FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

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

         For the quarterly period ended September 30, 2002

                                    OR

[ ]      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 000-30797

                            EAST COAST AIRLINES, INC.
             (Exact name of registrant as specified in its charter)

           DELAWARE                                               14-1818396
 (State or other jurisdiction of                              (I.R.S. Employer
  incorporation or organization)                             Identification No.)

          C/O SULLIVAN, MCBRIDE HESS & YOUNGBLOOD, P.C., 4 TOWER PLACE,
                             ALBANY, NEW YORK 12203
                                 (518) 438-5364
             (Address and telephone number, including area code, of
                    registrant's principal executive office)

         (Former name, former address and former fiscal year, if changed
                               since last report)

      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 (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 the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.

      At November 5, 2002 there were 754,500 shares of Common Stock, $.0001 par
value, outstanding.

<PAGE>


                            EAST COAST AIRLINES, INC.

                                      INDEX
                                      -----
<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----

<S>                                                                                          <C>
Part I.  Financial Information                                                               1

  Item 1          Financial Statements

                  Balance Sheets as of September 30,
                  2002 (unaudited) and December 31, 2001                                     2

                  Statements of Operations for the Nine and Three Months Ended
                  September 30, 2002 and 2001 (unaudited) and the Period
                  November 17, 1999 (Date of
                  Formation) through September 30, 2002                                      3

                  Statements of Cash Flows for the Nine Months Ended September
                  30, 2002 and 2001 (unaudited) and the Period November 17, 1999
                  (Date of Formation) through September 30, 2002                             4

                  Notes to Financial Statements (unaudited)                              5 - 8

  Item 2          Management's Discussion and Analysis
                  of Financial Condition and Results of Operations                      9 - 14

  Item 14         Controls and Procedures                                                   14

Part II. Other Information

  Item 1          Legal Proceedings                                                         15
  Item 2          Changes in Securities                                                     15
  Item 3          Defaults upon Senior Securities                                           15
  Item 4          Submission of Matters to a Vote of Security Holders                       15
  Item 5          Other Information                                                         15
  Item 6          Exhibits and Reports on Form 8-K                                          15

Signatures                                                                                  16

</TABLE>

<PAGE>



PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

                  Certain information and footnote disclosures required under
         generally accepted accounting principles in the United States of
         America have been condensed or omitted from the following financial
         statements pursuant to the rules and regulations of the Securities and
         Exchange Commission. It is suggested that the following financial
         statements be read in conjunction with the year-end financial
         statements and notes thereto included in the Company's Annual Report on
         Form 10-KSB for the year ended December 31, 2001.

                  The results of operations for the three and nine months ended
         September 30, 2002, are not necessarily indicative of the results to be
         expected for the entire fiscal year or for any other period.


                                      -1-
<PAGE>



                            EAST COAST AIRLINES, INC
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET


                                     ASSETS
                                     ------

<TABLE>
                                                                   September 30,       December 31,
                                                                       2002                2001
                                                                   -------------       ------------
                                                                   (Unaudited)
<S>                                                                <C>                  <C>
Current Assets:
     Cash                                                           $    215             $    554
                                                                    --------             --------
          Total Assets                                              $    215             $    554
                                                                    ========             ========

                         LIABILITIES AND STOCKHOLDERS' DEFICIENCY
                         ----------------------------------------

Current Liabilities:
     Accounts payable                                               $ 47,169             $ 36,308
     Accrued expenses                                                    750                3,600
     Loan from stockholder                                             9,527                6,891
                                                                    --------             --------
          Total Current Liabilities                                   57,446               46,799
                                                                    --------             --------
Stockholders' Deficiency:
     Common stock - $.0001 par value-
       authorized 20,000,000 shares;
       754,500 shares outstanding at
       September 30, 2002 and December 31, 2001                           75                   75
     Additional paid-in-capital                                       11,375               11,375
     Deficit accumulated during
       development stage                                             (68,681)             (57,695)
                                                                    --------             --------
          Total Stockholders' Deficiency                             (57,231)             (46,245)
                                                                    --------             --------
          TOTAL LIABILITIES AND
            STOCKHOLDERS'  DEFICIENCY                               $    215             $    554
                                                                    ========             ========

</TABLE>

                       See notes to financial statements.


                                      -2-
<PAGE>


                            EAST COAST AIRLINES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                                Period
                                                                                                           November 17, 1999
                                 Nine Months Ended September 30,   Three Months Ended September 30,   (Date of Formation) through
                                     2002              2001             2002            2001               September 30, 2002
                                 ---------          ----------      ----------        ---------        ---------------------------
<S>                              <C>                <C>            <C>               <C>                    <C>
Cost and Expenses:
     General and administrative
          expenses               $   6,998          $  18,097        $     972        $   9,323              $      64,693
        Interest expense             3,988              1,138            1,381            1,138                      3,988
                                 ---------          ---------        ---------        ---------              -------------
     Net loss                    $ (10,986)         $ (19,235)       $  (2,353)       $ (10,461)             $     (68,681)
                                 =========          =========        =========        =========              =============
     Loss per common share-
       basic and diluted         $   (0.02)         $   (0.03)       $      --        $   (0.02)
                                 =========          =========        =========        =========
     Weighted average number of
       common shares outstanding-
       basic and diluted           754,500            629,362          754,500          629,362
                                 =========          =========        =========        =========
</TABLE>

                       See notes to financial statements.


                                      -3-
<PAGE>



                            EAST COAST AIRLINES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                        Period
                                                                                   November 17, 1999
                                                                                 (Date of Formation)
                                               NIne Months Ended September 30,   through September 30,
                                                  2002               2001               2002
                                               --------           --------        --------------------
<S>                                            <C>                <C>                  <C>
Cash flows from operating activities:

Net loss                                       $(10,986)          $(19,235)              $(68,681)
Changes in operating assets
      and liabilities
    Non cash activities:
      Stock issued for services                                        500                    500
    Increase in accounts payable                 10,861             12,899                 47,169
    Increase (decrease) in
      accrued expenses                           (2,850)            (1,600)                   750
                                               --------           --------               --------
    Net Cash Used in Operating
      Activities                                 (2,975)            (7,436)               (20,262)
                                               --------           --------               --------
Cash flow from financing activities:
    Proceeds from sale of
      common stock                                                      --                 10,950
    Proceeds from officer loan                    2,636              5,391                  9,627
    Payment to officer                               --               (100)                  (100)
                                               --------           --------               --------
    Net Cash Provided by
      Financing Activites                         2,636              5,291                 20,477
                                               --------           --------               --------
    Net increase (decrease) in Cash                (339)            (2,145)                   215
    Cash - beginning of period                      554              2,537                     --
                                               --------           --------               --------
    Cash - ending of period                    $    215           $    392               $    215
                                               ========           ========               ========

Supplementary Information:
    Cash paid during the year for:

    Interest                                   $     --           $     --               $     --
                                               ========           ========               ========
    Income taxes                               $     --           $     --               $     --
                                               ========           ========               ========
</TABLE>



                       See notes to financial statements.


                                      -4-
<PAGE>


                            EAST COAST AIRLINES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS

    DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
    -------------------------------------------------------------
     POLICIES
     --------

1.  ORGANIZATION

     The Company was incorporated in the State of Delaware on November 17, 1999.
     From inception, November 17, 1999, through September 30, 2002, the Company
     has not yet commenced operations and no revenue has been derived.
     Accordingly, the Company is considered a development stage enterprise.
     There is no assurance that operations will be achieved or that the Company
     will achieve a profitable level of operations. The Company intends to
     become a fully certified Federal Aviation Regulation Part 121 air carrier.

     East Coast's business purpose is to provide scheduled air service to small
     and medium sized markets which have experienced either a total or partial
     loss of air service as a result of shifts in emphasis by major airlines and
     their regional counterparts. The Company intends to be an independent
     carrier, not affiliated with any major airline.

     The Company intends to begin operations in New York State, and to expand
     throughout the Northeast and then to the Middle Atlantic States.

2.   BASIS OF PRESENTATION

     The balance sheet as of September 30, 2002, and the statements of
     operations and cash flows for the nine months ended September 30, 2002 have
     been prepared by East Coast Airlines, Inc. and are unaudited. In the
     opinion of management, all adjustments (consisting of normal recurring
     adjustments) necessary to present fairly the financial position, results of
     operations and cash flows for all periods presented have been made. The
     information for December 31, 2001 was derived from audited financial
     statements.

     The Company's financial statements for the nine months ended September 30,
     2002 have been prepared on a going concern basis, which contemplates the
     realization of assets and the satisfaction of liabilities in the normal
     course of business. Management recognizes that the Company's continued
     existence is dependent upon its ability to obtain needed working capital
     through additional equity and/or debt financing and the commencement of its
     planned principle operations. At September 30, 2002, operations had not yet
     commenced and no revenue has been derived; accordingly, the Company is
     considered a development stage enterprise. There is no assurance the
     Company will achieve a profitable level of operation.


                                      -5-
<PAGE>

     The Company presently does not have sufficient liquid assets to finance its
     anticipated funding needs and obligations. The Company's continued
     existence is dependent upon its ability to obtain needed working capital
     through additional equity and/or debt financing and the commencement of its
     planned principal operations. Management is actively seeking additional
     capital to ensure the continuation of its development activities. However,
     there is no assurance that additional capital will be obtained. These
     uncertainties raise substantial doubt about the ability of the Company to
     continue as a going concern.

     The financial statements do not include any adjustments relating to the
     recoverability and classification of recorded asset amounts or the amounts
     and classifications of liabilities that might be necessary should the
     Company be unable to continue as a going concern.

3.  LOSS PER SHARE

     Basic loss per common share is computed using the weighted average number
     of common shares outstanding during the period. Diluted earnings (loss) per
     common share are computed by dividing net earnings by the weighted average
     number of common and potential common shares outstanding during the period.
     Potential common shares are excluded from the loss per share calculation,
     because the effect would be antidilutive.

4.   COMMON STOCK

     The Company has a single class of Common Stock with a par value of $0.0001
     per share. At September 30, 2002, 754,500 shares were issued and
     outstanding. The president of the Company purchased 475,000 shares in April
     2000 and the secretary of the Company purchased 25,000 shares in April 2000
     at $0.001 per share.

     In May 2001, the Company issued 150,000 shares of common stock for services
     rendered at $0.001 per share.

     Such shares were issued without registration in reliance on the exemption
     from registration, with the United States Securities and Exchange
     Commission (the "Commission") confirmed in sections 3(b) and 4 (2) of the
     Securities Act of 1933 and Rule 504 of Regulation D promulgated there under
     for small offerings.


                                      -6-
<PAGE>

5.   RECENT ACCOUNTING PRONOUNCEMENTS

     On June 29, 2001, the Financial Accounting Standards Board (FASB) issued
     SFAS No. 141, "Business Combinations," and SFAS No. 142, "Goodwill and
     Intangible Assets." The major provisions of SFAS No. 141 were as follows:
     all business combinations initiated after June 30, 2001 must use the
     purchase method of accounting; the pooling of interest method of accounting
     is prohibited. SFAS No. 142 eliminated the amortization of goodwill and
     other intangibles and requires an impairment test of their carrying value.
     An initial impairment test of goodwill and other intangibles must be
     completed in the year of adoption with at least an annual impairment test
     thereafter. On January 1, 2002, the Company adopted SFAS No. 142. The
     adoption of SFAS No. 142 did not have a material impact on the Company's
     results of operations or financial position.

     In August 2001, the FASB issued SFAS No. 143 "Accounting for Asset
     Retirement Obligations". SFAS No. 143 addresses financial accounting and
     reporting for obligations and costs associated with the retirement of
     tangible long-lived assets. The Company is required to implement SFAS No.
     143 on January 1, 2003. Management believes the effect of implementing this
     pronouncement will not have a material impact on the Company's results of
     operations or financial position.

     In August 2001, the FASB issued SFAS No. 144, "Accounting for the
     Impairment or Disposal of Long-Lived Assets", effective for fiscal years
     beginning after December 15, 2001. Under SFAS No. 144 assets held for sale
     will be included in discontinued operations if the operations and cash
     flows will be or have been eliminated from the ongoing operations of the
     entity and the entity will not have any significant continuing involvement
     in the operations of the component. The Company adopted SFAS No. 144 on
     January 1, 2002. The adoption of SFAS No. 144 did not have a material
     impact on the Company's results of operations or financial position.

     In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB Statements
     No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
     Corrections". This statement eliminates the automatic classification of
     gain or loss on extinguishment of debt as an extraordinary item of income
     and requires that such gain or loss be evaluated for extraordinary
     classification under the criteria of Accounting Principles Board No. 30
     "Reporting Results of Operations". This statement also requires
     sales-leaseback accounting for certain lease modifications that have
     economic effects that are similar to sales-leaseback transactions, and
     makes various other technical corrections to existing pronouncements. This
     statement will be effective for the Company for the year ending December
     31, 2003. Management believes that adopting this statement will not have a
     material effect on the Company's results of operations or financial
     position.


                                      -7-
<PAGE>

     In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
     Associated with Exit or Disposal Activities." This Statement requires
     recording costs associated with exit or disposal activities at their fair
     values when a liability has been incurred. Under previous guidance, certain
     exit costs were accrued upon management's commitment to an exit plan.
     Adoption of this Statement is required with the beginning of fiscal year
     2003. The Company has not yet completed the evaluation of the impact of
     adopting this Statement.

     On October 1, 2002, the FASB issued SFAS No. 147, "Acquisitions of Certain
     Financial Institutions." SFAS No. 147 removes acquisitions of financial
     institutions from the scope of FASB Statement No. 72, "Accounting for
     Certain Acquisitions of Banking or Thrift Institutions", and FASB
     Interpretation No. 9, "Applying APB Opinion Nos. 16 and 17 When a Savings
     and Loan Association or a Similar Institution is Acquired in a Business
     Combination Accounted for by the Purchase Method," and requires that those
     transactions be accounted for in accordance with FASB Statements Nos. 141
     and 142.

     Additionally, this statement amends FASB Statement No. 144, "Accounting for
     the Impairment or Disposal of Long-Lived Assets," to include in its scope
     long-term customer-relationship intangible assets of financial institutions
     such as depositor and borrower relationship intangible assets and credit
     cardholder intangible assets. Consequently, those intangible assets are
     subject to the same undiscounted cash flow recoverability test and
     impairment loss recognition and measurement provisions that Statement No.
     144 requires for other long-lived assets that are held and used.

     This statement became effective on October 1, 2002 and did not have a
     material impact on the Company's results of operations or financial
     position.


                                      -8-
<PAGE>

Item 2.  Management's Discussion and Plan of Operations

Forward Looking Statements
--------------------------

         Certain information contained herein should be considered
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 which is subject to a number of risks and
uncertainties. The preparation of forward-looking statements requires the use of
estimates of future revenues, expenses, activity levels and economic and market
conditions, many of which are outside the control of East Coast Airlines, Inc.
("Company") control. Specific factors that could cause actual results to differ
materially from those set forth in the forward-looking statements include:
economic conditions, labor costs; aviation fuel costs; competitive pressures on
pricing; weather conditions; government legislation; consumer perceptions of the
Company's products; demand for air transportation in the markets intended to be
served by the Company; other operational matters discussed herein and other
risks and uncertainties.

         Other factors and assumptions not identified above are also involved in
the preparation of forward-looking statements, and the failure of such other
factors and assumptions to be realized may also cause actual results to differ
materially from those discussed.

Critical Accounting Policies
----------------------------

         The Company's discussion and analysis of its financial condition and
results of operations are based upon the Company's financial statements, which
have been prepared in accordance with accounting principles generally accepted
in the United States of America. The preparation of these financial statements
requires the Company to make estimates and judgements that affect the reported
amount of asset, liabilities and expenses, and related disclosure of contingent
assets and liabilities. The Company bases its estimates on historical experience
and on other various assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis form making judgements about
carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates under different
assumptions or conditions.

Plan of Operation
-----------------

         The Company is in the initial stages of startup and is exploring the
feasibility of raising sufficient capital to implement its business plan. The
Company has been in the development stage since inception November 17, 1999.


                                      -9-
<PAGE>

         The Company has registered its class of common stock on a Form 10-SB
registration statement filed pursuant Section 12(g) of the Securities Exchange
Act of 1934 (the "Exchange Act").

         The Company has limited capital and is unable to commence the
operations described in its business plan until it raises equity or debt
funding. At the present time, the Company has not commenced operations or any
activities beyond the planning stage.

         The Company has incurred, and will continue to incur, expenses relating
to its operations. Specifically, as long as the Company is required to file
reports under the Exchange Act, the Company will continue to incur accounting
and legal fees relating to these filings. The Company enjoys the non-exclusive
use of office, telecommunication and incidental supplies of stationary, provided
by its officers. As of the date of this report, the Company has not generated
any revenues.

         The Company must rely upon loans and investments from affiliates to pay
its operating expenses. There are no assurances that such affiliates will
continue to advance funds to the Company or will continue to invest in the
Company's securities. In the event the Company is unable to obtain additional
capital or funding it may be unable to pursue its business plan.

   The Company recognizes the current economic problems the airline industry is
forced to face in the aftermath of the events of September 11, 2001 but believes
its business plan is sound and will continue to pursue development. It also
recognizes that merger opportunities are available both within and without the
industry and will pursue those that in its best business judgement offer the
best opportunities to its shareholders.

         Once the Company completes its business planning and commences
acquiring the assets and resources necessary to execute its business plan, the
Company will need additional funding. Merger opportunities are being evaluated
as a source for this additional capital. No significant cash or funds are
expected to be required for the Company to complete its business planning. The
Company, however, will amend its business plan to accommodate a merger partner
if it is in the best interests of the Company and its shareholders.

Liquidity
---------

         The Company has no current operations and have not generated any
revenue. The Company must rely entirely on loans from the officer to pay
operating expenses.


                                      -10-
<PAGE>

         At September 30, 2002, the Company had a working capital deficit of
$57,231 and continues to operate at a loss. Since the Company currently has no
source of revenue, working capital deficit will continue to increase as
additional operating expenses are incurred. Presently the Company has no
external sources of cash and is dependent upon loans from management and
stockholders and future placement of equity or debt to meet development stage
operating needs.

         The Company's ability to continue as a going concern is dependent upon
the Company's ability to obtain funds to meet obligations on a timely basis, to
identify and close an acquisition with a suitable target company, obtain
additional financing or refinancing as may be required, and/or merge with a
suitable partner, and ultimately to attain profitability. There are no
assurances that the Company will be able to identify a suitable acquisition
target and close such acquisition, successfully negotiate a merger, obtain any
additional financing or if the Company is able to obtain additional financing,
that such financing will be on favorable terms. The inability to obtain
additional financing when needed would have a material adverse effect on
operating results.

         The Independent Auditors' Report and Note 1 of the Notes to Financial
Statements for the year ended December 31, 2001 dated February 8, 2002 stated
that substantial doubt has been raised about the Company's ability to continue
as a going concern. Present business operations do not generate any revenues
with which to cover expenses. The Company will have to acquire or merge with
other business operations or severely reduce expense to remain viable and the
Company cannot assure that it will be able to do so.

Results of Operations
---------------------

Nine Months Ended September 30, 2002 compared to
------------------------------------------------
  Nine Months Ended September 30, 2001
  ------------------------------------

         General and administrative expenses decreased from $18,097 for the nine
months ended September 30, 2001 to $ 6,998 for the nine months ended September
30, 2002. The Company attributes this decrease primarily to a decrease in
professional fees.

         Interest expenses increased from $1,138 for the nine months ended
September 30, 2001 to $3,988 for the nine months ended September 30, 2002. The
Company attributes the increase primarily to interest due on loan balances.


                                      -11-
<PAGE>

Three Months Ended September 30, 2002 Compared to
-------------------------------------------------
  Three Months Ended September 30, 2001
  -------------------------------------

         General and administrative expenses decreased from $9,323 for the three
months ended September 30, 2001 to $972 for the three months ended September 30,
2002. The Company attributes this decrease primarily to a decrease in
professional fees.

         Interest expense increased from $1,138 for the three months ended
September 30, 2002 to $1,381 for the three months ended September 30, 2002. The
Company attributes this increase primarily to interest due on loan balances.

Other Matters
-------------

New Accounting Pronouncements
-----------------------------

         On June 29, 2001, the Financial Accounting Standards Board (FASB)
issued SFAS No. 141, "Business Combinations," and SFAS No. 142, "Goodwill and
Intangible Assets." The major provisions of SFAS No. 141 were as follows: all
business combinations initiated after June 30, 2001 must use the purchase method
of accounting; the pooling of interest method of accounting is prohibited. SFAS
No. 142 eliminated the amortization of goodwill and other intangibles and
requires an impairment test of their carrying value. An initial impairment test
of goodwill and other intangibles must be completed in the year of adoption with
at least an annual impairment test thereafter. On January 1, 2002, the Company
adopted SFAS No. 142. The adoption of SFAS No. 142 did not have a material
impact on the Company's results of operations or financial position.

         In August 2001, the FASB issued SFAS No. 143 "Accounting for Asset
Retirement Obligations". SFAS No. 143 addresses financial accounting and
reporting for obligations and costs associated with the retirement of tangible
long-lived assets. The Company is required to implement SFAS No. 143 on January
1, 2003. Management believes the effect of implementing this pronouncement will
not have a material impact on the Company's results of operations or financial
position.

         In August 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets", effective for fiscal years
beginning after December 15, 2001. Under SFAS No. 144 assets held for sale will
be included in discontinued operations if the operations and cash flows will be
or have been eliminated from the ongoing operations of the entity and the entity
will not have any significant continuing involvement in the operations of the
component. The Company adopted SFAS No. 144 on January 1, 2002. The adoption of
SFAS No. 144 did not have a material impact on the Company's results of
operations or financial position.


                                      -12-


<PAGE>

         In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical
Corrections". This statement eliminates the automatic classification of gain or
loss on extinguishment of debt as an extraordinary item of income and requires
that such gain or loss be evaluated for extraordinary classification under the
criteria of Accounting Principles Board No. 30 "Reporting Results of
Operations". This statement also requires sales-leaseback accounting for certain
lease modifications that have economic effects that are similar to
sales-leaseback transactions, and makes various other technical corrections to
existing pronouncements. This statement will be effective for the Company for
the year ending December 31, 2003. Management believes that adopting this
statement will not have a material effect on the Company's results of operations
or financial position.

         In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities." This Statement requires recording
costs associated with exit or disposal activities at their fair values when a
liability has been incurred. Under previous guidance, certain exit costs were
accrued upon management's commitment to an exit plan. Adoption of this Statement
is required with the beginning of fiscal year 2003. The Company has not yet
completed the evaluation of the impact of adopting this Statement.

         On October 1, 2002, the FASB issued SFAS No. 147, "Acquisitions of
Certain Financial Institutions." SFAS No. 147 removes acquisitions of financial
institutions from the scope of FASB Statement No. 72, "Accounting for Certain
Acquisitions of Banking or Thrift Institutions", and FASB Interpretation No. 9,
"Applying APB Opinion Nos. 16 and 17 When a Savings and Loan Association or a
Similar Institution is Acquired in a Business Combination Accounted for by the
Purchase Method," and requires that those transactions be accounted for in
accordance with FASB Statements Nos. 141 and 142.

         Additionally, this Statement amends FASB Statement No. 144, "Accounting
for the Impairment or Disposal of Long-Lived Assets," to include in its scope
long-term customer-relationship intangible assets of financial institutions such
as depositor and borrower relationship intangible assets and credit cardholder
intangible assets. Consequently, those intangible assets are subject to the same
undiscounted cash flow recoverability test and impairment loss recognition and
measurement provisions that Statement 144 requires for other long-lived assets
that are held and used.

This statement became effective on October 1, 2002 and did not have a material
impact on the Company's results of operations or financial position.


                                      -13-
<PAGE>


Item 14.   Controls and Procedures

         Within the 90 days prior to the date of this report, the Company
carried out an evaluation, under the supervision and with the participation of
the Company's management, including the Company's Chief Executive Officer and
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures pursuant to Exchange Act Rule
13a-14. Based upon that evaluation, the Company's Chief Executive Officer and
Chief Financial Officer concluded that the Company's disclosure controls and
procedures are effective in timely alerting them to material information
relating to the Company (including its consolidated subsidiaries) required to be
included in the Company's periodic SEC filings. There have been no significant
changes in the Company's internal controls or in other factors that could
significantly affect internal controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.


                                      -14-
<PAGE>


PART II - OTHER INFORMATION

         ITEM 1.  LEGAL PROCEEDINGS

                  There are no legal proceedings against the Company and the
                  Company is unaware of such proceedings contemplated against
                  it.

         ITEM 2.  CHANGES IN SECURITIES

                  Not applicable.

         ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

                  Not applicable.

         ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                  Not applicable.

         ITEM 5.  OTHER INFORMATION

                    Not applicable

         Item 6.  Exhibits and Reports on Form 8-K
                  --------------------------------

         (a) Exhibits:

                  Exhibit 99.1 Certification of Chief Executive Officer and
                  Chief Financial Officer pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 2002.

                  Exhibit 99.2 Certification pursuant to 18 U.S.C. Section
                  1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.

         (b) There were no Current Reports on Form 8-K filed by the registrant
         during the quarter ended September 30, 2002.


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<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                    EAST COAST AIRLINES, INC.


                                    BY: /s/ Robert J. Salluzzo
                                    -------------------------------------------
                                            Robert J. Salluzzo
                                            Principal Financial and
                                            Chief Accounting Officer


Dated:  November 12, 2002



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