`UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549


            Form 10-QSB

(Mark One)
     [X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

     For the quarter ended March 31, 2001

     [   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

     For the transition period from ________ to __________

          Commission File Number: 333-28249

PRIME AIR, INC.
(Exact name of Registrant as specified in charter)

     NEVADA                                  Applied For
State or other jurisdiction of               I.R.S. Employer I.D. No.
incorporation or organization

Ste 601 - 938 Howe Street, Vancouver, British Columbia, CANADA V6Z 1N9
(Address of principal executive offices)                      (Zip Code)

Issuer's telephone number, including area code:  (604) 684-5700

Check whether the Issuer (1) has 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 fling requirements for the past 90 days.  (1)  Yes
[X]  No [   ]       (2)  Yes  [X]    No  [   ]

State the number of shares outstanding of each of the Issuer's classes of
common equity as of the latest practicable date: At March 31, 2001, there were
21,022,666 shares of the Registrant's Common Stock outstanding.



PART I

ITEM 1.  FINANCIAL STATEMENTS
     The financial statements attached hereto and included herein have been
prepared by the Company, 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 nave been condensed or
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 periods 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 Company's annual report on Form 10-KSB for the year ended
December 31, 2000.



PRIME AIR INC.
(A Development Stage Company)
(A Nevada Corporation)

Consolidated Financial Statements

March 31, 2001 and 2000

(Unaudited - See Notice to Reader)

Notice to Reader

Consolidated Balance Sheets

Consolidated Statements of  Operations

Consolidated Statements of Shareholders' Equity and Deficit

Consolidated Statements of Cash Flows

Consolidated Notes to Financial Statements



NOTICE TO READER

     We have compiled the consolidated balance sheets of Prime Air Inc., a
Nevada company, as at  March 31, 2001 and consolidated statements of
operations and cash flows for the three month period.  We have not audited,
reviewed or otherwise attempted to verify the accuracy or completeness of such
information.  Readers are cautioned  these statements may not be appropriate
for their purposes.

                          "Prime Air, Inc."
May 13, 2001
Vancouver, B.C.




PRIME AIR, INC.
(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS
(all figures in US dollars)

(UNAUDITED - SEE NOTICE TO READER)

                                                  March 31          March 31
                                                  2000              1999
                                                (Unaudited)       (Unaudited)

                              ASSETS
     Current Assets
       Cash and short-term deposits              $   2,690      $       765
       Prepaid expenses and deposit                    697            1,446
       GST recoverable                               1,446            4,546
                                                     4,833            6,757
                                                   -------          -------
     Capital Assets (Note 4)                       537,564          559,988
                                                   -------          -------
                                             $     542,397      $   566,745

                              LIABILITIES
     Current Liabilities
       Accounts payable and accruals         $     201,244      $   239,210
       Notes and advances payable  (Note 5)         25,017           49,500
                                                   -------          -------
                                                   226,261          288,710

                              SHAREHOLDERS' EQUITY

     Capital Stock  (Note 6)
       Authorized:
         50,000,000 common shares with a
         stated par value of $ .001/share
         3,000,000 preferred cumulative
         convertible shares with a stated
         par value of $ .001/share
       Issued:
         21,022,666 common shares                   21,023           19,648
          (March 31, 2000 19,647,560)

       Share subscription receivable                     -                -

       Capital in excess of par value            1,652,977        1,526,923
                                                   -------          -------
                                                 1,674,000        1,546,571
     Accumulated Deficit During
     Development Stage                          (1,357,864)      (1,268,536)
                                                   316,136          278,035
                                                   -------          -------
                                             $     542,397    $     566,745

     Approved on Behalf of the Board:

     "Blaine Haug"         Director

                                    See Accompanying Notes

PRIME AIR, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(all figures in US dollars)
(UNAUDITED - SEE NOTICE TO READER)

                                        Three Months          Three Months
                                        Ended March 31        Ended March 31
                                            2001                  2000

     Administrative and General

     Audit and accounting                $        -          $       -
       Amortization                             4,868              5,036
       Consulting fees                            -                  -
       Insurance                                  715                -
       Interest and service charges                58                 69
       Legal                                      365                404
       Office and general                         330                525
       Rent - airport facility                     -                 832
       Repair and maintenance                      68                311
       Telephone and utilities                    438                940
       Transfer agent and filing fees           2,292              3,186
                                              -------            -------
                                                9,134             11,303

     Other Income (Expense)
       Gain (loss) on foreign exchange
       conversion                               4,910                 71

     Net Loss                                  (4,224)           (11,232)

     Net Loss Per Common Share          $     (0.0002)     $     (0.0006)

     Weighted Average Common Shares
     Outstanding                           21,022,666         19,396,106
      (Giving effect to 2:1 share split)


                         See Accompanying Notes





PRIME AIR, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(all figures in US dollars)
(UNAUDITED - SEE NOTICE TO READER)

                                        Three Months          Three Months
                                        Ended March 31        Ended March 31
                                            2001                  2000
                                         (Unaudited)           (Unaudited)

NET INFLOW (OUTFLOW) OF CASH
RELATED TO THE FOLLOWING ACTIVITIES:

     OPERATING
       Net loss                         $     ( 4,224)     $     (11,232)
       Non-cash charge - amortization           4,868              5,036
                                                  644             (6,196)

       Change in non-cash working
       capital balances relating to
       operations                             (10,392)            (3,850)
                                               (9,748)           (10,046)

     FINANCING
       Notes and advances payable               9,833             10,339


     NET CASH INFLOW (OUTFLOW)                     85                293

     CASH, BEGINNING OF PERIOD                  2,605                472

     CASH, END OF PERIOD                    $   2,690        $       765


                         See Accompanying Notes




PRIME AIR, INC.
(A Development Stage Company)

Consolidated Statements of Shareholders' Equity and Deficit
(all figures in US dollars)

                                                           Capital in                     Accumulated
                                                           Excess of     Share            Deficit During
                                       Common Shares      (Less than)    Subscriptions    Development
                                    Shares       Amount    Par Value     Receivable       Stage

Balance at Inception on
  March 10, 1989                       -       $     -    $     -       $      -            $     -

Issue of common shares for cash
  at $ .001/share                   630,237          630        -              -                  -

Net loss for the year ended
  March 31, 1990                       -             -          -              -              (17,956)

Balance, March 31, 1990            630,237           630        -              -              (17,956)

Issue of common shares for cash
  at $ .001/share                  157,559           158        -              -                  -

Net loss for the year ended
  March 31, 1991                       -             -          -              -              (49,419)

Balance, March 31, 1991            787,796           788        -              -              (67,375)

Net loss for the year ended
  March 31, 1992                       -             -          -              -              (10,990)

Balance, March 31, 1992            787,796           788        -              -              (78,365)

Issue of common shares for cash
  at $ .277/share                  132,088           132      36,499           -                  -
  at $ .214/share                   17,069            17       3,628           -                  -

Net loss for the year ended
  March 31, 1993                       -             -          -              -              (38,426)

Balance, March 31, 1993            936,953           937      40,127           -             (116,791)

Issue of common shares for
services at nominal value           92,173            92         (92)          -                  -

Issue of common shares for cash
  at $ .001/share                  300,000           300        -              -                  -
  at $ .109/share                    3,340             3         361           -                  -
  at $ .154/share                   23,634            24       3,619           -                  -
  at $ .280/share                   19,401            19       5,400           -                  -
  at $ .330/share                   23,161            23       7,624           -                  -
  at $ .463/share                   87,445            88      40,330           -                  -
  at $ .694/share                   15,756            16      10,907           -                  -
  at $ .925/share                    7,878             8       7,274           -                  -

Net loss for the year ended
  March 31, 1994                       -             -          -              -              (36,272)

Balance, March 31, 1994          1,509,741     $   1,510  $  115,550     $     -         $   (153,063)



See Accompanying Notes To Financial Statements


PRIME AIR, INC.
(A Development Stage Company)
Consolidated Statements of Shareholders' Equity and Deficit
(all figures in US dollars)

                                                           Capital in                     Accumulated
                                                           Excess of     Share            Deficit During
                                       Common Shares      (Less than)    Subscriptions    Development
                                    Shares       Amount    Par Value     Receivable       Stage

Balance Forward                 1,509,741      $    1,510 $  115,550     $     -       $    (153,063)

Issue of common shares for
services at nominal value         937,478             937       (937)          -              -

Issue of common shares for cash
  at $ .374/share                 248,692             249     92,697           -              -
  at $ .463/share                 304,089             304    140,286           -              -

Net loss for the period ended
  June 28, 1994                       -              -             -           -             (40,947)

Balance, June 28, 1994          3,000,000           3,000    347,596           -            (194,010)

Share subscription at $ .367/share    -              -        (7,313)         (20)            -

Net loss for the period ended
  December 31, 1994                   -              -             -           -            (135,530)

Balance, December 31, 1994      3,000,000           3,000    340,283          (20)          (329,540)

Issue of common shares for cash
  and/or services at an average
  of $ .234/share                 562,550             563    131,192           -              -

Net loss for the year ended
  December 31, 1995                   -              -             -           -             (71,266)

Balance, December 31, 1995      3,562,550           3,563    471,475          (20)          (400,806)

Issue of common shares for cash
  at $ .500/share               1,510,558           1,511    753,769           -              -

Issue of common shares for
services at nominal value       1,483,673           1,483          -           -              -

Net loss for the year ended
  December 31, 1996                   -              -             -           -            (238,416)

Balance, December 31, 1996      6,556,781      $    6,557 $1,225,244       $  (20)      $   (639,222)



                     See Accompanying Notes To Financial Statements



PRIME AIR, INC.
(A Development Stage Company)
Consolidated Statements of Shareholders' Equity and Deficit
(all figures in US dollars)

                                                           Capital in                     Accumulated
                                                           Excess of     Share            Deficit During
                                       Common Shares      (Less than)    Subscriptions    Development
                                    Shares       Amount    Par Value     Receivable       Stage

Balance Forward                 6,556,781       $   6,557  $ 1,225,244    $   (20)      $    (639,222)

Issue of common shares for
services at nominal value         328,000             328         -             -              -

Issue of common shares for
  debt settlements:
   at $ .500/share                124,252             124       62,001          -              -
   at $ .504/share                 36,380              36       18,303          -              -
   at $ .530/share                 94,800              95       50,192          -              -

Net loss for the year ended
  December 31, 1997                   -              -            -             -            (189,697)

Balance, December 31, 1997      7,140,213           7,140    1,355,740        (20)           (828,919)

Issue of common shares for
  debt settlements:
   at $ .3935/share                10,000              10        3,863          -              -
   at $ .4006/share                18,215              18        7,279          -              -

Issue of common shares for
services
  at nominal value              1,663,727           1,664         -             -              -
                                8,832,155           8,832    1,366,882        (20)           (828,919)

Two for one stock split,
 May 18, 1998                   8,832,155           8,832       (8,832)         -              -
                               17,664,310          17,664    1,358,050        (20)           (828,919)

Issue of common shares for
  debt settlements:
   at $ .25/share                  64,800              65       16,135          -              -

Issue of common shares for
services
  at nominal value                290,000             290         -             -              -

Transfer Agent adjustment          (6,000)             (6)        -             -              -

Write off of uncollectable share
  subscription receivable             -                 -        7,313         20              -

Net loss for the year ended
  December 31, 1998                   -                 -         -             -            (151,268)

Balance, December 31, 1998     18,013,110          18,013    1,381,498          -            (980,187)


                     See Accompanying Notes To Financial Statements


PRIME AIR, INC.
(A Development Stage Company)

Consolidated Statements of Shareholders' Equity and Deficit
(all figures in US dollars)

                                                           Capital in                     Accumulated
                                                           Excess of     Share            Deficit During
                                       Common Shares      (Less than)    Subscriptions    Development
                                    Shares       Amount    Par Value     Receivable       Stage

Balance Forward                18,013,110       $  18,013 $ 1,381,498      $      -       $   (980,187)


Issue of common shares for
  debt settlements:
   at $ .20/share                 201,250             202      40,048             -              -
   at $ .25/share                 423,200             423     105,377             -              -

Issue of common shares for
services
  at nominal value              1,010,000           1,010        -                -              -

Net loss for the year ended
  December 31, 1999                  -                -          -                -           (277,117)

Balance, December 31, 1999     19,647,560          19,648   1,526,923             -         (1,257,304)

Issue of common shares for cash:
   at $ .08/share                 500,000             500      39,500             -              -

Issue of common shares for
  debt settlement:s:
   at $ .08/share                   4,100               4         324             -              -
   at $ .10/share                 871,006             871      86,230             -

Net loss for the year ended
  December 31, 2000                  -                -          -                -            (96,336)

Balance, December 31, 2000     21,022,666          21,023   1,652,977             -         (1,353,640)

Net loss for the quarter ended
  March 31, 2001                     -                -          -                -             (4,224)

Balance, March 31, 2001        21,022,666      $   21,023 $ 1,652,977       $     -       $ (1,454,200)



PRIME AIR, INC.
(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2001 and 2000


1.      Incorporation, Principles of Consolidation and Accounting Presentation

The Company was incorporated under the laws of the State of Nevada, USA on
November 10, 1996, the purpose of which was to change the domicile of the
Company from the State of Delaware to the State of Nevada.  This change was
approved by the shareholders of both corporations on November 26, 1997 and
effected through a "plan and agreement of merger", with the surviving
corporation being Prime Air, Inc. (Nevada).  The articles of merger were filed
with the appropriate State authorities on December 15, 1997, which became the
effective date of the merger.

The Delaware corporation was incorporated on April 4, 1996 and acquired all of
the assets, liabilities and shareholders of a previous Utah corporation of the
same name.  The Utah corporation had been reincorporated on August 30, 1993 as
Astro Enterprises, Inc. and on June 28, 1994, pursuant to appropriate
shareholder agreements, acquired all outstanding shares of Prime Air Inc. (a
Canadian corporation) in exchange for shares of its capital stock on a .787796
to 1 basis, thereby providing the shareholders of Prime Air Inc. with 90% of
the outstanding capital stock of Astro Enterprises, Inc.  Astro Enterprises,
Inc. then changed its name to Prime Air, Inc.  Following incorporation of the
Delaware company, the Utah corporation was dissolved on May 15, 1996.

These consolidated financial statements include the accounts of the Company
and its wholly-owned operating subsidiary, Prime Air Inc. (the Canadian
corporation) and have been prepared in accordance with U.S. GAAP standards.

The results of operations and cash flows for the period from the date of
inception of this organization as a development stage company on March 10,
1989 to March 31, 2001 are presented herein for information purposes only.
These amounts are unaudited and accordingly no audit opinion has been
expressed thereon.

2.      Nature of Operations / Going Concern Considerations

The Company is presently in its developmental stage and currently has minimal
sources of revenue to provide incoming cash flows to sustain future
operations.  The Company's present activities relate to the construction and
ultimate exclusive operation of an international passenger and cargo air
terminal facility in the Village of Pemberton, British Columbia and the
operation of scheduled flight services between that facility and certain major
centers in Canada and the United States in conjunction with Voyageur Airways
Limited.  Terminal building construction was substantially completed in May,
1996. The future successful operation of the Company is dependent upon its
ability to obtain the financing required to complete and operationalize the
terminal facility and to commence operation thereof on an economically viable
basis.

These consolidated financial statements have been prepared on a "going
concern" basis which assumes the Company will be able to realize its assets,
obtain financing as required and discharge its liabilities and commitments in
the normal course of business.


PRIME AIR, INC.
(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2001 and 2000


3.      Significant Accounting Policies

Reporting Currency

All amounts in these consolidated financial statements are reported in U.S.
funds.  Monetary assets and liabilities have been converted from Canadian
funds where applicable utilizing the quarter-end closing exchange rate of $
1.4852 CDN/$1.00 U.S.  Transactions recorded throughout the year in the
accounts of the Canadian subsidiary have been converted to their U.S.
equivalent at actual amounts where available or by utilizing the average
annual rate as posted by the Internal Revenue Service of the United States as
follows: (2000) $1.4852 CDN/$1.00 U.S.(1999: $1.4858 CDN/ $1.00 U.S.).

Fair Value of Financial Instruments

In accordance with the requirements of Statement of Financial Accounting
Standards No. 107, "Disclosure About Fair Value Of Financial Instruments", the
carrying amounts reported on the balance sheets for cash and cash equivalents,
namely, "cash and short-term deposits", approximate their fair market value.

Receivables and Prepaid Expenses

All amounts reported as receivables or prepaid expenses have been recorded at
their original values.  There have been no amounts written off as bad debts or
provided for as an allowance against the recovery of these assets.

Capital Assets

Air Terminal Construction Costs: Expenditures relating directly to the
construction of the air terminal facility and related engineering and design
have been recorded in the accounts of the Company at cost, net of amortization
which is provided on a straight-line basis over the 30-year term of the
property lease.

Furniture and Equipment: Furniture and equipment is stated at cost, net of
amortization which is provided for at the rate of 20% per annum on the
declining balance basis.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with generally accepted
accounting principals 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 periods.
In these financial statements, assets, liabilities and results of operations
involve significant reliance on management estimates.  Actual results could
differ from the use of those estimates.




PRIME AIR, INC.
(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2001 and 2000


3.    Significant Accounting Policies (continued)

Income Taxes

The Company adopted Statement of Financial Accounting Standards No. 109,
"Accounting For Income Taxes", during the fiscal year ended December 31, 1998
and applied the provisions of that statement on a retroactive basis to the
previous fiscal years, which resulted in no significant adjustments.

Statement of Financial Accounting Standards No. 109, "Accounting for Income
Taxes", requires an asset and liability approach for financial accounting and
reporting for income tax purposes.  This statement recognizes (a) the amount
of taxes payable or refundable for the current year and (b) deferred tax
liabilities and assets for future tax consequences of events that have been
recognized in the financial statements or tax returns.

Deferred income taxes result from temporary differences in the recognition of
accounting transactions for income tax and financial reporting purposes.
There were no temporary differences at March 31, 2001 and earlier years and
accordingly, no deferred tax liabilities have been recognized for all years.

The operating subsidiary Company has cumulative net operating loss
carryforwards of approximately $ 793,000 at December 31, 2000 and $774,000 at
December 31, 1999.  No effect has been shown in the financial statements for
these carryforwards as the likelihood of future tax benefit from such is not
presently determinable.  The potential income tax benefits of these net
operating loss carryforwards of approximately $ 145,000 at December 31, 2000
and $ 153,000 at December 31, 1999 (based upon current income tax rates) have
been offset by valuation reserves of the same amount.  Net operating losses
expire after seven (7) years.  Operating losses of the US parent corporation
have not been determined.


4.    Capital Assets

Capital assets consist of the following at March 31, 2001 and March 31, 2000:

                   March 31, 2001
                                          Accumulated      Net
Book                               Cost   Amortization     Value
Air terminal construction costs  $ 641,972 $ 106,302    $ 535,670
Furniture and equipment              5,154     3,260        1,894
                                 $ 647,126   104,694    $ 537,564


                   March 31, 2000
                                          Accumulated      Net
Book                               Cost   Amortization     Value
Air terminal construction costs  $ 644,511 $  86,731    $ 557,780
Furniture and equipment              5,154     2,946        2,946
                                 $ 649,665    89,677    $ 559,988



During the year ended December 31, 2000, a recovery of terminal facility
construction costs in the amount of $2,539 was realized.



PRIME AIR, INC.
(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2001 and 2000


5.    Notes and Advances Payable

The notes and advances payable are unsecured, non-interest bearing and are
without specific terms of repayment.


6.    Capital Stock
        Authorized:
            50,000,000 common shares with a stated par value of $ .001/share
              3,000,000 preferred cumulative convertible shares with a stated
par value of $ .001/share

        Common Shares Issued:                     Number of Shares       Consideration
     To August 31, 1993- for cash                    300,000            $        300
     Prime Air Inc. share exchange
          - June 28, 1994                          2,700,000                 350,296
During year ended December 31, 1995
          - for cash                                 562,550                 131,756
     Balance at December 31, 1995                  3,562,550                 482,352

During year ended December 31, 1996
          - for cash                               1,510,558                 755,279
          - consulting and related services        1,483,673                   1,483
                                                   2,994,231                 756,762
     Balance, December 31, 1996                    6,556,781               1,239,114

During the year ended December 31, 1997
          - shares-for-debt settlements              255,432                 130,751
          - consulting and related services          328,000                     328
                                                     583,432                 131,079
     Balance, December 31, 1997                    7,140,213               1,370,193

During the year ended December 31, 1998
          - shares-for-debt settlements               93,015                  27,370
          - consulting and related services        1,953,727                   1,954
          - Transfer Agent correction                 (6,000)                     (6)
                                                   2,040,742                  29,318
                                                   9,180,955               1,399,511
          - "Two for One" share split              8,832,155              ______-___
     Balance, December 31, 1998                   18,013,110               1,399,511

During the year ended December 31, 1999
          - shares-for-debt settlements              624,450                 146,050
          - consulting and related services        1,010,000                   1,010
                                                   1,634,450                 147,060
     Balance, December 31, 1999                   19,647,560               1,546,571

During the year ended December 31, 2000
          - for-cash                                 500,000                  40,000
          - shares-for-debt settlements              875,106                  87,429
                                                   1,375,106                 127,429

     Balance, March 31, 2001                      21,022,666            $  1,674,000


In July, 1996, management of the Company voluntarily halted trading of its
common shares based upon the conclusion that information concerning the
history of the Company provided by former management may not have been
complete.  Adequate information was subsequently provided to the public by
management and trading was recommenced on March 27, 1997.  The Company
prepared and filed  a registration statement in connection with the change of
domicile (referred to in Note 1) to register all of the outstanding common
shares of capital stock in the Company.  This registration has been approved
by the Securities and Exchange Commission and the change of domicile became
effective on December 15, 1997.

PRIME AIR, INC.
(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2001 and 2000

7.   Related Party Transactions

During the years ended December 31, 2000 and 1999, no cash remuneration was
paid to any director or officer of the Company.  In past years the Company has
adopted a policy of issuing "restricted" common shares to certain directors
and officers for services rendered, such shares being attributed a nominal
value of $ 0.001 per share.  During the year ended December 31, 2000, no such
shares were issued (1999: 800,000 shares; 1998: 2,000,000 shares).
8.    Rent, Property Taxes and Lease Commitment

The Canadian subsidiary corporation has entered into an Airport Lease and
Operating Agreement with The Corporation of The Village of Pemberton in
British Columbia whereby it has been granted an exclusive and irrevocable
lease over the lands and airport facilities associated with the Pemberton
Airport.  The term of the Lease and Operating Agreement, including extension
options relating thereto, is for a total of 30 years with terminal rent
payable as follows:

-     $ 67 US ($100 CDN) per annum for the initial six (6) years (1993 through
1999);
   and thereafter

-     5% of gross receipts per annum derived from the operation of the
terminal facilities, excluding amounts received in connection with the sale of
airline tickets and other forms of transportation. The lease commitment
amounts for 2001 through 2005 cannot be quantified as the amount of gross
receipts for those years cannot be determined and active operation of the
terminal facilities has not yet commenced.

No lease payments were made during the year ended December 31, 2000 as there
were no gross receipts derived from operations. The Company, however, was
obligated to pay property taxes imposed by municipal authorities, such levies
amounting to $9,294. for the year ended December 31, 2000 (1999: $7,356).`