	14	678	537
Income before provision for income taxes	(22,008)	15,166	(15,433)	25,259
Benefit (provision) for income taxes	1,706	(2,446)	(1,308)	(4,081)
Net income	(20,302)	12,720	(16,741)	21,178
Net income attributable to noncontrolling interests	(235)	48	(394)	(37)
Net income attributable to Bristow Group	(20,537)	12,768	(17,135)	21,141
Consolidations, Eliminations [Member]
Gross revenue	0	0	0	0
Intercompany revenue	(13,661)	(5,890)	(25,434)	(17,871)
Total consolidated gross revenue	(13,661)	(5,890)	(25,434)	(17,871)
Direct cost and reimbursable expense	0	0	0	0
Intercompany expenses	(13,661)	(5,890)	(25,434)	(17,871)
Impairment of inventories	0		0
Depreciation and amortization	0	0	0	0
General and administrative	0	0	0	0
Total operating expense	(13,661)	(5,890)	(25,434)	(17,871)
Gain on disposal of assets	0	0	0	0
Earnings from unconsolidated affiliates, net of losses	7,074	(33,791)	(15,145)	(63,401)
Operating income	7,074	(33,791)	(15,145)	(63,401)
Interest income	(24,282)	(20,881)	(47,746)	(39,779)
Interest expense	24,282	20,881	47,746	39,779
Other income (expense), net	0	0	0	0
Income before provision for income taxes	7,074	(33,791)	(15,145)	(63,401)
Benefit (provision) for income taxes	0	0	0	0
Net income	7,074	(33,791)	(15,145)	(63,401)
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to Bristow Group	$ 7,074	$ (33,791)	$ (15,145)	$ (63,401)

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COMPREHENSIVE INCOME, DIVIDENDS, SHARE REPURCHASES AND EARNINGS PER SHARE (TABLES)

6 Months Ended

Sep. 30, 2011

Comprehensive Income and Earning Per Share [Abstract]

Schedule of comprehensive income

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Net income		$	2,961	$	38,848	$	24,180	$	59,756
Other comprehensive income (loss):
	Currency translation adjustments		(12,145)		19,815		(11,360)		9,828
	Unrealized gain (loss) on cash flow hedges		(1,653)		860		(2,150)		860
Total comprehensive income (loss)		$	(10,837)	$	59,523	$	10,670	$	70,444

Schedule of antidilutive securities

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Options:
	Outstanding	528,501		544,615		531,679		437,122
	Weighted average exercise price	$	36.85	$	31.49	$	36.81	$	32.90
Restricted stock units:
	Outstanding	83,925		213,980		83,937		219,651
	Weighted average price	$	46.70	$	40.08	$	46.70	$	40.02
Restricted stock awards:
	Outstanding	0		0		0		0
	Weighted average price	$	0.00	$	0.00	$	0.00	$	0.00

Schedule of earnings per share

				Three Months Ended				Six Months Ended
				September 30,				September 30,
				2011		2010		2011		2010
Net income available to common stockholders (in thousands):
		Income available to common stockholders – basic		$	2,711	$	38,880	$	23,756	$	59,688
		Interest expense on assumed conversion of 3% Convertible Senior
			Notes, net of tax (1)		0		0		0		0
		Income available to common stockholders – diluted		$	2,711	$	38,880	$	23,756	$	59,688
Shares:
	Weighted average number of common shares outstanding – basic			36,157,917		36,174,615		36,165,247		35,975,141
			during the period (1)		0		0		0		0
		Net effect of dilutive stock options, restricted stock units and
			restricted stock awards based on the treasury stock method		614,191		546,758		659,893		550,682
	Weighted average number of common shares outstanding – diluted			36,772,108		36,721,373		36,825,140		36,525,823
	Basic earnings per common share			$	0.07	$	1.07	$	0.66	$	1.66
	Diluted earnings per common share			$	0.07	$	1.06	$	0.65	$	1.63
(1)			Diluted earnings per common share for the three and six months ended September 30, 2011 and 2010 excludes approximately 1.5 million potentially dilutive shares initially issuable upon the conversion of our 3% Convertible Senior Notes. The 3% Convertible Senior Notes will be convertible, under certain circumstances, using a net share settlement process, into a combination of cash and our Common Stock. The initial base conversion price of the notes is approximately $77.34, based on the initial base conversion rate of 12.9307 shares of Common Stock per $1,000 principal amount of convertible notes (subject to adjustment in certain circumstances, including the payment of dividends). The payment of the $0.15 per share dividend payable on December 12, 2011 to holders of record as of November 18, 2011 may result in an adjustment to the initial base conversion rate. In general, upon conversion of a note, the holder will receive cash equal to the principal amount of the note and Common Stock to the extent of the note’s conversion value in excess of such principal amount. In addition, if at the time of conversion the applicable price of our Common Stock exceeds the base conversion price, holders will receive up to an additional 8.4049 shares of our Common Stock per $1,000 principal amount of notes, as determined pursuant to a specified formula. Such shares did not impact our calculation of diluted earnings per share for three and six months ended September 30, 2011 and 2010 as our stock price did not meet or exceed $77.34 per share.

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SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

6 Months Ended

Sep. 30, 2011

Supplemental Condensed Consolidating Financial Information [Abstract]

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Note 12 — SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

In connection with the sale of the 7 ½% Senior Notes due 2017, the 6 ⅛% Senior Notes due 2013, which we redeemed on December 23, 2010, and the 3% Convertible Senior Notes due 2038, certain of our U.S. subsidiaries (the “Guarantor Subsidiaries”) fully, unconditionally, jointly and severally guaranteed the payment obligations under these notes. The following supplemental financial information sets forth, on a consolidating basis, the balance sheets, statements of income and statements of cash flows for Bristow Group Inc. (“Parent Company Only”), for the Guarantor Subsidiaries and for our other subsidiaries (the “Non-Guarantor Subsidiaries”). We have not presented separate financial statements and other disclosures concerning the Guarantor Subsidiaries because management has determined that such information is not material to investors.

The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include all disclosures included in annual financial statements, although we believe that the disclosures made are adequate to make the information presented not misleading. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenue and expense.

The allocation of the consolidated income tax provision was made using the with and without allocation method.

Supplemental Condensed Consolidating Statement of Income

Three Months EndedSeptember 30,2011

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
Revenue:
	Gross revenue		$	0	$	69,152	$	261,840	$	0	$	330,992
	Intercompany revenue			1,555		12,106		0		(13,661)		0
				1,555		81,258		261,840		(13,661)		330,992
Operating expense:
	Direct cost and reimbursable expense			730		40,743		194,932		0		236,405
	Intercompany expenses			0		0		13,661		(13,661)		0
	Write-down of inventories			0		8,778		15,832		0		24,610
	Depreciation and amortization			916		10,904		13,611		0		25,431
	General and administrative			7,626		4,596		17,081		0		29,303
				9,272		65,021		255,117		(13,661)		315,749
	Loss on disposal of assets			0		(427)		(1,184)		0		(1,611)
	Earnings from unconsolidated affiliates,
		net of losses		(7,074)		0		(4,037)		7,074		(4,037)
	Operating income (loss)			(14,791)		15,810		1,502		7,074		9,595
	Interest income			24,286		10		139		(24,282)		153
	Interest expense			(9,538)		0		(24,203)		24,282		(9,459)
	Other income (expense), net			47		126		554		0		727
	Income (loss) before provision for
		income taxes		4		15,946		(22,008)		7,074		1,016
	Allocation of consolidated income taxes			2,722		(2,483)		1,706		0		1,945
	Net income (loss)			2,726		13,463		(20,302)		7,074		2,961
	Net income attributable to noncontrolling
		interests		(15)		0		(235)		0		(250)
	Net income (loss) attributable to
		Bristow Group	$	2,711	$	13,463	$	(20,537)	$	7,074	$	2,711

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
Revenue:
	Gross revenue		$	0	$	136,349	$	515,748	$	0	$	652,097
	Intercompany revenue			1,555		23,879		0		(25,434)		0
				1,555		160,228		515,748		(25,434)		652,097
Operating expense:
	Direct cost and reimbursable expense			0		83,704		382,457		0		466,161
	Intercompany expenses			0		0		25,434		(25,434)		0
	Write-down of inventories			0		8,778		15,832		0		24,610
	Depreciation and amortization			1,759		19,086		27,294		0		48,139
	General and administrative			21,801		11,359		35,788		0		68,948
				23,560		122,927		486,805		(25,434)		607,858
	Gain (loss) on disposal of assets			0		(247)		52		0		(195)
	Earnings from unconsolidated affiliates,
		net of losses		15,145		0		1,956		(15,145)		1,956
	Operating income (loss)			(6,860)		37,054		30,951		(15,145)		46,000
	Interest income			47,589		180		301		(47,746)		324
	Interest expense			(18,797)		0		(47,363)		47,746		(18,414)
	Other income (expense), net			61		192		678		0		931
	Income (loss) before provision for
		income taxes		21,993		37,426		(15,433)		(15,145)		28,841
	Allocation of consolidated income taxes			1,793		(5,146)		(1,308)		0		(4,661)
	Net income (loss)			23,786		32,280		(16,741)		(15,145)		24,180
	Net income attributable to noncontrolling
		interests		(30)		0		(394)		0		(424)
	Net income (loss) attributable to
		Bristow Group	$	23,756	$	32,280	$	(17,135)	$	(15,145)	$	23,756

Supplemental Condensed Consolidating Statement of Income

Three Months EndedSeptember 30,2010

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
Revenue:
	Gross revenue		$	0	$	79,283	$	233,276	$	0	$	312,559
	Intercompany revenue			0		5,890		0		(5,890)		0
				0		85,173		233,276		(5,890)		312,559
Operating expense:
	Direct cost and reimbursable expense			(477)		48,044		166,563		0		214,130
	Intercompany expenses			0		0		5,890		(5,890)		0
	Depreciation and amortization			575		7,583		12,810		0		20,968
	General and administrative			5,847		6,526		18,142		0		30,515
				5,945		62,153		203,405		(5,890)		265,613
	Gain on disposal of assets			0		894		1,003		0		1,897
	Earnings from unconsolidated affiliates,
		net of losses		33,477		0		5,030		(33,791)		4,716
	Operating income			27,532		23,914		35,904		(33,791)		53,559
	Interest income			20,887		22		140		(20,881)		168
	Interest expense			(11,373)		(68)		(20,892)		20,881		(11,452)
	Other income (expense), net			(33)		(92)		14		0		(111)
	Income before provision for
		income taxes		37,013		23,776		15,166		(33,791)		42,164
	Allocation of consolidated income taxes			1,883		(2,753)		(2,446)		0		(3,316)
	Net income			38,896		21,023		12,720		(33,791)		38,848
	Net income attributable to noncontrolling
		interests		(16)		0		48		0		32
	Net income attributable to
		Bristow Group	$	38,880	$	21,023	$	12,768	$	(33,791)	$	38,880

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
Revenue:
	Gross revenue		$	0	$	154,010	$	450,787	$	0	$	604,797
	Intercompany revenue			0		17,871		0		(17,871)		0
				0		171,881		450,787		(17,871)		604,797
Operating expense:
	Direct cost and reimbursable expense			(940)		99,783		318,629		0		417,472
	Intercompany expenses			0		0		17,871		(17,871)		0
	Depreciation and amortization			1,139		15,742		23,418		0		40,299
	General and administrative			17,327		11,194		32,896		0		61,417
				17,526		126,719		392,814		(17,871)		519,188
	Gain on disposal of assets			0		1,852		1,763		0		3,615
	Earnings from unconsolidated affiliates,
		net of losses		62,709		0		4,706		(63,401)		4,014
	Operating income			45,183		47,014		64,442		(63,401)		93,238
	Interest income			39,782		33		424		(39,779)		460
	Interest expense			(22,057)		(68)		(40,144)		39,779		(22,490)
	Other income (expense), net			(16)		(117)		537		0		404
	Income before provision for
		income taxes		62,892		46,862		25,259		(63,401)		71,612
	Allocation of consolidated income taxes			(3,173)		(4,602)		(4,081)		0		(11,856)
	Net income			59,719		42,260		21,178		(63,401)		59,756
	Net income attributable to noncontrolling
		interests		(31)		0		(37)		0		(68)
	Net income attributable to
		Bristow Group	$	59,688	$	42,260	$	21,141	$	(63,401)	$	59,688

Supplemental Condensed Consolidating Balance Sheet

As ofSeptember 30,2011

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
ASSETS
Current assets:
	Cash and cash equivalents		$	83,152	$	2,536	$	54,591	$	0	$	140,279
	Accounts receivable			12,000		95,190		211,894		(51,480)		267,604
	Inventories			0		61,698		95,568		0		157,266
	Assets held for sale			0		2,505		29,137		0		31,642
	Prepaid expenses and other current assets			305		3,389		54,369		(43,632)		14,431
		Total current assets		95,457		165,318		445,559		(95,112)		611,222
Intercompany investment				1,229,027		111,435		0		(1,340,462)		0
Investment in unconsolidated affiliates				0		150		202,287		0		202,437
Intercompany notes receivable				1,041,100		0		(6,349)		(1,034,751)		0
Property and equipment - at cost:
	Land and buildings			211		49,075		28,415		0		77,701
	Aircraft and equipment			12,654		884,461		1,313,738		0		2,210,853
				12,865		933,536		1,342,153		0		2,288,554
Less: Accumulated depreciation and
	amortization			(5,206)		(175,529)		(284,500)		0		(465,235)
				7,659		758,007		1,057,653		0		1,823,319
Goodwill				0		4,755		24,492		0		29,247
Other assets				123,022		4,307		174,486		(267,622)		34,193
			$	2,496,265	$	1,043,972	$	1,898,128	$	(2,737,947)	$	2,700,418

LIABILITIES AND STOCKHOLDERS' INVESTMENT

Current liabilities:
	Accounts payable		$	824	$	29,774	$	61,654	$	(45,244)	$	47,008
	Accrued liabilities			18,178		23,191		106,813		(46,260)		101,922
	Current deferred taxes			(2,395)		32		9,383		0		7,020
	Short-term borrowings and current
		maturities of long-term debt		10,000		0		3,273		0		13,273
		Total current liabilities		26,607		52,997		181,123		(91,504)		169,223
Long-term debt, less current maturities				729,063		0		22,024		0		751,087
Intercompany notes payable				0		341,246		794,524		(1,135,770)		0
Accrued pension liabilities				0		0		97,237		0		97,237
Other liabilities and deferred credits				6,306		8,283		168,982		(170,173)		13,398
Deferred taxes				124,644		8,660		11,317		0		144,621
Stockholders’ investment:
	Common stock			362		4,996		22,826		(27,822)		362
	Additional paid-in-capital			696,268		9,290		484,038		(493,328)		696,268
	Retained earnings			964,444		618,500		33,675		(652,175)		964,444
	Accumulated other comprehensive
		income (loss)		(52,963)		0		76,511		(167,175)		(143,627)
Total Bristow Group Inc.
	stockholders’ investment			1,608,111		632,786		617,050		(1,340,500)		1,517,447
Noncontrolling interests				1,534		0		5,871		0		7,405
Total stockholders’ investment				1,609,645		632,786		622,921		(1,340,500)		1,524,852
Total liabilities and stockholders’ investment			$	2,496,265	$	1,043,972	$	1,898,128	$	(2,737,947)	$	2,700,418

Supplemental Condensed Consolidating Balance Sheet

As ofMarch 31, 2011

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
ASSETS
Current assets:
	Cash and cash equivalents		$	24,075	$	5,233	$	87,053	$	0	$	116,361
	Accounts receivable			19,283		77,690		203,286		(37,740)		262,519
	Inventories			0		85,937		110,270		0		196,207
	Assets held for sale			0		1,488		30,068		0		31,556
	Prepaid expenses and other current assets			438		9,017		32,646		(19,983)		22,118
		Total current assets		43,796		179,365		463,323		(57,723)		628,761
Intercompany investment				1,249,822		111,435		0		(1,361,257)		0
Investment in unconsolidated affiliates				0		150		208,484		0		208,634
Intercompany notes receivable				978,221		0		(7,342)		(970,879)		0
Property and equipment - at cost:
	Land and buildings			210		53,448		44,396		0		98,054
	Aircraft and equipment			11,901		810,758		1,293,600		0		2,116,259
				12,111		864,206		1,337,996		0		2,214,313
Less: Accumulated depreciation and
	amortization			(3,424)		(165,212)		(277,795)		0		(446,431)
				8,687		698,994		1,060,201		0		1,767,882
Goodwill				0		4,755		27,292		0		32,047
Other assets				124,770		4,477		179,936		(271,153)		38,030
			$	2,405,296	$	999,176	$	1,931,894	$	(2,661,012)	$	2,675,354

LIABILITIES AND STOCKHOLDERS' INVESTMENT

Current liabilities:
	Accounts payable		$	1,569	$	15,097	$	57,734	$	(17,428)	$	56,972
	Accrued liabilities			17,513		22,903		81,885		(20,384)		101,917
	Current deferred taxes			1,336		(81)		10,921		0		12,176
	Short-term borrowings and current
		maturities of long-term debt		5,000		0		3,979		0		8,979
		Total current liabilities		25,418		37,919		154,519		(37,812)		180,044
Long-term debt, less current maturities				674,629		0		23,853		0		698,482
Intercompany notes payable				0		318,190		772,420		(1,090,610)		0
Accrued pension liabilities				0		0		99,645		0		99,645
Other liabilities and deferred credits				5,862		8,251		187,202		(171,206)		30,109
Deferred taxes				119,297		9,122		19,880		0		148,299
Stockholders’ investment:
	Common stock			363		4,996		22,852		(27,848)		363
	Additional paid-in-capital			689,795		9,552		470,883		(480,435)		689,795
	Retained earnings			951,660		611,146		77,281		(688,427)		951,660
	Accumulated other comprehensive
		income (loss)		(63,186)		0		97,743		(164,674)		(130,117)
Total Bristow Group Inc.
	stockholder's investment			1,578,632		625,694		668,759		(1,361,384)		1,511,701
Noncontrolling interests				1,458		0		5,616		0		7,074
Total stockholders’ investment				1,580,090		625,694		674,375		(1,361,384)		1,518,775
Total liabilities and stockholders’ investment			$	2,405,296	$	999,176	$	1,931,894	$	(2,661,012)	$	2,675,354

Supplemental Condensed Consolidating Statement of Cash Flows

Six Months EndedSeptember 30,2011

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
Net cash provided by (used in) operating			$
	activities			(18,520)	$	60,830	$	74,683	$	0	$	116,993
Cash flows from investing activities:
	Capital expenditures			(418)		(78,620)		(70,224)		0		(149,262)
	Proceeds from asset dispositions			0		8,129		3,911		0		12,040
Net cash used in investing activities				(418)		(70,491)		(66,313)		0		(137,222)
Cash flows from financing activities:
	Proceeds from borrowings			87,800		0		693		0		88,493
	Repayment of debt and debt redemption
		premiums		(30,000)		0		(2,518)		0		(32,518)
	Dividends paid			40,564		(24,927)		(26,470)		0		(10,833)
	Increases (decreases) in cash related to
		intercompany advances and debt		(22,056)		32,153		(10,097)		0		0
	Partial prepayment of put/call obligation			(31)		0		0		0		(31)
	Acquisition of noncontrolling interest			0		(262)		0		0		(262)
	Issuance of Common Stock			1,629		0		0		0		1,629
	Tax benefit related to stock-based
		compensation		109		0		0		0		109
Net cash provided by (used in) financing
	activities			78,015		6,964		(38,392)		0		46,587
Effect of exchange rate changes on cash
	and cash equivalents			0		0		(2,440)		0		(2,440)
Net increase (decrease) in cash and cash
	equivalents			59,077		(2,697)		(32,462)		0		23,918
Cash and cash equivalents at beginning
	of period			24,075		5,233		87,053		0		116,361
Cash and cash equivalents at end of
	period		$	83,152	$	2,536	$	54,591	$	0	$	140,279

Supplemental Condensed Consolidating Statement of Cash Flows

Six Months EndedSeptember 30,2010

			Parent Company Only		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
			(In thousands)
Net cash provided by (used in) operating			$
	activities			(23,393)	$	25,304	$	68,550	$	(1,277)	$	69,184
Cash flows from investing activities:
	Capital expenditures			(1,696)		(30,957)		(31,290)		0		(63,943)
	Deposit on asset held for sale			0		1,000		0		0		1,000
	Proceeds from sale of joint ventures			0		0		1,291		0		1,291
	Proceeds from asset dispositions			0		11,280		5,898		0		17,178
Net cash used in investing activities				(1,696)		(18,677)		(24,101)		0		(44,474)
Cash flows from financing activities:
	Proceeds from borrowings			0		8,049		1,963		0		10,012
	Repayment of debt			0		0		(7,630)		0		(7,630)
	Dividends paid			13,030		(11,500)		(1,530)		0		0
	Distributions to noncontrolling interest owners			0		0		(637)		0		(637)
	Increases (decreases) in cash related to
		intercompany advances and debt		8,835		(5,010)		(3,825)		0		0
	Partial prepayment of put/call obligation			(28)		0		0		0		(28)
	Acquisition of noncontrolling interest			0		0		(800)		0		(800)
	Issuance of Common Stock			111		0		0		0		111
	Tax benefit related to stock-based
	compensation			179		0		0		0		179
Net cash provided by (used in) financing
	activities			22,127		(8,461)		(12,459)		0		1,207
Effect of exchange rate changes on cash
	and cash equivalents			0		0		4,791		0		4,791
Net increase (decrease) in cash and
	cash equivalents			(2,962)		(1,834)		36,781		(1,277)		30,708
Cash and cash equivalents at beginning
	of period			16,555		1,834		59,404		0		77,793
Cash and cash equivalents at end of			$
	period			13,593	$	0	$	96,185	$	(1,277)	$	108,501

XML

VARIABLE INTEREST ENTITIES

6 Months Ended

Sep. 30, 2011

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

Note 3 ¾VARIABLE INTEREST ENTITIES AND OTHER INVESTMENTS IN SIGNIFICANT AFFILIATES

A Variable Interest Entity (“VIE”) is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of a controlling financial interest.  A VIE is consolidated by its primary beneficiary.  The primary beneficiary has both the power to direct the activities that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. If we determine that we have operating power and the obligation to absorb losses or receive benefits, we consolidate the VIE as the primary beneficiary, and if not, we do not consolidate the VIE.

As of September 30,2011, we hadinterests in three VIEs of which we are the primary beneficiary, which are described below.

Bristow Aviation Holdings Limited — We own 49% of Bristow Aviation Holdings Limited's (“Bristow Aviation”) common stock and a significant amount of its subordinated debt. Bristow Aviation is incorporated in England and holds all of the outstanding shares in Bristow Helicopter Group Limited (“Bristow Helicopters”). Its subsidiaries provide helicopter services to clients primarily in the U.K, Norway, Australia and Nigeria. Bristow Aviation is organized with three different classes of ordinary shares having disproportionate voting rights. The Company, Caledonia Investments plc and its subsidiary, Caledonia Industrial & Services Limited (collectively, “Caledonia”) and a European Union investor (the “E.U. Investor”) own 49%, 46% and 5%, respectively, of Bristow Aviation's total outstanding ordinary shares, although Caledonia has voting control over the E.U. Investor's shares.

In addition to our ownership of 49% of Bristow Aviation's outstanding ordinary shares, in May 2004, we acquired eight million shares of deferred stock, essentially a subordinated class of stock with no voting rights, from Bristow Aviation for £1 per share ($14.4 million in total). We also have £91.0 million ($141.8million) principal amount of subordinated unsecured loan stock (debt) of Bristow Aviation bearing interest at an annual rate of 13.5% and payable semi-annually. Payment of interest on such debt has been deferred since its incurrence in 1996. Deferred interest accrues at an annual rate of 13.5% and aggregated $908.2million as of September 30,2011.

The Company, Caledonia, the E.U. Investor and Bristow Aviation have entered into a shareholder agreement respecting, among other things, the composition of the board of directors of Bristow Aviation. On matters coming before Bristow Aviation's board, Caledonia's representatives have a total of three votes and the two other directors have one vote each. In addition, Caledonia has the right to nominate two persons to our board of directors and to replace any such directors so nominated.

Caledonia, the Company and the E.U. Investor also have entered into a put/call agreement under which, upon giving specified prior notice, we have the right to buy all the Bristow Aviation shares held by Caledonia and the E.U. Investor, who, in turn, each have the right to require us to purchase such shares. Under current English law, we would be required, in order for Bristow Aviation to retain its operating license, to find a qualified E.U. investor to own any Bristow Aviation shares we have the right to acquire under the put/call agreement. The only restriction under the put/call agreement limiting our ability to exercise the put/call option is a requirement to consult with the Civil Aviation Authority (“CAA”) in the U.K. regarding the suitability of the new holder of the Bristow Aviation shares. The put/call agreement does not contain any provisions should the CAA not approve the new E.U. investor. However, we would work diligently to find a E.U. investor suitable to the CAA. The amount by which we could purchase the shares of the other investors holding 51% of the equity of Bristow Aviation is fixed under the terms of the call option, and we have reflected this amount on our condensed consolidated balance sheets as noncontrolling interest.

Furthermore, the call option provides a mechanism whereby the economic risk for the other investors is limited should the financial condition of Bristow Aviation deteriorate. The call option price is the nominal value of the ordinary shares held by the noncontrolling shareholders (£1.0million as of September 30,2011) plus an annual guaranteed rate of return less any prepayments of such call option price and any dividends paid on the shares concerned. We can elect to pre-pay the guaranteed return element of the call option price wholly or in part without exercising the call option. No dividends have been paid. We have accrued the annual return due to the other shareholders at a rate of sterling LIBOR plus 3% (prior to May 2004, the rate was fixed at 12%) by recognizing noncontrolling interest expense in our condensed consolidated statements of income, with a corresponding increase in noncontrolling interest on our condensed consolidated balance sheets. Prepayments of the guaranteed return element of the call option are reflected as a reduction in noncontrolling interest on our condensed consolidated balance sheets. The other investors have an option to put their shares in Bristow Aviation to us. The put option price is calculated in the same way as the call option price except that the guaranteed rate for the period to April 2004 was 10% per annum. If the put option is exercised, any pre-payments of the call option price are set off against the put option price.

Bristow Aviation and its subsidiaries are exposed to similar operational risks and are therefore monitored and evaluated on a similar basis by management.  Accordingly, the financial information reflected on our condensed consolidated balance sheets and statements of income for Bristow Aviation and subsidiaries is presented in the aggregate, including intercompany amounts with other consolidated entities, as follows (in thousands):

			September 30,		March 31,
			2011		2011
Assets
	Cash and cash equivalents		$	39,362	$	29,840
	Accounts receivable			201,030		190,896
	Inventories			93,902		108,586
	Prepaid expenses and other current assets			65,478		50,296
		Total current assets		399,772		379,618
	Investment in unconsolidated affiliates			12,686		12,344
	Property and equipment, net			184,505		221,274
	Goodwill			13,167		15,915
	Other assets			8,156		9,794
		Total assets	$	618,286	$	638,945
Liabilities
	Accounts payable		$	107,258	$	72,140
	Accrued liabilities			966,200		902,570
	Deferred taxes			9,437		9,816
	Short-term borrowings and current			1,982		2,724
		maturities of long-term debt
		Total current liabilities		1,084,877		987,250
	Long-term debt, less current maturities			150,801		156,080
	Accrued pension liabilities			97,237		99,645
	Other liabilities and deferred credits			1,252		13,043
	Deferred taxes			9,122		16,334
		Total liabilities	$	1,343,289	$	1,272,352

	Three Months Ended				Six Months Ended
	September 30,				September 30,
		2011	2010			2011	2010
Revenue	$	252,292	$	223,609	$	497,618	$	427,827
Operating income (loss)		(18,387)		10,544		(16,515)		18,133
Net loss		52,085		21,875		82,722		41,468

Bristow Helicopters Nigeria Ltd. — Bristow Helicopters Nigeria Ltd. (“BHNL”) is a joint venture in Nigeria with local partners, in which we own an interest of 40%. BHNL provides helicopter services to clients in Nigeria.

In order to have a presence in the Nigerian market, we were required to identify local citizens to participate in the ownership of entities domiciled in the region. However, these owners do not have extensive knowledge of the aviation industry and have historically deferred to our expertise in the overall management and day-to-day operation of BHNL (including the establishment of operating and capital budgets and strategic decisions regarding the potential expansion of BHNL's operations). We have also historically provided subordinated financial support to BHNL and will need to continue to do so unless and until BHNL acquires sufficient equity to permit itself to finance its activities without that additional support from us. Thus, because we have the power to direct the most significant activities affecting the economic performance and ongoing success of BHNLand hold a variable interest in the entity in the form of our equity investment and working capital infusions, we consolidate BHNL as the primary beneficiary.

BHNL is an indirect subsidiary of Bristow Aviation; therefore, financial information for this entity is included within the amounts for Bristow Aviation and its subsidiaries presented above.

Pan African Airlines Nigeria Ltd. — Pan African Airlines Nigeria Ltd. (“PAAN”) is a joint venture in Nigeria with local partners, in which we currently own an interest of 50.17%. PAAN provides helicopter services to clients in Nigeria.

The activities that most significantly impact PAAN's economic performance relate to the day-to-day operation of PAAN, setting of operating and capital budgets and strategic decisions regarding the potential expansion of PAAN's operations. Throughout the history of the PAAN, ourrepresentation on the board and our secondment to PAAN of its managing director has enabled us to direct the key operational decisions of PAAN (without objection from the other board members). We have also historically provided subordinated financial support to PAAN and will need to continue to do so unless and until PAAN acquires sufficient equity to permit itself to finance its activities without that additional support from us. As we have the power to direct the most significant activities affecting the economic performance and ongoing success of PAAN and hold a variable interest in the form of our equity investment and working capital infusions, we consolidate PAAN as the primary beneficiary. However, as long as we own a majority interest in PAAN, the separate presentation of financial information in a tabular format for PAAN is not required.

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EMPLOYEE BENEFIT PLANS (Details) (USD $)	3 Months Ended		6 Months Ended			6 Months Ended			6 Months Ended			6 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011 number	Sep. 30, 2010	Mar. 31, 2011	Sep. 30, 2011 UK staff pension plan [Member]	Sep. 30, 2011 UK expatriate pension plan [Member]	Mar. 31, 2012 UK expatriate pension plan [Member]	Sep. 30, 2011 Norway pension plan [Member]	Mar. 31, 2012 Norway pension plan [Member]	Sep. 30, 2011 Plan 2007 [Member]	Sep. 30, 2011 Non-employee grants [Member]
Pension Plan [Line Items]
Service cost	$ 1,614,000	$ 1,334,000	$ 3,248,000	$ 2,612,000
Interest cost	7,122,000	6,658,000	14,334,000	13,040,000
Expected return on assets	(7,397,000)	(6,682,000)	(14,886,000)	(13,087,000)
Amortization of unrecognized losses	1,360,000	1,305,000	2,737,000	2,557,000
Net periodic pension cost	2,699,000	2,615,000	5,433,000	5,122,000
Cash Contributions						16,000,000	1,400,000		4,000,000
Estimated cash contributions								1,600,000		6,000,000
Incentive Compensation [Line Items]
Common Stock Shares reserved											2,400,000
Shares available for grant											823,940
Stock based compensation expense	2,300,000	4,300,000	7,480,000	8,019,000
Stock option grants- shares			259,521
Restricted stock grants- shares			183,384									18,199
Restricted stock grants- fair value			$ 44.13
Risk free interest rate			1.52%
Expected life (years)			6
Volatility			47.05%
Dividend yield			1.37%
Weighted average exercise price of options granted	$ 43.79		$ 43.79
Weighted average grant-date fair value of options granted			$ 17.32
Performance cash compensation liability	$ 4,700,000		$ 4,700,000		$ 1,700,000
Performance Cash Compensation Expense			Compensation expense (benefit) recorded related to the performance cash awards during the three months ended September 30, 2011 and 2010 was $(0.6) million and $0.3 million, respectively, and six months ended September 30, 2011 and 2010 was $3.0 million and $0.3 million, respectively.

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Sep. 30, 2011

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

Note 9¾ EMPLOYEE BENEFIT PLANS

Pension Plans

The following table provides a detail of the components of net periodic pension cost (in thousands):

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Service cost for benefits earned during the period	$	1,614	$	1,334	$	3,248	$	2,612
Interest cost on pension benefit obligation		7,122		6,658		14,334		13,040
Expected return on assets		(7,397)		(6,682)		(14,886)		(13,087)
Amortization of unrecognized losses		1,360		1,305		2,737		2,557
Net periodic pension cost	$	2,699	$	2,615	$	5,433	$	5,122

We pre-funded our contributions of $16.0million to our U.K. Staff pension plan for fiscal year 2012 in the last quarter of fiscal year 2011. The current estimate of our cash contributions to our Norwegian pension plan and U.K. expatriate plan for fiscal year 2012are $6.0million and $1.6million, respectively, of which $4.0million and $1.4million, respectively, were paid during the six months endedSeptember 30,2011.

Incentive Compensation

Stock–based compensation awards are currently made under the Bristow Group Inc. 2007 Long-Term Incentive Plan (“2007 Plan”).  A maximum of 2,400,000 shares of common stock, par value $.01 per share (“Common Stock”), are reserved.  Awards granted under the 2007 Plan may be in the form of stock options, stock appreciation rights, shares of restricted stock, other stock-based awards (payable in cash or Common Stock) or performance awards, or any combination thereof, and may be made to outside directors, employees or consultants. As of September 30,2011, 823,940shares remained available for grant under the 2007 Plan.

We have a number of other incentive and stock option plans which are described in Note 10 to our fiscal year 2011 Financial Statements.

Stock-based compensation expense, which includes stock options, restricted stock units and restricted stock, totaled $2.3million and $4.3million for the three months ended September 30,2011 and 2010, respectively, and totaled $7.5 million and $8.0 million for the six months endedSeptember 30,2011 and 2010, respectively. Stock-based compensation expense has been allocated to our various business units.

During the six months endedSeptember 30,2011, we awarded 183,384shares of restricted stock at an average grant date fair value of $44.13per share, which includes 18,199 shares granted to non-employee members of our board of directors.  We account for awards to our non-employee directors similar to awards to employees and recognize compensation expense equal to the fair value of the awards granted over a six month vesting period. Also during the six months endedSeptember 30,2011, 259,521stock options were granted to employees. The following table shows the assumptions used to compute the stock-based compensation expense for stock options granted during the six months endedSeptember 30,2011:

Risk free interest rate		1.52	%
Expected life (years)		6
Volatility		47.05	%
Dividend yield		1.37	%
Weighted average exercise price of options granted	$	43.79	per option
Weighted average grant-date fair value of options granted	$	17.32	per option

Performance cash awards vest and pay out in cash three years after the date of grant at varying levels depending on our performance in Total Shareholder Return against a peer group of companies.  These awards were designed to tie a significant portion of total compensation to performance.  One of the effects of this type of compensation is that it requires liability accounting which can result in volatility in earnings. The liability recorded for these awards as of September 30 and March 31, 2011 was $4.7 million and $1.7 million, respectively, and represents an accrual based on the fair value of the awards on those dates.  The increase in the liability during the six months endedSeptember 30,2011is recognized as compensation expense and primarily resulted from an increase in the fair value of the awards driven by superior stock price performance compared to the peer group during the period as well as a new award in June 2011. Any changes in fair value of the awards in future quarters will increase or decrease the liability and impact operating results in those periods.  The affect, either positive or negative, on future period earnings can vary based on factors including changes in our stock price or the stock prices of the peer group companies, as well as changes in other market and company-specific assumptions that are factored into the calculation of fair value of the performance cash awards.

Compensation expense (benefit) recorded related to the performance cash awards during the threemonths ended September 30,2011 and 2010 was $(0.6) million and $0.3 million, respectively, and six months endedSeptember 30,2011 and 2010 was $3.0 million and $0.3 million, respectively.

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VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Sep. 30, 2011

Variable Interest Entities [Abstract]

Primary beneficiary variable interest entity balance sheet

			September 30,		March 31,
			2011		2011
Assets
	Cash and cash equivalents		$	39,362	$	29,840
	Accounts receivable			201,030		190,896
	Inventories			93,902		108,586
	Prepaid expenses and other current assets			65,478		50,296
		Total current assets		399,772		379,618
	Investment in unconsolidated affiliates			12,686		12,344
	Property and equipment, net			184,505		221,274
	Goodwill			13,167		15,915
	Other assets			8,156		9,794
		Total assets	$	618,286	$	638,945
Liabilities
	Accounts payable		$	107,258	$	72,140
	Accrued liabilities			966,200		902,570
	Deferred taxes			9,437		9,816
	Short-term borrowings and current			1,982		2,724
		maturities of long-term debt
		Total current liabilities		1,084,877		987,250
	Long-term debt, less current maturities			150,801		156,080
	Accrued pension liabilities			97,237		99,645
	Other liabilities and deferred credits			1,252		13,043
	Deferred taxes			9,122		16,334
		Total liabilities	$	1,343,289	$	1,272,352

Primary beneficiary variable interest income statement items

	Three Months Ended				Six Months Ended
	September 30,				September 30,
		2011	2010			2011	2010
Revenue	$	252,292	$	223,609	$	497,618	$	427,827
Operating income (loss)		(18,387)		10,544		(16,515)		18,133
Net loss		52,085		21,875		82,722		41,468

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COMPREHENSIVE INCOME, DIVIDENDS, SHARE REPURCHASES AND EARNINGS PER SHARE

6 Months Ended

Sep. 30, 2011

Comprehensive Income, Dividends, Share Repurchases and Earnings Per Share [Abstract]

COMPREHENSIVE INCOME, DIVIDENDS, SHARE REPURCHASES AND EARNINGS PER SHARE

Note 10¾ COMPREHENSIVE INCOME, DIVIDENDS,SHARE REPURCHASES AND EARNINGS PER SHARE

Comprehensive Income

Comprehensive income is as follows (in thousands):

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Net income		$	2,961	$	38,848	$	24,180	$	59,756
Other comprehensive income (loss):
	Currency translation adjustments		(12,145)		19,815		(11,360)		9,828
	Unrealized gain (loss) on cash flow hedges		(1,653)		860		(2,150)		860
Total comprehensive income (loss)		$	(10,837)	$	59,523	$	10,670	$	70,444

Dividends

On May 4and August 3, 2011, our board of directors declared dividends of $0.15 per share of Common Stock. The dividends of $5.4 million each were paid on June 10and September 12, 2011 to shareholders of record on May 20and August 15, 2011, respectively.On November 2, 2011, the board of directors approved anotherdividend of $0.15 per share of Common Stock, payable on December 12,2011 to shareholders of record on November 18, 2011. The declaration of future dividends is at the discretion of our board of directors and subject to our results of operations, financial condition, cash requirements and other factors and restrictions under applicable law and our debt instruments.

Share Repurchases

On November 2, 2011, our board of directors authorized the expenditure of up to $100million to repurchase shares of our Common Stock over the next 12 months.  The timing and method of any repurchases under the program will depend on a variety of factors, is subject to our results of operations, financial condition, cash requirements and other factors and restrictions under applicable law and our debt instruments, and may be suspended or discontinued at any time.

Earnings per Share

Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of shares of Common Stock outstanding during the period. Diluted earnings per common share excludes options to purchase shares, restricted stock units and restricted stock awards, which were outstanding during the period but were anti-dilutive, as follows:

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Options:
	Outstanding	528,501		544,615		531,679		437,122
	Weighted average exercise price	$	36.85	$	31.49	$	36.81	$	32.90
Restricted stock units:
	Outstanding	83,925		213,980		83,937		219,651
	Weighted average price	$	46.70	$	40.08	$	46.70	$	40.02
Restricted stock awards:
	Outstanding	0		0		0		0
	Weighted average price	$	0.00	$	0.00	$	0.00	$	0.00

The following table sets forth the computation of basic and diluted earnings per share:

				Three Months Ended				Six Months Ended
				September 30,				September 30,
				2011		2010		2011		2010
Net income available to common stockholders (in thousands):
		Income available to common stockholders – basic		$	2,711	$	38,880	$	23,756	$	59,688
		Interest expense on assumed conversion of 3% Convertible Senior
			Notes, net of tax (1)		0		0		0		0
		Income available to common stockholders – diluted		$	2,711	$	38,880	$	23,756	$	59,688
Shares:
	Weighted average number of common shares outstanding – basic			36,157,917		36,174,615		36,165,247		35,975,141
			during the period (1)		0		0		0		0
		Net effect of dilutive stock options, restricted stock units and
			restricted stock awards based on the treasury stock method		614,191		546,758		659,893		550,682
	Weighted average number of common shares outstanding – diluted			36,772,108		36,721,373		36,825,140		36,525,823
	Basic earnings per common share			$	0.07	$	1.07	$	0.66	$	1.66
	Diluted earnings per common share			$	0.07	$	1.06	$	0.65	$	1.63
(1)			Diluted earnings per common share for the three and six months ended September 30, 2011 and 2010 excludes approximately 1.5 million potentially dilutive shares initially issuable upon the conversion of our 3% Convertible Senior Notes. The 3% Convertible Senior Notes will be convertible, under certain circumstances, using a net share settlement process, into a combination of cash and our Common Stock. The initial base conversion price of the notes is approximately $77.34, based on the initial base conversion rate of 12.9307 shares of Common Stock per $1,000 principal amount of convertible notes (subject to adjustment in certain circumstances, including the payment of dividends). The payment of the $0.15 per share dividend payable on December 12, 2011 to holders of record as of November 18, 2011 may result in an adjustment to the initial base conversion rate. In general, upon conversion of a note, the holder will receive cash equal to the principal amount of the note and Common Stock to the extent of the note’s conversion value in excess of such principal amount. In addition, if at the time of conversion the applicable price of our Common Stock exceeds the base conversion price, holders will receive up to an additional 8.4049 shares of our Common Stock per $1,000 principal amount of notes, as determined pursuant to a specified formula. Such shares did not impact our calculation of diluted earnings per share for three and six months ended September 30, 2011 and 2010 as our stock price did not meet or exceed $77.34 per share.

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DERIVATIVES (Details)	12 Months Ended					3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended
	Mar. 31, 2011 USD ($) number	Sep. 30, 2011 number	Jun. 30, 2011 USD ($)	Jun. 30, 2011 EUR (€)	Mar. 31, 2011 EUR (€)	Sep. 30, 2011 Foreign Exchange Forward [Member] USD ($)	Jun. 30, 2010 Foreign Exchange Forward [Member] USD ($)	Sep. 30, 2011 Foreign Exchange Forward [Member] USD ($)	Sep. 30, 2010 Foreign Exchange Forward [Member] USD ($)	Mar. 31, 2011 Foreign Exchange Forward [Member] USD ($)	Sep. 30, 2011 Other Income[Member] USD ($)	Jun. 30, 2010 Other Income[Member] USD ($)	Sep. 30, 2011 Other Income[Member] USD ($)	Sep. 30, 2010 Other Income[Member] USD ($)	Mar. 31, 2011 Maximum [Member] USD ($)	Mar. 31, 2011 Maximum [Member] EUR (€)	Mar. 31, 2011 Minimum [Member] USD ($)	Mar. 31, 2011 Minimum [Member] EUR (€)
Cash Flow Hedges [Line Items]
Number of Open Forward Contracts	6	0
Derivative Foreign Currency Option Strike Price			$ 1.418												$ 1.3267		$ 1.3153
Underlying Notional Amount Of Foreign Currency Cash Flow Hedge Derivatives																7,000,000		5,000,000
Notional Amount Of Foreign Currency Cash Flow Hedge Derivatives				13,826,241	34,300,871
Fair value of open forward contracts	3,306,000									3,300,000
Unrecognized gain/loss in other comprehensive income	2,200,000
Derivative Instruments Gain Loss [Line Items]
Amount of Gain/Loss in OCI						(1,653,000)	860,000	(2,150,000)	860,000
Amount of Gain/Loss Reclassified from OCI											0	0	0	0
Amount of Gain/Loss Recognized in Income											$ 0	$ 0	$ 0	$ 0

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TAXES

6 Months Ended

Sep. 30, 2011

Taxes [Abstract]

TAXES

Note 8 — TAXES

Our income tax decreased from a provision of $3.3 million and $11.9 million for the three and six months ended September 30, 2010, respectively, to a benefit of $1.9 million and a provision of $4.7 million for the three and six months ended September 30, 2011, respectively.The three and six months ended September 30, 2011 includes a benefit due to the revaluation of our deferred taxes as a result of the enactment of a tax rate reduction of 2% in the United Kingdom effective April 1, 2012. The valuation benefit, net of other discrete items, eliminated any need to provide additional tax expense for the three months ended September 30, 2011. In addition, we continue to benefit from our global legal structure that more closely aligns with our global operational structure. As a result of this restructuring, most U.S. tax on offshore profits will be deferred until the profits are repatriated.

Our effective tax rate was also impacted by the permanent reinvestment outside the U.S. of foreign earnings, upon which no U.S. tax has been provided, and by the amount of our foreign source income and our ability to realize foreign tax credits.

During the three months ended September 30,2011 and 2010, we accrued tax contingency related items totaling $0.7 million and $1.3million, respectively. During the six months endedSeptember 30,2011 and 2010, we accrued tax contingency related items totaling $1.3million and $1.6million, respectively.

As of September 30,2011, there were $13.3million of unrecognized tax benefits, all of which would have an impact on our effective tax rate, if recognized. For the three months ended September 30,2011 and 2010, we accrued interest and penalties of $0.2millionand $0.2 million, respectively, and for the six months endedSeptember 30,2011 and 2010, we accrued interest and penalties of $0.3million and $0.3 million, respectively, in connection with uncertain tax positions.

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BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Sep. 30, 2011

Basis Of Presentation, Consolidation And Summary Of Significant Accounting Policies [Abstract]

BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Note 1¾ BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The condensed consolidated financial statements include the accounts of Bristow Group Inc. and its consolidated entities (“Bristow Group,” the “Company,” “we,” “us,” or “our”) after elimination of all significant intercompany accounts and transactions. Our fiscal year ends March 31, and we refer to fiscal years based on the end of such period. Therefore, the fiscal year ending March 31, 2012 is referred to as “fiscal year 2012.” Pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the information contained in the following notes to condensed consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and related notes thereto contained in our fiscal year 2011 Annual Report (the “fiscal year 2011 Financial Statements”). Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the entire fiscal year.

The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair presentation of the consolidated financial position of the Company as of September 30,2011, the consolidated results of operations for the three and sixmonths ended September 30,2011and 2010, and the consolidated cash flows for the six months endedSeptember 30,2011 and 2010.

Certain balance sheet amounts as of March 31, 2011 have been reclassified to conform to current period presentation.

Foreign Currency

During the three and sixmonths ended September 30,2011 and 2010, our primary foreign currency exposure was to the British pound sterling, the euro, the Australian dollar and the Nigerian naira. The value of these currencies has fluctuated relative to the U.S. dollar as indicated in the following table:

		Three Months Ended		Six Months Ended
		September 30,		September 30,
		2011	2010	2011	2010
One British pound sterling into U.S. dollars
	High	1.66	1.60	1.66	1.60
	Average	1.61	1.55	1.62	1.52
	Low	1.53	1.51	1.53	1.43
	At period-end	1.56	1.58	1.56	1.58
One euro into U.S. dollars
	High	1.45	1.37	1.49	1.37
	Average	1.41	1.29	1.42	1.28
	Low	1.34	1.25	1.34	1.19
	At period-end	1.34	1.37	1.34	1.37
One Australian dollar into U.S. dollars
	High	1.10	0.97	1.10	0.97
	Average	1.05	0.91	1.06	0.89
	Low	0.97	0.84	0.97	0.81
	At period-end	0.97	0.97	0.97	0.97
One Nigerian naira into U.S. dollars
	High	0.0068	0.0068	0.0068	0.0070
	Average	0.0066	0.0067	0.0065	0.0067
	Low	0.0063	0.0065	0.0063	0.0065
	At period-end	0.0064	0.0066	0.0064	0.0066

_________

Source: Bank of England and Oanda.com

We estimate that the fluctuation of these currencies versus the same period in the prior fiscal year had the following effect on our financial condition and results of operations (in thousands):

	Three Months Ended		Six Months Ended
	September 30, 2011		September 30, 2011
Revenue	$	11,166	$	29,334
Operating expense		(9,810)		(25,446)
Earnings from unconsolidated affiliates, net of losses		(7,572)		(7,550)
Non-operating expense		(1,321)		(1,068)
Income before provision for income taxes		(7,537)		(4,730)
Provision for income taxes		1,209		542
Net income		(6,328)		(4,188)
Cumulative translation adjustment		(12,145)		(11,360)
Total stockholders' investment	$	(18,473)	$	(15,548)

Other income (expense), net, in our condensed consolidated statements of income includes foreign currency transaction gains (losses) of $(0.1) million and $0.2 million for the three and six months ended September 30,2011, respectively, and $(0.1) million and $(0.2) million for the three and six months ended September 30,2010, respectively.

Our earnings from unconsolidated affiliates, net of losses, are also affected by the impact of changes in foreign currency exchange rates on the reported results of our unconsolidated affiliates. During the three months ended September 30, 2011 and 2010, earnings from unconsolidated affiliates, net of losses, were decreased by $7.5million and increased by $0.1million, respectively, and during the six months ended September 30, 2011 and 2010, earnings from unconsolidated affiliates were decreased by $8.1million and $0.5million, respectively, as a result of the impact of changes in foreign currency exchange rates on the results of our unconsolidated affiliates, primarily our affiliate in Brazil.

Other Income (Expense), Net

In addition to the foreign currency items discussed above, other income (expense), net also includes gains on sales of two joint ventures of $0.6 million during the six months ended September 30, 2010.

Accounts Receivable

As of September 30 and March 31, 2011, the allowance for doubtful accounts for non-affiliates was $0.1 million. As of September 30 and March 31, 2011, the allowance for doubtful accounts for affiliates was zero.

Inventories

During the three and six months ended September 30, 2011, we recorded an impairment charge of $24.6 million to write-down certain spare parts within inventories to lower of cost or market.  This impairment charge resulted from the identification of $48.8 million of inventory that is dormant, obsolete or excess based on a review of our future inventory needs completed during the three months ended September 30, 2011.  This inventory review was driven by changes made in the three months ended September 30, 2011 to our future fleet strategy.  The change in fleet strategy resulted from (1) a continued shift in demand for our aircraft to newer technology aircraft types, (2) the introduction of the Bristow Client Promise through which we will position Bristow as the premium service provider of offshore transportation services and (3) the introduction of the new financial metric of Bristow Value Added.  The change in demand for our older aircraft has accelerated over the last few quarters as a result of a renewed focus on safety and reliability across the offshore energy industry after the Macondo oil spill in the U.S. Gulf of Mexico.  The change in fleet strategy resulted in the determination that we will operate certain older types of aircraft for a shorter period than originally anticipated andled to the global review of spare parts inventories supporting our fleet.  This impairment charge is included on a separate line within operating expense on the condensed consolidated statements of income.

Additionally, during the six months ended September 30, 2011, we sold inventory in Mexico for a loss of $1.0 million. This loss is recorded as a reduction in gain (loss) on disposal of assets on the condensed consolidated statement of income.

Property and Equipment

During the three and six months ended September 30, 2011, we recorded an impairment charge of $2.7 million resulting from the abandonment of certain assets located in Creole, Louisiana and used in our U.S. Gulf of Mexico operations as we ceased operations from that location.  This impairment charge is included in depreciation and amortization expense on the condensed consolidated statement of income.We expect to incur approximately $0.1million during the three months ended December 31, 2011 related to lease termination costs at this location.  Additionally, we recorded an impairment charge of $0.4 million to reduce the carrying value of three aircraft held for sale during the three and six months ended September 30, 2011.  This impairment charge is included as a reduction in gain on disposal of assets on the condensed consolidated statement of income. Also, during the three months ended September 30, 2011, we recorded a $1.1 million loss on the disposal of a fixed wing aircraft previously operating in Nigeria that was damaged in an incident upon landing. The aircraft was insured, but subject to self-insured retention and loss sensitive factors. The $1.1 million loss is included as a reduction in gain (loss) on disposal of assets in our condensed consolidated statement of income.

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement that provides a uniform framework for fair value measurements and related disclosures between U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) and International Financial Reporting Standards (“IFRS”).  This pronouncement does not extend the use of fair value but, rather, provides guidance about how fair value should be applied where it already is required or permitted under U.S. GAAP or IFRS.  Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity's use of a nonfinancial asset that is different from the asset's highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy.  The provisions for this pronouncement are effective for interim and annual periods beginning on or after December 15, 2011. We will adopt this pronouncement beginning January 1, 2012. 

In June 2011, the FASB issued an accounting pronouncement that provides new guidance on the presentation of comprehensive income in financial statements. Entities are required to present total comprehensive income either in a single, continuous statement of comprehensive income or in two, separate, but consecutive, statements. Under the single-statement approach, entities must include the components of net income, a total for net income, the components of other comprehensive income and a total for comprehensive income. Under the two-statement approach, entities must report a statement of income and, immediately following, a statement of comprehensive income. Under either method, entities must display adjustments for items reclassified from other comprehensive income to net income in both net income and comprehensive income. The provisions for this pronouncement are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We will adopt this pronouncement for our fiscal year beginning April 1, 2012.

In September 2011, the FASB amended the accounting guidance on the annual testing of goodwill for impairment. The amended guidance will allow companies to assess qualitative factors to determine if it is more likelythannot that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. This guidance will be effective for our fiscal year ending March 31, 2013, with early adoption permitted.  We have determined that this new guidance will not have a material impact on our consolidated financial statements.

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DEBT

6 Months Ended

Sep. 30, 2011

Debt [Abstract]

DEBT

Note 4 — DEBT

Debt as of September 30 and March 31, 2011consisted of the following (in thousands):

		September 30,		March 31,
		2011		2011
7 ½% Senior Notes due 2017, including $0.4 million of unamortized premium		$	350,378	$	350,410
Term Loan			200,000		200,000
Revolving Credit Facility			87,800		30,000
3% Convertible Senior Notes due 2038, including $14.1 million and $15.8 million of unamortized discount, respectively			100,885		99,219
Bristow Norway Debt			10,207		11,454
RLR Note			14,283		14,900
Other debt			807		1,478
	Total debt		764,360		707,461
	Less short-term borrowings and current maturities of long-term debt		(13,273)		(8,979)
	Total long-term debt	$	751,087	$	698,482

During fiscal year 2012, we made paymentsof $30.0 million to paydown our initial borrowing under the Revolving Credit Facility. Additionally, we have received proceeds from new borrowings under the Revolving Credit Facility of $87.8 million primarily for aircraft purchase payments.For further details on the Revolving Credit Facility, see Note 5 to the fiscal year 2011 Financial Statements.

The balances of the debt and equity components of the 3% Convertible Senior Notes due 2038 (“3% Convertible Senior Notes”) as of each period presented are as follows (in thousands):

		September 30,		March 31,
		2011		2011
Equity component – net carrying value		$	14,905	$	14,905
Debt component:
	Face amount due at maturity	$	115,000	$	115,000
	Unamortized discount		(14,115)		(15,781)
	Debt component – net carrying value	$	100,885	$	99,219

The remaining debt discount is being amortized into interest expense over the expected four year remaining life of the 3% Convertible Senior Notes using the effective interest rate. The effective interest rate for the three and sixmonths ended September 30,2011 and 2010 was 6.9%. Interest expense related to our 3% Convertible Senior Notes for the three and sixmonths ended September 30,2011 and 2010was as follows (in thousands):

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Contractual coupon interest		$	863	$	863	$	1,726	$	1,726
Amortization of debt discount			844		789		1,666		1,565
	Total interest expense	$	1,707	$	1,652	$	3,392	$	3,291

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SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION CF (Details) (USD $) In Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2011	Jun. 30, 2011	Sep. 30, 2011	Sep. 30, 2010
Cash Flow [Line Items]
Net cash provided by (used in) operating activities			$ 116,993	$ 69,184
Capital expenditures			(149,262)	(63,943)
Deposits on assets held for sale			0	1,000
Proceeds from sale of joint ventures			0	1,291
Proceeds from asset dispositions			12,040	17,178
Net cash used in investing activities			(137,222)	(44,474)
Proceeds from borrowings			88,493	10,012
Repayment of debt			(32,518)	(7,630)
Dividends paid	(5,400)	(5,400)
Distributions to noncontrolling interest owners			0	(637)
Increases (decreases) in cash related to intercompany advances and debt			0	0
Partial Prepayment Of Put Call Obligation			(31)	(28)
Acquisition of noncontrolling interest			(262)	(800)
Issuance of Common Stock			1,629	111
Tax benefit related to stock-based compensation			109	179
Net cash provided by (used in) financing activities			46,587	1,207
Effect of exchange rate changes on cash and cash equivalents			(2,440)	4,791
Net increase (decrease) in cash and cash equivalents			23,918	30,708
Cash and cash equivalents at beginning of period		116,361	116,361	77,793
Cash and cash equivalents at end of period	140,279		140,279	108,501
Parent Company [Member]
Cash Flow [Line Items]
Net cash provided by (used in) operating activities			(18,520)	(23,393)
Capital expenditures			(418)	(1,696)
Deposits on assets held for sale				0
Proceeds from sale of joint ventures				0
Proceeds from asset dispositions			0	0
Net cash used in investing activities			(418)	(1,696)
Proceeds from borrowings			87,800	0
Repayment of debt			(30,000)	0
Dividends paid			40,564	13,030
Distributions to noncontrolling interest owners				0
Increases (decreases) in cash related to intercompany advances and debt			(22,056)	8,835
Partial Prepayment Of Put Call Obligation			(31)	(28)
Acquisition of noncontrolling interest			0	0
Issuance of Common Stock			1,629	111
Tax benefit related to stock-based compensation			109	179
Net cash provided by (used in) financing activities			78,015	22,127
Effect of exchange rate changes on cash and cash equivalents			0	0
Net increase (decrease) in cash and cash equivalents			59,077	(2,962)
Cash and cash equivalents at beginning of period		24,075	24,075	16,555
Cash and cash equivalents at end of period	83,152		83,152	13,593
Guarantor Subsidiaries [Member]
Cash Flow [Line Items]
Net cash provided by (used in) operating activities			60,830	25,304
Capital expenditures			(78,620)	(30,957)
Deposits on assets held for sale				1,000
Proceeds from sale of joint ventures				0
Proceeds from asset dispositions			8,129	11,280
Net cash used in investing activities			(70,491)	(18,677)
Proceeds from borrowings			0	8,049
Repayment of debt			0	0
Dividends paid			(24,927)	(11,500)
Distributions to noncontrolling interest owners				0
Increases (decreases) in cash related to intercompany advances and debt			32,153	(5,010)
Partial Prepayment Of Put Call Obligation			0	0
Acquisition of noncontrolling interest			(262)	0
Issuance of Common Stock			0	0
Tax benefit related to stock-based compensation			0	0
Net cash provided by (used in) financing activities			6,964	(8,461)
Effect of exchange rate changes on cash and cash equivalents			0	0
Net increase (decrease) in cash and cash equivalents			(2,697)	(1,834)
Cash and cash equivalents at beginning of period		5,233	5,233	1,834
Cash and cash equivalents at end of period	2,536		2,536	0
Non-Guarantor Subsidiaries [Member]
Cash Flow [Line Items]
Net cash provided by (used in) operating activities			74,683	68,550
Capital expenditures			(70,224)	(31,290)
Deposits on assets held for sale				0
Proceeds from sale of joint ventures				1,291
Proceeds from asset dispositions			3,911	5,898
Net cash used in investing activities			(66,313)	(24,101)
Proceeds from borrowings			693	1,963
Repayment of debt			(2,518)	(7,630)
Dividends paid			(26,470)	(1,530)
Distributions to noncontrolling interest owners				(637)
Increases (decreases) in cash related to intercompany advances and debt			(10,097)	(3,825)
Partial Prepayment Of Put Call Obligation			0	0
Acquisition of noncontrolling interest			0	(800)
Issuance of Common Stock			0	0
Tax benefit related to stock-based compensation			0	0
Net cash provided by (used in) financing activities			(38,392)	(12,459)
Effect of exchange rate changes on cash and cash equivalents			(2,440)	4,791
Net increase (decrease) in cash and cash equivalents			(32,462)	36,781
Cash and cash equivalents at beginning of period		87,053	87,053	59,404
Cash and cash equivalents at end of period	54,591		54,591	96,185
Consolidations, Eliminations [Member]
Cash Flow [Line Items]
Net cash provided by (used in) operating activities			0	(1,277)
Capital expenditures			0	0
Deposits on assets held for sale				0
Proceeds from sale of joint ventures				0
Proceeds from asset dispositions			0	0
Net cash used in investing activities			0	0
Proceeds from borrowings			0	0
Repayment of debt			0	0
Dividends paid			0	0
Distributions to noncontrolling interest owners				0
Increases (decreases) in cash related to intercompany advances and debt			0	0
Partial Prepayment Of Put Call Obligation			0	0
Acquisition of noncontrolling interest			0	0
Issuance of Common Stock			0	0
Tax benefit related to stock-based compensation			0	0
Net cash provided by (used in) financing activities			0	0
Effect of exchange rate changes on cash and cash equivalents			0	0
Net increase (decrease) in cash and cash equivalents			0	(1,277)
Cash and cash equivalents at beginning of period		0	0	0
Cash and cash equivalents at end of period	$ 0		$ 0	$ (1,277)

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FAIR VALUE DISCLOSURES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2011	Mar. 31, 2011
Fair Value [Line Items]
Inventories	$ 157,266	$ 196,207
Assets held for sale	31,642	31,556
Derivative asset		3,306
Rabbi Trust investments	3,088	4,091
Total Assets	3,088	7,397
Debt Instrument, Interest Rate, Stated Percentage	6.90%
Carrying value of total debt	764,360	707,461
Fair value of total debt	783,516	740,261
Fair Value, Inputs, Level 1 [Member]
Fair Value [Line Items]
Inventories	0
Assets held for sale	649
Total assets	649
Derivative asset		0
Rabbi Trust investments	3,088	4,091
Total Assets	3,088	4,091
Fair Value, Inputs, Level 2 [Member]
Fair Value [Line Items]
Inventories	48,801
Assets held for sale	0
Total assets	48,801
Derivative asset		3,306
Rabbi Trust investments	0	0
Total Assets	0	3,306
Fair Value, Inputs, Level 3 [Member]
Fair Value [Line Items]
Inventories	0
Assets held for sale	0
Total assets	0
Derivative asset		0
Rabbi Trust investments	0	0
Total Assets	0	0
Senior Notes [Member]
Fair Value [Line Items]
Carrying value of total debt	350,378	350,410
Fair value of total debt	357,000	367,500
Term Loan [Member]
Fair Value [Line Items]
Carrying value of total debt	200,000	200,000
Fair value of total debt	200,000	200,000
Revolving Credit Facility [Member]
Fair Value [Line Items]
Carrying value of total debt	87,800	30,000
Fair value of total debt	87,800	30,000
Convertible Senior Notes [Member]
Fair Value [Line Items]
Carrying value of total debt	100,885	99,219
Fair value of total debt	113,419	114,929
All Other Debt [Member]
Fair Value [Line Items]
Carrying value of total debt	25,297	27,832
Fair value of total debt	$ 25,297	$ 27,832

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FAIR VALUE DISCLOSURES

6 Months Ended

Sep. 30, 2011

Fair Value Disclosures [Abstract]

FAIR VALUE DISCLOSURES

Note 5 — FAIR VALUE DISCLOSURES

Assets and liabilities subject to fair value measurement are categorized into one of three different levels depending on the observability of the inputs employed in the measurement, as follows:

• Level 1 –observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
• Level 2 – inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
• Level 3 –unobservable inputs reflecting the Company's own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

Non-recurring Fair Value Measurements

The majority of our non-financial assets, which include inventories, property and equipment, goodwill and other intangible assets, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur such that a non-financial asset is required to be evaluated for impairment and deemed to be impaired, the impaired non-financial asset is recorded as its fair value. We had no impaired assets during the three and six months ended September 30, 2010.

The following table summarizes the assets as of September 30, 2011, which are valued at fair value on a non-recurring basis (in thousands):

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Total Gain (Loss) for the Three and Six Months Ended September 30, 2011
Inventories		$	0	$	48,801	$	0	$	48,801	$	(24,610)
Assets held for sale			649		0		0		649		(400)
	Total assets	$	649	$	48,801	$	0	$	49,450	$	(25,010)

The fair value of inventories using Level 2 inputs is determined by evaluating the current economic conditions for sale and disposal of spare parts, which includes estimates as to the recoverability of the carrying value of the parts based on historical experience with sales and disposal of similar spare parts, the expected timeframe of sales or disposals, the location of the spare parts to be sold and the condition of the spare parts to be sold or otherwise disposed of. See Note 1 for further discussion of the impairment of inventories. The fair value of the assets held for sale is the sales price of these aircraft which are Level 1.

Recurring Fair Value Measurements

The following table summarizes the financial instruments we had as of September 30,2011, which are valued at fair value on a recurring basis (in thousands):

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Balance Sheet Classification
Rabbi Trust investments			3,088		0		0		3,088	Other assets
	Total assets	$	3,088	$	0	$	0	$	3,088

The following table summarizes the financial instruments we had as of March 31, 2011, which are valued at fair value on a recurring basis (in thousands):

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of March 31, 2011		Balance Sheet Classification
Derivative asset		$	0	$	3,306	$	0	$	3,306	Prepaid expenses and other current assets
Rabbi Trust investments			4,091		0		0		4,091	Other assets
	Total assets	$	4,091	$	3,306	$	0	$	7,397

The rabbi trust investments consist of money market and mutual funds whose fair value is based on quoted prices in active markets for identical assets, and are designated as Level 1 within the valuation hierarchy. The rabbi trust holds investments related to our non-qualified deferred compensation plan for our senior executives. The methods and assumptions used to estimate the fair values of the derivative assets in the table above include the mark-to-market statements from the counterparties, which can be validated using modeling techniques that include market inputs, such as publicly available forward market rates, and are designated as Level 2 within the valuation hierarchy.

Fair Value of Financial Instruments

The fair value of our financial instruments has been estimated in accordance with the accounting standard regarding fair value. The fair value of our fixed rate long-term debt is estimated based on quoted market prices. The carrying and fair value of our long-term debt, including the current portion, are as follows (in thousands):

	September 30, 2011				March 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
7 ½% Senior Notes	$	350,378	$	357,000	$	350,410	$	367,500
Term Loan		200,000		200,000		200,000		200,000
Revolving Credit Facility		87,800		87,800		30,000		30,000
3% Convertible Senior Notes		100,885		113,419		99,219		114,929
Other		25,297		25,297		27,832		27,832
	$	764,360	$	783,516	$	707,461	$	740,261

Other

The fair values of our cash and cash equivalents, accounts receivable and accounts payable approximate their carrying value due to the short-term nature of these items.

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ACQUISITIONS AND DISPOSITIONS (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2011	Jul. 15, 2011
Business Acquisition [Abstract]
1% interest in RLR		1.00%
Purchase price of 1% of RLR	$ 0.3

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COMMITMENTS AND CONTINGENCIES (Details) (USD $)	6 Months Ended							3 Months Ended			3 Months Ended
	Sep. 30, 2011 number	Oct. 31, 2011 number	Sep. 30, 2011 Remainder of Year 2012 [Member] number	Sep. 30, 2011 Year 2013 [Member] number	Sep. 30, 2011 Year 2014 [Member] number	Sep. 30, 2011 Year 2015 [Member] number	Sep. 30, 2011 Year 2016 and Thereafter [Member] number	Sep. 30, 2011 Commitments [Member] number	Jun. 30, 2011 Commitments [Member] number	Jun. 30, 2010 Commitments [Member] number	Sep. 30, 2011 Options [Member] number	Jun. 30, 2011 Options [Member] number	Jun. 30, 2010 Options [Member] number
Aircraft Purchase Contracts [Line Items]
Aircraft Purchase Commitments - Total	$ 191,955,000		$ 119,894,000	$ 72,061,000	$ 0	$ 0	$ 0
Aircraft Purchase Options - Total	951,254,000		62,939,000	190,158,000	239,964,000	189,251,000	268,942,000
Number of aircraft purchase commitments - Large	10		4	6	0	0	0
Number of aircraft purchase commitments - Total	10		4	6	0	0	0
Number of aircraft purchase options - Medium	12		0	2	4	6	0
Number of aircraft purchase options - Large	25		0	3	7	4	11
Number of aircraft purchase options - Total	37		0	5	11	10	11
Number of signed client contracts	6
Number of aircraft orders cancellable	4
Cancellation Penalty	800,000
Number of aircraft purchase commitments - subsequent event		8
Aircraft purchase commitments - subsequent event		$ 144,000,000
Analysis Of Aircraft Orders And Options [Line Items]
Beginning of quarter								11	6	11	39	31	39
Aircraft delivered								(3)	(2)		0	0
Aircraft ordered								2	3		0	0
New options								0	0		0	19
Exercised options								0	4		3	(4)
Expired options								0	0		(5)	(7)
End of quarter								10	11	11	37	39	39
Collective Bargaining Agreements and/or Unions	52.00%
Employee Agreement Escalation Rate	annual escalations of up to 8.8%
Possible litigation damages from early termination of agreement	The claimants allege that an agreement between the parties was terminated without justification and seek damages of $16.3 million.
Description of Guarantees Given by Parent Company	We have guaranteed the repayment of up to £10 million ($15.6 million) of the debt of FBS Limited, an unconsolidated affiliate, which expires December 31, 2012.

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DEBT (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Mar. 31, 2011
Debt Instrument [Line Items]
Total debt	$ 764,360,000		$ 764,360,000		$ 707,461,000
Less short-term borrowings and current maturities of long-term debt	(13,273,000)		(13,273,000)		(8,979,000)
Long-term debt, less current maturities	751,087,000		751,087,000		698,482,000
Repayment of debt			32,518,000	7,630,000
Proceeds from borrowings			88,493,000	10,012,000
Debt Instrument, Interest Rate, Stated Percentage	6.90%		6.90%
Long Term Convertible Debt Current And Noncurrent [Abstract]
Amortization of debt discount			1,666,000	1,565,000
Senior Notes Due 2017 [Member]
Debt Instrument [Line Items]
Total debt	350,378,000		350,378,000		350,410,000
Debt Instrument, Interest Rate, Stated Percentage	7.50%		7.50%		7.50%
Unamortized premium	400,000		400,000		400,000
Term Loan [Member]
Debt Instrument [Line Items]
Total debt	200,000,000		200,000,000		200,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total debt	87,800,000		87,800,000		30,000,000
Repayment of debt			30,000,000
Proceeds from borrowings			87,800,000
Convertible Senior Notes Due 2038 [Member]
Debt Instrument [Line Items]
Total debt	100,885,000		100,885,000		99,219,000
Debt Instrument, Interest Rate, Stated Percentage	3.00%		3.00%		3.00%
The Balances Of The Debt And Equity Components [Abstract]
Equity component- net carrying value	14,905,000		14,905,000		14,905,000
Debt component- face amount at maturity	115,000,000		115,000,000		115,000,000
Debt component- unamortized discount	(14,115,000)		(14,115,000)		(15,781,000)
Debt component- net carrying value	100,885,000		100,885,000		99,219,000
Long Term Convertible Debt Current And Noncurrent [Abstract]
Debt discount amortization period			four year
Contractual coupon interest	863,000	863,000	1,726,000	1,726,000
Amortization of debt discount	844,000	789,000	1,666,000	1,565,000
Total interest expense	1,707,000	1,652,000	3,392,000	3,291,000
Bristow Norway Debt [Member]
Debt Instrument [Line Items]
Total debt	10,207,000		10,207,000		11,454,000
RLR Note [Member]
Debt Instrument [Line Items]
Total debt	14,283,000		14,283,000		14,900,000
Other debt [Member]
Debt Instrument [Line Items]
Total debt	$ 807,000		$ 807,000		$ 1,478,000

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BASIS OF PRESENTATION, CONSOLIDATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Sep. 30, 2011

Foreign Currency Transaction [Abstract]

Schedule of foreign exchange rates

		Three Months Ended		Six Months Ended
		September 30,		September 30,
		2011	2010	2011	2010
One British pound sterling into U.S. dollars
	High	1.66	1.60	1.66	1.60
	Average	1.61	1.55	1.62	1.52
	Low	1.53	1.51	1.53	1.43
	At period-end	1.56	1.58	1.56	1.58
One euro into U.S. dollars
	High	1.45	1.37	1.49	1.37
	Average	1.41	1.29	1.42	1.28
	Low	1.34	1.25	1.34	1.19
	At period-end	1.34	1.37	1.34	1.37
One Australian dollar into U.S. dollars
	High	1.10	0.97	1.10	0.97
	Average	1.05	0.91	1.06	0.89
	Low	0.97	0.84	0.97	0.81
	At period-end	0.97	0.97	0.97	0.97
One Nigerian naira into U.S. dollars
	High	0.0068	0.0068	0.0068	0.0070
	Average	0.0066	0.0067	0.0065	0.0067
	Low	0.0063	0.0065	0.0063	0.0065
	At period-end	0.0064	0.0066	0.0064	0.0066

Schedule of foreign exchange impact

	Three Months Ended		Six Months Ended
	September 30, 2011		September 30, 2011
Revenue	$	11,166	$	29,334
Operating expense		(9,810)		(25,446)
Earnings from unconsolidated affiliates, net of losses		(7,572)		(7,550)
Non-operating expense		(1,321)		(1,068)
Income before provision for income taxes		(7,537)		(4,730)
Provision for income taxes		1,209		542
Net income		(6,328)		(4,188)
Cumulative translation adjustment		(12,145)		(11,360)
Total stockholders' investment	$	(18,473)	$	(15,548)

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DERIVATIVES

6 Months Ended

Sep. 30, 2011

Derivatives [Abstract]

DERIVATIVES

NOTE 6 — DERIVATIVE FINANCIAL INSTRUMENTS

From time to time we enter into forward exchange contracts as a hedge against foreign currency asset and liability commitments and anticipated transaction exposures, including intercompany purchases. All derivatives are recognized as assets or liabilities and measured at fair value. Derivatives that are not determined to be effective hedges are adjusted to fair value with a corresponding effect on earnings. We do not use financial instruments for trading or speculative purposes.

We entered into forward contracts during the three months ended June 30, 2011 and fiscal year2011 to mitigate our exposure to exchange rate fluctuations on our euro-denominated aircraft purchase commitments, which have been designated as cash flow hedges for accounting purposes. We had six open forward contracts as of March 31, 2011, which had rates ranging from 1.3153 U.S. dollars per euro to 1.3267 U.S. dollars per euro. These contracts had an underlying notional value of between €5,000,000 and €7,000,000, for a total of €34,300,871, with the first contract expiring in May 2011 and the last in June 2011. During the three months ended June 30, 2011, we entered into anadditional open forward contractat a rate of 1.418 U.S. dollars per euro with an underlying notional value of €13,826,241that expired inJuly 2011. As of September 30, 2011, we had no open forward contracts. As ofMarch 31, 2011, the fair value of these contracts was an asset of $3.3millionand is included in prepaid expenses and other current assets in our condensed consolidated balance sheets. As of March 31, 2011, an unrecognized gain on these contracts of $2.2million, net of tax, was included as a component of accumulated other comprehensive loss. No gains or losses relating to forward contracts are recognized in our condensed consolidated statements of income for the three or six months ended September 30, 2011 and 2010.

Information on the location and amounts of derivative gains and losses on the condensed consolidated balance sheet and the condensed consolidated statement of income as of and for the three months ended September 30,2011 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	(1,653)	Other income (expense), net	$	0	Other income (expense), net	$	0
	$	(1,653)		$	0		$	0

Information on the location and amounts of derivative gains and losses on the condensed consolidated balance sheet and the condensed consolidated statement of income as of and for the six months endedSeptember 30,2011 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	(2,150)	Other income (expense), net	$	0	Other income (expense), net	$	0
	$	(2,150)		$	0		$	0

Information on the location and amounts of derivative gains and losses on the condensed consolidated balance sheet and the condensed consolidated statement of income as of and for the three and sixSeptember 30,2010 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	860	Other income (expense), net	$	0	Other income (expense), net	$	0
	$	860		$	0		$	0

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FAIR VALUE DISCLOSURES (Tables)

6 Months Ended

12 Months Ended

Sep. 30, 2011

Mar. 31, 2011

Fair Value [Abstract]

Schedule of fair value assets measured on non-recurring basis

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Total Gain (Loss) for the Three and Six Months Ended September 30, 2011
Inventories		$	0	$	48,801	$	0	$	48,801	$	(24,610)
Assets held for sale			649		0		0		649		(400)
	Total assets	$	649	$	48,801	$	0	$	49,450	$	(25,010)

Schedule of fair value assets measured on recurring basis

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of September 30, 2011		Balance Sheet Classification
Rabbi Trust investments			3,088		0		0		3,088	Other assets
	Total assets	$	3,088	$	0	$	0	$	3,088

		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of March 31, 2011		Balance Sheet Classification
Derivative asset		$	0	$	3,306	$	0	$	3,306	Prepaid expenses and other current assets
Rabbi Trust investments			4,091		0		0		4,091	Other assets
	Total assets	$	4,091	$	3,306	$	0	$	7,397

Schedule of fair value of debt

	September 30, 2011				March 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
7 ½% Senior Notes	$	350,378	$	357,000	$	350,410	$	367,500
Term Loan		200,000		200,000		200,000		200,000
Revolving Credit Facility		87,800		87,800		30,000		30,000
3% Convertible Senior Notes		100,885		113,419		99,219		114,929
Other		25,297		25,297		27,832		27,832
	$	764,360	$	783,516	$	707,461	$	740,261

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SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION BS (Details) (USD $) In Thousands	Sep. 30, 2011	Mar. 31, 2011	Sep. 30, 2010	Mar. 31, 2010
Balance Sheet [Line Items]
Cash and cash equivalents	$ 140,279	$ 116,361	$ 108,501	$ 77,793
Accounts receivable	267,604	262,519
Inventories	157,266	196,207
Assets held for sale	31,642	31,556
Prepaid expenses and other current assets	14,431	22,118
Total current assets	611,222	628,761
Intercompany investment	0	0
Investment in unconsolidated affiliates	202,437	208,634
Intercompany notes receivable	0	0
Land and buildings	77,701	98,054
Aircraft and equipment	2,210,853	2,116,259
Total property and equipment, at cost	2,288,554	2,214,313
Less - Accumulated depreciation and amortization	(465,235)	(446,431)
Total property and equipment, net	1,823,319	1,767,882
Goodwill	29,247	32,047
Other assets	34,193	38,030
Total assets	2,700,418	2,675,354
Accounts payable	47,008	56,972
Accrued liabilities	101,922	101,917
Current deferred taxes	7,020	12,176
Short-term borrowings and current maturities of long-term debt	13,273	8,979
Total current liabilities	169,223	180,044
Long-term debt, less current maturities	751,087	698,482
Intercompany notes payable	0	0
Accrued pension liabilities	97,237	99,645
Other liabilities and deferred credits	13,398	30,109
Deferred taxes	144,621	148,299
Common stock	362	363
Additional paid-in capital	696,268	689,795
Retained earnings	964,444	951,660
Accumulated other comprehensive income (loss)	(143,627)	(130,117)
Stockholders' equity	1,517,447	1,511,701
Noncontrolling interests	7,405	7,074
Total stockholders' investment	1,524,852	1,518,775
Total liabilities and stockholders' investment	2,700,418	2,675,354
Parent Company [Member]
Balance Sheet [Line Items]
Cash and cash equivalents	83,152	24,075	13,593	16,555
Accounts receivable	12,000	19,283
Inventories	0	0
Assets held for sale	0	0
Prepaid expenses and other current assets	305	438
Total current assets	95,457	43,796
Intercompany investment	1,229,027	1,249,822
Investment in unconsolidated affiliates	0	0
Intercompany notes receivable	1,041,100	978,221
Land and buildings	211	210
Aircraft and equipment	12,654	11,901
Total property and equipment, at cost	12,865	12,111
Less - Accumulated depreciation and amortization	(5,206)	(3,424)
Total property and equipment, net	7,659	8,687
Goodwill	0	0
Other assets	123,022	124,770
Total assets	2,496,265	2,405,296
Accounts payable	824	1,569
Accrued liabilities	18,178	17,513
Current deferred taxes	(2,395)	1,336
Short-term borrowings and current maturities of long-term debt	10,000	5,000
Total current liabilities	26,607	25,418
Long-term debt, less current maturities	729,063	674,629
Intercompany notes payable	0	0
Accrued pension liabilities	0	0
Other liabilities and deferred credits	6,306	5,862
Deferred taxes	124,644	119,297
Common stock	362	363
Additional paid-in capital	696,268	689,795
Retained earnings	964,444	951,660
Accumulated other comprehensive income (loss)	(52,963)	(63,186)
Stockholders' equity	1,608,111	1,578,632
Noncontrolling interests	1,534	1,458
Total stockholders' investment	1,609,645	1,580,090
Total liabilities and stockholders' investment	2,496,265	2,405,296
Guarantor Subsidiaries [Member]
Balance Sheet [Line Items]
Cash and cash equivalents	2,536	5,233	0	1,834
Accounts receivable	95,190	77,690
Inventories	61,698	85,937
Assets held for sale	2,505	1,488
Prepaid expenses and other current assets	3,389	9,017
Total current assets	165,318	179,365
Intercompany investment	111,435	111,435
Investment in unconsolidated affiliates	150	150
Intercompany notes receivable	0	0
Land and buildings	49,075	53,448
Aircraft and equipment	884,461	810,758
Total property and equipment, at cost	933,536	864,206
Less - Accumulated depreciation and amortization	(175,529)	(165,212)
Total property and equipment, net	758,007	698,994
Goodwill	4,755	4,755
Other assets	4,307	4,477
Total assets	1,043,972	999,176
Accounts payable	29,774	15,097
Accrued liabilities	23,191	22,903
Current deferred taxes	32	(81)
Short-term borrowings and current maturities of long-term debt	0	0
Total current liabilities	52,997	37,919
Long-term debt, less current maturities	0	0
Intercompany notes payable	341,246	318,190
Accrued pension liabilities	0	0
Other liabilities and deferred credits	8,283	8,251
Deferred taxes	8,660	9,122
Common stock	4,996	4,996
Additional paid-in capital	9,290	9,552
Retained earnings	618,500	611,146
Accumulated other comprehensive income (loss)	0	0
Stockholders' equity	632,786	625,694
Noncontrolling interests	0	0
Total stockholders' investment	632,786	625,694
Total liabilities and stockholders' investment	1,043,972	999,176
Non-Guarantor Subsidiaries [Member]
Balance Sheet [Line Items]
Cash and cash equivalents	54,591	87,053	96,185	59,404
Accounts receivable	211,894	203,286
Inventories	95,568	110,270
Assets held for sale	29,137	30,068
Prepaid expenses and other current assets	54,369	32,646
Total current assets	445,559	463,323
Intercompany investment	0	0
Investment in unconsolidated affiliates	202,287	208,484
Intercompany notes receivable	(6,349)	(7,342)
Land and buildings	28,415	44,396
Aircraft and equipment	1,313,738	1,293,600
Total property and equipment, at cost	1,342,153	1,337,996
Less - Accumulated depreciation and amortization	(284,500)	(277,795)
Total property and equipment, net	1,057,653	1,060,201
Goodwill	24,492	27,292
Other assets	174,486	179,936
Total assets	1,898,128	1,931,894
Accounts payable	61,654	57,734
Accrued liabilities	106,813	81,885
Current deferred taxes	9,383	10,921
Short-term borrowings and current maturities of long-term debt	3,273	3,979
Total current liabilities	181,123	154,519
Long-term debt, less current maturities	22,024	23,853
Intercompany notes payable	794,524	772,420
Accrued pension liabilities	97,237	99,645
Other liabilities and deferred credits	168,982	187,202
Deferred taxes	11,317	19,880
Common stock	22,826	22,852
Additional paid-in capital	484,038	470,883
Retained earnings	33,675	77,281
Accumulated other comprehensive income (loss)	76,511	97,743
Stockholders' equity	617,050	668,759
Noncontrolling interests	5,871	5,616
Total stockholders' investment	622,921	674,375
Total liabilities and stockholders' investment	1,898,128	1,931,894
Consolidations, Eliminations [Member]
Balance Sheet [Line Items]
Cash and cash equivalents	0	0	(1,277)	0
Accounts receivable	(51,480)	(37,740)
Inventories	0	0
Assets held for sale	0	0
Prepaid expenses and other current assets	(43,632)	(19,983)
Total current assets	(95,112)	(57,723)
Intercompany investment	(1,340,462)	(1,361,257)
Investment in unconsolidated affiliates	0	0
Intercompany notes receivable	(1,034,751)	(970,879)
Land and buildings	0	0
Aircraft and equipment	0	0
Total property and equipment, at cost	0	0
Less - Accumulated depreciation and amortization	0	0
Total property and equipment, net	0	0
Goodwill	0	0
Other assets	(267,622)	(271,153)
Total assets	(2,737,947)	(2,661,012)
Accounts payable	(45,244)	(17,428)
Accrued liabilities	(46,260)	(20,384)
Current deferred taxes	0	0
Short-term borrowings and current maturities of long-term debt	0	0
Total current liabilities	(91,504)	(37,812)
Long-term debt, less current maturities	0	0
Intercompany notes payable	(1,135,770)	(1,090,610)
Accrued pension liabilities	0	0
Other liabilities and deferred credits	(170,173)	(171,206)
Deferred taxes	0	0
Common stock	(27,822)	(27,848)
Additional paid-in capital	(493,328)	(480,435)
Retained earnings	(652,175)	(688,427)
Accumulated other comprehensive income (loss)	(167,175)	(164,674)
Stockholders' equity	(1,340,500)	(1,361,384)
Noncontrolling interests	0	0
Total stockholders' investment	(1,340,500)	(1,361,384)
Total liabilities and stockholders' investment	$ (2,737,947)	$ (2,661,012)

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VARIABLE INTEREST ENTITIES (Details)	6 Months Ended		3 Months Ended		6 Months Ended																																							6 Months Ended
	Sep. 30, 2011 USD ($)	Sep. 30, 2011 GBP (£)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] USD ($)	Sep. 30, 2010 Bristow Aviation Holdings Limited [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] USD ($)	Sep. 30, 2010 Bristow Aviation Holdings Limited [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Cash and cash equivalents [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Cash and cash equivalents [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Accounts receivable [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Accounts receivable [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Inventories [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Inventories [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Prepaid expenses and other current assets [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Prepaid expenses and other current assets [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Total current assets [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Total current assets [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Investment in unconsolidated affiliates [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Investment in unconsolidated affiliates [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Property and equipment, net [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Property and equipment, net [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Goodwill [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Goodwill [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Other assets [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Other assets [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Accounts payable [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Accounts payable [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Accrued liabilities [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Accrued liabilities [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Curent Deferred Taxes [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Curent Deferred Taxes [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Maturities of long-term debt [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Maturities of long-term debt [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Total current liabilities [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Total current liabilities [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Long-term debt, less current maturities [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Long-term debt, less current maturities [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Accrued pension liabilities [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Accrued pension liabilities [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Other liabilities and deferred credits [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Other liabilities and deferred credits [Member] USD ($)	Sep. 30, 2011 Bristow Aviation Holdings Limited [Member] Long Term Deferred Taxes [Member] USD ($)	Mar. 31, 2011 Bristow Aviation Holdings Limited [Member] Long Term Deferred Taxes [Member] USD ($)	Sep. 30, 2011 Bristow Helicopters Nigeria Ltd [Member]	Sep. 30, 2011 Pan African Airlines Nigeria Ltd [Member]
Variable Interest Entities And Other Investments [Line Items]
Ownership percentage in Variable Interest Entity					49.00%																																							40.00%	50.17%
Purchase of deferred stock shares	eight million shares
Purchase of deferred stock value	$ 14,400,000
Principal amount of subordinated unsecured loan stock	141,800,000
Interest rate on unsecured loan	13.50%
Deferred interest cost	908,200,000
Call option price held by noncontrolling interest		1,000,000
Annual guaranteed rate of return	We have accrued the annual return due to the other shareholders at a rate of sterling LIBOR plus 3% (prior to May 2004, the rate was fixed at 12%) by recognizing noncontrolling interest expense in our condensed consolidated statements of income, with a corresponding increase in noncontrolling interest on our condensed consolidated balance sheets. Prepayments of the guaranteed return element of the call option are reflected as a reduction in noncontrolling interest on our condensed consolidated balance sheets. The other investors have an option to put their shares in Bristow Aviation to us. The put option price is calculated in the same way as the call option price except that the guaranteed rate for the period to April 2004 was 10% per annum.
VIE Financial Information
Total assets			618,286,000		618,286,000		638,945,000	39,362,000	29,840,000	201,030,000	190,896,000	93,902,000	108,586,000	65,478,000	50,296,000	399,772,000	379,618,000	12,686,000	12,344,000	184,505,000	221,274,000	13,167,000	15,915,000	8,156,000	9,794,000
Total Liabilities			1,343,289,000		1,343,289,000		1,272,352,000																			107,258,000	72,140,000	966,200,000	902,570,000	9,437,000	9,816,000	1,982,000	2,724,000	1,084,877,000	987,250,000	150,801,000	156,080,000	97,237,000	99,645,000	1,252,000	13,043,000	9,122,000	16,334,000
Revenue			252,292,000	223,609,000	497,618,000	427,827,000
Operating income			(18,387,000)	10,544,000	(16,515,000)	18,133,000
Net loss			$ 52,085,000	$ 21,875,000	$ 82,722,000	$ 41,468,000

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands	6 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net income	$ 24,180	$ 59,756
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	48,139	40,299
Deferred income taxes	(10,237)	4,385
Amortization of debt discount	1,666	1,565
Gain (loss) on disposal of assets	195	(3,615)
Impairment of inventories	24,610	0
Gain on sales of joint ventures	0	(572)
Stock-based compensation	7,480	8,019
Equity in earnings from unconsolidated affiliates less than dividends received	5,285	(890)
Tax benefit related to stock-based compensation	(109)	(179)
Increase (decrease) in cash resulting from changes in:
Accounts receivable	(6,352)	(24,940)
Inventories	7,916	(3,000)
Prepaid expenses and other assets	3,297	(14,363)
Accounts payable	5,382	9,774
Accrued liabilities	4,863	(2,917)
Other liabilities and deferred credits	678	(4,138)
Net cash provided by operating activities	116,993	69,184
Cash flows from investing activities:
Capital expenditures	(149,262)	(63,943)
Deposits on assets held for sale	0	1,000
Proceeds from sales of joint ventures	0	1,291
Proceeds from asset dispositions	12,040	17,178
Net cash used in investing activities	(137,222)	(44,474)
Cash flows from financing activities:
Proceeds from borrowings	88,493	10,012
Repayment of debt	(32,518)	(7,630)
Distributions to noncontrolling interest owners	0	(637)
Partial prepayment of put/call obligation	(31)	(28)
Acquisition of noncontrolling interest	(262)	(800)
Common stock dividends paid	(10,833)	0
Issuance of common stock	1,629	111
Tax benefit related to stock-based compensation	109	179
Net cash provided by (used in) financing activities	46,587	1,207
Effect of exchange rate changes on cash and cash equivalents	(2,440)	4,791
Net increase (decrease) in cash and cash equivalents	23,918	30,708
Cash and cash equivalents at beginning of period	116,361	77,793
Cash and cash equivalents at end of period	140,279	108,501
Supplemental disclosure of cash flow information:
Interest	18,937	22,856
Income taxes	$ 9,171	$ 7,559

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DERIVATIVES (Tables)

3 Months Ended

6 Months Ended

Sep. 30, 2011

Sep. 30, 2011

Sep. 30, 2010

Derivatives Disclosure [Abstract]

Schedule of derivative gains and losses

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	(1,653)	Other income (expense), net	$	0	Other income (expense), net	$	0
	$	(1,653)		$	0		$	0

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	(2,150)	Other income (expense), net	$	0	Other income (expense), net	$	0
	$	(2,150)		$	0		$	0

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Foreign currency forward contracts	$	860	Other income (expense), net	$	0	Other income (expense), net	$	0
	$	860		$	0		$	0

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Sep. 30, 2011

Employee Benefit Plans [Abstract]

Schedule of components of net periodic pension cost

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Service cost for benefits earned during the period	$	1,614	$	1,334	$	3,248	$	2,612
Interest cost on pension benefit obligation		7,122		6,658		14,334		13,040
Expected return on assets		(7,397)		(6,682)		(14,886)		(13,087)
Amortization of unrecognized losses		1,360		1,305		2,737		2,557
Net periodic pension cost	$	2,699	$	2,615	$	5,433	$	5,122

Schedule of Black Scholes Assumptions [Table Text Block]

Risk free interest rate		1.52	%
Expected life (years)		6
Volatility		47.05	%
Dividend yield		1.37	%
Weighted average exercise price of options granted	$	43.79	per option
Weighted average grant-date fair value of options granted	$	17.32	per option

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ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Sep. 30, 2011

Business Combinations [Abstract]

ACQUISITIONS AND DISPOSITIONS

Note 2¾ACQUISITION AND DISPOSITION

On January 14, 2011, we entered into an Equity Interest Purchase and Sale Agreement (the “Equity Agreement”) with Controladora De Servicios Aeronauticos, S.A. de C.V. (“CICSA”) and Rotorwing Financial Services, Inc. (“RFS”), the owner of the other 76% of Heliservicio Campeche S.A. de C.V. (“Heliservicio”) and the owner of the other 1% of Rotorwing Leasing Resources, L.L.C. (“RLR”), respectively. Through this agreement, we and our partners agreed that CICSA would purchase the remaining 24% interest in Heliservicio. Additionally, concurrent with the sale of our interest in Heliservicio, we would execute our option to purchase the 1% interest in RLR owned by RFS. This transaction closed on July 15, 2011 resulting in us having no ownership interest in Heliservicio and full ownership of RLR. Our ownership interest in Heliservicio transferred to CICSA for no proceeds; however, as we had impaired our investment in Heliservicio as of March 31, 2011 we recognized no gain or loss on this transaction during the three months ended September 30, 2011. We acquired the remaining 1% interest in RLR for $0.3 million.

We will continue to lease aircraft from RLR and other consolidated subsidiaries to Heliservicio under revised lease agreements.

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SEGMENT INFORMATION

6 Months Ended

Sep. 30, 2011

Segments [Abstract]

SEGMENT INFORMATION

Note 11¾ SEGMENT INFORMATION

We conduct our business in one segment: Helicopter Services. The Helicopter Services segment operations are conducted primarily through five business units: Europe, West Africa, North America, Australia, and Other International. Additionally, we also operate a training business unit, Bristow Academy, and provide technical services to clients in the U.S. and U.K.

The following shows reportable segment information for the three and six months ended September 30,2011 and 2010 and as of September 30 and March 31, 2011, where applicable, reconciled to consolidated totals, and prepared on the same basis as our condensed consolidated financial statements (in thousands):

			Three Months Ended September 30,				Six Months Ended September 30,
			2011		2010		2011		2010
Segment gross revenue from external clients:
	Europe		$	140,244	$	117,243	$	274,524	$	218,764
	West Africa			64,041		58,110		118,548		117,206
	North America			47,794		55,246		91,961		108,009
	Australia			33,323		37,364		78,618		72,655
	Other International			36,147		36,295		71,614		69,114
	Corporate and other			9,443		8,301		16,832		19,049
		Total segment gross revenue	$	330,992	$	312,559	$	652,097	$	604,797
Intrasegment gross revenue:
	Europe		$	(23)	$	352	$	235	$	522
	West Africa			0		0		0		0
	North America			463		35		538		83
	Australia			117		0		235		0
	Other International			0		0		0		0
	Corporate and other			120		120		(324)		214
		Total intrasegment gross revenue	$	677	$	507	$	684	$	819
Consolidated gross revenue reconciliation:
	Europe		$	140,221	$	117,595	$	274,759	$	219,286
	West Africa			64,041		58,110		118,548		117,206
	North America			48,257		55,281		92,499		108,092
	Australia			33,440		37,364		78,853		72,655
	Other International			36,147		36,295		71,614		69,114
	Corporate and other			9,563		8,421		16,508		19,263
	Intrasegment eliminations			(677)		(507)		(684)		(819)
		Total consolidated gross revenue	$	330,992	$	312,559	$	652,097	$	604,797

				Three Months Ended September 30,				Six Months Ended September 30,
				2011		2010		2011		2010
Earnings from unconsolidated affiliates, net of losses – equity method
	investments:
		Europe		$	2,466	$	2,789	$	5,324	$	4,740
		Other International			(6,510)		1,927		(3,375)		(670)
		Corporate and other			7		0		7		(56)
			Total earnings from unconsolidated affiliates, net of losses – equity method investments	$	(4,037)	$	4,716	$	1,956	$	4,014

			Three Months Ended September 30,				Six Months Ended September 30,
			2011		2010		2011		2010
Consolidated operating income (loss) reconciliation:
	Europe		$	23,586	$	21,612	$	46,835	$	39,911
	West Africa			16,120		17,158		27,351		32,794
	North America			2,571		8,904		4,155		14,212
	Australia			576		6,094		5,100		14,046
	Other International			2,089		11,102		13,999		13,367
	Corporate and other			(33,736)		(13,208)		(51,245)		(24,707)
	Gain (loss) on disposal of assets			(1,611)		1,897		(195)		3,615
		Total consolidated operating income	$	9,595	$	53,559	$	46,000	$	93,238

			Three Months Ended September 30,				Six Months Ended September 30,
			2011		2010		2011		2010
Depreciation and amortization:
	Europe		$	8,015	$	7,054	$	15,922	$	12,207
	West Africa			3,244		3,801		6,514		8,576
	North America			5,947		2,737		9,634		5,445
	Australia			2,816		2,704		5,938		5,357
	Other International			4,070		3,114		8,033		6,277
	Corporate and other			1,339		1,558		2,098		2,437
		Total depreciation and amortization	$	25,431	$	20,968	$	48,139	$	40,299

			September 30,		March 31,
			2011		2011
Identifiable assets:
	Europe		$	848,354	$	856,448
	West Africa			385,831		354,154
	North America			278,371		302,081
	Australia			290,694		288,036
	Other International			619,074		602,243
	Corporate and other			278,094		272,392
		Total identifiable assets (1)	$	2,700,418	$	2,675,354

				September 30,		March 31,
				2011		2011
Investments in unconsolidated affiliates – equity method investments:
	Europe			$	11,807	$	11,508
	Other International				183,810		190,736
		Total investments in unconsolidated affiliates – equity method		$	195,617	$	202,244
			investments

⁽¹⁾   Includes $124.9 million and $112.4 million, respectively of construction in progress within property and equipment on our condensed consolidated balance sheets as of September 30 and March 31, 2011, respectively, which primarily represents progress payments on aircraft to be delivered in future periods.

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TAXES (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Effective Income Tax Rate Reconciliation Tax Contingencies Abstract
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate	2.00%		2.00%
Unrecognized Tax Benefits Period Increase Decrease	$ 0.7	$ 1.3	$ 1.3	$ 1.6
Unrecognized Tax Benefits	13.3		13.3
Income Tax Interest and Penalties	$ 0.2	$ 0.2	$ 0.3	$ 0.3

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DEBT (Tables)

6 Months Ended

Sep. 30, 2011

Debt Instruments Abstract

Schedule of debt

		September 30,		March 31,
		2011		2011
7 ½% Senior Notes due 2017, including $0.4 million of unamortized premium		$	350,378	$	350,410
Term Loan			200,000		200,000
Revolving Credit Facility			87,800		30,000
3% Convertible Senior Notes due 2038, including $14.1 million and $15.8 million of unamortized discount, respectively			100,885		99,219
Bristow Norway Debt			10,207		11,454
RLR Note			14,283		14,900
Other debt			807		1,478
	Total debt		764,360		707,461
	Less short-term borrowings and current maturities of long-term debt		(13,273)		(8,979)
	Total long-term debt	$	751,087	$	698,482

Schedule of convertible debt

		September 30,		March 31,
		2011		2011
Equity component – net carrying value		$	14,905	$	14,905
Debt component:
	Face amount due at maturity	$	115,000	$	115,000
	Unamortized discount		(14,115)		(15,781)
	Debt component – net carrying value	$	100,885	$	99,219

Schedule of convertible debt interest expense

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
Contractual coupon interest		$	863	$	863	$	1,726	$	1,726
Amortization of debt discount			844		789		1,666		1,565
	Total interest expense	$	1,707	$	1,652	$	3,392	$	3,291

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Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data	3 Months Ended		6 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Gross revenue:
Operating revenue from non-affiliates	$ 288,780	$ 270,053	$ 565,809	$ 524,647
Operating revenue from affiliates	8,276	16,484	18,008	33,899
Reimbursable revenue from non-affiliates	33,673	25,933	67,974	45,996
Reimbursable revenue from affiliates	263	89	306	255
Total consolidated gross revenue	330,992	312,559	652,097	604,797
Operating expense:
Direct cost	203,635	189,110	400,257	372,274
Impairment of inventories	24,610	0	24,610	0
Reimbursable expense	32,770	25,020	65,904	45,198
Depreciation and amortization	25,431	20,968	48,139	40,299
General and administrative	29,303	30,515	68,948	61,417
Total operating expense	315,749	265,613	607,858	519,188
Gain (loss) on disposal of assets	(1,611)	1,897	(195)	3,615
Earnings from unconsolidated affiliates, net of losses	(4,037)	4,716	1,956	4,014
Operating income	9,595	53,559	46,000	93,238
Interest income	153	168	324	460
Interest expense	(9,459)	(11,452)	(18,414)	(22,490)
Other income (expense), net	727	(111)	931	404
Income before benefit (provision) for income taxes	1,016	42,164	28,841	71,612
Benefit (provision) for income taxes	1,945	(3,316)	(4,661)	(11,856)
Net income	2,961	38,848	24,180	59,756
Net income attributable to noncontrolling interests	(250)	32	(424)	(68)
Net income attributable to Bristow Group	2,711	38,880	23,756	59,688
Net income available to common stockholders	$ 2,711	$ 38,880	$ 23,756	$ 59,688
Earnings per common share:
Basic earnings per share	$ 0.07	$ 1.07	$ 0.66	$ 1.66
Diluted earnings per share	$ 0.07	$ 1.06	$ 0.65	$ 1.63
Cash dividends declared per common share	$ 0.15	$ 0.00	$ 0.30	$ 0.00

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COMPREHENSIVE INCOME, DIVIDENDS, SHARE REPURCHASES AND EARNINGS PER SHARE (Details) (USD $)	1 Months Ended	3 Months Ended			6 Months Ended
	Nov. 30, 2011	Sep. 30, 2011	Jun. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Comprehensive Income (Loss), Net of Tax, Dividends, Share Repurchases and Earnings Per Share [Abstract]
Net income		$ 2,961,000		$ 38,848,000	$ 24,180,000	$ 59,756,000
Currency translation adjustments		(12,145,000)		19,815,000	(11,360,000)	9,828,000
Unrealized gain (loss) on cash flow hedges, net		(1,653,000)		860,000	(2,150,000)	860,000
Comprehensive income		(10,837,000)		59,523,000	10,670,000	70,444,000
Dividends paid		5,400,000	5,400,000
Cash dividends declared per common share		$ 0.15		$ 0.00	$ 0.30	$ 0.00
Stock repurchase authorized amount	100,000,000
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Income available to common stockholders - basic		2,711,000		38,880,000	23,756,000	59,688,000
Interest expense on assumed conversion of 3% Convertible Notes, net of tax		0		0	0	0
Income available to common stockholders - diluted		$ 2,711,000		$ 38,880,000	$ 23,756,000	$ 59,688,000
Weighted average number of common shares outstanding - basic		36,157,917		36,174,615	36,165,247	35,975,141
Assumed conversion of 3% Convertible Senior Noted outstanding during the period		0		0	0	0
Net effect of dilutive stock options, restricted stock units and restricted stock awards based on the treasury stock method		614,191		546,758	659,893	550,682
Weighted average number of common shares outstanding - diluted		36,772,108		36,721,373	36,825,140	36,525,823
Basic earnings per share		$ 0.07		$ 1.07	$ 0.66	$ 1.66
Diluted earnings per share		$ 0.07		$ 1.06	$ 0.65	$ 1.63
Earnings Per Share Potentially Dilutive Securities		1.5 million		1.5 million	1.5 million	1.5 million
Debt Instrument Convertible Terms Of Conversion Feature					The initial base conversion price of the notes is approximately $77.34 (subject to adjustment in certain circumstances), based on the initial base conversion rate of 12.9307 shares of Common Stock per $1,000 principal amount of convertible notes. In general, upon conversion of a note, the holder will receive cash equal to the principal amount of the note and Common Stock to the extent of the note’s conversion value in excess of such principal amount. In addition, if at the time of conversion the applicable price of our Common Stock exceeds the base conversion price, holders will receive up to an additional 8.4049 shares of our Common Stock per $1,000 principal amount of notes, as determined pursuant to a specified formula.
Debt Instrument, Convertible, Conversion Price		$ 77.34		$ 77.34	$ 77.34	$ 77.34
Quarter To Date [Member] | Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding		528,501		544,615
Weighted average exercise price		$ 36.85		$ 31.49	$ 36.85	$ 31.49
Year To Date [Member] | Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding					531,679	437,122
Weighted average exercise price		$ 36.81		$ 32.90	$ 36.81	$ 32.90
Quarter To Date [Member] | Restricted Stock Units [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding		83,925		213,980
Weighted average exercise price		$ 46.70		$ 40.08	$ 46.70	$ 40.08
Year To Date [Member] | Restricted Stock Units [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding					83,937	219,651
Weighted average exercise price		$ 46.70		$ 40.02	$ 46.70	$ 40.02
Quarter To Date [Member] | Restricted Stock Awards [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding		0		0
Weighted average exercise price		$ 0.00		$ 0.00	$ 0.00	$ 0.00
Year To Date [Member] | Restricted Stock Awards [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding					0	0
Weighted average exercise price		$ 0.00		$ 0.00	$ 0.00	$ 0.00

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SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Mar. 31, 2011
Segment Reporting Information [Line Items]
Total segment gross revenue	$ 330,992,000	$ 312,559,000	$ 652,097,000	$ 604,797,000
Total intrasegment gross revenue	677,000	507,000	684,000	819,000
Total consolidated gross revenue	330,992,000	312,559,000	652,097,000	604,797,000
Total earnings from unconsolidated affiliates, net of losses - equity method investments	(4,037,000)	4,716,000	1,956,000	4,014,000
Total consolidated operating income	9,595,000	53,559,000	46,000,000	93,238,000
Total depreciation and amortization	25,431,000	20,968,000	48,139,000	40,299,000
Total identifiable assets	2,700,418,000		2,700,418,000		2,675,354,000
Total investments in unconsolidated affiliates - equity method	195,617,000		195,617,000		202,244,000
Construction in progress within property and equipment	124,900,000		124,900,000		112,400,000
Europe [Member]
Segment Reporting Information [Line Items]
Total segment gross revenue	140,244,000	117,243,000	274,524,000	218,764,000
Total intrasegment gross revenue	(23,000)	352,000	235,000	522,000
Total consolidated gross revenue	140,221,000	117,595,000	274,759,000	219,286,000
Total earnings from unconsolidated affiliates, net of losses - equity method investments	2,466,000	2,789,000	5,324,000	4,740,000
Total consolidated operating income	23,586,000	21,612,000	46,835,000	39,911,000
Total depreciation and amortization	8,015,000	7,054,000	15,922,000	12,207,000
Total identifiable assets	848,354,000		848,354,000		856,448,000
Total investments in unconsolidated affiliates - equity method	11,807,000		11,807,000		11,508,000
West Africa [Member]
Segment Reporting Information [Line Items]
Total segment gross revenue	64,041,000	58,110,000	118,548,000	117,206,000
Total intrasegment gross revenue	0	0	0	0
Total consolidated gross revenue	64,041,000	58,110,000	118,548,000	117,206,000
Total consolidated operating income	16,120,000	17,158,000	27,351,000	32,794,000
Total depreciation and amortization	3,244,000	3,801,000	6,514,000	8,576,000
Total identifiable assets	385,831,000		385,831,000		354,154,000
North America [Member]
Segment Reporting Information [Line Items]
Total segment gross revenue	47,794,000	55,246,000	91,961,000	108,009,000
Total intrasegment gross revenue	463,000	35,000	538,000	83,000
Total consolidated gross revenue	48,257,000	55,281,000	92,499,000	108,092,000
Total consolidated operating income	2,571,000	8,904,000	4,155,000	14,212,000
Total depreciation and amortization	5,947,000	2,737,000	9,634,000	5,445,000
Total identifiable assets	278,371,000		278,371,000		302,081,000
Australia [Member]
Segment Reporting Information [Line Items]
Total segment gross revenue	33,323,000	37,364,000	78,618,000	72,655,000
Total intrasegment gross revenue	117,000	0	235,000	0
Total consolidated gross revenue	33,440,000	37,364,000	78,853,000	72,655,000
Total consolidated operating income	576,000	6,094,000	5,100,000	14,046,000
Total depreciation and amortization	2,816,000	2,704,000	5,938,000	5,357,000
Total identifiable assets	290,694,000		290,694,000		288,036,000
Other International [Member]
Segment Reporting Information [Line Items]
Total segment gross revenue	36,147,000	36,295,000	71,614,000	69,114,000
Total intrasegment gross revenue	0	0	0	0
Total consolidated gross revenue	36,147,000	36,295,000	71,614,000	69,114,000
Total earnings from unconsolidated affiliates, net of losses - equity method investments	(6,510,000)	1,927,000	(3,375,000)	(670,000)
Total consolidated operating income	2,089,000	11,102,000	13,999,000	13,367,000
Total depreciation and amortization	4,070,000	3,114,000	8,033,000	6,277,000
Total identifiable assets	619,074,000		619,074,000		602,243,000
Total investments in unconsolidated affiliates - equity method	183,810,000		183,810,000		190,736,000
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total segment gross revenue	9,443,000	8,301,000	16,832,000	19,049,000
Total intrasegment gross revenue	120,000	120,000	(324,000)	214,000
Total consolidated gross revenue	9,563,000	8,421,000	16,508,000	19,263,000
Total earnings from unconsolidated affiliates, net of losses - equity method investments	7,000	0	7,000	(56,000)
Total consolidated operating income	(33,736,000)	(13,208,000)	(51,245,000)	(24,707,000)
Total depreciation and amortization	1,339,000	1,558,000	2,098,000	2,437,000
Total identifiable assets	278,094,000		278,094,000		272,392,000
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Total consolidated gross revenue	(677,000)	(507,000)	(684,000)	(819,000)
Gain Loss On Disposition Of Other Assets [Member]
Segment Reporting Information [Line Items]
Total consolidated operating income	$ (1,611,000)	$ 1,897,000	$ (195,000)	$ 3,615,000