<SUBMISSION>
<ACCESSION-NUMBER>0000073887-01-500014
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20010930
<FILING-DATE>20011114
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>OFFSHORE LOGISTICS INC
<CIK>0000073887
<ASSIGNED-SIC>4522
<IRS-NUMBER>720679819
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0331
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-05232
<FILM-NUMBER>1789171
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>224 RUE DE JEAN
<STREET2>PO BOX 5C
<CITY>LAFAYETTE
<STATE>LA
<ZIP>70505
<PHONE>3182331221
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>224 RUE DE JEAN 70508
<STREET2>PO BOX 5C
<CITY>LAFAYETTE
<STATE>LA
<ZIP>70505
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>secondqtr2001_10q.htm
<DESCRIPTION>2ND QUARTER 2002 10Q
<TEXT>
<HTML>
<head><title></title></head>
<BODY>

<hr width=100% size=2 noshade>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>SECURITIES
AND EXCHANGE COMMISSION<BR>Washington,
DC 20549</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>Form 10-Q</FONT></H1>

                                        <P ALIGN=CENTER>|X| Quarterly Report Pursuant to Section 13 or 15(d) of<BR>
                                                  the Securities Exchange Act of 1934<BR>
                                             For the quarterly period ended September 30, 2001<BR><BR>

                                         |_| Transition Report Pursuant to Section 13 or 15(d)<BR>
                                                of the Securities Exchange Act of 1934<BR>
                                               For the transition period _____ to _____<BR><BR>

                                                     Commission File Number 0-5232</P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5><b>Offshore
Logistics, Inc.</B></FONT><BR>

                           <font size=-1>(Exact name of registrant as specified in its charter)</font></P>
<table border=0>

<tr>
      <td width=10%>&nbsp;</td>                  <td width=40% align=center> <b>Delaware</B><BR>
              (State or other jurisdiction of<BR>
              incorporation or organization)</td><td width=20%>&nbsp;</td>
<td align=center>
<b>72-0679819</b><BR>
(IRS Employer<BR>
Identification Number)</td><td width=10%>&nbsp;</td></tr>

<tr><td>&nbsp;</td><td align=center><b>                      224 Rue de Jean<BR>
            P. O. Box 5C, Lafayette, Louisiana</b><BR>
         (Address of principal executive offices)</td><td>&nbsp;</td>
 <td align=center><BR><b>70505</B><BR>
 (Zip Code)</td><td>&nbsp;</td></tr>
</table>


      <P ALIGN=CENTER>                            Registrant's telephone number, including area code:<b> (337) 233-1221</B></P>


<hr width=75% noshade>
                    <P ALIGN=CENTER> (Former name, former address and former fiscal year, if changed since last report)</P>

 <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;        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,  and (2) has been subject to such filing
requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes |X|&nbsp;&nbsp;&nbsp;     No |_|</font></P>


  <P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  Indicate the number shares outstanding of each of the issuer's classes of Common Stock, as of November 1, 2001.
</font></P>
                                     <P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 21,911,421 shares of Common Stock, $.01 par value</font></P>



   <hr width=100% size=2 noshade>

<page>

<BR><BR><BR>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I
&#150; FINANCIAL INFORMATION</FONT></H1>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1.
Financial Statements</FONT></H2>

<PRE>
                               <b>               OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
                                                 Consolidated Statements of Income</b>
                                           (thousands of dollars, except per share amounts)


                                                      <b>                   Three Months Ended                   Six Months Ended
                                                                            September 30,                       September 30,
                                                                       --------------------------        -------------------------
                                                                          2001            2000              2001             2000
                                                                       -----------    -----------        ---------       -----------</b>
GROSS REVENUE
Operating revenue ..............................................       $ 131,502        $ 123,255        $ 254,786        $ 233,834
Gain (loss) on disposal of assets ..............................             735             (137)           1,160              533
                                                                       ---------        ---------        ---------        ---------
                                                                         132,237          123,118          255,946          234,367
OPERATING EXPENSES
Direct cost ....................................................          92,946           88,178          181,359          174,886
Depreciation and amortization ..................................           8,640            8,873           17,018           17,702
General and administrative .....................................           8,015            9,262           15,681           16,101
                                                                       ---------        ---------        ---------        ---------
                                                                         109,601          106,313          214,058          208,689
                                                                       ---------        ---------        ---------        ---------

OPERATING INCOME ...............................................          22,636           16,805           41,888           25,678

Equity in earnings from unconsolidated entities ................           1,676              880            2,638            1,899
Interest income ................................................             373              656            1,521            1,395
Interest expense ...............................................           4,080            4,646            8,348            9,096
Other income (expense), net ....................................            (752)              48             (843)             164
                                                                       ---------        ---------        ---------        ---------

INCOME BEFORE PROVISION FOR
   INCOME TAXES AND MINORITY
   INTEREST ....................................................          19,853           13,743           36,856           20,040

Provision for income taxes .....................................           6,155            4,263           11,425            6,216
Minority interest ..............................................            (382)            (347)            (744)            (694)
                                                                       ---------        ---------        ---------        ---------

NET INCOME .....................................................       $  13,316        $   9,133        $  24,687        $  13,130
                                                                       =========        =========        =========        =========

Net income per common share:
Basic ..........................................................       $    0.61        $    0.43        $    1.13        $    0.62
                                                                       =========        =========        =========        =========
Diluted ........................................................       $    0.55        $    0.40        $    1.02        $    0.59
                                                                       =========        =========        =========        =========



<page>



                                 <b>              OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
                                                      Consolidated Balance Sheets</b>
                                                        (thousands of dollars)


                                                                                     <b>                September 30,        March 31,
                                                                                                          2001               2001
                                                                                                     --------------     ------------</b>
ASSETS
------
Current Assets:
    Cash and cash equivalents...............................................................         $   39,148           $  54,794
    Accounts receivable ....................................................................            136,212             114,763
    Inventories ............................................................................             92,270              81,578
    Prepaid expenses and other .............................................................              4,613               6,900
                                                                                                      ---------           ---------
       Total current assets ................................................................            272,243             258,035

Investments in unconsolidated entities .....................................................             19,509              17,868
Property and equipment - at cost:
    Land and buildings .....................................................................             13,820              10,990
    Aircraft and equipment .................................................................            653,758             603,021
                                                                                                      ---------           ---------
                                                                                                        667,578             614,011
Less:  accumulated depreciation and amortization ...........................................           (183,796)           (167,321)
                                                                                                      ---------           ---------
                                                                                                        483,782             446,690
Other assets ...............................................................................             31,655              32,227
                                                                                                      ---------           ---------

                                                                                                      $ 807,189           $ 754,820
                                                                                                      =========           =========

LIABILITIES AND STOCKHOLDERS' INVESTMENT
----------------------------------------
Current Liabilities:
    Accounts payable........................................................................          $  36,793           $  32,401
    Accrued liabilities ....................................................................             72,400              63,796
    Deferred taxes .........................................................................              7,377              15,265
    Current maturities of long-term debt ...................................................             17,727              13,122
                                                                                                      ---------           ---------
       Total current liabilities ...........................................................            134,297             124,584

Long-term debt, less current maturities ....................................................            194,992             209,190
Other liabilities and deferred credits .....................................................             16,655              15,071
Deferred taxes .............................................................................            114,184              95,469
Minority interest ..........................................................................             13,156              11,959

Stockholders' Investment:
    Common Stock, $.01 par value, authorized 35,000,000 shares;
       outstanding 21,898,421 and 21,815,421 at September 30
       and March 31, respectively (exclusive of 1,281,050 treasury shares)..................                219                 218
    Additional paid-in capital .............................................................            128,962             127,554
    Retained earnings ......................................................................            236,605             211,918
    Accumulated other comprehensive income (loss) ..........................................            (31,881)            (41,143)
                                                                                                      ---------           ---------
                                                                                                        333,905             298,547
                                                                                                      ---------           ---------

                                                                                                      $ 807,189           $ 754,820
                                                                                                      =========           =========



<page>

                                   <b>            OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
                                                 Consolidated Statements of Cash Flows</b>
                                                        (thousands of dollars)


                                                                                         <b>                   Six Months Ended
                                                                                                              September 30,
                                                                                                      ----------------------------
                                                                                                        2001                  2000
                                                                                                     ------------      ------------</b>
Cash flows from operating activities:
    Net income ...........................................................................            $ 24,687             $ 13,130
Adjustments to reconcile net income to cash
provided by operating activities:
    Depreciation and amortization ........................................................              17,018               17,702
    Increase (decrease) in deferred taxes ................................................               8,753                2,142
    Gain on asset dispositions ...........................................................              (1,160)                (533)
    Equity in earnings from unconsolidated entities
       over (under) dividends received ...................................................                (787)                (630)
    Minority interest in earnings ........................................................                 744                  694
    (Increase) decrease in accounts receivable ...........................................             (18,063)             (24,043)
    (Increase) decrease in inventories ...................................................              (9,254)                (142)
    (Increase) decrease in prepaid expenses and other ....................................               3,736                1,959
    Increase (decrease) in accounts payable ..............................................               2,924                 (801)
    Increase (decrease) in accrued liabilities ...........................................               7,200                6,391
    Increase (decrease) in other liabilities and deferred credits ........................               1,166                  741
                                                                                                      --------             --------
Net cash provided by operating activities ................................................              36,964               16,610
                                                                                                      --------             --------

Cash flows from investing activities:
    Capital expenditures .................................................................             (46,756)             (15,729)
    Proceeds from asset dispositions .....................................................               3,054                1,971
    Investments ..........................................................................                (576)              (1,200)
                                                                                                      --------             --------
Net cash used in investing activities ....................................................             (44,278)             (14,958)
                                                                                                      --------             --------

Cash flows from financing activities:
    Proceeds from borrowings .............................................................                --                  1,507
    Repayment of debt ....................................................................              (9,788)             (12,287)
    Issuance of common stock .............................................................               1,065                  358
                                                                                                      --------             --------
Net cash used in financing activities ....................................................              (8,723)             (10,422)
                                                                                                      --------             --------

Effect of exchange rate changes in cash ..................................................                 391               (1,250)
                                                                                                      --------             --------

Net increase (decrease) in cash and cash equivalents .....................................             (15,646)             (10,020)
Cash and cash equivalents at beginning of period .........................................              54,794               37,935
                                                                                                      --------             --------

Cash and cash equivalents at end of period ...............................................            $ 39,148             $ 27,915
                                                                                                      ========             ========

Supplemental disclosure of cash flow information
Cash paid during the period for:
    Interest .............................................................................            $  7,628             $  8,325
    Income taxes .........................................................................            $  2,693             $  2,132
</PRE>

<PAGE>



<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OFFSHORE
LOGISTICS, INC. AND SUBSIDIARIES<BR>
Notes to Consolidated
Financial Statements<BR>

September
30, 2001</FONT></H1>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE A - Basis
of Presentation</FONT></H2>

 <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;        The accompanying  unaudited  consolidated  financial statements have been prepared in accordance with the instructions to Form
10-Q and do not include all information and footnotes  necessary for a fair presentation of financial  position,  results of operations
and cash flows in conformity with generally accepted accounting  principles.  In the opinion of management,  any adjustments considered
necessary  for a fair  presentation  have been  included.  Operating  results for the six months  ended  September  30,  2001,  are not
necessarily  indicative of the results that may be expected for the year ending March 31, 2002. For further  information,  refer to the
consolidated  financial  statements and footnotes  included in the Company's Annual Report on Form 10-K for the fiscal year ended March
31, 2001.
</font></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         During April 2001, the Company completed  operating and control  revisions with its partners in a Norwegian joint venture.  As
a result,  effective April 1, 2001, the Company will no longer  consolidate the results of the Norwegian joint venture in its financial
statements,  and instead will treat the investment as an  unconsolidated  entity  accounted for on the cost method of  accounting.  The
cost method of accounting  will be used, as the Company's  ability to exercise  significant  influence  over the operation of the joint
venture has been  diminished.  The Company is not  obligated  under any  agreement to provide  continuing  financial  support.  Had the
Company  continued to  consolidate  the financial  position and net results of operations of the joint  venture,  the impact on working
capital and long-term  assets and liabilities at September 30, 2001 would not have been material;  revenue would have increased by $7.3
million and $13.0 million for the three and six months ended  September  30, 2001 and net income would have  increased by $0.6 million,
or $0.02 per diluted  share,  for the three months  ended  September  30, 2001 and $0.2 million or $0.01 per diluted  share for the six
months ended September 30, 2001.
</font></P>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE B -
Earnings per Share</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         Basic  earnings per common  share were  computed by dividing  net income by the  weighted  average  number of shares of common
stock  outstanding  during the year.  Diluted  earnings per share for the three months ended September 30, 2001 excluded  432,826 stock
options at a weighted  average  exercise price of $20.45,  which were  outstanding  during the period but were  anti-dilutive.  Diluted
earnings  per share for the three and six months  ended  September  30,  2000  excluded  319,500  stock  options at a weighted  average
exercise  price of $19.06,  which were  outstanding  during the  periods but were  anti-dilutive.  The  following  table sets forth the
computation of basic and diluted net income (loss) per share:
</font></P>
<PRE>
                                                        <b>                       September 30,                    September 30,
                                                                      ----------------------------      ----------------------------
                                                                           2001             2000           2001               2000
                                                                       -----------      ----------      -----------      -----------</b>

Net income (thousands of dollars):
    Income available to common stockholders ....................      $    13,316      $     9,133      $    24,687      $    13,130
    Interest on convertible debt, net of taxes .................              941              941            1,882            1,882
                                                                      -----------      -----------      -----------      -----------
    Income available to common stockholders,
         plus assumed conversions ..............................      $    14,257      $    10,074      $    26,569      $    15,012
                                                                      ===========      ===========      ===========      ===========
Shares:
    Weighted average number of common
    shares outstanding .........................................       21,895,606       21,113,834       21,879,727       21,109,899
    Options ....................................................          171,704          247,569          232,849          178,418
    Convertible debt ...........................................        3,976,928        3,976,928        3,976,928        3,976,928
                                                                      -----------      -----------      -----------      -----------

Weighted average number of common
         shares outstanding, plus assumed conversions ..........       26,044,238       25,338,331       26,089,504       25,265,245
                                                                      ===========      ===========      ===========      ===========

Net income (loss) per share:
    Basic ......................................................      $      0.61      $      0.43      $      1.13      $      0.62
                                                                      ===========      ===========      ===========      ===========
    Diluted ....................................................      $      0.55      $      0.40      $      1.02      $      0.59
                                                                      ===========      ===========      ===========      ===========
</PRE>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE C - Commitments
and Contingencies</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 16, 1999, the Office and Professional Employees International Union
(&#147;OPEIU&#148;) petitioned the National Mediation Board (&#147;NMB&#148;) to
conduct an election among the mechanics and related personnel employed by Air
Logistics, LLC and Air Logistics of Alaska, Inc. The election for Air Logistics,
L.L.C. was held on March 13, 2000 with the mechanics voting in favor of the
Company. On January 17, 2001, the OPEIU notified the Company that it had begun
organizing efforts with respect to the mechanics for a second time at Air
Logistics, L.L.C. No election was called and there are no continuing activities
to the best of the Company&#146;s knowledge. With respect to the Alaska-based
group, the NMB dismissed the matter on January 24, 2000, but due to
extraordinary circumstances, the NMB did accept another representation
application covering the Air Logistics of Alaska, Inc. mechanics and related
employees. The Alaska election was held on July 21, 2000 with the mechanics
voting in favor of the International Union of Operating Engineers
(&#147;IUOE&#148;). Negotiations with the IUOE are in progress. The Company does
not believe that current organizing efforts will place it at a disadvantage with
its competitors and management believes that pay scales, benefits, and work
rules will continue to be similar throughout the industry. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE D &#150;
Comprehensive Income</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 1998,  the  Financial  Accounting  Standards  Board issued SFAS No. 130,  "Reporting  Comprehensive  Income".  SFAS No. 130
requires an entity to report and display  comprehensive  income and its components.  Comprehensive  income is as follows  (thousands of
dollars):
</font></P>
<pre>                                                      <b>                     Three Months Ended                Six Months Ended
                                                                               September 30,                    September 30,
                                                                       ------------------------           -------------------------
                                                                          2001           2000                 2001           2000
                                                                       ----------    ----------           ---------       ---------</b>

Net Income ...................................................         $ 13,316         $  9,133          $ 24,687         $ 13,130
Other Comprehensive Income:
    Currency translation adjustment and other ................           11,060           (5,659)            9,262          (18,829)
                                                                       --------         --------          --------         --------
Comprehensive Income (Loss) ..................................         $ 24,376         $  3,474          $ 33,949         $ (5,699)
                                                                       ========         ========          ========         ========
</pre>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE E -
Derivative Financial Instruments</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
April 1, 2001, the Company adopted Statement of Financial Accounting Standards
(&#147;SFAS&#148;) No. 138, &#147;Accounting for Certain Derivative Instruments
and Hedging Activities&#148;, that amends certain provisions of SFAS No. 133,
&#147;Accounting for Derivative Instruments and Hedging Activities&#148;. The
pronouncements require that all derivatives be recognized as either assets or
liabilities and measured at fair value. The adoption of SFAS No. 133, as
amended, did not have a material impact on the Company&#146;s financial
statements. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company periodically enters into spot and forward currency derivative financial
instruments to reduce its exposure to fluctuations in foreign currency
denominated assets and liabilities and contractual commitments. Forward currency
contracts generally do not exceed one year. Any gains or losses on forward
contracts are deferred if the transaction qualifies as a hedge. At September 30,
2001, the Company had six<B> </B>nominal forward contracts to hedge $16.1
million of its projected euro payments from October 2001 through March 2002 at
an average rate of $0.86 per euro. The forward contracts were purchased to hedge
against any possible foreign exchange exposure related to its commitment under a
scheduled maintenance program. The fair market value of these contracts at
September 30, 2001 is not material. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 20, 2001, the Financial Accounting Standards Board issued SFAS No. 142,
&#147;Goodwill and Other Intangible Assets&#148;, which establishes a new method
of testing goodwill for impairment using a fair-value-based approach and does
not permit amortization of goodwill as previously required by Accounting
Principles Board Opinion No. 17, &#147;Intangible Assets&#148;. An impairment
loss would be recorded if the recorded goodwill exceeds its implied fair value.
SFAS No. 142 is effective for fiscal years beginning after December 15, 2001;
however, early adoption is allowed for companies with fiscal years beginning
after March 15, 2001 provided that first quarter financial statements have not
been previously issued. The Company did not elect to early adopt SFAS No. 142.
Accordingly, goodwill amortization expense of $0.3 million and $0.6 million was
recorded during the three and six months ended September 30, 2001. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
FASB also recently issued SFAS No. 143, &#147;Accounting for Asset Retirement
Obligations&#148;. This statement, which is first effective in 2003, covers the
accounting for closure or removal-type costs that are incurred with respect to
long-lived assets. The nature of the Company&#146;s business and long-lived
assets is such that adoption of this new standard should have no significant
impact on the Company&#146;s financial position or results of operations. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August 2001, the FASB issued &#147;Accounting for the Impairment or Disposal of
Long-Lived Assets&#148; which establishes one accounting model to be used for
long-lived assets to be disposed of by sale and broadens the presentation of
discontinued operations to include more disposal transactions. SFAS No. 144
supercedes SFAS 121, &#147;Accounting for the Impairment of Long-Lived Assets to
Be Disposed Of&#148; and the accounting and reporting provisions of APB Opinion
No. 30. SFAS No. 144 is effective for fiscal years beginning after December 15,
2001. The Company does not anticipate any financial statement impact with the
adoption of this statement. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE F &#150;
Segment Information</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS
No. 131, &#147;Disclosures about Segments of An Enterprise and Related
Information&#148;, requires that companies disclose segment data based on how
management makes decisions about allocating resources to segments and measuring
their performance. The Company operates principally in two business segments:
helicopter activities and production management and related services. The
following shows reportable segment information for the three and six months
ended September 30, 2001 and 2000, reconciled to consolidated totals, and
prepared on the same basis as the Company&#146;s consolidated financial
statements (in thousands): </FONT></P>

<PRE>
                                                         <b>                     September 30,                        September 30,
                                                                        -------------------------        --------------------------
                                                                          2001            2000              2001           2000
                                                                        ----------    -----------        ----------      ----------</b>

Segment operating revenue from external customers:
     Helicopter activities .....................................       $ 119,803        $ 110,653        $ 230,930        $ 210,109
     Production management and related services ................          11,617           12,482           23,661           23,504
                                                                       ---------        ---------        ---------        ---------
         Total segment operating revenue .......................       $ 131,420        $ 123,135        $ 254,591        $ 233,613
                                                                       =========        =========        =========        =========
Intersegment operating revenue:
     Helicopter activities .....................................       $   1,160        $     592        $   2,240        $   1,664
     Production management and related services ................            --               --               --               --
                                                                       ---------        ---------        ---------        ---------
         Total intersegment operating revenue ..................       $   1,160        $     592        $   2,240        $   1,664
                                                                       =========        =========        =========        =========

Consolidated operating revenue reconciliation:
     Helicopter activities .....................................       $ 120,963        $ 111,245        $ 233,170        $ 211,773
     Production management and related services ................          11,617           12,482           23,661           23,504
     Corporate .................................................           2,770            2,887            5,450            5,350
     Intersegment eliminations .................................          (3,848)          (3,359)          (7,495)          (6,793)
                                                                       ---------        ---------        ---------        ---------
         Total consolidated operating revenue ..................       $ 131,502        $ 123,255        $ 254,786        $ 233,834
                                                                       =========        =========        =========        =========

Consolidated operating income reconciliation:
     Helicopter activities .....................................       $  21,396        $  17,435        $  39,738        $  25,254
     Production management and related services ................             754              663            1,567            1,329
                                                                       ---------        ---------        ---------        ---------
         Total segment operating income ........................          22,150           18,098           41,305           26,583
     Gain (loss) disposal of assets ............................             735             (137)           1,160              533
     Corporate .................................................            (249)          (1,156)            (577)          (1,438)
                                                                       ---------        ---------        ---------        ---------
         Total consolidated operating income ...................       $  22,636        $  16,805        $  41,888        $  25,678
                                                                       =========        =========        =========        =========
</PRE>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTE G -
Supplemental Condensed Consolidating Financial Statements</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the sale of the Company&#146;s $100 million 7
<SUP>7</SUP>/<SUB>8</SUB>% Senior Notes due 2008, certain of the Company&#146;s
subsidiaries (the &#147;Guarantor Subsidiaries&#148;) jointly, severally and
unconditionally guaranteed the payment obligations under the Senior Notes. The
following supplemental financial information sets forth, on a consolidating
basis, the balance sheet, statement of income and cash flow information for
Offshore Logistics, Inc. (&#147;Parent Company Only&#148;), for the Guarantor
Subsidiaries and for Offshore Logistics, Inc.&#145;s other subsidiaries (the
&#147;Non-Guarantor Subsidiaries&#148;). The Company has not presented separate
financial statements and other disclosures concerning the Guarantor Subsidiaries
because management has determined that such information is not material to
investors. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 the Company believes that the disclosures made are adequate to make the
information presented not misleading. Certain reclassifications were made to
conform all of the financial information to the financial presentation on a
consolidated basis. The principal eliminating entries eliminate investments in
subsidiaries, intercompany balances and intercompany revenues and expenses. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
allocation of the consolidated income tax provision was made using the with and
without allocation method. </FONT></P>


<pRE>
<b>
NOTE G -Supplemental Condensed Consolidating Financial Statements-<i>Continued</i>



                                        Supplemental Condensed Consolidating Balance Sheet
                                                        September 30, 2001
                                                     (thousands of dollars)</b>


                                                    Parent                      Non-
                                                   Company    Guarantor       Guarantor
                                                     Only    Subsidiaries   Subsidiaries  Eliminations  Consolidated
                                               ------------  ------------   ------------  ------------  ------------
ASSETS
------
  Current assets:
    Cash and cash equivalents...............    $   16,806     $   1,174     $  21,168     $    --       $  39,148
    Accounts receivable .....................        1,256        39,001       100,339        (4,384)      136,212
    Inventories .............................         --          49,688        42,582          --          92,270
    Prepaid expenses and other ..............          262         1,503         2,848          --           4,613
                                                 ---------     ---------     ---------     ---------     ---------
      Total current assets ..................       18,324        91,366       166,937        (4,384)      272,243

  Intercompany investment ...................      272,171          --            --        (272,171)         --
  Investments in unconsolidated entities ....         --            --          19,509          --          19,509
  Intercompany note receivables .............      283,336            67          --        (283,403)         --

  Property and equipment--at cost:
    Land and buildings ......................          135         5,855         7,830          --          13,820
    Aircraft and equipment ..................        5,278       209,701       438,889          (110)      653,758
                                                 ---------     ---------     ---------     ---------     ---------
                                                     5,413       215,556       446,719          (110)      667,578
  Less:  Accumulated depreciation
      and amortization ......................       (2,953)      (84,184)      (96,659)         --        (183,796)
                                                 ---------     ---------     ---------     ---------     ---------
                                                     2,460       131,372       350,060          (110)      483,782
  Other assets ..............................        9,975        14,596         6,974           110        31,655
                                                 ---------     ---------     ---------     ---------     ---------

                                                 $ 586,266     $ 237,401     $ 543,480     $(559,958)    $ 807,189
                                                 =========     =========     =========     =========     =========

LIABILITIES AND STOCKHOLDERS' INVESTMENT
----------------------------------------
  Current liabilities:
    Accounts payable........................     $     304     $   6,219     $  34,654     $  (4,384)    $  36,793
    Accrued liabilities .....................        6,841        17,519        48,040          --          72,400
    Deferred taxes ..........................        1,004           354        17,149       (11,130)        7,377
    Current maturities of long-term debt ....         --            --          17,727          --          17,727
                                                 ---------     ---------     ---------     ---------     ---------
      Total current liabilities .............        8,149        24,092       117,570       (15,514)      134,297

  Long-term debt, less current maturities ...      190,922          --           4,070          --         194,992
  Intercompany notes payable ................        5,069          --         278,334      (283,403)         --
  Other liabilities and deferred credits ....          272         2,864        13,519          --          16,655
  Deferred taxes ............................       17,648        42,405        43,001        11,130       114,184
  Minority interest .........................       13,156          --            --            --          13,156

  Stockholders' investment:
    Common stock ............................          219         4,062         5,893        (9,955)          219
    Additional paid in capital ..............      128,962        51,168         1,522       (52,690)      128,962
    Retained earnings .......................      236,716       112,810        77,477      (190,398)      236,605
    Accumulated other comprehensive
      income (loss) .........................      (14,847)         --           2,094       (19,128)      (31,881)
                                                 ---------     ---------     ---------     ---------     ---------
                                                   351,050       168,040        86,986      (272,171)      333,905
                                                 ---------     ---------     ---------     ---------     ---------
                                                 $ 586,266     $ 237,401     $ 543,480     $(559,958)    $ 807,189
                                                 =========     =========     =========     =========     =========


<b>
NOTE G -Supplemental Condensed Consolidating Financial Statements-<i>Continued</i>




                                       Supplemental Condensed Consolidating Statement of Income
                                                  Six Months Ended September 30, 2001
                                                        (thousands of dollars)</b>


                                                               Parent                         Non-
                                                              Company        Guarantor     Guarantor
                                                                Only       Subsidiaries   Subsidiaries    Eliminations  Consolidated
                                                           ------------    ------------   ------------    ------------  ------------

GROSS REVENUE
Operating revenue....................................      $     227       $  99,402      $ 155,157       $    --         $ 254,786
Intercompany revenue ................................              2           4,403            668          (5,073)           --
Gain (loss) on disposal of assets ...................             (5)          1,125             40            --             1,160
                                                           ---------       ---------      ---------       ---------       ---------
                                                                 224         104,930        155,865          (5,073)        255,946
OPERATING EXPENSES
Direct cost .........................................              5          75,484        105,870            --           181,359
Intercompany expense ................................           --               668          4,405          (5,073)           --
Depreciation and amortization .......................            275           4,754         11,989            --            17,018
General and administrative ..........................          3,424           4,444          7,813            --            15,681
                                                           ---------       ---------      ---------       ---------       ---------
                                                               3,704          85,350        130,077          (5,073)        214,058
                                                           ---------       ---------      ---------       ---------       ---------

OPERATING INCOME (LOSS) .............................         (3,480)         19,580         25,788            --            41,888

Equity in earnings from unconsolidated
  entities ..........................................         21,468            --            2,638         (21,468)          2,638
Interest income .....................................         16,482             101            601         (15,663)          1,521
Interest expense ....................................          7,146            --           16,865         (15,663)          8,348
Other income (expense), net .........................           (119)              2           (726)           --              (843)
                                                           ---------       ---------      ---------       ---------       ---------

INCOME BEFORE PROVISION
  FOR INCOME TAXES AND
  MINORITY INTEREST .................................         27,205          19,683         11,436         (21,468)         36,856
Allocation of consolidated income taxes .............          1,774           6,102          3,549            --            11,425
Minority interest ...................................           (744)           --             --              --              (744)
                                                           ---------       ---------      ---------       ---------       ---------

NET INCOME...........................................      $  24,687       $  13,581      $   7,887       $ (21,468)      $  24,687
                                                           =========       =========      =========       =========       =========
<b>
NOTE G -Supplemental Condensed Consolidating Financial Statements-<i>Continued</i>





                                     Supplemental Condensed Consolidating Statement of Cash Flows
                                                  Six Months Ended September 30, 2001
                                                        (thousands of dollars)</b>


                                                                 Parent                          Non-
                                                                Company         Guarantor     Guarantor
                                                                 Only         Subsidiaries   Subsidiaries  Eliminations Consolidated
                                                              ------------    ------------   ------------  ------------ ------------

Net cash provided by (used in)
  operating activities...................................      $ (7,435)      $ 40,119       $ 16,068       $(11,788)      $ 36,964
                                                               --------       --------       --------       --------       --------

Cash flows from investing activities:
  Capital expenditures ..................................           (27)       (41,435)        (5,294)          --          (46,756)
  Proceeds from asset dispositions ......................          --            2,930            124           --            3,054
  Investments in subsidiaries ...........................         3,570         (3,570)          (576)          --             (576)
                                                               --------       --------       --------       --------       --------
Net cash provided by (used in)
  investing activities ..................................         3,543        (42,075)        (5,746)          --          (44,278)
                                                               --------       --------       --------       --------       --------

Cash flows from financing activities:
  Repayment of debt .....................................          --             --          (21,576)        11,788         (9,788)
  Issuance of common stock ..............................         1,065           --             --             --            1,065
                                                               --------       --------       --------       --------       --------
Net cash provided by (used in) financing
  activities ............................................         1,065           --          (21,576)        11,788         (8,723)
                                                               --------       --------       --------       --------       --------

Effect of exchange rate changes in cash .................          --             --              391           --              391
                                                               --------       --------       --------       --------       --------

Net increase (decrease) in cash and
  cash equivalents ......................................        (2,827)        (1,956)       (10,863)          --          (15,646)

Cash and cash equivalents
  at beginning of period ................................        19,633          3,130         32,031           --           54,794
                                                               --------       --------       --------       --------       --------

Cash and cash equivalents
   at end of period......................................      $ 16,806       $  1,174       $ 21,168       $   --         $ 39,148
                                                               ========       ========       ========       ========       ========
<b>
NOTE G -Supplemental Condensed Consolidating Financial Statements-<i>Continued</i>



                                          Supplemental Condensed Consolidating Balance Sheet
                                                            March 31, 2001
                                                        (thousands of dollars)</b>


                                                           Parent                           Non-
                                                          Company         Guarantor       Guarantor
                                                            Only         Subsidiaries    Subsidiaries   Eliminations    Consolidated
                                                        -----------      -------------   ------------   ------------    ------------
ASSETS
------
  Current assets:
    Cash and cash equivalents ......................      $  19,633       $   3,130       $  32,031       $    --         $  54,794
    Accounts receivable ............................            617          35,055          82,970          (3,879)        114,763
    Inventories ....................................           --            45,376          36,202            --            81,578
    Prepaid expenses and other .....................            112             552           6,236            --             6,900
                                                          ---------       ---------       ---------       ---------       ---------
      Total current assets .........................         20,362          84,113         157,439          (3,879)        258,035

  Intercompany investment ..........................        233,073            --              --          (233,073)           --
  Investments in unconsolidated entities ...........           --              --            17,868            --            17,868
  Intercompany note receivables ....................        282,268            --              --          (282,268)           --

  Property and equipment--at cost:
    Land and buildings .............................            135           3,538           7,317            --            10,990
    Aircraft and equipment .........................          5,218         174,708         423,205            (110)        603,021
                                                          ---------       ---------       ---------       ---------       ---------
                                                              5,353         178,246         430,522            (110)        614,011
  Less:  accumulated depreciation
      and amortization .............................         (2,690)        (82,373)        (82,258)           --          (167,321)
                                                          ---------       ---------       ---------       ---------       ---------
                                                              2,663          95,873         348,264            (110)        446,690
  Other assets .....................................         10,063          15,443           6,611             110          32,227
                                                          ---------       ---------       ---------       ---------       ---------

                                                          $ 548,429       $ 195,429       $ 530,182       $(519,220)      $ 754,820
                                                          =========       =========       =========       =========       =========

LIABILITIES AND STOCKHOLDERS' INVESTMENT
----------------------------------------
  Current liabilities:
    Accounts payable ...............................      $     274       $   5,554       $  30,452       $  (3,879)      $  32,401
    Accrued liabilities ............................          6,860          16,475          40,749            (288)         63,796
    Deferred taxes .................................          1,004            --            14,261            --            15,265
    Current maturities of long-term debt ...........           --              --            13,122            --            13,122
                                                          ---------       ---------       ---------       ---------       ---------
     Total current liabilities .....................          8,138          22,029          98,584          (4,167)        124,584

  Long-term debt, less current maturities ..........        190,922            --            18,268            --           209,190
  Intercompany notes payable .......................          5,069           9,452         267,459        (281,980)           --
  Other liabilities and deferred credits ...........            275           2,841          11,955            --            15,071
  Deferred taxes ...................................         12,637          37,963          44,869            --            95,469
  Minority interest ................................         11,959            --              --              --            11,959

  Stockholders' investment:
    Common stock ...................................            218           4,062              43          (4,105)            218
    Additional paid in capital .....................        127,554          53,168          10,507         (63,675)        127,554
    Retained earnings ..............................        212,029          65,914          75,075        (141,100)        211,918
    Accumulated other comprehensive
      income (loss) ................................        (20,372)           --             3,422         (24,193)        (41,143)
                                                          ---------       ---------       ---------       ---------       ---------
                                                            319,429         123,144          89,047        (233,073)        298,547
                                                          ---------       ---------       ---------       ---------       ---------
                                                          $ 548,429       $ 195,429       $ 530,182       $(519,220)      $ 754,820
                                                          =========       =========       =========       =========       =========

<b>
NOTE G -Supplemental Condensed Consolidating Financial Statements-<i>Continued</i>



                                       Supplemental Condensed Consolidating Statement of Income
                                                  Six Months Ended September 30, 2000
                                                        (thousands of dollars)</b>


                                                             Parent                          Non-
                                                            Company       Guarantor       Guarantor
                                                              Only        Subsidiaries   Subsidiaries     Eliminations  Consolidated
                                                         ------------    -------------   ------------     ------------  ------------

GROSS REVENUE
Operating revenue ..................................      $     221       $  78,578       $ 155,035       $    --         $ 233,834
Intercompany revenue ...............................           --             6,645             145          (6,790)           --
Gain (loss) on disposal of assets ..................            (79)            (34)            646            --               533
                                                          ---------       ---------       ---------       ---------       ---------
                                                                142          85,189         155,826          (6,790)        234,367
OPERATING EXPENSES
Direct cost ........................................              5          65,171         109,710            --           174,886
Intercompany expense ...............................           --               145           6,645          (6,790)           --
Depreciation and amortization ......................            205           5,043          12,454            --            17,702
General and administrative .........................          4,304           4,091           7,706            --            16,101
                                                          ---------       ---------       ---------       ---------       ---------
                                                              4,514          74,450         136,515          (6,790)        208,689
                                                          ---------       ---------       ---------       ---------       ---------

OPERATING INCOME (LOSS) ............................         (4,372)         10,739          19,311            --            25,678

Equity in earnings from unconsolidated
  entities .........................................          9,903            --             1,899          (9,903)          1,899
Interest income ....................................         16,515              99           1,158         (16,377)          1,395
Interest expense ...................................          7,146               9          18,318         (16,377)          9,096
Other income (expense), net ........................            164            --              --              --               164
                                                          ---------       ---------       ---------       ---------       ---------

INCOME BEFORE PROVISION
   FOR INCOME TAXES AND
   MINORITY INTEREST ...............................         15,064          10,829           4,050          (9,903)         20,040
Allocation of consolidated income taxes ............          1,240           3,717           1,259            --             6,216
Minority interest ..................................           (694)           --              --              --              (694)
                                                          ---------       ---------       ---------       ---------       ---------

NET INCOME .........................................      $  13,130       $   7,112       $   2,791       $  (9,903)      $  13,130
                                                          =========       =========       =========       =========       =========
<b>
NOTE G -Supplemental Condensed Consolidating Financial Statements-<i>Continued</i>


                                     Supplemental Condensed Consolidating Statement of Cash Flows
                                                  Six Months Ended September 30, 2000
                                                        (thousands of dollars)</b>


                                                            Parent                          Non-
                                                           Company         Guarantor      Guarantor
                                                            Only          Subsidiaries   Subsidiaries    Eliminations   Consolidated
                                                          -----------     ------------   ------------    ------------   ------------

Net cash provided by (used in)
  operating activities .............................       $ (2,870)       $  1,817        $ 18,882        $ (1,219)       $ 16,610
                                                           --------        --------        --------        --------        --------

Cash flows from investing activities:
  Capital expenditures .............................           (429)         (2,367)        (12,933)           --           (15,729)
  Proceeds from asset dispositions .................           --                12           1,959            --             1,971
  Investments in subsidiaries ......................           --              --            (1,200)           --            (1,200)
                                                           --------        --------        --------        --------        --------
Net cash provided by (used in)
  investing activities .............................           (429)         (2,355)        (12,174)           --           (14,958)
                                                           --------        --------        --------        --------        --------

Cash flows from financing activities:
  Proceeds from borrowings .........................           --              --             8,737          (7,230)          1,507
  Repayment of debt ................................           --              --           (21,265)          8,978         (12,287)
  Issuance of common stock .........................            358            --              --              --               358
                                                           --------        --------        --------        --------        --------
Net cash provided by (used in) financing
  activities .......................................            358            --           (12,528)          1,748         (10,422)
                                                           --------        --------        --------        --------        --------

Effect of exchange rate changes in cash ............           --              --            (1,250)           --            (1,250)
                                                           --------        --------        --------        --------        --------

Net increase (decrease) in cash and
  cash equivalents .................................         (2,941)           (538)         (7,070)            529         (10,020)

Cash and cash equivalents
  at beginning of period ...........................         14,537           2,323          21,075            --            37,935
                                                           --------        --------        --------        --------        --------

Cash and cash equivalents
   at end of period ................................       $ 11,596        $  1,785        $ 14,005        $    529        $ 27,915
                                                           ========        ========        ========        ========        ========
</PRE>





<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The  Company,  through its Air  Logistics'  subsidiaries  ("Air Log") and with its  investment  in Bristow  Aviation  Holdings
Limited  ("Bristow"),  is a major supplier of helicopter  transportation  services to the worldwide offshore oil and gas industry.  The
Company  also  provides  production  management  services to the  domestic  offshore  oil and gas  industry  through  its wholly  owned
subsidiary, Grasso Production Management, Inc. ("GPM").</font></p>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of
Operations</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A summary of operating results and other income statement  information for the applicable  periods is as follows (in thousands
of dollars):</font></p>

<PRE>
                                                                <b>           Three Months Ended                   Six Months Ended
                                                                               September 30,                     September 30,
                                                                       -------------------------         ---------------------------
                                                                           2001            2000             2001             2000
                                                                       -----------   -----------         -----------      ----------</b>

Operating revenue ..............................................       $ 131,502        $ 123,255        $ 254,786        $ 233,834
Gain (loss) on disposal of assets ..............................             735             (137)           1,160              533
Operating expenses .............................................        (109,601)        (106,313)        (214,058)        (208,689)
                                                                       ---------        ---------        ---------        ---------

Operating income ...............................................          22,636           16,805           41,888           25,678

Equity in earnings from unconsolidated entities ................           1,676              880            2,638            1,899
Interest income (expense), net .................................          (3,707)          (3,990)          (6,827)          (7,701)
Other income (expense), net ....................................            (752)              48             (843)             164
                                                                       ---------        ---------        ---------        ---------

Income before provision for income taxes
    minority interest ..........................................          19,853           13,743           36,856           20,040
Provision for income taxes .....................................           6,155            4,263           11,425            6,216
Minority interest ..............................................            (382)            (347)            (744)            (694)
                                                                       ---------        ---------        ---------        ---------

Net income .....................................................       $  13,316        $   9,133        $  24,687        $  13,130
                                                                       =========        =========        =========        =========

</PRE>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain  operating  information,  which forms the basis for discussion of each of the Company's
two  identified  segments,  helicopter  activities  and  production  management  and related  services.  The  respective  international
operations of Air Log  (headquartered in the United States) and Bristow  (headquartered in the United Kingdom) are managed and reported
as a separate division.  The International  division encompasses all helicopter  activities outside of the United States Gulf of Mexico
and Alaska (reported as "Air Log") and the United Kingdom and Europe Sectors of the North Sea (reported as "Bristow").</font></p>






<PRE>
                                                                <b>         Three Months Ended                    Six Months Ended
                                                                           September 30,                        September 30,
                                                                   ---------------------------         ---------------------------
                                                                       2001            2000               2001             2000
                                                                   ------------      ---------         ------------   ------------</B>
                                                                                (in thousands, except flight hours)

Flight hours (excludes unconsolidated entities):
   Helicopter Activities:
      Air Log ..............................................          36,051            30,719            72,136            56,768
      Bristow ..............................................          12,900            13,936            25,434            27,291
      International ........................................          21,442            20,418            43,603            37,884
                                                                   ---------         ---------         ---------         ---------
         Total .............................................          70,393            65,073           141,173           121,943
                                                                   =========         =========         =========         =========

Operating revenues:
   Helicopter Activities:
       Air Log .............................................       $  42,530         $  32,050         $  80,445         $  57,974
       Bristow .............................................          44,394            46,918            84,159            89,692
       International .......................................          36,217            34,412            73,335            66,738
       Less:  Intercompany .................................          (2,178)           (2,135)           (4,769)           (2,631)
                                                                   ---------         ---------         ---------         ---------
         Total .............................................         120,963           111,245           233,170           211,773
   Production management and related services ..............          11,617            12,482            23,661            23,504
   Corporate ...............................................           2,770             2,887             5,450             5,350
   Less:  Intersegment .....................................          (3,848)           (3,359)           (7,495)           (6,793)
                                                                   ---------         ---------         ---------         ---------
         Consolidated total ................................       $ 131,502         $ 123,255         $ 254,786         $ 233,834
                                                                   =========         =========         =========         =========

Operating income, excluding gain or
loss on disposal of assets:
   Helicopter Activities:
       Air Log .............................................       $   9,232         $   6,640         $  16,940         $   9,511
       Bristow .............................................           6,185             4,142             9,274             2,901
       International .......................................           5,979             6,653            13,524            12,842
                                                                   ---------         ---------         ---------         ---------
         Total .............................................          21,396            17,435            39,738            25,254
   Production management and related services ..............             754               663             1,567             1,329
   Corporate ...............................................            (249)           (1,156)             (577)           (1,438)
                                                                   ---------         ---------         ---------         ---------
         Consolidated total ................................       $  21,901         $  16,942         $  40,728         $  25,145
                                                                   =========         =========         =========         =========

Gross margin, excluding gain or
loss on disposal of assets:
   Helicopter Activities:
       Air Log .............................................            21.7%             20.7%             21.1%             16.4%
       Bristow .............................................            13.9%              8.8%             11.0%              3.2%
       International .......................................            16.5%             19.3%             18.4%             19.2%
         Total .............................................            17.7%             15.7%             17.0%             11.9%
   Production management and related services ..............             6.5%              5.3%              6.6%              5.7%
         Consolidated total ................................            16.7%             13.7%             16.0%             10.8%

</PRE>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Helicopter Activities</U></FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         Air Log and Bristow conduct helicopter  activities  principally in the Gulf of Mexico and the North Sea,  respectively,  where
they provide  support to the  production,  exploration  and  construction  activities of oil and gas  companies.  Air Log also charters
helicopters  to  governmental  entities  involved in  regulating  offshore  oil and gas  operations  in the Gulf of Mexico and provides
helicopter  services to the Alyeska  Pipeline in Alaska.  Bristow  also  provides  search and rescue work for the British  Coast Guard.
International's  activities  include Air Log and  Bristow's  respective  operations  in the  following  countries:  Australia,  Brazil,
Brunei, China, Colombia,  Congo, Ecuador,  India,  Kazakhstan,  Kosovo,  Macedonia,  Mexico, Nigeria, Spain, The Maldives and Trinidad.
These  international  operations  are  subject to local  governmental  regulations  and to  uncertainties  of  economic  and  political
conditions in those areas.  International  also includes Air Log's service  agreements  with,  and equity  interests in,  entities that
operate aircraft in Brazil, Egypt and Mexico ("unconsolidated entities").</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         Operating  revenues from  helicopter  activities  increased by 8.7% and 10.1% during the three and six months ended  September
30, 2001,  respectively,  over the prior year comparable periods, with operating expenses increasing 6.1% and 3.7%,  respectively.  The
improvement  in revenues was due to the  resurgence of activity in the Gulf of Mexico  coupled with rate  increases in both the Gulf of
Mexico and the North Sea.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Air Log</u></b> - Air Log's flight  activity for the three and six-month  periods ended  September 30, 2001 is above the similar prior
year  levels  by  17.4%  and  27.1%,  respectively.  Revenues  for the  same  periods  were  up  32.7%  and  38.8%,  respectively.  The
disproportionate  increase in revenue in relation  to flight  hours was due to rate  increases  averaging  6% and 30%,  which went into
effect in January and June 2001,  respectively.  The June 2001 rate  increase  is being  phased-in  and by January 1, 2002,  all of Air
Log's  customers will be under the new rate  structure.  Flight hours and revenue  generated from larger,  crew change  aircraft in the
Gulf of Mexico increased 1.1% and 34.3%,  respectively,  from the similar quarter in the prior year, while smaller,  production related
aircraft  increased  24.3% and 36.6%,  respectively.  For the six month period  flight hours and revenue  generated  from larger,  crew
change aircraft in the Gulf of Mexico increased 19.5% and 46.2%, respectively,  over the prior year, while smaller,  production related
aircraft  increased  33.1% and 40.2%,  respectively.  The  increase in the small  aircraft  fleet is a result of  managements  focus on
production  related  contract  opportunities.  Air Log's  operating  margin of 21.7%  and  21.1%  for the  three and six  months  ended
September  30, 2001 has improved  over the  comparable  prior year periods,  which had margins of 20.7% and 16.4%,  respectively,  as a
result of the flight hour and rate increases discussed above.</font></p>

 <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;        Effective  July 2, 2001,  Air Log increased its wages for pilots,  mechanics  and other  operational  employees in response to
increases  in the market wages for these  employee  groups.  As a result,  salary costs are  projected  to increase,  assuming  current
staffing levels remain unchanged, by $3.0 million on an annual basis.</font></p>

 <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;        During  September  2001,  Air Log's fleet was  grounded  for three days as a result of the FAA's  closure of all of the United
States  airspace.  This  grounding  occurred  on the three peak  flying  days of the week and  management  estimates  that Air Log lost
approximately 1,000 hours of flight time as a result.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         Currently  the drilling rig  utilization  in the Gulf of Mexico is at its lowest  level in recent  history.  While the Company
has not  experienced  any  reduction in flight  hours and only minor  reductions  in aircraft on contract to date,  should the downward
trend in drilling activity continue, Air Log could begin to experience a reduction in the demand for its services.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Bristow</u></b> - Bristow's  revenue  for the three and  six-month  periods  ended  September  30,  2001  decreased  by 5.4% and 6.2%,
respectively,  from the similar periods in the prior year.  Bristow's flight hours for the three and six-month  periods ended September
30, 2001  decreased by 7.4% and 6.8%,  respectively,  from the similar  periods in the prior year.  This decrease in flight  revenue is
the net result of an increase in North Sea flight  revenue,  offset by a decrease in flight  revenue in Norway.  The  increase in North
Sea revenue stems from a combination of increased oil industry activity and rate increases  Bristow has achieved on customer  contracts
both  mid-term,  and upon renewal.  Additionally,  the tightening of the supply of helicopters in the North Sea has resulted in premium
rates being charged for ad hoc flights, with little incremental costs associated with those flights.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         The decrease in revenue in Norway is due to an accounting  change during the quarter ended June 30, 2001,  whereby the results
of  Bristow's  Norwegian  joint  venture will no longer be  consolidated  into the  Company's  financial  statements.  The venture will
instead be treated as an  unconsolidated  entity and the  investment  accounted for under the cost method of accounting  (See Note A in
the "Notes to Consolidated  Financial  Statements").  If the Company had continued to consolidate the joint venture,  Bristow's  flight
revenues  would have  increased by 10.2% and 8.3% during the three and six months ended  September  30, 2001 as compared to the similar
periods in the prior year.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         Bristow's  operating  margin  increased from 8.8% in the quarter ended  September 30, 2000 to 13.9% in the current quarter and
from 3.2% for the six months  ended  September  30, 2000 to 11.0% for the six months ended  September  30, 2001.  This  improvement  in
margin is due primarily to the activity and rate increases in the North Sea as discussed above.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         The  prevailing  market  rate for  qualified  personnel  in the North Sea is under  pressure  from labor  unions and  employee
groups.  Bristow has yet to conclude  negotiations  with the two unions  representing its North Sea workforce.  The negotiations  which
cover the  period  from July 2001  through  June 2002 are  likely to result in an  additional  $2.3  million  in salary  costs over the
remainder  of the fiscal  year,  or $4.7  million on an annual  basis.  Management  does not believe  that salary  adjustments  made to
reflect current market levels would place it at a competitive disadvantage.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>International</u></b> -  Internationally,  flight hours  increased  during the three and six months ended September 30, 2001 by 5.0%
and 15.1%,  respectively,  from the similar  periods in the prior year.  Revenues also increased  accordingly  during the three and six
months ended  September 30, 2001 by 5.2% and 9.8%,  respectively,  from the similar  periods in the prior year. An increase in activity
was  prevalent  in Brazil,  Mexico and Nigeria.  In Nigeria,  revenues  were up 15.7% and 6.1% over the prior year three and  six-month
periods as drilling  activities  in Nigeria  continued  to improve.  In Mexico  revenues  were up 9.4% over the six month  period ended
September  30,  2000  primarily  due to the $75 million  three year  contract  with the Federal  Electric  Commission  of Mexico  being
phased-in over a two month period,  which began March 31, 2000.  This contract  generated lease revenue of  approximately  $5.9 million
during the six months ended September 30, 2001 compared to $5.0 million in the similar period in the prior year.</font></p>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Production Management and Related Services</U></font></h2>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         Operating  revenues for GPM decreased by 6.9% and increased by 1% during the three and six-month  periods ended  September 30,
2001,  as compared to the similar  periods in the prior year.  The decrease in revenue is primarily  due to the loss of a contract with
a major customer in May 2001,  which generated  approximately  $0.8 million in revenues on average per quarter.  GPM's operating margin
was only slightly higher at 6.6% in the current year compared to the prior year period.</font></p>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>Corporate and Other</U></font></h2>


 <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;        Consolidated  net interest expense declined during the current year as interest  income,  of approximately  $0.4 million,  was
received in the first  quarter of the  current  year from  refunds of prior  taxes.  The current  quarter was lower than the prior year
due to lower debt  balances  in the  current  year.  The  effective  income  tax rate was  approximately  31% for the six months  ended
September 30, 2001 and 2000, respectively.</font></p>




<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liquidity and
Capital Resources</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;           Cash and cash  equivalents  were $39.1  million as of  September  30,  2001,  a $15.6  million  decrease  from March 31, 2001.
Working  capital as of September  30, 2001 was $138.0  million,  a $4.5  million  increase  from March 31, 2001.  Total debt was $212.7
million as of September 30, 2001.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;           As of September 30, 2001,  Bristow had a &pound;15 million  ($22.0  million)  revolving  credit  facility with a syndicate of United
Kingdom  banks that matures on December  31, 2002.  As of September  30, 2001,  Bristow had &pound;1.4 million  ($2.1  million) of letters of
credit  utilized,  however no other  funds were drawn under this credit  facility.  As of  September  30,  2001,  the Company had a $20
million  unsecured  working  capital  line of credit with a bank that  expires on  November  30,  2001.  No funds were drawn under this
facility as of September  30, 2001.  Management  is in the process of  restructuring  the Bristow  facility to lower the  commitment to
approximately &pound;10 million and renewing the Company's current $20 million line of credit with a $30 million  commitment.  The changes to
both of these facilities are expected to be finalized by November 30, 2001.  Management  believes that its normal operations,  lines of
credit and available financing will provide sufficient working capital and cash flow to meet its needs for the foreseeable future.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;           During the six months ended  September 30, 2001, the Company  received  proceeds of $3.1 million from four separate  disposals
of aircraft and  purchased  six Bell 407's for $8.1 million,  five Bell 412's for $25.3  million,  three 206 L-4's for $2.7 million and
placed a deposit on an AS 332 L2 Super Puma of $3.8  million.  Subsequent  to September  30, 2001,  the Company  purchased one Bell 206
L-4 for $0.9  million.  These  aircraft  acquisitions  were  made  with  existing  cash  and were  made to  fulfill  customer  contract
requirements.  The Company has a commitment to acquire ten new EC 120  helicopters  for $10.0 million with delivery  during the current
fiscal year and a  commitment  to make the  remaining  payment of  approximately  $6.1 million on the AS 332 L2 Super Puma at scheduled
intervals before its delivery from the manufacturer in the second or third quarter of fiscal 2003.</font></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;           During the six months ended  September 30, 2000,  the Company  received  proceeds of $2.0 million  primarily  from the sale of
non-aviation  assets  and  purchased  two Bell 412s for $10.0  million  to  fulfill  customer  contract  requirements.  These  aircraft
acquisitions were made with existing cash.</font></p>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Legal Matters</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         The Company has received notices from the United States  Environmental  Protection  Agency that it is one of approximately 160
potentially  responsible  parties  ("PRP") at one Superfund  site in Texas,  one of over 300 PRPs at one site in Louisiana and a PRP at
one site in Rhode Island. The Company believes,  based on presently  available  information,  that its potential liability for clean up
and other response costs in connection  with these sites is not likely to have a material  adverse effect on the Company's  business or
financial condition.</font></p>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Recent
Accounting Pronouncements</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
April 1, 2001, the Company adopted Statement of Financial Accounting Standards
(&#147;SFAS&#148;) No. 138, &#147;Accounting for Certain Derivative Instruments
and Hedging Activities&#148;, that amends certain provisions of SFAS No. 133,
&#147;Accounting for Derivative Instruments and Hedging Activities&#148;. The
pronouncements require that all derivatives be recognized as either assets or
liabilities and measured at fair value. The adoption of SFAS No. 133, as
amended, did not have a material impact on the Company&#146;s financial
statements. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
July 20, 2001, the Financial Accounting Standards Board issued SFAS No. 142,
&#147;Goodwill and Other Intangible Assets&#148;, which establishes a new method
of testing goodwill for impairment using a fair-value-based approach and does
not permit amortization of goodwill as previously required by Accounting
Principles Board Opinion No. 17, &#147;Intangible Assets&#148;. An impairment
loss would be recorded if the recorded goodwill exceeds its implied fair value.
SFAS No. 142 is effective for fiscal years beginning after December 15, 2001;
however, early adoption is allowed for companies with fiscal years beginning
after March 15, 2001 provided that first quarter financial statements have not
been previously issued. The Company did not elect to early adopt SFAS No. 142.
Accordingly, goodwill amortization expense of $0.3 million and $0.6 million was
recorded during the three and six months ended September 30, 2001. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
FASB also recently issued SFAS No. 143, &#147;Accounting for Asset Retirement
Obligations&#148;. This statement, which is first effective in 2003, covers the
accounting for closure or removal-type costs that are incurred with respect to
long-lived assets. The nature of the Company&#146;s business and long-lived
assets is such that adoption of this new standard should have no significant
impact on the Company&#146;s financial position or results of operations. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August 2001, the FASB issued &#147;Accounting for the Impairment or Disposal of
Long-Lived Assets&#148; which establishes one accounting model to be used for
long-lived assets to be disposed of by sale and broadens the presentation of
discontinued operations to include more disposal transactions. SFAS No. 144
supercedes SFAS 121, &#147;Accounting for the Impairment of Long-Lived Assets to
Be Disposed Of&#148; and the accounting and reporting provisions of APB Opinion
No. 30. SFAS No. 144 is effective for fiscal years beginning after December 15,
2001. The Company does not anticipate any financial statement impact with the
adoption of this statement. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Forward
Looking Statements</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
report contains &#147;forward-looking statements&#148; within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;). All
statements included herein other than statements of historical fact are
forward-looking statements. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
the Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to be correct. Important factors that could cause actual results to differ
materially from the Company&#146;s expectations (&#147;Cautionary
Statements&#148;) may include, but are not limited to, demand for Company
services, the effects of the September 11, 2001 terrorist attacks, worldwide
activity levels in oil and natural gas exploration, development and production,
fluctuations in oil and natural gas prices, unionization and the response
thereto by the Company&#146;s customers, currency fluctuations, international
political conditions and the ability to manage operating expenses. All
subsequent written and oral forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by the Cautionary Statements. </FONT></P>

<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 3.
Quantitative and Qualitative Disclosures about Market Risk.</FONT></H2>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company does use off-balance sheet hedging instruments to manage its risks
associated with its operating activities conducted in foreign currencies. In
limited circumstances and when considered appropriate, the Company will utilize
forward exchange contracts to hedge anticipated transactions. The Company has
historically used these instruments primarily in the buying and selling of
certain spare parts, maintenance services and equipment. The Company attempts to
minimize its exposure to foreign currency fluctuations by matching its revenues
and expenses in the same currency for its contracts. Most of Bristow&#146;s
revenues and expenses are denominated in British Pounds Sterling
(&#147;pound&#148;). As of September 30, 2001, the Company has six<B>
</B>nominal forward exchange contracts to hedge $16.1 million of its projected
euro payments from October 2001 through March 2002 at an average rate of $ 0.86
per euro. The fair market value of these contracts at September 30, 2001 is not
material. Management does not believe that its limited exposure to foreign
currency exchange risk necessitates the extensive use of forward exchange
contracts. </FONT></P>






<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II - OTHER INFORMATION</font></h1>


<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders.</font></h2>

<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;           The annual meeting of stockholders was held on September 17, 2001.</FONT></p>

<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;      Matters voted on at the meeting included:</FONT></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;For the election of directors, all nominees were approved.  The results were as follows:</FONT></P>
<table border=0>
<tr><th width=10%>&nbsp;</th><th align=left width=20%><u><font size=-1>Nominee</font></u></th><th align=center width=20%><u><font size=-1>For</font></u></th><th align=center width=20%><u><font size=-1> Withheld</font></u></th></tr>
 <tr><td>&nbsp;</td><td><font size=-1>Peter N. Buckley</font></td><td align=center><font size=-1>17,360,951</font></td><td align=center><font size=-1>280,436</font></td></tr>
 <tr><td>&nbsp;</td><td><font size=-1>Jonathan H. Cartwright</font></td><td align=center><font size=-1>17,363,366</font></td><td align=center><font size=-1>278,021</font></td></tr>
 <tr><td>&nbsp;</td><td><font size=-1>Louis F. Crane*</font></td><td align=center><font size=-1>17,404,815</font></td><td align=center><font size=-1>236,572</font></td></tr>
 <tr><td>&nbsp;</td><td><font size=-1>David M. Johnson</font></td><td align=center><font size=-1>17,509,230</font></td><td align=center><font size=-1>132,157</font></td></tr>
 <tr><td>&nbsp;</td><td><font size=-1>Kenneth M. Jones</font></td><td align=center><font size=-1>17,509,208</font></td><td align=center><font size=-1>132,179</font></td></tr>
 <tr><td>&nbsp;</td><td><font size=-1>George M. Small</font></td><td align=center><font size=-1>17,409,730</font></td><td align=center><font size=-1>231,657</font></td></tr>
 <tr><td>&nbsp;</td><td><font size=-1>Robert W. Waldrup</font></td><td align=center><font size=-1>17,509,165</font></td><td align=center><font size=-1>132,222</font></td></tr>
 <tr><td>&nbsp;</td><td><font size=-1>Howard Wolf</font></td><td align=center><font size=-1>17,503,215</font></td><td align=center><font size=-1>138,172</font></td></tr>
</table>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* Effective October 19, 2001, Mr. Crane resigned from his position as a Director and Chairman of
the Board of the Company.</FONT></P>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Approval of proposal to amend the Offshore  Logistics,  Inc.  Nonqualified  Stock Option Plan for Nonemployee  Directors.  The
                  results were as follows:</FONT></p>

 <table>
<tr><td width=10%>&nbsp;</td><th align=center width=10%><u><font size=-1>For</font></u></th><td width=15%>&nbsp;</td><th align=center width=10%><u><font size=-1>Against</font></u></th><td width=15%>&nbsp;</td><th align=center width=10%><u><font size=-1>Abstain</font></u></th></tr>
<tr><td>&nbsp;</td><td align=center><font size=-1>16,577,400</font></td><td>&nbsp;</td><td align=center><font size=-1>1,042,238</font></td><td>&nbsp;</td><td align=center><font size=-1>21,749</font></td></tr>
</table>
<H2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 6.
Exhibits and Reports on Form 8-K</FONT></H2>

<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;      Reports on Form 8-K:</FONT></p>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no Form 8-K filings during the quarter ended September 30, 2001.</FONT></p>





<PAGE>



<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES</FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         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.</font></p>

<table>
<tr><td width=50%>&nbsp;</td><td><b>OFFSHORE
LOGISTICS, INC.
<BR><BR><BR></B></td></tr>

<tr><td>&nbsp;</td><td>   BY:<u>&nbsp;&nbsp;&nbsp;/s/ George M. Small&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GEORGE M. SMALL<BR>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>President and Chief Operating Officer</i><BR><BR></td></tr>


<tr><td>&nbsp;</td><td>   DATE:   November 14, 2001</td></tr>
<tr><td>&nbsp;</td><td>&nbsp;</td></tr>

<tr><td>&nbsp;</td><td>   BY:<u>&nbsp;&nbsp;&nbsp;/s/ H. Eddy Dupuis&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. EDDY DUPUIS<BR>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Vice President and Chief Financial Officer</i><BR><BR></td></tr>


<tr><td>&nbsp;</td><td>   DATE:   November 14, 2001</td></tr>





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