Lastest info from PHI
Our Air Medical segment was awarded a hospital contract for three medium aircraft which commenced in May 2012, with the aircraft redeployed out of our oil and gas division. Also, in April 2012, our subsidiary PHI Air Medical, L.L.C. entered into a three-year contract with the Saudi Red Crescent Authority (“SRCA”) to provide helicopter emergency medical services in the Kingdom of Saudi Arabia, subject to our receipt of the escrow payment described below. The contract calls for us to place eight medium aircraft in service during 2012, along with support staff, and to operate and maintain the aircraft for the contract term. In connection with the contract, we have entered into an option agreement with the aircraft manufacturer, which upon exercise by us will obligate us to purchase seven new medium aircraft during 2012, and an aircraft purchase agreement, pursuant to which we would sell these aircraft to the company that will lease them to the SRCA, after we complete and configure the aircraft for use in emergency medical services. The contract envisions a transition of the program over time to qualified Saudi personnel, and pursuant to the contract we will provide training services to SRCA’s qualified pilots, technicians, paramedics and communications specialists. Our obligations under these agreements are contingent upon our receipt into escrow of the purchase price of the seven aircraft, less the deposit already paid by the SRCA, in the near term. Air Medical segment earnings continue to improve due to rate increases and certain cost reductions that continue to be implemented.