Mike and Jason take off in Airwolf to Czechoslovakia to pick up Mike's friend. Shortly after, the Company orders Airwolf to return. When Jo tries to deliver the message, Jason ignores the order, pretending that the communications system in Airwolf is down.
At the Company, Newman and General Hardesty immediately bump heads over the ignored order. Mike and Jason enter Czechoslovakia and find Jason's friend, Allen. They have a quick reunion and Allen passes him a note, which Jason pockets. Just then, two men shoot Allen dead. A devastated Jason gets back to Airwolf and they take off, only to encounter four MiGs. Jason displays curved judgment when he tells Mike to hold his fire at first. They make it out of Soviet airspace after destroying two of the MiGs.
The shock of Allen's death setting in, Jason snaps at Mike when he tries to strike up lighthearted conversation. They make it back to the lair, and Jason tries to access Company files and finds that his access is denied. He snaps at Mike again and distances himself from the crew.
Later at a restaurant, Mike makes eyes with a woman named Lynn across the room. After a few pickup lines, he succeeds in leaving with her. It's a setup, as two men follow them out. Outside, the two men try to confront Mike, until Lynn helps fight them both. St. John and Jo exit the restaurant and see what's happening, and Jo creates a diversion so St. John can plant a tracker on the men's car as they take off after Mike and Lynn. As they drive down the street, Mike figures out that Lynn is with the Company.
At the Company, Jason goes into the office to access the computer and is confronted at gunpoint by Hardesty and Newman. They tell him they've restricted his access to company computers and want full access to Airwolf. St. John and Jo track Mike to a motel in Airwolf and check up on him. He has fallen for Lynn. Just before things get too hot and heavy, Lynn shows him photos of Jason meeting with the guys that tried to jump them, making Mike question whether Jason can be trusted.
At the lair, Mike's personal activities come into question, as well as Jason's security problems at the Company, resulting in a falling out between them. Jason orders Airwolf not be flown in the meantime. Hardesty and Newman find that Jason has been working hard to crack into company files, and Hardesty suggests taking drastic measures.
In the Santini JetRanger, Jo and Mike are tracking the device St. John planted on the two men's car the previous night, and fly to it. Once on the ground, they find the men, who are Company agents, dead. Mike takes their IDs to Jason in the lair to get answers, but he can't provide any, except that he knew them. He admits to the crew that the Company doesn't trust him, which is why his behavior has been out of character.
Mike meets with Lynn, who tries to convince him that Jason is a traitor and the only way to stop him is with Airwolf. Meanwhile, Jason breaks into the Company and directly connects his computer to the network, granting him high level access. Lynn meets Mike at the hangar. She pulls a gun on him, demanding Airwolf, which isn't in the hangar like she'd hoped. St. John and Jo cover her from a distance, but she forces him into the JetRanger. St. John and Jo follow in Airwolf, which was hidden behind the hangar.
In flight, Lynn sees Airwolf in the distance, and makes a call to Hardesty. He orders two jet fighters to take out Airwolf. St. John avoids firing and fakes a crash to psyche them out. Now revealed as a traitor, Lynn tries to convince Mike to escape with her so they can be together. Mike scoffs at the idea. Jason accesses Allen's files and discovers that Hardesty is KGB, and Lynn is a rogue agent in league with him. He takes the information to Newman, who tries to arrest Hardesty, but he shoots one of the agents. Jason returns fire and kills Hardesty.
Mike does a hard bank to distract Lynn, and as they fight over the gun, she is shot and killed. Airwolf safely returns airborne, and they all fly home. Back at the hangar, the crew makes amends and learns a lesson in trusting each other. As a goodwill gesture, Mike offers to buy everyone drinks, and they leave in a hurry so he doesn't change his mind.