UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                 Washington, D.C. 20549
                       FORM 10-QSB

[X] Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended March 31, 2006

[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from ---- to -----

               Commission File Number 333-79405

            TACTICAL AIR DEFENSE SERVICES, INC.
   --------------------------------------------------
  (Exact name of registrant as specified in its charter)

       Nevada                            88-0409369
--------------------------            -----------------
(State or other jurisdiction          (I.R.S. Employer
of incorporation or organization      Identification No.)


    1550 Ostler Court N. Vancouver, B.C., Canada   V7G 2P1
------------------------------------------------   -------
(Address of principal executive offices)          (Zip Code)

Registrant's telephone number, including area code:(604) 924-8000

               Natalma Industries, Inc.
------------------------------------------------------------------
Former Name, Address and Fiscal Year, if Changed Since Last Report



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

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


At March 31, 2006, there were 3,925,855 shares of our common
stock issued and outstanding.

Transitional SMall Business Disclosure Format   Yes   No X


                                1

<PAGE>


             TACTICAL AIR DEFENSE SERVICES, INC.

                        FORM 10-QSB

                      TABLE OF CONTENTS


PART I                                            Page
                                                  ----
   FINANCIAL INFORMATION                           3

Item 1

  Financial Statements                             3

         Balance Sheets                            4

         Statements of Operations                  5

         Statements of Cash Flows                  6

         Statements of Changes in
         Stockholders' Equity                      7

         Notes to Financial Statements             9

Item 2

  Management's Discussion and Analysis and
  Plan of Operation                               14

Item 3

   Controls and Procedures                        16


PART II

   OTHER INFORMATION                              16

Item 6

   Exhibits and Reports on Form 8-K               16


SIGNATURES                                        17


                                2

<PAGE>

                             PART 1

Item 1. Financial Statements
----------------------------

The financial statements included herein have been prepared by us,
without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
omitted. However, in the opinion of management, all adjustments
(which include only normal recurring accruals) necessary to present
fairly the financial position and results of operations for the period
presented have been made. The results for interim periods are not
necessarily indicative of trends or of results to be expected for the
full year. These financial statements should be read in conjunction
with the financial statements and notes thereto included in the
our Form 10KSB for the year ended December 31, 2005, which can be
found on the SEC website (www.sec.gov) under SEC File Number
333-79405.





















                                3
<PAGE>



<TABLE><CAPTION>

              TACTICAL AIR DEFENSE SERVICES, INC.
              (formerly Natalma Industries, Inc.)
                (A Development Stage Company)
                        Balance Sheets
                  (Expressed in U.S. Dollars)
                         (Unaudited)

                                  As at 31      As at 31
                                     March      December
                                      2006          2005
                                                (Audited)
                                         $             $
                                 ---------      --------
 <S>                                  <C>           <c>
Assets
------
Current
-------
Cash and cash equivalents         $205,196     $210,482
                                  ========     ========
Liabilities
-----------
Current
-------
Accounts pyable and accrued
liabilities (Note 3)                 6,335        6,675
                                  --------     --------

Stockholders' Equity
--------------------
Capital Stock (Note 4)
Authorized
  31 March 2006 - 100,000,000
  common shares, par value $0.001
Issued and outstanding
 31 March 2006 - 3,925,855
 common shares, par value $0.001
 31 December 2005 - 3,925,855
 common shares, par value $0.001     3,926        3,926
Additional paid-in Capital         339,004      330,004
Deficit, accumulated during
 the development stage            (144,069)    (139,123)
                                  --------     --------
                                   198,861      203,807
                                  --------     --------
                                   205,196      210,482
                                  ========     ========

</TABLE>

Nature and Continuance of
Operations (Note 1)

Commitments (Note 8)

On behalf of the Board:
/s/ Derick Sinclair, Director

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

                               4
<PAGE>



<TABLE><CAPTION>

                TACTICAL AIR DEFENSE SERVICES, INC.
              (formerly Natalma Industries, Inc.)
                 (A Development Stage Company)
                    Statements of Operations
                  (Expressed in U.S. Dollars)
                         (Unaudited)

                                 For the
                             period from
                             the date of       For the        For the
                            inception on   three month    three month
                          9 July 1998 to  period ended   period ended
                                31 March      31 March       31 March
                                    2006          2006           2005
                                       $             $             $
                            -----------------------------------------
<S>                              <C>             <C>           <C>

Expenses
--------
General and administrative
 (Schedule 1)                    92,613          5,810         1,842
Acquisition of mineral
 property interests              55,500              -             -
Mineral property
 expenditures - consulting fees   5,000              -             -
                            ----------------------------------------
Net Loss before other item     (153,113)        (5,810)       (1,842)

Other item
----------
Interest income                   9,044            864           935
                            ----------------------------------------
Net loss for the period        (144,069)        (4,946)         (907)
                            =========================================

Basic and diluted
earnings per common share                       (0.001)       (0.001)
                                             -----------------------

Weighted average number of
common shares used in per
share calculations                           3,925,855     11,777,500
                                             ========================
</TABLE>













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


                                     5

<PAGE>



<TABLE><CAPTION>

                   TACTICAL AIR DEFENSE SERVICES, INC.
                   (formerly Natalma Industries, Inc.)
                      (A Development Stage Company)
                         Statements of Cash Flows
                       (Expressed in U.S. Dollars)
                              (Unaudited)


                                 For the
                             period from
                             the date of       For the        For the
                            inception on   three month    three month
                          9 July 1998 to  period ended   period ended
                                31 March      31 March       31 March
                                    2006          2006           2005
                                       $             $             $
                            -----------------------------------------
<S>                              <C>             <C>           <C>

Cash flows from
operating activities
----------------
Net loss for the period       (144,069)       (4,946)          (907)

Changes in operating
assets and liabilities
  Increase (decrease) in
  accounts payable and
  accrued liabilities            6,335          (340)           550
                             --------------------------------------
                              (137,735)       (5,286)          (357)
                             --------------------------------------
Cash flows from
investing activities                  -             -             -
                             --------------------------------------

Cash flows from
financing activities
--------------------
Common shares issued
  for cash                     342,930              -             -
                             --------------------------------------
Increase (decrease) in
cash and cash equivalents      205,196        (5,286)          (357)

Cash and cash equivalents,
beginning of period                  -       210,482        228,798
                             --------------------------------------
Cash and cash equivalents,
end of period                  205,196       205,196        228,441
                             ======================================
Supplemental Disclosures
with Respect to Cash
Flows (Note 7)

</TABLE>


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


                               6
<PAGE>

<TABLE><CAPTION>
                  TACTICAL AIR DEFENSE SERVICES, INC.
                 (formerly Natalma Industries, Inc.)
                  (A Development Stage Company)
            Statements of Changes in Stockholders' Equity
                      (Expressed in U.S. Dollars)
                              (Unaudited)

                                                              Deficit
                                                          accumulated
                      Number of              Additional    during the
                         Shares    Capital      Paid-In   development  Stockholders'
                         Issued      Stock      Capital         stage        Equity
                                         $            $             $             $
                     --------------------------------------------------------------
<S>                        <C>        <C>         <C>           <C>          <C>
Balance at
9 July 1998
(inception)                  -       -            -             -             -
Common shares
issued - cash
($0.001 per share)   3,000,000    3,000           -             -         3,000
Net loss for
the period                   -       -            -             -             -
                     ------------------------------------------------------------
Balance at
31 December 1998     3,000,000    3,000           -             -         3,000
Common shares
issued - cash
($0.01 per share)    8,000,000    8,000      72,000             -        80,000
Common shares issued
- mineral property
($0.001 per share)     500,000      500           -             -           500
Share issue costs            -        -     (18,070)            -       (18,070)
Net loss for the year        -        -           -       (57,849)      (57,849)
                     -----------------------------------------------------------
Balance at
31 December 1999    11,500,000   11,500      53,930       (57,849)        7,581
Net loss for the year        -        -           -        (1,691)       (1,691)
                     -----------------------------------------------------------
Balance at
31 December 2000    11,500,000   11,500      53,930       (59,540)        5,890
Net loss for the year        -        -           -        (9,690)       (9,690)
                     -----------------------------------------------------------
Balance at
31 December 2001    11,500,000   11,500      53,930       (69,230)       (3,800)
Common shares
issued - cash
($1.00 per share)      252,500      253     252,247             -       252,500
Common shares
issued - service
($1.00 per share)       25,000       25      24,975             -        25,000
Net loss for the year        -        -           -       (34,009)      (34,009)
                     -----------------------------------------------------------
Balance at
31 December 2002    11,777,500   11,778     331,152      (103,239)      239,691
Net loss for the year        -        -           -        (7,463)       (7,463)
                     -----------------------------------------------------------
Balance at
31 December 2003    11,777,500   11,778     331,152      (110,702)      232,228
Net loss for the year        -        -           -        (5,480)       (5,480)
                     -----------------------------------------------------------
Balance at
31 December 2004    11,777,500   11,778     331,152      (116,182)      226,748
Reverse split 1:3   (7,851,645)  (7,852)      7,852             -             -
Net loss for the year        -        -           -       (22,941)      (22,941)
                     -----------------------------------------------------------
Balance at
31 December 2005     3,925,855    3,926     339,004      (139,123)      203,807
Net loss for the
period                       -        -           -        (4,946)      (4,946)
                     --------------------------------------------------------------
Balance at
31 March 2006        3,925,855    3,926     339,004      (144,069)      198,861
                    ===============================================================
</TABLE>

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

                                   7
<PAGE>

<TABLE><CAPTION>

                     Tactical Air Defense Services, Inc.
                     (Formerly Natalma Industries, Inc.)
                      (A Development Stage Company)
             Schedule 1 - General and Administrative Expenses
                       (Expressed in U.S. Dollars)


                                      For the
                                  period from
                                  the date of       For the        For the
                                 inception on   three month    three month
                               9 July 1998 to  period ended   period ended
                                     31 March      31 March       31 March
                                         2006          2006           2005
                                            $             $             $
                                 -----------------------------------------
<S>                              <C>             <C>           <C>


Bank charges and interest                 252             -             6
Consulting fees                         3,761             -           250
Filing fees                            16,062           300           935
Legal and accounting                   50,094         1,610           500
Licenses and dues                       2,006             -             -
Management fees (Note 5)               11,425         3,675             -
Office and miscellaneous                1,456             -             -
Transfer agent fees                     5,491           225           151
Travel                                  2,066             -             -
                                --------------------------------------------
                                       92,613         5,810         1,842
                                ============================================

</TABLE>














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


                                  8
<PAGE>



                  TACTICAL AIR DEFENSE SERVICES, INC.
                   (formerly Natalma Industries, Inc.)
                      (A Development Stage Company)
                      Notes to Financial Statements
                       (Expressed in U.S. Dollars)
                              (Unaudited)
                            31 March 2006

1. Nature and Continuance of Operations
---------------------------------------
Tactical Air Defense Services, Inc. (formerly Natalma Industries, Inc.)
(the "Company") was incorporated under the laws of the State of Nevada on 9
July 1998.  The Company is in the development stage and its operations
principally involve research and development, market analysis, and other
business planning activities, and no revenue has been generated to date.

The Company is a development stage enterprise, as defined in Statements of
Financial Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by
Development Stage Enterprises".  The Company is devoting all of its present
efforts to securing and establishing a new business and its planned
principle operations have not commenced.  Accordingly, no revenue has been
derived during the organization period.

The Company's financial statements as at 31 March 2006 and for the three
month period then ended have been prepared on a going concern basis, which
contemplates the realization of assets and the settlement of liabilities and
commitments in the normal course of business.  The Company has a loss of
$4,946 for the three month period ended 31 March 2006 (31 March 2005-$907)
and has a working capital of $198,861 at 31 March 2006 (31 December 2005 -
$203,807).

Management cannot provide assurance that the Company will ultimately achieve
profitable operations or become cash flow positive, or raise additional debt
and/or equity capital.  Management believes that the Company's capital
resources should be adequate to continue operating and maintaining its
business strategy during the fiscal year ending 31 December 2006.  However,
if the Company is unable to raise additional capital in the near future, due
to the Company's liquidity problems, management expects that the Company will
need to curtail operations, liquidate assets, seek additional capital on less
favorable terms and/or pursue other remedial measures.  These financial
statements do not include any adjustments related to the recoverability and
classification of assets or the amounts and classification of liabilities that
might be necessary should the Company be unable to continue as a going
concern.

As at 31 March 2006, the Company was not currently engaged in an operating
business and expects to incur development stage operating losses for the next
year to eighteen months.  It intends to rely on officers and directors to
perform essential functions with minimal compensation until a business
operation can be commenced.  Management believes the Company has sufficient
capital to implement its business plan, and thus will continue as a going
concern during this period while the plans are implemented.

                                9
<PAGE>

                   TACTICAL AIR DEFENSE SERVICES, INC.
                   (formerly Natalma Industries, Inc.)
                      (A Development Stage Company)
                      Notes to Financial Statements
                       (Expressed in U.S. Dollars)
                              (Unaudited)
                            31 March 2006


2. Significant Accounting Policies
----------------------------------
The following is a summary of significant accounting policies used in the
preparation of these financial statements.

Basis of presentation
---------------------
The accompanying unaudited interim financial statements have been prepared
as of 31 March 2006 and for the three month period then ended, in accordance
with accounting principles generally accepted in the United States relating
to the preparation of financial statements for interim periods. Accordingly,
they do not include all the information and footnotes required by generally
accepted accounting principles for complete financial statements.  In the
opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three month period ended 31 March 2006 are not
necessarily indicative of the results that may be expected for the year
ending 31 December 2006.

These interim financial statements follow the same accounting policies and
methods of their application as the most recent annual financial statements,
except as noted below.  These interim financial statements should be read
in conjunction with the audited financial statements of the Company as at
31 December 2005.

Recent accounting pronouncements
--------------------------------
In March 2006, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 156, "Accounting
for Servicing of Financial Assets", which amends SFAS No. 140.  SFAS No. 156
may be adopted as early as 1 January 2006, for calendar year-end entities,
provided that no interim financial statements have been issued.  Those not
choosing to early adopt are required to apply the provisions as of the
beginning of the first fiscal year that begins after 15 September 2006
(e.g., 1 January 2007, for calendar year-end entities).  The intention of
the new statement is to simplify accounting for separately recognized
servicing assets and liabilities, such as those common with mortgage
securitization activities, as well as to simplify efforts to obtain hedge-
like accounting.  Specifically, the FASB said SFAS No. 156 permits a
servicer using derivative financial instruments to report both the
derivative financial instrument and related servicing asset or liability
by using a consistent measurement attribute, or fair value.  The adoption
of SFAS No. 156 is not expected to have a material impact on the Company's
financial position, results of operations or cash flows.

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain
Hybrid Financial Instruments", which amends SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" and SFAS No. 140,
"Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities". SFAS No. 155 permits fair value
measurement for any hybrid financial instrument that contains an embedded
derivative that otherwise would require bifurcation, establishes a
requirement to evaluate interests in securitized financial assets to
identify interests that are freestanding derivatives or hybrid financial


                                10
<PAGE>

                   TACTICAL AIR DEFENSE SERVICES, INC.
                   (formerly Natalma Industries, Inc.)
                      (A Development Stage Company)
                      Notes to Financial Statements
                       (Expressed in U.S. Dollars)
                              (Unaudited)
                            31 March 2006



instruments containing embedded derivatives.  The adoption of SFAS No.
155 is not expected to have a material impact on the Company's financial
position, results of operations or cash flows.


Comparative figures
-------------------
Certain comparative figures have been adjusted to conform to the current
period's presentation.

3. Accounts Payable and Accrued Liabilities
-------------------------------------------
Accounts payable and accrued liabilities are non-interest bearing,
unsecured and have settlement dates within one year.

4. Capital Stock
----------------
Authorized

The total authorized capital is 100,000,000 of common shares with par
value of $0.001.

Issued and outstanding

The total issued and outstanding capital stock is 3,925,855 common shares
with a par value of $0.001 per share.

5. Related Parties Transactions
-------------------------------
During the three month period ended 31 March 2006, the Company paid and
accrued management fees of $3,675 (31 March 2005 - $Nil) to a company
controlled by a director and shareholder of the Company.

The amounts charged to the Company for the services provided have been
determined by negotiation among the parties, and in certain cases, are
covered by signed agreements.  It is the position of the management of
the Company that these transactions were in the normal course of
operations and were measured at the exchange value which represented
the amount of consideration established and agreed to by the related
parties.

6. Income Taxes
--------------
The Company has losses carried forward for income tax purposes to 31
March 2006.  There are no current or deferred tax expenses for the
period ended 31 March 2006 due to the Company's loss position. The
Company has fully reserved for any benefits of these losses.  The
deferred tax consequences of temporary differences in reporting items
for financial statement and income tax purposes are recognized, as
appropriate. Realization of the future tax benefits related to the
deferred tax assets is dependent on many factors, including the Company's
ability to generate taxable income within the net operating loss
carryforward period. Management has considered these factors in
reaching its conclusion as to the valuation allowance for financial
reporting purposes.


                                11
<PAGE>

                   TACTICAL AIR DEFENSE SERVICES, INC.
                   (formerly Natalma Industries, Inc.)
                      (A Development Stage Company)
                      Notes to Financial Statements
                       (Expressed in U.S. Dollars)
                              (Unaudited)
                            31 March 2006


The provision for refundable federal income tax consists of the following:
<TABLE><CAPTION>
                                     For the three       For the three
                                      month period        month period
                                             ended               ended
                                     31 March 2006       31 March 2005
                                                 $                   $
                                     -------------       -------------

				         <c>                     <c>
Deferred tax asset attributable to:
Current operations                       1,682                  308
Less: Change in valuation allowance     (1,682)                (308)
                                       -------              -------
  Net refundable amount                      -                    -
                                       =======              =======
</TABLE>

The composition of the Company's deferred tax assets as at 31 March 2006 and
31 December 2005 are as follows:
<TABLE><CAPTION>
                                                        31 December 2005
                                     31 March 2006         (Audited)
                                             $                 $
                                     -------------      ----------------

                                        <c>                 <c>
Netincome tax oeprating loss
  carryforward                           (88,570)            (83,624)
                                     =============        ============
Statutory federal income tax rate            34%                 34%
Effective income tax rate                     0%                  0%

Deferred tax asset                        30,114              28,432
Less: Valuation allowance                (30,114)            (28,432)
                                         -------              ------
Net deferred tax asset                       -                   -
                                         =======              ======
</TABLE>


The potential income tax benefit of these losses  has been offset by a full
valuation allowance.

















                                12
<PAGE>

                   TACTICAL AIR DEFENSE SERVICES, INC.
                   (formerly Natalma Industries, Inc.)
                      (A Development Stage Company)
                      Notes to Financial Statements
                       (Expressed in U.S. Dollars)
                              (Unaudited)
                            31 March 2006



As at 31 March 2006, the Company has an unused net operating loss carryforward
balance of approximately $88,570 that is available to offset future taxable
income.  This unused net operating loss carryforward balance for income tax
purposes expires between the years 2019 and 2026.

7. Supplemental Disclosure with Respect to Cash Flows
-----------------------------------------------------
<TABLE><CAPTION>
                                      For the
                                  period from
                                  the date of       For the        For the
                                 inception on   three month    three month
                               9 July 1998 to  period ended   period ended
                                     31 March      31 March       31 March
                                         2006          2006           2005
                                            $             $             $
                                 -----------------------------------------
<S>                              <C>             <C>           <C>
Cash paid during the
period for interest                        -              -             -

Cash paid during the
period for income taxes                    -              -             -

</TABLE>



8. Commitment
-------------
The Company signed a letter of intent (the "Letter of Intent") to acquire all
of the issued and outstanding capital stock of four wholly-owned subsidiaries
of Aerogroup, Inc., a Utah corporation (the "Aerogroup"). Under the terms of
the Letter of Intent, the Company has agreed to issue thirteen million
(13,000,000) common shares of the Company to Aerogroup.  The Company is also
required to further alter its authorized capital to include the authorization
to issue of up to twenty five million (25,000,000) preferred shares.  The
Letter of Intent is subject to finalization by the parties and approval by the
regulatory authorities.



























                                 13


<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Results of Operations
---------------------
The following discussion should be read in conjunction with the
audited financial statements and notes thereto included in our
annual report on Form 10-KSB for the fiscal year ended December 31,
2005; and should further be read in conjunction with the financial
statements included in this report. Comparisons made between reporting
periods herein are for the three months ended March 31, 2006 as compared
to the three months ended March 31, 2005.

We have had no revenues from operations since inception.

For the three months ended March 31, 2006, we earned interest
of $864, as compared to $935 for the three months ended March 31,
2005. For the three months ended March 31, 2006, we incurred net
operating losses of $4,946, as compared to net operating losses of
$907 for the three months ended March 31, 2005. Most of our expenses
comprise legal and professional fees incurred in connection
with the preparation and filing of our quarterly and annual reports and
documents with the SEC and fees paid to our stock transfer agent for
services.

Liquidity and Capital Resources
-------------------------------
We expect our current cash in the bank of $205,196 at March 31, 2006
to satisfy our cash requirements for at least the next 12 months
without having to raise additional funds or seek bank loans.

Since inception, we have used our common stock to raise money for our
operations and to pay outstanding indebtedness. We did not raise any cash
through financing activities during the three months ended March 31, 2006.

Shareholder's equity as of March 31, 2006, was $198,861.

We do not intend to purchase any significant property or equipment,
nor incur any significant changes in employees during the next 12 months.

Our auditors have expressed the opinion that in our current state,
there is substantial doubt about our ability to continue as a going
concern; however, they also advised that the going concern opinion is
expected to be alleviated once we have an established business, have
accomplished predictable levels of expenditure and have attained the
financing or income to support those expenditures for a period in excess
of one year.

We anticipate no material commitments for capital expenditures
in the near term.  Management is not aware of any trend in its industry
or capital resources, which may have an impact on its income, revenue or
income from operations.

Plan of Operation
-----------------
During the next twelve months, we will actively continue to seek out and
investigate possible business opportunities with the intent to acquire and
merge with one or more business ventures. In our search for business
opportunities, management will follow the procedures outlined in Item 1
above. Because we lack substantial working capital funds, it may be

                               14
<PAGE>

necessary for our sole officer and director to either advance funds to us
or to accrue expenses until such time as a successful business consolidation
can be made. Management intends to hold expenses to a minimum and to obtain
services on a contingency basis whenever possible.

Management's discretion is unrestricted, and we may participate in any
business whatsoever that may, in the opinion of management, meet the
business objectives discussed herein. We may effectuate a business
combination with a business outside the United States. We have not limited
the scope of our search to any particular region.

We do not intend to utilize any notices or advertisements in our search for
business opportunities.

Our sole officer and director will be primarily responsible for searching
for an appropriate merger or acquisition candidate. However, to the extent
that the existing stockholders are aware of any potential business
acquisition candidates, they may also refer these to Registrant. We
recognize that as a result of our limited financial, managerial or other
resources, the number of suitable potential businesses that may be
available to us will be extremely limited.

Our principal business objective will be to seek long-term growth potential
in the business in which we participate rather than immediate, short-term
earnings. In seeking to attain its business objectives Registrant will not
restrict our search to any particular industry. Rather, we may investigate
businesses of essentially any kind or nature, including but not limited to
finance, high technology, manufacturing, service, research and development,
communications, insurance, brokerage, transportation and others. Management
may also seek to become involved with other development-stage companies or
companies that could be categorized as "financially troubled." At the
present time, we have not chosen the particular area of business in which
we proposes to engage and have not conducted any market studies with respect
to business property or industry.

We signed a Letter of Intent to acquire all of the issued and outstanding
capital stock of four wholly-owned subsidiaries of Aerogroup, Inc., a Utah
corporation (the "Aerogroup"). Under the terms of the Letter of Intent, we
agreed to issue thirteen million (13,000,000) shares of common stock to
Aerogroup and are required to amend our authorized capital to include the
authorization to issue of up to twenty five million (25,000,000) preferred
shares. The Letter of Intent is subject to finalization by the parties and
approval by the regulatory authorities, which has not been done as of the
date of the filing of this report.

As of the date hereof, we have not made any arrangements or definitive
agreements to use outside advisors or consultants to raise any capital. In
the event we do need to raise capital, most likely the only method available
to us would be through the private sale of its securities. Because of our
status as a development-stage company, it is unlikely we could make a
public sale of securities or be able to borrow any significant sum, from
either a commercial or private lender. There can be no assurance that we
will be able to obtain additional funding when and if needed, or that such
funding, if available, can be obtained on terms acceptable to us.

We do not intend to use any employees, with the exception of part-time
clerical assistance on an as-needed basis. Outside advisors, attorneys or
consultants will only be used if they can be obtained for a minimal cost
or for a deferred payment basis. Management is confident that it will be
able to operate in this manner and continue its search for business
opportunities during the next twelve months.

                              15
<PAGE>

Critical Accounting Policies
----------------------------
The financial statements included herein have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission. Management
believes the disclosures made are adequate to make the information not
misleading. The financial statements and accompanying notes are prepared in
accordance with generally accepted accounting principles. Preparing financial
statements requires Management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. These
estimates and assumptions are affected by Management's application of
accounting policies. These important accounting policies include the
successful efforts method of accounting for property and equipment, revenue
recognition, accounting for income taxes and foreign currency translation.

Management maintains disclosure controls and procedures designed to ensure
that we are able to timely collect the information we are required to
disclose in our reports filed with the U.S. Securities and Exchange
Commission. Within the 90 days prior to the date of this report, we
performed an evaluation, under the supervision and with the participation of
our Management, of the effectiveness of the design and operation of our
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14.
Based upon the evaluation, our Principal Executive Officer and Principal
Financial Officer concluded that the current disclosure controls are
effective in timely alerting us to any material information required
to be included in our periodic SEC filings.

We also maintain a system of internal controls designed to provide reasonable
assurance that (i) transactions are executed in accordance with Management's
general and specific authorization; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain accountability for
assets; (ii) access to assets is permitted only in accordance with
Management's general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.
We believe that our internal controls are effective to provide reasonable
assurance that our financial statements are fairly presented in conformity
with generally accepted accounting principals. Since our most recent
evaluation, there have been no changes in our internal controls or in other
factors that could significantly affect our internal controls, nor were any
corrective actions required with regard to significant deficiencies and
material weaknesses.

We have adopted Statement of Financial Accounting Standards
(SFAS) No. 121, Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of, which provides guidance
on long-lived assets and certain intangibles which are reported at
the lower of the carrying amount or their estimated recoverable
amounts.

We also apply SFAS No. 128, Earnings Per Share, for the
calculation of "Basic" and "Diluted" earnings per share. Basic
earnings per share includes no dilution and is computed by dividing
income available to common stockholders by the weighted average
number of common shares outstanding for the period. Diluted earnings
per share reflects the potential dilution of securities that could
share in our earnings.

                               16
<PAGE>

We have also adopted SFAS No. 52, Foreign Currency Translation,
which requires that the translation of the applicable foreign currency
into U.S. dollars be performed for balance sheet accounts using current
exchange rates in effect at the balance sheet date and for revenue and
expense accounts using a weighted average exchange rate during the
period. The gains or losses resulting from such translation are
included in the consolidated statements of stockholders' equity
and comprehensive income.


ITEM 3. CONTROLS AND PROCEDURES

Within the 90 days prior to the date of this report, our sole officer
and director, Derick Sinclair, has performed an evaluation of the
effectiveness of the design and operation of our disclosure controls
and procedures pursuant to Exchange Act Rule 13a-14. Based upon the
evaluation, Mr. Sinclair, who serves as our Chief Executive Officer,
Chief Financial Officer and Principal Accounting Officer concluded
that the current disclosure controls are effective in timely alerting
us to any material information required to be included in our
periodic SEC filings. There have been no significant changes in our
internal controls or in other factors that could significantly affect
our internal controls subsequent to the date of this evaluation.

                 PART II - OTHER INFORMATION

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

A)   The following exhibits marked with an asterisk and required to
be filed herein are incorporated by reference and can be found in
their entirety in our original Form SB-2 registration statement,
filed on May 27, 1999, under SEC File Number 333-79405:

<TABLE><CAPTION>

                 <c>
Exhibit No.           Description
----------            -----------
*  3(i)               Articles of Incorporation
*  3(ii)              Bylaws
* 10.1                Option to Purchase Agreement
* 10.2                Assignment of Option to Purchase
* 10.3                Amendment to Option to Purchase
  99.1                Sec. 302 Certification
  99.2		      Sec. 906 Certification
</TABLE>

B) There was one report on Form 8-K filed during the quarter.

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

                           TACTICAL AIR DEFENSE SERVICES, INC.,
                           a Nevada corporation (Registrant)

Dated: May 10, 2006         /s/ Derick Sinclair
                           ------------------------------------
                           bY: Derick Sinclair, President, CEO,
                           Secretary, Treasurer, CFO, Principal
                           Accounting Officer and Director

                               17
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