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

                                    FORM 10-Q

               Quarterly Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934
           For Quarter ended June 30, 2006 Commission File No. 0-28575

                         GLOBAL AIRCRAFT SOLUTIONS, INC.
                  Formerly Renegade Venture (NEV.) Corporation
                ------------------------------------------------
               (Exact name of issuer as specified in its charter)


            NEVADA                                           84-1108499
 --------------------------------              --------------------------------
(State or other jurisdiction of                         (I.R.S. Employer
  incorporation or organization)                       Identification No.)


 6901 South Park Avenue
 Tucson, Arizona 85706
 Mail:  P.O. Box 23009
 Tucson AZ 85734-3009                                   (520) 294-3481
---------------------------------------             ----------------------
(Address of Principal Executive Offices)           (Issuer's Telephone No.)


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 such shorter period `that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days.

Yes [ x ] No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in rule 126-2 of the Exchange Act).

Yes [  ] No [ x ]

The number of shares outstanding of each of the Registrant's classes of common
equity, as of June 30, 2006 are as follows:

     Class of Securities                              Shares Outstanding
-----------------------------                          -----------------
Common Stock, $.001 par value                            39,090,183

<PAGE>


                                      INDEX


                          PART I. FINANCIAL INFORMATION


Item 1.  Financial Statements.

         Condensed Consolidated Balance Sheets:

         As of December 31, 2005 (audited) and June 30, 2006
          (unaudited)..................................................    3

         Condensed Consolidated Statements of Operations:

         For the three months and six months ended June 30, 2005 and
           2006 (unaudited)............................................    5

         Consolidated Statement of Changes in Stockholders' Equity:

         For the year ended December 31, 2005 (audited) and
          six months ended June 30, 2006 (unaudited)...................    6

         Consolidated Statements of Cash Flows:

         For the six-month periods ended June 30, 2005 and 2006
          (unaudited)..................................................    8

         Notes to Financial Statements (unaudited)  ...................   10


Item 2.  Management's Discussion and Analysis of Financial condition...   24
           and Results of Operation

Item 3.  Quantitative and Qualitative Disclosure about Market Risk.....   29

Item 4.  Controls and Procedures.......................................   29


                           PART II. OTHER INFORMATION


Item 5.   Other Information............................................   29

Item 6.   Exhibits.....................................................   30

          Signatures...................................................   30

          Certifications

<PAGE>

ITEM 1. FINANCIAL STATEMENTS.


                                    GLOBAL AIRCRAFT SOLUTIONS, INC.
                                 Condensed Consolidated Balance Sheet
                                  December 31, 2005 and June 30, 2006

<TABLE>
<CAPTION>


                                                 ASSETS
                                                               2005                     2006
                                                            (audited)                (unaudited)
                                                           -----------               -----------
<S>                                                         <C>                      <C>
CURRENT ASSETS
Cash and cash equivalents                                  $   368,013               $   176,419
Accounts receivable                                          4,993,138                 8,644,220
Note receivable                                              1,997,868                 1,026,896
Inventory                                                    6,580,092                 5,988,341
Restricted funds                                                98,500                    98,500
Other current assets                                           304,987                   192,999
                                                           -----------               -----------

  TOTAL CURRENT ASSETS                                     $14,342,598               $16,127,375

Property, plant and equipment                                1,642,141                 1,457,967
Investment                                                      25,000                    25,000
Equity in net assets of and advances to affiliates           6,333,690                 7,846,089
Customer list, net                                             133,886                    66,943
Agreement with vendor, net                                      28,490                    14,245
Goodwill                                                        38,992                    38,992
Inventory, non-current                                       2,187,343                 2,568,395
Deferred income taxes                                          130,000                   297,348
Other assets                                                   192,481                    61,426
                                                           -----------               -----------

  TOTAL ASSETS                                             $25,054,621               $28,503,780
                                                           ===========               ===========

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

                                                           3
<PAGE>


                                           GLOBAL AIRCRAFT SOLUTIONS, INC.
                                         Condensed Consolidated Balance Sheet
                                         December 31, 2005 and June 30, 2006



                                        LIABILITIES AND STOCKHOLDERS' EQUITY
                                                                                     2005                2006
                                                                                   (audited)            (unaudited)
                                                                                  ------------         ------------

CURRENT LIABILITIES
Notes payable - short term                                                        $  2,564,739         $  4,811,929
Accounts payable - trade                                                             7,181,397            3,438,846
Customer deposits                                                                                            69,193
Billings in excess of costs and estimated
  earnings on contracts in progress                                                     23,458              906,625
Accrued liabilities                                                                    570,724              766,369
Income taxes payable                                                                   685,904            2,007,088
Commitments and contingencies
                                                                                  ------------         ------------

  TOTAL CURRENT LIABILITIES                                                       $ 11,026,222         $ 12,000,050

                                                                                  ------------         ------------

  TOTAL LIABILITIES                                                               $ 11,026,222         $ 12,000,050
                                                                                  ============         ============


STOCKHOLDERS' EQUITY
Common stock, $.001 par value, 100,000,000 shares authorized and
  38,998,215 and 39,470,354 shares issued 2005 and 2006 and 30,650,386 and
  39,090,183 shares outstanding 2005 and 2006                                     $     38,998         $     39,470
Additional paid-in capital                                                          11,904,673           12,237,265
Deferred compensation                                                                  (80,000)            (116,500)
Contributed capital                                                                    620,289              620,289
Retained earnings                                                                    1,544,409            3,723,206
                                                                                  ------------         ------------

  TOTAL STOCKHOLDERS' EQUITY                                                      $ 14,028,399         $ 16,503,730
                                                                                  ============         ============

  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                      $ 25,758,012         $ 28,503,780
                                                                                  ============         ============

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


                                                           4
<PAGE>


                                                  GLOBAL AIRCRAFT SOLUTIONS, INC.
                                           Condensed Consolidated Statement of Operations
                                  For the Three Months and Six Months ended June 30, 2005 and 2006
                                                            (unaudited)

                                                                  Three           Three
                                                                  Months          Months         Six Months         Six Months
                                                              ended June 30,   ended June 30,   ended June 30,    ended June 30,
                                                                   2005             2006             2005             2006

Net sales                                                      $  8,829,378       10,198,651       17,481,614       21,707,374
Cost of sales                                                    (6,375,131)      (7,768,045)     (12,674,327)     (15,303,454)
Inventory write down                                                (55,208)                         (110,417)
                                                               ------------     ------------     ------------     ------------

Gross profit                                                   $  2,399,039     $  2,430,606     $  4,686,870     $  6,403,920

Selling, general and administrative expense                      (1,738,041)      (1,831,271)      (3,366,775)      (3,801,734)
Penalties                                                            (1,006)         (11,171)          (1,006)         (11,171)
                                                               ------------     ------------     ------------     ------------

Gain (loss) from operations                                    $    659,992     $    588,164     $  1,329,089     $  2,591,015

Other income (expense):
     Interest income                                                173,956           24,368          204,019           54,725
     Interest expense                                              (170,402)        (147,194)        (304,391)        (231,868)
     Discounts taken                                                                                   17,715
     Miscellaneous expense                                                                                                (116)
     Miscellaneous income                                            18,666           18,113           93,917           18,605
     Gain (loss) on asset disposal                                                    (8,518)                           (8,518)
     Equity in income of unconsolidated affiliates                                   968,993                           923,121
                                                               ------------     ------------     ------------     ------------
                                                               $    682,212     $  1,443,926     $  1,340,349     $  3,346,964
Net profit (loss), Before taxes
     Estimated taxes, State and Federal                                 (45)        (388,550)             (90)      (1,168,187)
                                                               ------------     ------------     ------------     ------------


Net profit (loss), After taxes                                 $    682,167     $  1,055,376     $  1,340,259     $  2,178,777
                                                               ============     ============     ============     ============

Net profit (loss) per share, Basic 2006 2nd
Qtr 39,011,179 shares, Year to date 38,829,760 shares;
2005 2nd Qtr 30,700,386 shares, Year to date
30,695,693 shares                                              $       0.02     $       0.03     $       0.04     $       0.06
Net profit (loss) per share, Fully diluted 2006 2nd
Qtr 40,363,176 shares, Year to date 40,786,236 shares;
2005 2nd Qtr 34,623,863 shares, Year to date
33,980,830 shares                                              $       0.02     $       0.03     $       0.04     $       0.06
                                                               ============     ============     ============     ============

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


                                                                  5

<PAGE>


                                                GLOBAL AIRCRAFT SOLUTIONS, INC.
                                        Formerly Renegade Venture (NEV.) Corporation
                                  Consolidated Statement of Changes in Stockholders' Equity
                         For the Year Ended December 31, 2005 and the Two Quarters Ended June 30, 2006


                                         Additional Contributed    Deferred     Treasury    Accumulated    Stockholder
                                         Paid-in      Capital    Compensation    Stock    Earnings/Deficit   Equity
                                          Capital
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
                     Shares     Amount    Amount      Amount        Amount                    Amount         Amount
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------

 Balance December   30,650,386  31,030   7,033,950    620,289          0                    (1,578,927)    6,106,342
     31, 2004
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  1st Qtr, 2005
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  Shares issued,     50,000       50      14,950
Options exercised
  50,000 @ $0.30
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  2nd Qtr, 2005
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
    No change
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  3rd Qtr, 2005
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 Shares issued to   7,200,000   7,200    4,644,000
 Barron Partners
    for a cash
 consideration of
  $.68 per share
-------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  Shares issued      421,812     422       (422)
  under non-cash
   provision of
    warrants.
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  4th Qtr, 2005
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 Shares issued to    200,000     200      156,800                  (80,000)
 Directors under
 Restricted stock
 award at $0.80,
  100,000 shares
for 2005; 100,000
   shares to be
 expensed in 2006
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 Shares issued to    15,000       15      19,485
  employee under
    agreement,
      price
  at measurement
  date of $1.30
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 Shares issued to    60,000       60      35,940
 employees under
 agreement, price
  at measurement
   date of $.60
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  Shares issued      21,017       21       (21)
  under non-cash
   provision of
     warrants
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 Net Income/Loss                                                                             3,123,356
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
     Balance        38,618,215  38,998   11,904,683   620,289      (80,000)                  1,544,429     14,028,399
   December 31
       2005
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  1st Qtr, 2006
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
Stock issued as a    10,000       10      13,890
 signing bonus to
  new director,
     price at
 measurement date
      $1.39
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------

                                                         6
<PAGE>


Stock issued for     100,000     100       69,900
services rendered
 valued at $70,000
  Stock price at
measurement date
 50,000 shares @
 $.56 and 50,000
   shares @$.85
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
Compensation                                                         58,250
  expensed
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 2nd Qtr, 2006
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
Shares issued         96,154      96      96,058
  warrants
exercised @1.00
per share for a
consideration of
  $96,154
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 Stock issued for    100,000     100     152,900                   (153,000)
   consultancy
  services to be
rendered in 2006,
     price at
 measurement date
      $1.53
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
  Shares issued      165,814     166        (166)
  under non-cash
   provision of
     warrants
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
 Net Income/Loss                                                                             2,178,777
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------
     Balance        39,090,183  39,470   12,237,265   620,289      (116,500)                 3,723,206     16,503,730
  June 30, 2006
------------------- ---------- --------- ---------- ------------ -------------- --------- ---------------- -----------

                                                             7

<PAGE>


                                            GLOBAL AIRCRAFT SOLUTIONS, INC.
                                  Condensed Consolidated Statement of Cash Flows
                                 For the Six Months ended June 30, 2005 and 2006
                                                   (unaudited)


                                                                        2005                   2006

Cash flows from operating activities:
    Net Profit/(Loss)                                                1,340,259               2,178,777

Adjustments to reconcile net profit to net cash
  provided (used) by operating activities:
    Depreciation                                                       231,912                 271,655
    Amortization                                                        81,188                  81,189
    Allowance for Doubtful Accounts                                    110,417                 (91,907)
    Share of affiliate net income                                                             (923,121)
    Gain/(loss) on disposal of fixed assets                                                     13,785
    Expenses paid with stock                                           120,497                 310,108

Changes in Assets and Liabilities:
    Accounts receivable                                                 77,407              (6,682,733)
    Prepaid expenses                                                  (455,312)                 60,280
    Costs and estimated earnings in excess of
      billings on contracts in progress                               (337,388)
    Inventory                                                        2,264,908                 208,688
    Inventory, non-current                                          (2,323,820)                  2,011
    Restricted Funds                                                   (98,500)
    Other current assets
    Other non-current assets                                           (26,782)                (36,293)
    Accounts payable-trade                                            (695,247)             (2,651,993)
    Accounts payable-related party                                      (6,219)
    Due to factor                                                      290,911
    Customer deposits                                                 (280,537)                 69,193
    Billings in excess of cost and estimated
      earnings on contracts in progress                               (966,238)                883,167
    Income tax payable                                                                       1,321,184
    Accrued liabilities                                               (396,315)                195,645

Net cash provided by/(used for) operating activities                (1,068,859)             (4,790,365)

Cash flows from investing activities:
    Purchase of property, plant and equipment                          (68,081)               (101,267)
    Notes receivable                                                                           973,452
    Non-consolidated affiliate (Investment)/receipt                                          1,385,722
Net cash used for investing activities                                 (68,081)              2,257,907



                                                         8
<PAGE>


Cash flows from financing activities:
   Proceeds from issuance of common stock                               15,000                  96,154
   Payments related to issuance of common stock
   Proceeds from bank loans                                            750,000               3,166,794
   Repayment of bank loans                                             (95,747)               (919,604)
   Proceeds from short term financing
   Other financing activities, net                                      58,142                  (2,480)

Net cash provided by/(used for) provided by financing activities       727,395               2,340,864

Net decrease in cash and cash equivalents                             (409,545)               (191,594)

Cash and cash equivalents at beginning of period                       549,904                 368,013

Cash and cash equivalents at end of period                             140,359                 176,419
</TABLE>


Interest paid for the six months ended June 30, 2006 was $193,807. Interest paid
for the six months ended June 30, 2005 was $304,391. Taxes paid during the six
months ended June 30, 2006 were $0. Taxes paid during the six months June 30,
2005 were $90.00.

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


                                        9

<PAGE>


                         GLOBAL AIRCRAFT SOLUTIONS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2005


1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared, by
management, in accordance with accounting principles generally accepted in the
United States for interim financial information and the instructions for Form
10-Q and Regulation SK. Accordingly, they do not include all of the information
and footnotes required by accounting principles generally accepted in the United
States for complete financial statements. All adjustments that, in the opinion
of management, are necessary for a fair presentation of the results of
operations for the interim periods have been made and are of a recurring nature
unless otherwise disclosed herein. The results of operations for the six months
ended June 30, 2006 are not necessarily indicative of the results that will be
realized for the entire fiscal year. These financial statements should be read
in conjunction with the Company's Annual Report on Form 10-KSB for the year
ended December 31, 2005

The condensed consolidated financial statements include the accounts of Global
Aircraft Solutions, Inc. ("Global") formerly Renegade Venture (NEV.) Corporation
and its wholly owned subsidiaries, Hamilton Aerospace Technologies, Inc.
("HAT"), Johnstone Softmachine Corporation ("Johnstone"), and World Jet
Corporation ("World Jet") collectively, the ("Company"). Global acquired HAT and
Johnstone on April 30, 2002. For accounting purposes, the HAT/Global transaction
was treated as an acquisition of Global by HAT and as a recapitalization of
Global. The acquisition of 100 per cent of World Jet stock was finalized July
15, 2004, with an effective date of January 1, 2004. The financial statements
reflect the accounting activity of HAT since its inception, April 5, 2002 and of
World Jet since January 1, 2004. Johnstone is currently inactive.


2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

We consider cash and investments in securities with maturities at the date of
purchase of three months or less to be cash and cash equivalents.


Use of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles 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.
Actual results could differ from those estimates.


Trade Accounts Receivable


Trade accounts receivable represent amounts billed but uncollected on both
completed and in-progress aircraft repair and maintenance contracts as well as
amounts billed but uncollected on parts shipped to customers.

Accounts receivable are stated at the amount management expects to collect from
outstanding balances. Management provides for probable uncollectible amounts
through a charge to earnings and a credit to a valuation allowance based on its
assessment of the current status of individual accounts. The allowance is
estimated as a percentage of accounts receivable based on a review of accounts
receivable outstanding and the Company's prior history of uncollectible accounts
receivable. Balances that are still outstanding after management has used
reasonable collection efforts are written off through a charge to the valuation
allowance and a credit to trade accounts receivable. During 2005, the Company
had bad debt expense of $473,000. The Company believes its allowance at June 30,
2006 is adequate based upon review of our outstanding accounts receivable at
June 30, 2006.

                                       10

<PAGE>


At June 30, 2006, the Company has a receivable of $570,000 from a customer that
has filed Reorganization under Chapter 11 of the Bankruptcy Code. Management
believes that it has a substantial position in the bankruptcy proceeding and
that the Company has adequate collateral, which it will take as payment for this
receivable. The Company has provided a standard allowance for all receivables at
June 30, 2006.


Inventory

Inventories are stated at the lower of cost (first-in, first-out) or market.
Inventory items held for over one year are classified as "inventory,
non-current". The Company reviews the market value of inventories whenever
events and circumstances indicate that the carrying value of inventories may not
be recoverable from the estimated future sales price less cost of disposal and
normal gross profit. In cases where the market values are less than the carrying
value, a write down is recognized equal to an amount by which the carrying value
exceeds the market value of inventories.

Inventories include used parts and parts stripped from aircraft. These inventory
items are initially carried at original cost basis determined on the pro-rata
fair value of the individual parts based on market or catalog pricing.


Property and Equipment

Property and equipment are recorded at cost. Depreciation is provided for on the
straight-line method over the estimated useful lives of the assets. The
estimated useful life of computer equipment and software is three years at both
our HAT and World Jet subsidiaries; the estimated useful life of all other
categories of assets is five years at our HAT subsidiary; World Jet uses
estimated useful lives of 3, 5 and 7 years for its other assets. Amortization of
leasehold improvements is computed using the shorter of the lease term or the
expected useful life of the assets. Maintenance and repairs that neither
materially add to the value of the property nor appreciably prolong its life are
charges to expense as incurred. Betterments or renewals are capitalized when
incurred.

The Company reviews the carrying value of property, plant and equipment for
impairment whenever events and circumstances indicate that the carrying value of
an asset may not be recoverable from the estimated future cash flows expected to
result from its use and eventual disposition. In cases where undiscounted
expected future cash flows are less than the carrying value, an impairment loss
is recognized equal to an amount by which the carrying value exceeds the fair
value of assets. The factors considered by management in performing this
assessment include current operating results, trends and prospects, as well as
the effects of obsolescence, demand, competition and other economic factors.


Revenue and Cost Recognition

Revenues from fixed-fee contracts for MRO sales are recognized on the
percentage-of-completion method, measured by the cost-to-cost method, commencing
when progress reaches a point where experience is sufficient to estimate final
results with reasonable accuracy. The cumulative catch-up method is used to
account for changes in estimates of total revenues, total costs or extent of
progress. Each project is considered complete when the subject aircraft departs
our facility. Revision in cost and labor hour estimates and recognition of
losses on these contracts are reflected in the accounting period in which the
facts become known. During the periods covered by these financial statements, no
material prior period revisions were necessary. As of June 30, 2006 there are no
material amounts in excess of the agreed contract price that the Company seeks
to collect from customers or others for customer caused delays, error in
specifications or design, contract termination, change orders in dispute or
unapproved as to both scope and price, or other causes of unanticipated
additional costs. Revenue from part sales is recognized when parts are shipped.
Revenues from time and material contracts and all other ancillary services are
recognized as the services are performed.

Income   (Loss) per share - Basic earnings per share includes no dilution and is
         computed by dividing net earnings (loss) available to stockholders by
         the weighted number of common shares outstanding for the period.
         Diluted earnings per share reflect the potential dilution of securities
         that could share in the Company's earnings. Reconciliations of EPS for
         quarters ended June 30, 2006 and 2005 are as follows:

                                       11

<PAGE>
<TABLE>
<CAPTION>


                                                                 For the Six Months ended June 30, 2006
-------------------------------------------------------------------------------------------------------------------
                                                            Income                Shares              Per-Share
                                                          (Numerator)         (Denominator)            Amount
-------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>
Net Income                                                    $2,178,777
Basic EPS
Income available to common stockholders                       $2,178,777            38,829,760               $0.06
-------------------------------------------------------------------------------------------------------------------

Warrants                                                                             1,162,726
Options                                                                                793,750
Diluted EPS

Income available to common stockholders + assumed             $2,178,777            40,786,236               $0.05
conversions



                                                                   For the Quarter ended June 30, 2006
-------------------------------------------------------------------------------------------------------------------

                                                            Income                Shares              Per-Share
                                                          (Numerator)         (Denominator)            Amount
-------------------------------------------------------------------------------------------------------------------

Net Income                                                    $1,055,376
Basic EPS
Income available to common stockholders                       $1,055,376            39,011,179               $0.03
-------------------------------------------------------------------------------------------------------------------

Warrants                                                                               568,791
Options                                                                                783,206
Diluted EPS

Income available to common stockholders + assumed            $1,055,376             40,363,176               $0.03
conversions
--------------------------------------------------- -- ------------------------------------------------------------



                                                                 For the Six Months ended June 30, 2005
-------------------------------------------------------------------------------------------------------------------

                                                            Income                Shares              Per-Share
                                                          (Numerator)         (Denominator)            Amount
-------------------------------------------------------------------------------------------------------------------

Net Income                                                    $1,340,259
Basic EPS
Income available to common stockholders                       $1,340,259            30,695,354               $0.04
-------------------------------------------------------------------------------------------------------------------

Warrants                                                                             2,475,247
Options                                                                                809,890
Diluted EPS

Income available to common stockholders + assumed             $1,340,259            33,980,830               $0.04
conversions
-------------------------------------------------------------------------------------------------------------------



                                                                   For the Quarter ended June 30, 2005
-------------------------------------------------------------------------------------------------------------------

                                                            Income                Shares              Per-Share
                                                          (Numerator)         (Denominator)            Amount
-------------------------------------------------------------------------------------------------------------------

Net Income                                                      $682,167
Basic EPS
Income available to common stockholders                         $682,167            30,700,386               $0.02
-------------------------------------------------------------------------------------------------------------------

Warrants                                                                             3,094,764
Options                                                                                828,713
Diluted EPS

Income available to common stockholders + assumed               $682,167            34,623,863               $0.02
conversions
-------------------------------------------------------------------------------------------------------------------


      Calculation of Weighted Average Shares for Six Months ended June 30,
      2006
      ------------------------------------------------------------------------

      Issues       Shares O/S    Dates                   Days   Average
      ------------ ------------- ---------------------- ------- --------------

                   38,618,215    01/01/06 - 03/09/06        67     14,295,140
      110,000      38,728,215    03/09/06 - 04/04/06        26      5,563,169
       96,154      38,824,369    04/04/06 - 04/07/06         3        643,498
      100,000      38,924,369    04/07/06 - 05/09/06        32      6,881,656
      165,814      39,090,183    05/09/06 - 07/01/06        53     11,446,297
      ------------ ------------- ---------------------- ------- --------------
                                 Total shares                      38,829,760
      ------------ ------------- ---------------------- ------- --------------

                                       12
</TABLE>

<PAGE>


      Calculation of Weighted Average Shares for the Quarter ended June 30,
      2006
      ------------------------------------------------------------------------

      Issues       Shares O/S     Dates                   Days   Average
      ------------ -------------- ---------------------- ------- -------------
                   38,728,215     04/01/06 - 04/04/06         3     1,276,754
       96,154      38,824,369     04/04/06 - 04/07/06         3     1,279,924
      100,000      38,924,369     04/07/06 - 05/09/06        32    13,687,690
      165,814      39,090,183     05/09/06 - 07/01/06        53    22,766,810
      ------------ -------------- ---------------------- ------- -------------
                                  Total shares                     39,011,179
      ------------ -------------- ---------------------- ------- -------------



            Calculation of Dilution for Six Months ended June
            30,2006
            ---------------------------------------------------------
                                    No. of shares  Incremental
                                                   shares
                                                   Outstanding
            ----------------------- -------------- ------------------

            Warrants @ $0.52              104,111             66,515
            Warrants @ $0.68              367,200            285,000
            Warrants @ $1.00            1,040,866            318,042
            Warrants @ $1.36           12,072,747            493,168

            Options  @ $0.17              900,000            793,750

            ----------------------- -------------- ------------------
                                    Total                  1,956,476
                                    dilution
            ----------------------- -------------- ------------------
            (Average Price $1.44)
            ----------------------- -------------- ------------------



            ---------------------------------------------------------
            Calculation of Dilution for the Quarter ended June 30,
            2006
            ---------------------------------------------------------
                                     No. of shares  Incremental
                                                    shares
                                                    Outstanding
            ----------------------- -------------- ------------------
            Warrants @ $0.52              104,111             62,784
            Warrants @ $0.68              367,200            259,695
            Warrants @ $1.00            1,040,866            246,312

            Options  @ $0.17              900,000            783,206
            ----------------------- -------------- ------------------
                                    Total                  1,351,997
                                    dilution
            ----------------------- -------------- ------------------
            (Average Price $1.31)
            ----------------------- -------------- ------------------


                                       13

<PAGE>


       Calculation of Weighted Average Shares for Six Months ended June 30,
       2005
       ------------------------------------------------------------------------
        Issues      Shares O/S     Dates                   Days   Average
       ----------- -------------- ---------------------- ------- --------------

                   30,650,386     01/01/05 - 01/18/05      17       2,878,769
       50,000      30,700,386     01/18/05 - 06/30/05     164      27,816,924

       ----------- -------------- ---------------------- ------- --------------
                                  Total shares                    30,695,693
       ----------- -------------- ---------------------- ------- --------------



      Calculation of Weighted Average Shares for Three Months ended June 30,
      2005
      --------------------------------------------------------------------------
      Issues      Shares O/S     Dates                    Days    Average
      ----------- -------------- ----------------------- -------- --------------

                  30,700,386     04/01/05 - 06/30/05       91      30,700,386

      ----------- -------------- ----------------------- -------- --------------
                                 Total shares                      30,700,386
      ----------- -------------- ----------------------- -------- --------------



            Calculation of Dilution for Six Months ended June 30,
            2005
            ---------------------------------------------------------
                                    No. of shares  Incremental
                                                   shares
                                                   Outstanding
            ----------------------- -------------- ------------------

            Warrants @ $0.34              720,000            450,989
            Warrants @ $0.52              158,654             67,995
            Warrants @ $0.68            7,740,000          1,956,264
            Options  @ $0.17              900,000            731,868
            Options  @ $0.20              100,000             78,022
             ----------------------- -------------- ------------------
                                    Total                  3,285,137
                                    dilution
            ----------------------- -------------- ------------------
            (Average Price $0.91)
            ----------------------- -------------- ------------------



            Calculation of Dilution for Quarter ended June 30,  2005
            ---------------------------------------------------------
                                    No. of shares  Incremental
                                                   shares
                                                   Outstanding
            ----------------------- -------------- ------------------

            Warrants @ $0.34              720,000            477,624
            Warrants @ $0.52              158,654             76,971
            Warrants @ $0.68            7,740,000          2,528,911
            Warrants @ $1.00            1,137,020             11,258
            Options  @ $0.17              900,000            748,515
            Options  @ $0.20              100,000             80,198
             ----------------------- -------------- ------------------
                                    Total                  3,923,476
                                    dilution
            ----------------------- -------------- ------------------
            (Average Price $1.01)
            ----------------------- -------------- ------------------


                                       14

<PAGE>


Equity in Net Assets and Advances to Affiliates

The investment in a 30% interest in Jetglobal, LLC is accounted for using the
equity method since the Company does not control Jetglobal, LLC, but over which
it does exert significant influence. Under the equity method the investment is
recorded at cost plus advances and the Company's share of earning less
distributions and the Company's share of income or losses. The Company considers
whether future fair value of its investments has declined below their carrying
value whenever adverse events or changes in circumstances indicate that recorded
values may not be recoverable. If the Company considered any such decline to be
other than temporary, a write-down would be recorded to estimate fair value.

All significant intercompany profits and balances have been eliminated.


Intangible Assets

The amounts assigned to Customer List and Agreement with Vendor are recorded at
the value assigned when they were acquired in a business purchase. The amounts
are being amortized over three years using the straight-line method. The Company
assesses the ongoing recoverability of intangible assets subject to amortization
by determining whether the intangible asset balance can be recovered over the
remaining amortization period through projected undiscounted future cash flows.
If projected future cash flows indicate that the unamortized intangible asset
balances will not be recovered, an adjustment is made to reduce the net
intangible asset to an amount consistent with projected future cash flows
discounted at the Company's incremental borrowing rate.

The company's amortizable intangibles consisted of customer lists and vendor
agreements. Amortization expense on these totaled $162,376 and $162,376 for the
years ended December 31,2004 and 2005, respectively. Amortization expense
related to customer lists and vendor agreements will be fully expensed at
$162,376 during 2006. Amortization for the first half of 2006 was $81,189.


Goodwill

The Company evaluates the carrying value of goodwill annually and between annual
evaluations if events occur or circumstances change that would more likely than
not reduce the fair value of a reporting unit below its goodwill carrying
amount. Such circumstances could include but are not limited to:

     1.   a significant adverse change in legal factors or in business climate
     2.   unanticipated competition
     3.   an adverse action or assessment by a regulator.

When evaluating whether goodwill is impaired, the Company compares the fair
value of the reporting unit to which the goodwill is assigned to that unit's
carrying amount, including goodwill. If the carrying amount of a reporting unit
exceeds its fair value, then the amount of the impairment loss must be measured.
The total of the implied fair value of all the other assets and liabilities of
the unit, based on their fair value, less the total amount assigned to those
assets and liabilities is the implied fair value of goodwill. An impairment loss
would be recognized when the carrying amount of the goodwill exceeds its implied
fair value.


Recently Issued Accounting Pronouncements

In November 2004, the FASB issued SFAS No. 151, "Inventory Costs, an amendment
of ARB No. 43, Chapter 4." This Statement clarifies the accounting for abnormal
amounts of idle facility expense, freight, handling costs, and wasted materials.
This Statement is effective for inventory costs incurred during fiscal years
beginning after June 15, 2005. The initial application of SFAS No. 151 had no
impact on the Company's financial statements.

In December 2004, the FASB issued SFAS No. 152, "Accounting for Real Estate
Time-Sharing Transactions - an amendment of FASB Statements No. 66 and 67." This
Statement references the financial accounting and reporting guidance for real
estate time-sharing transactions that is provided in AICPA Statement of Position
04-2, "Accounting for Real Estate Time-Sharing Transactions." This Statement
also states that the guidance for incidental operations and costs incurred to
sell real estate projects does not apply to real estate time-sharing
transactions. This Statement is effective for financial statements for fiscal
years beginning after June 15, 2005. The initial application of SFAS No. 152 had
no impact on the Company's financial statements.

In December 2004, the FASB issued SFAS No. 153, "Exchanges of Nonmonetary Assets
- an amendment of APB Opinion No. 29." This Statement eliminates the exception
for nonmonetary exchanges of similar productive assets and replaces it with a
general exception for exchanges of nonmonetary assets that do not have
commercial substance. A nonmonetary exchange has commercial substance if the
future cash flows of the entity are expected to change significantly as a result
of the exchange. This Statement is effective for nonmonetary asset exchanges
occurring in fiscal periods beginning after June 15, 2005. The initial
application of SFAS No. 153 had no impact on the Company's financial statements.

In December 2004, the FASB issued SFAS No. 123 ( R), " Share Based Payment."
This Statement is a revision of SFAS No. 123, and supersedes APB Opinion No. 25.
SFAS No. 123 ( R) requires the recognition of the cost of employee services
received in exchange for an award of equity instruments based on the grant date
for value of the award. The cost will be recognized over the period during which
an employee is required to provide service in exchange for the award. No
compensation cost is recognized for equity instruments for which employees do

                                       15

<PAGE>


not render the required service period. In April, the SEC release No. 33-8568
delayed the implementation of SFAS No. 123 ( R). The Statement was adopted by
the Company beginning in the first quarter of fiscal year 2006. SFAS No. 123 (
R) permits public companies to adopt its requirements using one of two methods:
(1) A "modified prospective method in which compensation cost is recognized
prospectively for both new grants issued subsequent to the date of adoption, and
all unvested awards outstanding at the date of adoption. Expense for the
outstanding awards must be based on the valuation determined for the pro forma
disclosures under SFAS No. 123. (2) A "modified retrospective" method, which
includes the requirements of the modified prospective method described above,
but also permits entities to restate all prior periods presented based on the
amounts previously recognized under SFAS No. 123 for purposes of pro forma
disclosures. The Company has adopted the modified prospective application
method.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error - an
amendment of APB Opinion No. 29." This Statement applies to all voluntary
changes in accounting principle. It also applies to changes required by an
accounting pronouncement in the usual instance that the pronouncement does not
include specific transition provision. When a pronouncement includes specific
transition provisions, those provisions should be followed. Opinion 20
previously required that most voluntary changes in accounting principle be
recognized by including in net income of the period of the change the cumulative
effect of changing to the new accounting principle. This Statement requires
retrospective application to prior periods financial statements of changes in
accounting principle, unless it is impractical to determine either the
period-specific effects of the cumulative effect of the change. This Statement
is effective for accounting changes and corrections of errors made in fiscal
years beginning after December 15, 2005. The Company does not expect application
of SFAS No. 154 to have a material affect on its financial statements.


Stock-Based Compensation
There were no options granted in the first half of 2006, ended June 30, 2006 nor
was there vesting of prior year option grants. Therefore, there is no pro-forma
effect for the six-month period ended June 30, 2006.


3.  SEGMENT INFORMATION

The company has divided its operations into the following reportable segments:
Aircraft maintenance, repair, and overhaul; Aircraft Brokerage; and Part sales.
These segments, for the most part, reflect the discrete operations of our
consolidating companies HAT, Global and World Jet respectively. Each segment
represents distinct product lines, marketing, and management of its business.
Limited other services for each company, which represent a small percentage of
income, have been shown in the aggregate.

The reporting segments follow the same accounting policies used for the
Company's consolidated financial statements and described in the summary of
significant accounting policies.

Selected information by business segment is presented in the following tables
for the six months ended June 30, 2006 and June 30, 2005.

<TABLE>
<CAPTION>

                                                Three Months      Three Months      Six Months        Six Months
                                                    Ended             Ended            ended             Ended
                                                June 30, 2006     June 30, 2005    June 30, 2006     June 30, 2005
-------------------------------------------- -- -------------- -- -------------- - -------------- -- --------------
                                                ($ millions)      ($ millions)     ($ millions)      ($ millions)
-------------------------------------------- -- -------------- -- -------------- - -------------- -- --------------
<S>                                               <C>              <C>                <C>            <C>
Segment sales:
   Aircraft maintenance                                 7.202             4.691           13.523             9.613
   Aircraft trading                                      .650             2.470            3.223             3.995
   Part sales                                           3.242             2.093            6.227             4.407
   Other                                                1.182              .623            2.007             1.623

Sub Total                                              12.276             9.877           24.980            19.638

Elimination of intersegment sales                      -2.077            -1.047           -3.273            -2.156

Total consolidated sales                               10.199             8.830           21.707            17.482

Operating income:
   Aircraft maintenance                                 1.813              .586            3.428              .741
   Aircraft trading                                      .924              .710             .032             1.260
   Part sales                                            .765              .534            1.544             1.168
   Other                                                 .777              .569            1.464             1.528

   Sub total                                            2.431             2.399            6.404             4.697


                                                             16

<PAGE>


   Selling, general, administrative expense            -1.842            -1.738           -3.813            -3.367
   Other, net                                           -.114              .021             .167              .010
   Share of Jetglobal  net income (a/c trading)          .969                               .923

Consolidated earnings before taxes                      1.444              .682            3.347             1.340

Interest income by segment
   Aircraft maintenance                                  .008              .019             .028              .047
   Aircraft trading                                      .007                 0             .007                 0
   Part sales                                               0              .154                0              .154
   Corporate                                             .009              .001             .020              .003

Total interest income by segment                         .024              .170             .055              .204

Interest expense by segment
   Aircraft maintenance                                  .008              .050             .010              .150
   Aircraft trading                                         0                 0                0                 0
   Part sales                                            .001              .120             .001              .154
   Corporate                                             .138                 0             .221                 0

Total interest expense by segment                        .147              .170             .232              .304



                                              Three Months      Three Months       Six Months       Six Months
                                                  Ended             Ended             Ended            Ended
                                              June 30, 2006     June 30, 2005     June 30, 2006    June 30, 2005
------------------------------------------ -- -------------- -- -------------- -- -------------- - --------------
                                                   ($)               ($)               ($)             ($ )
------------------------------------------ -- -------------- -- -------------- -- -------------- - --------------
Depreciation and amortization by segment:
   Aircraft maintenance                              96,912            84,287           188,956          166,508
   Aircraft trading
   Part sales

Corporate                                            79,380            74,057           163,888          146,592
Total                                               176,292           158,344           352,844          313,100

Net asset values:
   Aircraft maintenance                           7,807,592         5,775,717         7,807,592        5,775,717
   Aircraft trading                               3,422,403           128,400         3,422,403          128,400
   Part sales                                     9,112,905         4,379,254         9,112,905        4,379,254

Corporate                                         8,160,880         1,736,713         8,160,880        1,736,713
Total                                            28,503,780        12,020,084        28,503,780       12,020,084

Capital expenditures:
   Aircraft maintenance                               9,009            18,860            76,211           37,788
   Aircraft trading
   Part sales

Corporate                                            18,131            10,821            25,056           30,293
Total                                                27,140            29,681           101,267           68,081


                                                                 17
</TABLE>

<PAGE>



     All of the Company's facilities and assets are located in the United
States. The Company sells and ships to several foreign countries. All foreign
revenues are recorded and collected in U.S. dollars. Geographic information
regarding sales to foreign countries is presented in the following table:

                                    Six Months         Six Months
                                      Ended               Ended
                                  June 30, 2006      June 30, 2005
        -----------------------------------------------------------

        Angola                    $      26,880
        Australia                                            1,700
        Brazil                                               5,100
        Columbia                                            11,800
        Germany                                             28,025
        Indonesia                                              835
        Italy                               891             46,983
        Ireland                                            209,395
        Jordan                        2,032,460          1,532,471
        Korea                           154,010
        Lebanon                           6,403
        Malawi                          111,000            149,975
        Mexico                        2,136,979          2,104,486
        Pakistan                         68,000            459,612
        Philippines                     128,936
        South Africa                                        17,354
        Spain                             1,100
        UAE                                              1,722,500
        United Kingdom                   98,383             30,700

        -----------------------------------------------------------
        TOTALS                    $   4,765,042      $   6,320,936



4. EQUITY IN NET ASSETS AND ADVANCES TO AFFILIATES

On August 26, 2005, the Company together with BCI Aircraft Leasing, ("BCI"),
formed a joint venture, Jetglobal, LLC, a Delaware limited liability company.
This is a special purpose LLC formed to acquire and remarket commercial jet
aircraft. BCI will be primarily responsible for the marketing aspects of
Jetglobal while the Company will be responsible for the technical, repair and
maintenance aspects associated with remarketing purchased aircraft. The Company
invested an initial amount of $1,125,000 for a 30% membership interest and BCI
invested an initial amount of $2,625,000 for a 70% membership interest in
Jetglobal. Pursuant to the terms of Jetglobal's Operating Agreement, although
the Company has a 30% membership and profit interest, it is only responsible for
25% of the costs and expenses associated with Jetglobal including any business
transactions. As of June 30, 2006, Equity in net assets and advances to
affiliates consisted of the following:

              Initial investment in Jetglobal             $1,125,000
              Payment of 25% share of purchase of
              aircraft                                     4,627,404
              Expenses paid on behalf of Jetglobal           359,468
              Share of 2005 net income                     1,111,096
              Payment of earnings share to Global           -300,000
              Share of 1st Qtr 2006 expense                  -45,872
              Share of 2nd Qtr 2006 income                   968,993
                 Balance at June 30, 2006                 $7,846,089

                                       18

<PAGE>


Net sales, gross profit and net income within Jetglobal were $7,599,000,
$4,154,000 and $3,703,000 for the year ended December 31, 2005. At December 31,
2005, the balance sheet of Jetglobal had assets of $21,715,000 and no
liabilities. Net sales, gross profit and net income within Jetglobal were
$7,291,442, $3,761,828 and $2,977,072 for the six-months ended June 30, 2006. At
June 30, 2006, the balance sheet of Jetglobal had assets of $23,193,916 and
liabilities of $4,848,267.



5.  STOCK, STOCK OPTIONS AND WARRANTS

During the first quarter of 2006, 10,000 shares of common stock were issued to a
new director as a signing bonus. The price of the stock at measurement date was
$1.39.

On March 9th of 2006, 100,000 shares of common stock were issued pursuant to the
completion of services contracted for under two separate agreements. The
agreements were entered into on April 1, 2005 and November 18, 2004. The board
determined the value of the services to be $70,000.00. The value of the stock at
the respective measurement dates was $.84 and $.56 per share, respectively.

On April 4, 2006, 96,154 shares of common stock were issued for a consideration
of $96,154. These shares were relative to warrants that had been outstanding at
$1.00 per share.

On April 7, 2006, 100,000 shares of common stock were issued as compensation for
outside consultancy services. The services are to be performed during 2006 and
1/12 of the related expense will be taken monthly during 2006. The value of the
shares at measurement date was $153,000.

 On May 9, 2006, 165,814 shares of common stock were issued under the non-cash
provisions of warrants @$.34 per share. The non-cash calculation eliminated all
of the availability of 219,000 shares under the warrants.

Under the terms of a new three-year employment contract, which begins June 1,
2006, 75,000 shares of common stock will vest on May 31, 2007, 100,000 shares of
common stock will vest on May 31, 2008 and 125,000 shares of common stock will
vest on May 31, 2009. The measurement date for this transaction is May 3, 2006.


                               Share value  Vesting Date
                                        on
                               Measurement
                                      Date
        --------------------- ------------- ------------- -------------

               Common Shares                                39,090,183
                  Issued and
                 Outstanding

                 Unconverted
            Warrants Issued:

                     @ $0.68           .50                     540,000
                     @ $1.36           .50                   7,740,000
                     @ $0.52           .65                     104,111
                     @ $1.00           .65                   1,040,866
                     @ $1.36           .65                   1,137,020
                     Subtotal                                10,561,997

             Options Issued:

                     @ $0.17           .23                     900,000

                    Subtotal                                   900,000
        --------------------- ------------- ------------- -------------


                                       19

<PAGE>

             Awards of stock
               pending under
                  employment
                   contracts
        --------------------- ------------- ------------- -------------

                                       .60    07/30/2006       270,000
                                      1.30    05/31/2007        75,000
                                      1.30    05/31/2008       100,000
                                      1.30    05/31/2009       125,000
        --------------------- ------------- ------------- -------------

                    Subtotal                                   570,000
        --------------------- ------------- ------------- -------------

                       Total                                51,122,180
        --------------------- ------------- ------------- -------------



Pro-forma Stock-based Compensation Disclosure

Stock issued under plans to employees was issued at the value of the stock at
the measurement date. All options issued were immediately exercisable. Until
2004, options issued were immediately exercised. Those options issued to
employees that were not immediately exercised remained outstanding at June 30,
2006 and are summarized below:


                                     Weighted Average
                                     Exercise Price
------------------------- ---------------------------------------------------

Options outstanding at    900,000         $0.17        Exercisable on grant
beginning of year                                      date

Granted during quarters        None
1 & 2

Exercised during               None
quarters 1 & 2

Forfeited during               None
quarters 1 & 2
-
Outstanding at 6/30/2006  900,000         $0.17        Exercisable on grant
                                                       date

Options exercisable at    900,000         $0.17
quarter end, June 30,
2006



A summary of the Company's stock option plans as of June 30, 2006 and changes
during the year is presented below:


                                       Weighted Average
                                         Exercise Price
------------------------- ------------------------------------------------------

Options outstanding at    900,000           $0.17         Exercisable on grant
beginning of year                                         date

Granted during quarters          None
1 & 2

Exercised during                 None
quarter 1 & 2

Forfeited during                 None
quarters 1 & 2

Outstanding at 3/31/2006  900,000           $0.17         Exercisable on grant
                                                          date

Options exercisable at    900,000           $0.17
quarter end, June 30,
2006

Weighted average fair            None
value of options
granted during the year


The aggregate remaining contracual lives in years for the options outstanding
and exercisable on June 30, 2006 was 2.875. Aggregate intrinsic value represents
total pretax intrinsic value (the difference between Global's closing stock
price on June 30, 2006 and the exercise price, multiplied by the number of
in-the-money options) that would have been received by the option holders had
all option holders exercised their options on June 30, 2006. This amount changes
based on the fair market value of Global's stock. The total intrinsic value of
options outstanding as of June 30, 2006 was $972,000. The total intrinsic value
of options exercisable on June 30, 2006 was $972,000. There were no options
exercised during the quarter ended June 30, 2006. The Company issues new shares
of common stock upon the exercise of stock options.

At June 30, 2006, 375,000 shares were available for future grants under the
Company's 2002 Compensatory Stock Option Plan. At June 30, 2006, the Company had
approximately $371,995 of total unamortized compensation expense, net of
estimated forfeitures, related to stock option plans that will be recognized
over the weighted average period of 3.41 years.


                                       20

<PAGE>


6. TRADE ACCOUNTS RECEIVABLE

As of June 30, 2006, trade accounts receivable consisted of the following:


                                                    June 30,        December 31,
                                                     2006              2005
                                                   Unaudited          Audited


Contracts in progress                            $ 2,312,946        $   769,322
Completed contracts                                6,406,165          4,516,323
                                                 -----------        -----------

                                                 $ 8,719,111        $ 5,285,645

Less: allowance for doubtful                         (74,891)          (292,507)
accounts
                                                 -----------        -----------


                                                 $ 8,644,220        $ 4,993,138
                                                 ===========        ===========



7.  CONTRACTS IN PROGRESS

At June 30, 2006 costs and estimated earnings in excess of billings and billings
in excess of costs and estimated earnings on uncompleted contracts consisted of
the following:


                                                   June 30,         December 31,
                                                    2006               2005
                                                  Unaudited           Audited

Costs incurred on uncompleted                    $ 3,731,728        $ 1,072,582
contracts

Profit earned to date                              1,804,504          1,156,235
                                                 -----------        -----------


                                                   5,536,232        $ 2,228,817

   Less: Billings to date                         (6,061,160)        (2,252,275)
                                                 -----------        -----------


                                                 $  (524,928)       $   (23,458)
                                                 ===========        ===========


Included in the accompanying balance sheet at June 30, 2006 and December 31,
2005 under the following caption:


    Billings in excess of costs and estimated earnings on uncompleted contracts.


                                                    June 30,        December 31,
                                                      2006             2005
                                                    Unaudited         Audited

Billings in excess from                             $(524,928)       $ (23,458)
above

Time and material, prebilled                         (381,697)               0
                                                    ---------        ---------

Net                                                 $(906,625)       $ (23,458)
                                                    =========        =========


Billings in excess are the result of amounts due from customers under
contractual terms, which can be, in some cases, in advance of actual work
performed.

                                       21

<PAGE>


8.  NOTES RECEIVABLE

On September 1, 2003 Global was tendered a $100,000 note receivable. The note
bears interest at 5%. The due date of the note has been amended to September 20,
2006. At June 30, 2006, the note, plus interest, was outstanding in the amount
of $114,151.

During the 4th quarter of 2005, a note receivable in the amount of $600,000 was
issued to the Company by Avolar Aero Lineas SA de CV. The due date of the note
has been extended to September 20, 2006. The note bears interest at 6.5% per
annum. At June 30, 2006, the balance due plus interest was $626,926.


On March 7, 2006, Global accepted a note from Aloha Airlines, Inc. in the amount
of $425,000, payable at $48,622.21 per month commencing April 2, 2006. The note
bears interest at 7.06% per annum. The final payment is due December 2, 2006.
Payments on this note are current and the principal due on this note was
$285,818.98 on June 30, 2006.


9.  INVENTORY

Inventories consisted of the following:


                                                    June 30,        December 31,
                                                     2006             2005
                                                   Unaudited          Audited


Maintenance Hardware                                 508,334        $  604,983
Parts for Resale                                   4,810,579         5,525,109
Aircraft & Engines                                   669,428           450,000
                                                  ----------        ----------

                                                  $5,988,341        $6,580,092
                                                  ==========        ==========


Non-current inventories consisted of the following:


                                                  June 30,         December 31,
                                                    2006              2005
                                                  Unaudited          Audited


Maintenance Hardware                              $  808,155        $  767,657
Parts for Resale                                   1,760,240         1,419,686
Aircraft & Engines
                                                  ----------        ----------

                                                  $2,568,395        $2,187,343
                                                  ==========        ==========


10.  PROPERTY AND EQUIPMENT


                                                      June 30,      December 31,
                                                       2006            2005
                                                     Unaudited        Audited

Land and improvements                               $   25,094      $   25,094
Buildings and improvements                             201,079         190,479
Vehicles                                                71,728          79,028
Computers and Software                                 312,495         306,164
Other office equipment                                  57,575          59,568
Machinery and equipment                              2,068,449       2,023,994
                                                    ----------      ----------

     Sub Total                                      $2,744,044      $2,684,327

Less accumulated depreciation                        1,286,077       1,042,186
                                                    ----------      ----------


Property and equipment, Net                         $1,457,967      $1,642,141
                                                    ==========      ==========

                                       22

<PAGE>


During the 2005, depreciation expense was $489,818 and depreciation expense was
$271,655 during the 1st half of 2006.


11. COMMITMENTS AND CONTINGENCIES

On December 9, 2005, Global Aircraft Solutions, Inc ("Global"), Hamilton
Aerospace Technologies, Inc. ("HAT"), a wholly owned subsidiary of Global
Aircraft Solutions, Inc. and World Jet Corporation, ("WJ") a wholly owned
subsidiary of Global Aircraft Solutions, Inc. (collectively the "Borrowers")
closed on a first Modification to the May 5, 2005 Initial Loan Agreement with
M&I Marshall & Ilsley Bank ("M&I Bank"). The modification increased the $2.5
million operating line of credit to $5 million ("Line of Credit"); added a
Guidance Line of Credit in the amount of $7 million ("Guidance Credit") solely
for the acquisition of aircraft and Letter of Credit Facilities in combined
amounts not to exceed $200,000.00. The interest rate on the Line of Credit was
reduced from 3.50% per annum to 3.00% per annum in excess of the applicable
LIBOR rate. At December the applicable interest rate was 7.39% per annum. The
interest rate on the Guidance Credit is also 3.00% per annum in excess of the
applicable LIBOR rate. The interest rate for each Letter of Credit Facility, if
drawn upon, shall also be 3.00% per annum in excess of the applicable LIBOR
rate. The Line of Credit and any Letter of Credit Facility remains secured by a
first priority lien on Global's, HAT's and WJ's personal property. Any advances
pursuant to the Guidance Credit shall be secured by a first priority lien on any
aircraft purchased with such advance. The term of the Line of Credit; the
Guidance Credit and the Letter of Credit Facility all expire on October 31, 2007
and the entire outstanding principal balance, all accrued and unpaid interest,
and all other sums due and payable under both the Line of Credit and Guidance
Credit shall be due on the expiration date.

While there is no required monthly repayment obligation of the Line of Credit,
the Line of Credit is based upon and limited by a borrowing base equal to the
sum of 80% of the outstanding amount of all Eligible Accounts as defined in the
Loan Agreement and 50% of the net book value of all Eligible Inventory as
defined in the Loan Agreement. While there is no required monthly repayment
obligation of the Guidance Credit, the Borrowers are required to repay, from
time to time, (i) an amount equal to any amount by which the outstanding
principal balance of the Guidance Credit exceeds $7 million, (ii) all amounts
received by Borrowers under any aircraft purchase agreement, other than an
initial down payment to the extent it does not exceed twenty-five percent (25%)
of the purchase price, and (iii) any portion of an advance or readvance not paid
within ninety (90) days of the advance or readvance. Borrowers are also
responsible to immediately repay to bank the amount of an advance upon any
breach of the aircraft purchase agreement. If any Letter of Credit Facility is
drawn upon, all principal and accrued and unpaid interest shall be due and
payable upon demand.

The Borrowers paid total fees and expenses of approximately $37,500.00 in
connection with the modification to the Line of Credit and addition of the
Guidance Credit and Letter of Credit Facility. The Borrowers will owe a loan fee
to the bank equal to 1% of the amount of any requested advance under the
Guidance Credit with a cap of $52,500.00 in cumulative fees. The Borrowers will
owe the bank a fee for the issuance of any Letter of Credit in the amount of 2%
of the amount of the letter of credit.

The balance due of the Line of Credit at June 30, 2006 was $4,811,929. The Line
of Credit also secures a Letter of Credit for $128,000, which was issued to TAA
as part of the lease agreement for the HAT facility. The total available credit
facility is $12,000,000 at December 31, 2005 subject to the borrowing base and
the Guidance Credit Line provisions that $7,000,000 be used for aircraft
purchases only.

At June 30, 2006, the Company is in compliance with the quick ratio (defined as
cash, liquid cash equivalents and accounts receivable, divided by current
liabilities) as per the new agreement. The ratio is to be at least .60 to 1. At
June 30, 2006 the ratio for the Company was .735 to 1.


12. RELATED PARTY TRANSACTIONS

BCI Aircraft Leasing, Inc., Global's partner in Jetglobal, see Note 4, accounted
for 25% of the Company's revenue during the first half of 2006, ended June 30,
2006. The account receivable balance due from BCI at June 30, 2006 was
$1,463,726. Jetglobal accounted for 6% of the Company's revenue during the first
half of 2006, ended June 30, 2006. The account receivable balance due form
Jetglobal at June 30, 2006 was $2,011,846.


13. SUBSEQUENT EVENTS

On July 6, 2006, Comvest Capital, LLC as "Lender", and Global Aircraft
Solutions, as "Borrower", entered into a subordinated loan agreement. Under the
loan agreement, the Company will be indebted to the Lender in the principal
amount of $2,800,000. The principal amount of the agreement is all due and
payable October 6, 2006 with interest payments due monthly on the last day of
each month in the amount of 15% of the outstanding balance. These funds were
borrowed for potential investment purposes, but as the investment did not
materialize, the company will repay the loan amount by due date.

                                       23

<PAGE>


To facilitate this loan agreement, on July 6, 2006, the Company and its wholly
owned subsidiaries Hamilton and WorldJet entered into a Subordination and
Intercreditor Agreement with M&I Marshall & Ilsley Bank (Lender) and Comvest
Capitlal, LLC, (Creditor).





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


                           FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements and information relating
to Global Aircraft Solutions, Inc. ("Global") and its wholly owned subsidiaries
Hamilton Aerospace Technologies Inc., "HAT", and World Jet Corporation, "World
Jet", that are based on the beliefs of our management as well as assumptions
made by and information currently available to our management. When used in this
report, the words "anticipate", "believe", "estimate", "expect", "intend",
"plan" and similar expressions, as they relate to Global, HAT, World Jet, or its
management, are intended to identify forward-looking statements. These
statements reflect management's current view of Global, HAT, and World Jet
concerning future events and are subject to certain risks, uncertainties and
assumptions, including among many others relating to our results of operations:
competitive factors, shifts in market demand, and other risks and uncertainties,
that may affect our ability to generate sufficient working capital to meet our
operating requirements and service our indebtedness, our ability to refinance
our secured debt, or to convert such debt to equity, maintaining good working
relationships with our vendors and customers, our ability to attract and retain
qualified personnel, future terrorist-related activities, economic factors that
affect the aviation industry, changes in government regulation, increases in
fuel prices, and the overall economy. Should any of the assumptions underlying a
forward-looking statement prove incorrect, actual results could differ
materially from those anticipated.



                                     PART 1

The following discussion and analysis should be read in conjunction with the
information set forth under "Management's Discussion and Analysis of Financial
Condition and Results of Operations in our annual report on form 10-KSB for
2005. Global Aircraft Solutions, Inc. ("Global"), formerly Renegade Venture
(Nev.) Corporation, is a public company that trades in the U.S. over-the-counter
market. Our common stock is quoted on the OTC Bulletin board under the symbol
GACF. On May 2, 2002, Global acquired newly formed aviation company Hamilton
Aerospace Technologies, Inc., a Delaware corporation ("HAT") in a
stock-for-stock exchange. HAT was formed on April 5, 2002, to create a premier
provider of large aircraft maintenance, repair, overhaul and modification
("MRO") services to owners and operations of certain Transport Category
commercial jet aircraft. Its customers are all aircraft operators, including
passenger and cargo air carriers, and aircraft leasing companies. On July 25,
2004, Global acquired 100 percent of the common stock of World Jet Corporation
("World Jet"), a privately owned Nevada corporation. World Jet, incorporated in
1997, is an aviation parts sales company servicing aircraft operators, aircraft
leasing companies and MRO facilities. The acquisition of World Jet had an
effective transaction date of January 1, 2004 and the World Jet results of
operations are included in all quarters of calendar year 2004.

Global's plan of operation for the immediate future includes seeking and
acquiring, if possible, aviation industry related businesses to complement its
HAT and World Jet subsidiaries. Additionally, the Company will seek to expand
HAT and World Jet by organic growth. The Company will also endeavor to grow the
aircraft trading segment of its business. Global will not limit its search for
business combination candidates to any particular geographical area. Management
of Global will seek combination candidates in the United States and other
countries, as available time and resources permit, through existing associations
and by word of mouth. This plan of operation has been adopted in order to
attempt to increase value for Global's shareholders.

Company management has rejected a policy of growth for growth's sake in favor of
focusing on profitability and building a good reputation for the Company and its
subsidiaries by limiting contracts to those perceived to have a high probability
of success. This strategy is also beneficial to the Company's marketing efforts
in that a good track record of maintenance and modification contracts, delivered
successfully on-time and on-budget, is by far the most potent tool for securing
new work contracts; and expedited delivery of parts at a competitive price leads
to greater volume of parts sales. In managing its operations, the Company is
committed to continuously evaluating the adequacy of its management structure
and its existing systems and procedures; including its quality control,
financial, and internal controls systems. The Company is focused on maintaining
a small, but tightly knit and multi-tasking, highly experienced management team.

                                       24

<PAGE>


In the United States, the Federal Aviation Administration (FAA) regulates the
manufacture, repair, overhaul and operation all aircraft and aircraft equipment
operated in the U.S. The FAA must certify each authorized repair station, and
certified facilities are issued an Air Agency Certificate. Each certificate
contains rating and limitations that specifically authorize the repair station
to only perform certain types of services on specific makes and models of
aircraft. Aircraft maintenance and modification is a highly regulated industry,
and a good working relationship with the FAA is essential to the successful
operation of an FAA-approved Repair Station such as HAT. The policy of HAT
management is to work closely and proactively with the FAA, which has resulted
in the very positive relationship needed to insure that when significant issues
do occasionally arise between HAT and the FAA they are addressed in a reasonable
and constructive nature.

World Jet is a seller/broker of aircraft parts which is not an operation or
activity which is regulated by the FAA or any other governing body or
governmental agency; however, any aircraft parts sold by World Jet must be
accompanied by documentation verifying that such part is traceable to either an
FAA approved manufacturer, overhaul or repair facility, or an FAA certificated
operator. In furtherance of satisfying customers that World Jet does sell and
broker parts that are traceable to FAA certification, World Jet voluntarily
participates in the Airline Suppliers Association which requires an annual audit
of suppliers of aircraft parts to verify that such supplier maintains the proper
traceability documents, properly tags aircraft parts in support of such
traceability and maintains proper packaging and storage of aircraft parts. In
addition to the foregoing, World Jet also certifies to each customer that any
part or material sold was not involved in any incident and is not government
surplus.

Global's aircraft trading represents a significant niche in our business.
Successful efforts in this area will go a long way to building our company.
During 2005, aircraft trading accounted for 19% of the Company's revenue. The
considerable impact that can be made through growth of aircraft trading is
evident when you consider that fewer than 10 transactions took place in our
aircraft trading segment, (which excludes any Jetglobal activity), during the
year ended December 31, 2005. During the first half of 2006 aircraft trading
accounted for 15% of Company revenues. Obviously, there is opportunity for a
positive synergistic increase in MRO revenue and part sales revenue related to
those aircraft traded with both new and continuing customers. In addition to the
in-house aircraft trading, activities during the first half of 2006 for
Jetglobal resulted in $7,291,442 sales, which are accounted for by the Company
by use of the equity method. Global's share of Jetglobal net income was
$923,121.

HAT competes principally on the high quality of its services and its price
competitiveness due to its location in the Southwest. Location related benefits
include low labor rates; a dry, mild climate enabling HAT to do many MRO
projects outdoors; and low overhead. World Jet competes on price competitiveness
and expedited delivery of parts. World Jet has spent years acquiring inventories
at deep discounts and this inventory is the type HAT uses on a daily basis.
World Jet's customer base includes airlines, aircraft leasing companies and MRO
facilities. The large aircraft repair business and the aircraft parts sales
business are highly competitive. Revenues are sensitive to adverse changes in
the air carrier business, with factors such as airline profit levels, changes in
fuel costs, average fare levels, and passenger demand. The heavily regulated
airline industry, however, requires scheduled maintenance and repair services
irrespective of industry economics, thus providing a reasonably steady market
for HAT's and World Jet's services.


                  RECENT DEVELOPMENTS AFFECTING OUR OPERATIONS

The continued alerts by the U.S. Department of Homeland Security and fears of
new terrorist attacks, the U.S.-led invasion of Iraq, high fuel costs and the
general state of the economy could quite possibly produce negative impact on the
aviation industry.


                              RESULTS OF OPERATIONS

As a holding company, the bulk of our day-to-day operations are currently and
were as of June 30,2006, conducted by our operating subsidiaries, HAT, which was
organized on April 5, 2002 and began operations on April 15, 2002, and World
Jet, which was acquired July 25, 2004, with an effective date of January 1,
2004. Our in-house aircraft trading transactions were conducted by the parent
company Global Aircraft Solutions, Inc. Jetglobal, LLC, also conducts aircraft
trading which benefits the Company in the amount of 30% of the profits earned.
(see Note 4 in the notes to the financial statements included in this filing.)

OPERATING SEGMENTS

See Note 3 to the Condensed Consolidated Financial Statements for certain
segment and geographic financial data relating to our business. The Company has
divided its operations into the following reportable segments: Aircraft
maintenance, repair, and overhaul; aircraft trading (i.e. aircraft brokerage and
/or the purchase for resale or lease of aircraft and /or aircraft engines; and
part sales. All aircraft maintenance, repair and overhaul is performed at HAT.
Beginning January 1, 2005, all aircraft trading has been done through Global.
Prior to that date all aircraft trading transactions were handled through HAT.
Subsequent to its acquisition in January 2004, substantially all part sales were
done by the Company's wholly owned subsidiary, World Jet.

                                       25

<PAGE>


HAT operating revenues consist primarily of service revenues and sales of
materials consumed while providing services. World Jet revenues consist
primarily of sales of aircraft parts. Cost of sales consists primarily of labor
and materials, cost of parts and freight charges. Global revenues consist of
revenues derived from aircraft trading. Operating results have fluctuated in the
past and may fluctuate significantly in the future. Many factors affect our
operating results, including timing of repair orders and payments from large
customers, competition from other third-party MRO service providers, the state
of the aviation industry and the number of customers seeking services, the
impact of fixed pricing on gross margins and our ability to accurately project
our costs, our ability to obtain financing and other factors.

Significant portions of our operating expenses, such as insurance, rent, debt
payments, certain salaries and such, are relatively fixed. Since we typically do
not obtain long-term commitments from our customers, we must anticipate the
future volume of orders based upon the historic patterns of our customers and
upon discussions with our customers as to their future requirements.
Cancellations, reductions or delays in orders by a customer or group of
customers could have a material adverse effect on our business, financial
condition and results of operations.

Net sales for the three months ended June 30, 2006 increased $1.4 million, or
15.5%, to $10.2 million from $8.8 million for the three months ended June 30,
2005. The increases were due to increases in the segments of Hamilton Aerospace
Technologies and Global Aircraft Trading.

Net sales for the six months ended June 30, 2006 increased $4.2 million, or
24.2%, to $21.7 million from $17.5 million for the six months ended June 30,
2005. The reasons for the increase in net sales for the six months ended June
30, 2006 compared to the comparable period of the prior year, was due to the
reasons described above.

Cost of sales consists of costs of inventory sold for World Jet, time and
materials for HAT and aircraft purchase price for Global aircraft trading.

Cost of sales for the three months ended June 30, 2006 increased $1.4 million,
or 21.8%, to $7.8 million from $6.4 million for the three months ended June 30,
2005. Cost of sales for the six months ended June 30, 2006 increased $2.6
million, or 20.7%, to $21.7 million from $17.5 million in the prior year period
ended June 30, 2005. Cost of sales for the three and six months ended June 30,
2006 increased compared to the prior year as a result of increase in net sales.
Cost of sales for Global for the six-month period ending June 30, 2006 includes
the cost of an engine in the amount of $686,710. This engine had to be purchased
to replace one damaged during shipping. The company has initiated a suit to
recover this amount from the freight company involved and has made a claim
against our insurance. If the claim is accepted for the full amount, the profit
before tax would have been over $2.0 million.

Gross profit for the three months ended June 30, 2006 of $2.4 million exceeded
the prior year quarter gross profit by $32,000. The sales from Jetglobal are
not reflected in the Net Sales of Global Aircraft Solutions, as Global is 30%
beneficiary of the venture. The income from Jetglobal is shown as "Equity in
income of unconsolidated affiliates". For the quarter ended June 30, 2006 the
"Equity in income of unconsolidated affiliates" from Jetglobal is $968,933.

Gross profit levels during any particular period are dependent upon the number
and type of aircraft serviced, the contract terms under which services are
performed and the efficiencies that can be obtained in the performance of such
services. Significant changes in any one of these factors could have a material
impact on the amount and percentage of gross profits. Additionally, gross profit
could be impacted in the future by considerations as to the value of our
inventory.

While the Company aggressively seizes revenue-producing opportunities such as
aircraft sales, management gauges results by looking at what historically has
been the core revenue producing activity, the sale of labor hours. In the first
half of 2005, revenue produced from labor was $7,947,876 as compared with
$8,158,106 the first half of 2006. This represents an increase of 3%. The
comparative costs for all direct labor, including work performed by outside
contractors, was $4,797,509 in the first half of 2005 compared with $5,043,471
for the same period in 2006. All direct labor costs were 45% of total sales in
first half of 2005 compared with 38% in the first half of 2006. The relationship
between direct labor costs and direct labor revenues rose 2% from 2005 to 2006.
Direct labor percentages will always vary to some degree due to the nature of
flat-rate bidding as opposed to billing for all time and materials. Also, a
substantial sudden increase in volume can be expected to have a temporary impact
on efficiencies and are viewed by Management as a temporary consequence of
growth. Management is confident that adjustments to increased volume will be
made and profitability will benefit over time.

Selling, general and administrative expenses for the three months ended June 30,
2006 decreased as percentage to sales to 18% from 19.7% in three months ended
June 30, 2005. Selling, general and administrative expenses for the six months
ended June 30, 2006 decreased as percentage to sales to 17.5% from 19.3% in six
months ended June 30, 2005.

Interest expense for the Company, during the first half of 2006, was $231.868.

Management is cautiously optimistic that our adeptness at garnering jobs with
the likelihood of similar high gross profit potential and our continued
vigilance at holding down costs will be sustainable for the remainder of 2006.
HAT's option of being selective in the work booked is due to their growing
reputation for providing quality, on-budget, on-time deliveries to their
customers. HAT and World Jet are experiencing success in securing new customers

                                       26

<PAGE>


and securing more business from existing customers as well. Global has
experienced some success in branching out into the aircraft trading arena and
Management believes this segment will experience increasing growth and profits
during the last half of 2006 and into the future.


The following tables depict our pre-tax operating profit for the second quarter
of 2005 and for the second quarter of 2006 on a stand-alone basis and a
consolidated for Global, HAT and World Jet:

<TABLE>
<CAPTION>

2nd Quarter 2005
                                  Global         HAT         World Jet    Intercompany   Consolidated
                                Stand-Alone   Stand-Alone   Stand-Alone   Eliminations

<S>                             <C>          <C>             <C>          <C>            <C>
Revenues                         1,420,000    6,364,608       2,092,211    1,047,441      8,829,378
  Less:  Cost of sales             750,068    5,169,421       1,558,291    1,047,441      6,430,339
  Less:  Expenses                  373,059    1,124,751         241,237                   1,739,047

Pre-tax Operating Profit           296,873       70,436         292,683                     659,992
(Loss)


2nd Quarter 2006
                                  Global         HAT         World Jet    Intercompany    Consolidated
                               Stand-Alone   Stand-Alone    Stand-Alone   Eliminations

Revenues                         1,300,000    7,788,142       3,187,544    2,077,035     10,198,651
  Less:  Cost of sales           1,574,485    5,841,501       2,429,094    2,077,035      7,768,045
  Less:  Expenses                  658,864      711,683         471,895                   1,842,442
Pre-tax Operating Profit          (933,349)   1,234,958         286,555                     588,164
(Loss)                                          286,555
</TABLE>


The cost of sales in Global exceeds the revenues because it includes a one-time
engine purchase of $678K as discussed in the cost of sales comments above.



                         LIQUIDITY AND CAPITAL RESOURCES

Liquidity


On December 9, 2005, Global Aircraft Solutions, Inc ("Global"), Hamilton
Aerospace Technologies, Inc. ("HAT"), a wholly owned subsidiary of Global
Aircraft Solutions, Inc. and World Jet Corporation, ("WJ") a wholly owned
subsidiary of Global Aircraft Solutions, Inc. (collectively the "Borrowers")
closed on a first Modification to the May 5, 2005 Initial Loan Agreement with
M&I Marshall & Ilsley Bank ("M&I Bank"). The modification increased the $2.5
million operating line of credit to $5 million ("Line of Credit"); added a
Guidance Line of Credit in the amount of $7 million ("Guidance Credit") solely
for the acquisition of aircraft and Letter of Credit Facilities in combined
amounts not to exceed $200,000.00. The interest rate on the Line of Credit was
reduced from 3.50% per annum to 3.00% per annum in excess of the applicable
LIBOR rate. The interest rate at December 31, 2005 was 7.39% per annum. The
interest rate on the Guidance Credit is also 3.00% per annum in excess of the

                                       27

<PAGE>


applicable LIBOR rate. The interest rate for each Letter of Credit Facility, if
drawn upon, shall also be 3.00% per annum in excess of the applicable LIBOR
rate. The Line of Credit and any Letter of Credit Facility remains secured by a
first priority lien on Global's, HAT's and WJ's personal property. Any advances
pursuant to the Guidance Credit shall be secured by a first priority lien on any
aircraft purchased with such advance. The term of the Line of Credit; the
Guidance Credit and the Letter of Credit Facility all expire on October 31, 2007
and the entire outstanding principal balance, all accrued and unpaid interest,
and all other sums due and payable under both the Line of Credit and Guidance
Credit shall be due on the expiration date.

While there is no required monthly repayment obligation of the Line of Credit,
the Line of Credit is based upon and limited by a borrowing base equal to the
sum of 80% of the outstanding amount of all Eligible Accounts as defined in the
Loan Agreement and 50% of the net book value of all Eligible Inventory as
defined in the Loan Agreement. While there is no required monthly repayment
obligation of the Guidance Credit, the Borrowers are required to repay, from
time to time, (i) an amount equal to any amount by which the outstanding
principal balance of the Guidance Credit exceeds $7 million, (ii) all amounts
received by Borrowers under any aircraft purchase agreement, other than an
initial down payment to the extent it does not exceed twenty-five percent (25%)
of the purchase price, and (iii) any portion of an advance or readvance not paid
within ninety (90) days of the advance or readvance. Borrowers are also
responsible to immediately repay to bank the amount of an advance upon any
breach of the aircraft purchase agreement. If any Letter of Credit Facility is
drawn upon, all principal and accrued and unpaid interest shall be due and
payable upon demand.

The Borrowers paid total fees and expenses of approximately $37,500.00 in
connection with the modification to the Line of Credit and addition of the
Guidance Credit and Letter of Credit Facility. The Borrowers will owe a loan fee
to the bank equal to 1% of the amount of any requested advance under the
Guidance Credit with a cap of $52,500.00 in cumulative fees. The Borrowers will
owe the bank a fee for the issuance of any Letter of Credit in the amount of 2%
of the amount of the letter of credit. The balance due of the Line of Credit at
June 30, 2006 was $4,811,929. The Line of Credit also secures a Letter of Credit
for $128,000 which was issued to TAA as part of the lease agreement for the HAT
facility.

Also see Note 13, Subsequent Events, of the Financial Statements that are
included in this filing.

Our ability to make payments of principal and interest on outstanding debt will
depend upon our future operating performance, which will be subject to economic,
financial, competitive and other factors, some of which are beyond our control.
Our ability to repay our indebtedness is dependent on several factors: our
continued ability to secure high profit margin jobs, more fully utilizing our
capacities, creating a higher bottom line and consequently more cash; and our
ability to establish revolving credit lines, which we can draw on as needed.

Significant changes in the Company's Balance Sheet for the quarter ended June
30, 2006 were as follows:

         Total assets increased from $25,031,498 at March 31, 2006 to
         $28,503,780 at June 30, 2006. Significant changes for the period were:

                  Cash on hand decreased $119,329.

                  Accounts receivable increased $2,927,065.

                  Notes receivable decreased $843,935 during the second quarter
                  of 2006. Most of this difference was due to Falcon Air Express
                  returning engines to satisfy the balance of their note in the
                  amount of $669,428.

                  Costs and expenses on uncompleted contracts in excess of
                  billings decreased $984,067.

                  Equity in net assets of or advances to affiliates increased
                  $2,648,873. During the quarter the Jetglobal partners agreed
                  that $1,975,000 previously shown as a payment by Jetglobal to
                  Global should actually be taken as a contra against BCI's
                  account receivable.

                  The Company's second quarter Balance Sheet reflects the
                  reclassification of $2,568,395 of inventory to inventory,
                  noncurrent. This number largely represents unsold World Jet
                  inventory acquired as part of the World Jet purchase on
                  January 1, 2004

         During the second quarter of 2006, total liabilities increased from
         $9,807,548 at March 31, 2006 to $12,000,050 at June 30, 2006, primarily
         due to:


                  Accounts payable increased over the March 31, 2006 balance by
                  $856,117.

                  Billings in excess of costs and expenses on uncompleted
                  contracts increased $906,625.

                  Accrued liabilities increased $191,027 reflecting the
                  increased outstanding accrued payroll due to the scheduled
                  timing of check issuance.

                  Income taxes payable increased $541,547.

                                       28

<PAGE>


Cash


As of June 30, 2006 we had $176,419 in cash on hand and approximately $8,644,220
in collectible receivables. Management believes that anticipated cash flows will
be adequate to sufficiently provide working capital. We cannot assure you that
financing alternatives will be available to us in the future to support our
working capital requirements.



                CRITICAL ACCOUNTING POLICIES AND USE OF ESTIMATES

Financial Reporting Release No. 60 of the SEC encourages all companies to
include a discussion of critical accounting policies or methods used in the
preparation of the financial statements. Our consolidated financial statements
filed as part of this annual report include a summary of the significant
accounting policies and methods used in the preparation of our consolidated
financial statements.


REVENUE RECOGNITION. We recognize revenues related to engine overhaul services
when we ship the overhauled engine. Revenues from fixed-fee contracts for MRO
sales are recognized on the percentage-of-completion method, measured by the
cost-to-cost method, commencing when progress reaches a point where experience
is sufficient to estimate final results with reasonable accuracy. Revision in
cost and labor hour estimates and recognition of losses on these contracts are
reflected in the accounting period in which the facts become known. Revenues
from time and material contracts are recognized as the services are performed.
Revenues from part sales are recognized when parts are shipped.


USE OF ESTIMATES. Management's Discussion and Analysis of Financial Condition or
Plan of Operation is based upon our consolidated financial statements, which
have been prepared in accordance with accounting principles generally accepted
in the United States. The preparation of our financial statements requires
management to make estimates and judgments that affect the reported amounts of
assets, liabilities, revenues and expenses, and the related disclosure of
contingent assets and liabilities. Management evaluates these estimates on an
on-going basis, including those related to estimated losses on disposal of
discontinued operations, the allowance to reduce inventory to the lower of cost
or net realizable value, the estimated profit recognized as aircraft
maintenance, design and construction services are performed, the allowance for
doubtful accounts and notes receivable, future cash flows in support of long
lived assets, medical benefit accruals, and the estimated fair values of
facilities under capital leases. Management bases its estimates on historical
experience and on various other assumptions that they believe are reasonable
under the circumstances, the results of which form the basis for making
judgments about the carrying value of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these
estimates under different assumptions and conditions.



ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk refers to the potential losses arising from changes in interest
rates, foreign currency fluctuations and exchange rates, equity prices and
commodity prices including the correlation among these factors and their
volatility. The Company is primarily exposed to interest rate risk. Though the
Company sells to foreign customers, all transactions are conducted and
enumerated in U.S. dollars.


Interest Rate Risk

Changes in interest rates may result in changes in the fair market value of the
Company's financial instruments, interest income and interest expense. The
Company does not have a cash equivalent investment portfolio therefore, the

                                       29

<PAGE>


Company's financial instruments that are exposed to interest rate risk would be
in the nature of long-term borrowings. Our current borrowings are in the nature
of a Line of Credit that is due and payable on or before October 31, 2007. This
Line of Credit is discussed in detail above under the heading "Liquidity".
Management believes that a hypothetical 10% movement in interest rates would not
have a material impact on the Company's future earnings or cash flows.


ITEM 4.  CONTROLS AND PROCEDURES


(a) Within 90 days of filing this report on Form 10-Q (the "Evaluation Date"),
our Chief Financial Officer and Chief Executive Officer, together with HAT's
President and Principal Financial and Accounting Officer, evaluated our
disclosure controls and procedures, as defined in Rules 13a-14(c) and 15d-14(c)
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). Based on that evaluation, these officers have concluded that as of the
Evaluation Date, our disclosure controls and procedures were effective in timely
alerting them to material information relating to our company (including our
consolidated subsidiaries) required to be included in our reports filed or
submitted by us under the Exchange Act.

(b) There have been no significant changes in our internal controls or in other
factors that could significantly affect internal controls subsequent to the date
of our most recent evaluation.


                           PART II. OTHER INFORMATION


ITEM 5. OTHER ITEMS

None

ITEM 6. EXHIBITS

(a)      Exhibits

31.1                      Certification of Principal Executive Officer, Mr. Ian
                          Herman

31.2                      Certification of President and Chief Operating
                          Officer, Mr. John B. Sawyer

31.3                      Certification of CFO and Principal Financial Officer,
                          Govindarajan Sankar

32.1                      Certification of Mr. Ian M. Herman, Chief Executive
                          Officer


                                   SIGNATURES

In accordance with the requirements of the Exchange act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized individual.


Date: August 14, 2006

                                          GLOBAL AIRCRAFT SOLUTIONS, INC.


                                          By:  /s/  Ian Herman
                                               ---------------------------------
                                                    Ian Herman,
                                                    Chief Executive Officer





   In accordance with the requirements of the Exchange act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized individual.


Date: August 14, 2006

                                          GLOBAL AIRCRAFT SOLUTIONS, INC.


                                          By:  /s/  Raj Sankar
                                               ---------------------------------
                                                    Raj Sankar,
                                                    Chief Financial Officer


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