<PAGE>

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


                                   FORM 10-QSB


(Mark One)

[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934
                                   For the quarterly period ended MARCH 31, 2006

   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
                                   For the transition period from ___ to _______

                        Commission file number 000-50760
                                               ---------

                                MKA CAPITAL, INC.
        (Exact name of small business issuer as specified in its charter)


           Nevada                                          58-2670972
(State or other jurisdiction of                (IRS Employee Identification No.)
 incorporation or organization)


                 2405 - 300 Hua Hai Road, Shanghai 200023, China
                    (Address of principal executive offices)

                                (86) 21 63354111
                           (Issuer's telephone number)


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 and Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                         DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required by Section
l2, 13 or 15(d) of the Exchange Act after the distribution of securities under a
plan confirmed by a court. Yes[ ] No[ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Common Stock: par value of $0.001; 20,008,637 shares issued and outstanding on
March 31, 2006.

Transitional Small Business Disclosure Format (Check one):  Yes [ ]   No [X]

<PAGE>


                                MKA CAPITAL, INC.
                                   FORM 10-QSB

                                      INDEX

                                                                            PAGE
PART I.  FINANCIAL INFORMATION                                                 3

Item 1.  Financial Statements and Condensed Notes - Quarter Ended
         March 31, 2006                                                        3

Item 2.  Management's Discussion and Analysis or Plan of Operation            17

Item 3.  Controls and Procedures                                              25

PART II. OTHER INFORMATION                                                    26

Item 1.  Legal Proceedings                                                    26

Item 2.  Changes in Securities and Use of Proceeds                            26

Item 3.  Default Upon Senior Securities                                       26

Item 4.  Submission of Matters to a Vote of Security Holders                  26

Item 5.  Other Information                                                    26

Item 6.  Exhibits                                                             27

         Signatures                                                           28

                                       2
<PAGE>

PART I.   FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS (UNAUDITED)


                                MKA Capital Inc.

                      CONDENSED CONSOLIDATED BALANCE SHEET
                              As of March 31, 2006
                                   (Unaudited)

(in US Dollars)


Assets
    Current assets
      Cash and cash equivalents                                     $   743,884
      Restricted Cash                                                    95,389
      Short-term Investments                                          1,404,611
      Accounts Receivables, net of allowance of $0                    1,585,772
      Prepaid Expenses                                                   37,368
                                                                    -----------
                                                                      3,867,024
    Long-term Trade Receivables                                         139,613
    Aircraft and aircraft engines held for lease
      net of accumulated depreciation of $6,243,960                   5,261,764
    Property, equipment and furnishings
      net of accumulated depreciation of $50,105                        575,317
                                                                    -----------
                                                                    $ 9,843,718
                                                                    ===========


Liabilities
    Current liabilities
      Accounts payable and accrued expenses                         $   587,496
      Income taxes payable                                              103,480
      Current portion of Long-term Debt                                 238,277
                                                                    -----------
                                                                        929,253
    Long-Term liabilities
      Security Deposits                                                 258,000
                                                                    -----------
                                                                      1,187,253

Commitments and Contingencies                                                --

Minority Interest                                                     5,151,825

Stockholders' Equity
    Common Share Capital
      Authorized: 500,000,000 common shares, of par value $0.001
      Issued and Outstanding: 20,008,637 common shares                   20,009
    Additional Paid-in Capital                                        3,674,507
    Accumulated Deficit                                                (189,876)
                                                                    -----------
                                                                      3,504,640
                                                                    -----------
                                                                    $ 9,843,718
                                                                    ===========


              See the accompanying notes to the Unaudited Condensed
                       Consolidated Financial Information

                                       3
<PAGE>
<TABLE>

                                          MKA Capital Inc.

                           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                             (Unaudied)


(in US dollars)
                                                                  THREE MONTHS ENDED
                                                            MARCH 31, 2006     MARCH 31, 2005
<S>                                                          <C>                      <C>
Revenues
     Sales of leased assets                                  $  5,050,000             50,000
     Operating lease revenue                                      548,720            679,297
                                                             ------------       ------------
                                                                5,598,720            729,297
Operating Expenses
     Cost of leased assets                                      4,606,598            348,611
     Depreciation                                                 428,333            615,473
     Cost of penalty shares issued                                145,481                 --
     Selling, General and Administrative                          558,729            233,293
                                                             ------------       ------------
                                                                5,739,141          1,197,377

Operating Loss                                                   (140,421)          (468,080)

Other Income (Expense)
     Interest income                                              195,977            203,366
     Interest expense                                             (10,124)          (110,220)
                                                             ------------       ------------
                                                                  185,853             93,146

Income (loss) before income taxes and minority interest            45,432           (374,934)
     Minority interest                                            (75,846)                --
     Provision for Income Taxes                                   (13,364)                --
                                                             ------------       ------------

Net Loss                                                     $    (43,778)          (374,934)
                                                             ============       ============


Earnings per Share
     Basic and fully diluted loss per share                  $     (0.009)            (0.021)
     Weighted average shares outstanding                       19,957,940         13,654,103


                        See the accompanying notes to the Unaudited Condensed
                                 Consolidated Financial Information

                                                 4
<PAGE>

                                                    MKA Capital Inc.

                                     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                                                       (Unaudited)

(in US dollars)
                                                                                      THREE MONTHS ENDED
                                                                               MARCH 31, 2006     MARCH 31, 2005
Cash Flows from Operating Activities
    Net loss                                                                    $   (43,778)         (374,934)
    Adjustments to reconcile net loss to cash used in operating activities
       Depreciation                                                                 428,333           615,473
       Stocks subscribed for payment of salaries                                     15,750                --
       Proceeds on sale of leased assets                                                 --           307,528
       Cost of penalty shares issued                                                145,481
       Minority interest                                                             75,846           (93,734)
    Cash effect of changes in operating assets and liabilities
       Decrease (increase) in trade receivables                                     228,590          (208,687)
       Decrease (increase) in prepaid expenses and other                               (730)          103,806
       Increase (decrease) in trade and accrued payables                           (102,705)          119,081
       Increase (decrease) in income taxes payable                                   13,364                --
       Purchase of leased assets                                                 (1,627,000)       (2,110,000)
                                                                                -----------       -----------
         Net cash used in Operating Activities                                     (866,849)       (1,641,467)

Cash Flows from Investing Activities
    Redemption of short-term investments                                                 --           140,000
    Purchase of fixed assets                                                         (3,639)               --
                                                                                -----------       -----------
         Net cash (used in) provided by Investing Activities                         (3,639)          140,000

Cash Flows from Financing Activities
    Security deposits received (settled)                                             60,000                --
    Draws upon short-term bank credit facility                                           --         1,056,609
    Cash paid on long-term debt principal                                           (66,885)         (243,245)
    Advances to related parties                                                          --          (137,356)
    Dividends paid on preferred shares                                              (48,250)               --
                                                                                -----------       -----------
         Net cash (used in) provided by Financing Activities                        (55,135)          676,008
                                                                                -----------       -----------
Increase (decrease) in Cash                                                        (925,623)         (825,459)
    Cash and cash equivalents, at start of period                                 1,669,507           847,409
                                                                                -----------       -----------
    Cash and cash equivalents, at end of period                                 $   743,884            21,951
                                                                                ===========       ===========


Supplemental information for Cash Expenses
    Cash paid for Interest Expense                                              $    10,124           110,220
                                                                                -----------       -----------


                        The accompanying notes are an integral part of these financial statements

                                                           5
<PAGE>

                                MKA Capital Inc.

            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                   For the fiscal quarter ended March 31, 2006
                                   (Unaudited)



Note 1.  Nature of Operations

MKA Capital Inc. ("MKAC", or "the Company", or "we", or "us") is registered in
good standing under Chapter 78 of the Nevada Statutes, and its common stock is
traded on the OTCBB under the symbol MKAC.OB. MKAC is a provider of operating
leases for commercial aircraft and engines to air carriers worldwide. MKAC also
engages in the selective purchase and resale of commercial aircraft and engines.
The Company's operations are reportable under one segment for financial
reporting purposes.

The MKAC group comprises the following companies:


Registered Name                                                                                         %
(business is conducted under the registered names)                        Domicile            Owner     held     Status
MKA Capital, Inc. (MKAC)                                                    USA                                  Active
Fintel Group Ltd. (FGL)                                                  Hong Kong             MKAC       100   Inactive
Fintel Investment Consultancy Management (Shanghai) Inc.                   China               FGL        100    Active
Cross Over Solution Inc.                                           British Virgin Islands      FGL        100   Inactive
Digital Financial Service Limited                                        Hong Kong             MKAC       100   Inactive
Fintel (USA) Ltd. (FL)                                                   Hong Kong             UOC        100   Inactive
Fintel Wireless Internet Limited                                         Hong Kong              FL        100   Inactive
MK Aviation S.A. (MKA)                                                     Panama              MKAC        75    Active
MK Aviation USA, Inc.                                                       USA                MKA        100   Inactive
MK II LLC (MK II)                                                           USA                MKA        100   Inactive
MKA Leasing USA, Inc.                                                       USA                MKA         99    Active
MKA Leasing USA, Inc.                                                       USA               MK II         1    Active
Compania Inversiones Raymond SA                                            Panama              MKA        100   Inactive
Compania International Aeronautica SA                                      Panama              MKA        100   Inactive
Unity One Capital Inc (UOC)                                                 USA                MKAC       100   Inactive
</TABLE>

Note 2.  Basis of Presentation

(a) Condensed Consolidated Financial Statements

The accompanying unaudited consolidated financial statements have been prepared
in conformity with generally accepted accounting principles in the United States
of America. However, certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been omitted or condensed, pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC"). In the opinion of
MKAC management, all adjustments of a normal recurring nature necessary for a
fair presentation have been included. The results for periods are not
necessarily indicative of results for the entire year. These condensed financial
statements and accompanying notes should be read in conjunction with our annual
financial statements and the notes thereto for the year ended December 31, 2005,
included in our Annual Report on Form 10KSB, filed with the Securities and
Exchange Commission.

(b) Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include
all of the accounts of the Company and all of its wholly-owned subsidiaries as
of and for the period ended March 31, 2006 and 2005. All material inter-company
balances and transactions have been eliminated in consolidation.

(c) Use of Estimates

These financial statements are prepared in accordance with accounting principles
accepted generally in the USA. These principles require management to use its
best judgment in determining estimates and assumptions that: affect the reported
amounts of assets and liabilities; 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. Management makes its best
estimate of the ultimate outcome for such items based on historical trends and


                                       6
<PAGE>

other information available when the financial statements are prepared. Changes
in estimates are recognized in accordance with the relevant accounting rules,
typically in the period when new information becomes available to management.
Actual results in the future could differ from the estimates made in the prior
and current periods.

The most significant estimates with regard to these financial statements are the
residual values of the aircraft, the useful lives of the aircraft, the amount
and timing of cash flow associated with each aircraft that are used to evaluate
impairment, the amounts recorded as bad debt allowances and accounting for
income taxes.

Note 3. Business Combination and Corporate Restructure

On November 25, 2005, a business combination occurred between MKAC, formerly
Financial Telecom Limited USA Inc ("Fintel"), and MK Aviation SA ("MKA"). The
combination was effected by an exchange of shares, reflecting an equal
percentage of 75% of the voting interest exchanged by each party. Accordingly,
the former owner of MKA received 75% of the voting interest of Fintel, and
Fintel (renamed MKAC) received 75% of the voting interest of MKA. The number of
shares exchanged were 75 shares of MKA, valued at $7.5 million, for 14,937,215
shares of Fintel (after applying the reverse share split of 25:1 that occurred
on January 22, 2006).

As a result of the merger, there was a change in control of the public entity.
In accordance with SFAS No. 141, the Company was the acquiring entity. While the
transaction is accounted for using the purchase method of accounting, in
substance the Agreement is a recapitalization of the Company's capital
structure. For accounting purposes, the Company accounted for the transaction as
a reverse acquisition and the Company is the surviving entity. The Company did
not recognize goodwill or any intangible assets in connection with the
transaction.

Effective with the Agreement, all previously outstanding shares of common and
preferred stock owned by the Company's shareholders were exchanged for an
aggregate of 14,937,215 shares of Fintel's common stock. In connection with the
acquisition, 4,969,125 shares were retained by the Fintel shareholders.

All references to common stock, share and per share amounts have been
retroactively restated to reflect the exchange of 75 shares of MKA common stock
for 14,937,215 shares of the Fintel's common stock outstanding immediately prior
to the merger as if the exchange had taken place as of the beginning of the
earliest period presented.

The accompanying financial statements present the historical financial
condition, results of operations and cash flows of MK Aviation SA prior to the
merger with Fintel.

A change in name for the combined entity was contemplated at the time of
combination. Subsequent to the combination, effective January 22, 2006, the
listed company, Fintel, changed its name to MKA Capital Inc.

A summarized financial position for the acquired company, Fintel, at the
acquisition date, is provided below.

                        Financial Telecom Limited USA Inc
                     Summary Statement of Financial Position
                              At November 25, 2005

Cash                                                             $     220,248
Other current assets                                                    20,489
Depreciable tangible assets                                              3,158
Current liabilities                                                   (332,660)
                                                                 --------------
Net Assets acquired                                              $     (88,765)
                                                                 ==============

MKAC acquired a portfolio of investments in equity securities held for future
sale, in the business combination with Fintel. The securities are common shares
issued by private Chinese companies. MKAC does not exercise significant
influence over the Chinese investees, and therefore accounts for its investments
by using the cost method. Dividends are not likely to be received. For
investments accounted for using the cost method of accounting, management
evaluates information in addition to quoted market price, if any, in determining
whether an other-than-temporary decline in value exists. At the time of the
acquisition, MKAC determined the investments had $zero current value.

The accompanying financial statements present on a consolidated basis the
accounts of the Company and its wholly owned subsidiaries. All significant
intercompany accounts and transactions have been eliminated in consolidation.

                                       7
<PAGE>

The following unaudited condensed combined pro forma results of operations
reflect the pro forma combination of MKAC and Fintel business as if the
combination had occurred at the beginning of the periods presented, compared
with the actual results of operations of MKA for the same period. The unaudited
pro forma condensed combined results of operations do not purport to represent
what the companies' combined results of operations would have been if the
transaction had occurred at the beginning of the periods presented, and are not
necessarily indicative of MKAC's future results.

<TABLE>
                                                                             Operating results for the
                                                                            three months ended March 31,
                                                                               2006              2005
                                                                            Historical         Pro Forma
                                                                            ----------         ---------
<S>                                                                       <C>                    <C>
Total Revenues                                                            $     5,598,720          808,009
Operting expenses                                                               5,739,141        1,338,235
                                                                          ----------------  ---------------
Operating loss                                                                   (140,421)        (530,226)
Other Income                                                                      185,853          111,743
                                                                          ----------------  ---------------
Operating income (loss) before income taxes and minority interest                  45,432         (418,483)
Income taxes and minority interest                                                (89,210)               -
                                                                          ----------------  ---------------
Net Loss                                                                  $       (43,778)        (418,483)
                                                                          ================  ===============

Basic and fully diluted loss per share                                            ($0.009)         ($0.011)

</TABLE>


Note 4.  Recent pronouncements regarding accounting standards

In March 2005, the FASB issued interpretation FIN No. 47 "Accounting for
Conditional Asset Retirement Obligations "("FIN 47"). FIN 47 clarifies the term
conditional asset retirement obligation as used in SFAS 143, Accounting for
Asset Retirement Obligations, and defines it to be a legal obligation to perform
an asset retirement activity in which the timing and (or) method of settlement
are conditional on a future event that may or may not be within the control of
the entity. FIN 47 is applicable to fiscal years ending after December 15, 2005.
FIN 47 retains the fundamental provisions of SFAS 143, and the application of
FIN 47 does not materially affect the Company's consolidated financial condition
or results of operations.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections". SFAS No. 154 replaces APB Opinion No. 20 "Accounting Changes" and
SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements". SFAS
No. 154 requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change. The application of SFAS No. 154 does not affect the Company's financial
statements.

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments". SFAS No. 155 amends FASB Statements No. 133, Accounting
for Derivative Instruments and Hedging Activities, and No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.
SFAS No. 155 resolves issues addressed in Statement 133 Implementation Issue No.
D1, "Application of Statement 133 to Beneficial Interests in Securitized
Financial Assets." The application of SFAS No. 155 retroactively does not affect
materially the Company's financial statements.

Note 5. Summary of Significant Accounting Policies

Note 5(a). Principles of Consolidation

These consolidated financial statements include the accounts of the Company and
its subsidiaries noted above. The results of subsidiaries acquired during the
periods presented are consolidated from the effective dates of acquisition. All
significant inter-company balances and transactions have been eliminated in
consolidation.

Note 5(b). Aircraft and Aircraft Engines Held For Lease

Aircraft and aircraft engines held for operating leases are stated at cost, less
accumulated depreciation. Costs incurred in connection with the acquisition of
aircraft assets are capitalized as part of the cost of such assets. Otherwise,
the costs of major overhauls that add economic life and value are capitalized
and depreciated over the estimated remaining useful life of the equipment.

                                       8
<PAGE>

The Company depreciates aircraft and engines on a straight-line basis over the
remaining useful life of each asset, from acquisition date, down to a 25%
residual value. The Company believes this methodology reflects accurately the
periodic cost of the assets based on normal use, and the residual value
approximates the selling price of the assets after the period of normal use.

                                                              Useful life

Aircraft                                                     10 - 15 years
Engines                                                      7 - 10 years

For engines or aircraft that are unlikely to be repaired at the end of the
current expected useful lives, the Company depreciates the engines or aircraft
over their estimated lives to a residual value based on an estimate of the
wholesale value of the parts after disassembly. When sold, the proceeds on sale
are recorded as revenues, and the related net book value is recorded as the cost
of sale.

Note 5(c).Property, Equipment, and Furnishings

Property, equipment, and furnishings are stated at cost, less accumulated
depreciation. These assets are depreciated down to $zero residual values over
their useful lives as follows:

                                                                  Useful life

Building                                                           40 years
Vehicles                                                           6 1/2 years
Furniture and Equipment                                          5 - 10 years

Note 5(d). Impairment of Long-lived assets

The Company periodically reviews its portfolio of assets for impairment in
accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
"Accounting for the Impairment or Disposal of Long-lived Assets." Such review
necessitates estimates of current market values; re-lease rents, residual values
and component values. The estimates are based on currently available market data
and are subject to fluctuation from time to time. The Company initiates its
review periodically, whenever events or changes in circumstances indicate that
the carrying amount of a long-lived asset may not be recoverable. Recoverability
of an asset is measured by comparison of its carrying amount to the expected
future undiscounted cash flows (without interest charges) that the asset is
expected to generate. Any impairment to be recognized is measured by the amount
by which the carrying amount of the asset exceeds its fair market value.
Significant management judgment is required in the forecasting of future
operating results which are used in the preparation of projected undiscounted
cash flows and, should different conditions prevail, material write downs may
occur.

Note 5(e). Loan Commitment and Related Fees

Fees incurred to procure debt are amortized over the life of the related loan
using the interest method.

Note 5(f). Foreign Currency Translation

The reporting currency used in the preparation of these consolidated financial
statements is U.S. dollars. Local currencies are the functional currencies for
the Companies subsidiaries. For the purpose of consolidation: assets and
liabilities of subsidiaries with functional currencies other than U.S. dollars
are translated into U.S. dollars at the applicable rates of exchange in effect
at the balance sheet date; and income and expense items are translated into U.S.
dollars at the average applicable rates during the year.

Translation gains and losses resulting from fluctuations in exchange rates are
recorded as a separate component of other comprehensive income within
stockholders' equity as cumulative translation adjustments. Gains and losses
resulting from foreign currency transactions are included in results of
operations.

Note 5(g). Earnings Per Share

Basic earnings per share ("EPS") is calculated using net earnings (the
numerator) divided by the weighted-average number of shares outstanding (the
denominator) during the reporting period. Diluted EPS includes the effect from
potentially dilutive securities. Diluted EPS is equal to basic EPS for all
periods presented, as the Company has no potentially dilutive securities. All
per share and related information is adjusted to reflect stock splits and
changes in par value that occurred in the current year.

Note 5(h). Revenue Recognition

Lease rentals and maintenance fees for aircraft and engines are recognized as
operating lease revenue over the terms of the applicable lease agreements.
Revenue is not recognized when cash collection is not reasonably assured.

                                       9
<PAGE>

Proceeds on sales of tangible assets held for resale and under lease are
recognized as revenues upon closing of the sale transaction, which is the time
when all cash proceeds are received.

Revenue from the trading of commodities is recognized as the cash is received.
Such revenues are cash basis only, and are not accrued.

Revenue from service contracts associated with the investment portfolio is
recognized as the cash is received. Such revenues carry significant credit risk,
and accrued only when collection is reasonably assured.

Note 5(i). Maintenance and Repair Costs

In general, maintenance and repair costs under the Company's leases are the
responsibility of the lessees. The costs for overhauls are borne by the Company.
When the overhaul adds to the life or value of the asset, the related costs are
capitalized. Otherwise, the overhaul costs are charged to expense when incurred.

Note 5(j). Income Taxes

The Company has adopted Financial Accounting Standard No. 109 (SFAS 109) which
requires the recognition of deferred tax liabilities and assets for the expected
future tax consequences of events that have been included in the financial
statement or tax returns. Under this method, deferred tax liabilities and assets
are determined based on the difference between financial statements and tax
basis of assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to reverse.

The Company operates in several countries via cross border leasing arrangements.
As a result, we are subject to numerous domestic and foreign tax jurisdictions
and tax agreements and treaties among the various taxing authorities. Our
operations in these jurisdictions are taxed on various bases: income before
taxes, deemed profits and withholding taxes based on revenue. The calculation of
our tax liabilities involves consideration of uncertainties in the application
and interpretation of complex tax regulations in a multitude of jurisdictions
across our global operations.

We regularly assess our position with regard to individual tax exposures and
record liabilities for our uncertain tax positions and related interest and
penalties according to the principles of FAS 5, ACCOUNTING FOR Contingencies.
These accruals reflect management's view of the likely outcomes of current and
future audits. The future resolution of these uncertain tax positions may be
different from the amounts currently accrued and therefore could impact future
tax period expense.

The Company has U.S. federal net operating loss carry forwards of approximately
$300,000 that expire in 2024 and Hong Kong net operating loss carry forwards of
approximately $4,900,000 that have no expiration date. However, as a result of
the acquisition, the amount of net operating loss carry forward available to be
utilized in reduction of future taxable income was reduced pursuant to the
change in control provisions of Section 382 of the Internal Revenue Code.

 A 100% valuation allowance has been established as a reserve against the
deferred tax assets arising from the net operating losses and other net
temporary differences since it cannot, at this time, be considered more likely
than not that their benefit will be realized in the future.

Changes in tax laws, regulations, agreements and treaties, foreign currency
exchange restrictions or our level of operations or profitability in each taxing
jurisdiction could have an impact upon the amount of income taxes that we
provide during any given year.
Note 5(k). Allowance for Doubtful Accounts

The Company presents accounts receivable at the net of allowances for doubtful
accounts. The allowances are calculated based on detailed review of certain
individual customer accounts and an estimation of the overall economic
conditions affecting the Company's customer base. The Company reviews a
customer's credit history before extending credit. If the financial condition of
its customers were to deteriorate, resulting in an impairment of their ability
to make payments, additional allowances may be required. No provision for
doubtful accounts has been made in these financial statements, as the accounts
are considered collectible in full.

Note 5(l). Initial Direct Costs associated with Leases

The Company accounts for material direct costs, including sales commission and
legal fees, incurred initially to obtain new leases, by expensing such costs as
incurred, under General and Administrative expenses. Historically, such costs
have been immaterial.

Note 5(m). Long-term Investments

Long-term investments in equities are recorded at cost, using the cost method of
accounting for investments in equities.

                                       10
<PAGE>

Note 5(n) Segment Information

The Company adopted Statement of Financial Accounting Standards No. 131,
Disclosures about Segments of an Enterprise and Related Information ("SFAS
131"). SFAS establishes standards for reporting information regarding operating
segments in annual financial statements and requires selected information for
those segments to be presented in interim financial reports issued to
stockholders. SFAS 131 also establishes standards for related disclosures about
products and services and geographic areas. Operating segments are identified as
components of an enterprise about which separate discrete financial information
is available for evaluation by the chief operating decision maker, or decision
making group, in making decisions how to allocate resources and assess
performance. The information disclosed herein, materially represents all of the
financial information related to the Company's principal operating segments.

Note 5 (o) Comprehensive Income

Statement of Financial Accounting Standards No. 130 ("SFAS 130"), "Reporting
Comprehensive Income," establishes standards for reporting and displaying of
comprehensive income, its components and accumulated balances. Comprehensive
income is defined to include all changes in equity except those resulting from
investments by owners and distributions to owners. Among other disclosures, SFAS
130 requires that all items that are required to be recognized under current
accounting standards as components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as other
financial statements. The Company does not have any items of comprehensive
income in any of the periods presented.

Note 5(p)  Reclassifications

Certain reclassifications have been made in prior years' financial statements to
conform with classifications used in the current year.

Note 5(q)  Stock based payments

During December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure-an amendment of SFAS 123." This statement
amends SFAS No. 123, "Accounting for Stock-Based Compensation", to provide
alternative methods of transition for a voluntary change to the fair value based
method of accounting for stock-based employee compensation. In addition, this
statement amends the disclosure requirements of SFAS No. 123 to require
prominent disclosures in both annual and interim financial statements about the
method of accounting for stock-based employee compensation and the effect of the
method used on reported results. The Company has chosen to continue to account
for stock-based compensation using the intrinsic value method prescribed in APB
Opinion No. 25 and related interpretations. Accordingly, compensation expense
for stock options is measured as the excess, if any, of the fair market value of
the Company's stock at the date of the grant over the exercise price of the
related option. The Company has adopted the annual disclosure provisions of SFAS
No. 148 in its financial reports for the year ended December 31, 2005 and has
adopted the interim disclosure provisions in its financial reports for the
subsequent periods.

Effective January 1, 2006, the beginning of MKAC's first fiscal quarter of 2006,
the Company adopted the fair value recognition provisions of SFAS 123R, using
the modified-prospective transition method. Under this transition method,
stock-based compensation expense was recognized in the consolidated financial
statements for granted stock options, since the related purchase discounts
exceeded the amount allowed under SFAS 123R for non-compensatory treatment.
Compensation expense recognized included: the estimated expense for stock
options granted on and subsequent to January 1, 2006, based on the grant date
fair value estimated in accordance with the provisions of SFAS 123R; and the
estimated expense for the portion vesting in the period for options granted
prior to, but not vested as of January 1, 2006, based on the grant date fair
value estimated in accordance with the original provisions of SFAS 123. Results
for prior periods have not been restated, as provided for under the
modified-prospective method.

As of December 31, 2005 and March 31, 2006, the Company did not issue or make
provision through the issuance of stock options to employees and directors. See
Note 12 below for the cost of stock-based compensation for common shares issued
to employees, creditors, and investees, for the three months ended March 31,
2006.

Note 6. Minority Interest

Minority interest comprises a 25% interest held by the Company's principal
shareholder and Chairman in MK Aviation SA. In addition, the Company's principal
shareholder and Chairman purchased, and continues to hold, 3,000,000 preferred
shares of MK Aviation SA, the principal operating subsidiary. The preferred
shares have a par value of $1, have a cumulative dividend of 5% annually payable
monthly on par value, and are redeemable by the shareholder and retractable by
the Company at any time subject to available cash reserves. The shares were
issued prior to the business combination. The Chairman and the controlling
shareholder of the Company maintain control of MK Aviation SA, a principal
operating subsidiary which owns substantially all the operating assets and
liabilities.

                                       11
<PAGE>

                                                              March 31, 2006

Minority interest in the earnings of MK Aviation SA          $      1,291,825
Preferred shares issued by MK Aviation SA                           3,860,000
                                                             -----------------
                                                             $      5,151,825
                                                             =================

Note 7. Long Term Receivables

The accounts receivable concentrated in Venezuela is due from Aeropostal, which
is the flagship carrier for Venezuela. On March 31, 2006, Aeropostal owed MKAC
$1.58 million on past due rental payments, and held 4 leased engines in its
possession. MKAC reached agreement with Aeropostal, during March 2006, to
collect the balance owing over the next 18 months, by variable installments,
with interest at 1.5% per month on the outstanding balance. At the end of 18
months, if the installment schedule is met fully, MKAC agrees to transfer
ownership of one engine to Aeropostal without additional proceeds, and grant a
purchase option for an additional engine.

MKAC does not expect to charge rental income on the two engines slated for
transfer, but will charge normal rentals on the two remaining engines. All
engines remain the property of MKAC during the agreement until all payment and
lease obligations, current and prior, have been fulfilled. MKAC has full
recourse to the engines at its option at any time. Aeropostal is utilizing the
engines, maintaining them at FAA standards, and insuring them for all risks.
MKAC continues it insurance on the engines. MKAC does not believe the engine
values are impaired, and has maintained normal rates of depreciation for its
leased assets.

MKAC conducts business currently with Aeropostal, and has successfully served
this company for the past 10 years, without collection problems prior.
Aeropostal has a fleet of 27 aircraft, employs about 3500 people, and turns over
on average revenue of $200 million annually. In prior years, Aeropostal has
incurred and paid monthly to MKAC receivables of $250,000 without defaults.
During November 2005, Venezuela incurred a natural disaster that forced the
closure and access of the main airport. This disaster disrupted Aeropostal's
operations significantly, causing a short term cash flow deficiency.
Aeropostal's cash flow is now restored, and MKAC expects to continue its
business with Aeropostal without further incident. Accordingly, MKAC's
management believes: the receivable and interest are fully collectible; the
amounts reserved currently are adequate; the fair value of the engines exceed
the receivable by a large margin, and thereby provide adequate security; and the
amounts receivable are well within the financial ability of Aeropostal to retire
its obligations to MKAC as agreed.

Note 8.  Concentrations, Contingencies, and Commitments

(a). Concentrations

Casualties, Insurance Coverage. The Company, as owner of transportation
equipment, may be named in a suit claiming damages for injuries or damage to
property caused by its assets. As a triple net lessor, the Company is generally
protected against such claims, since the lessee would be responsible for, insure
against and indemnify the Company for, such claims. Further, some protection may
be provided by the United States Aviation Act with respect to the Company's
aircraft assets. It is, however, not clear to what extent such statutory
protection would be available to the Company, and the United States Aviation Act
may not apply to aircraft operated in foreign countries. Also, although the
Company's leases generally require a lessee to insure against likely risks,
there may be certain cases where the loss is not entirely covered by the lessee
or its insurance. Though this is a remote possibility, an uninsured loss with
respect to the equipment, or an insured loss for which insurance proceeds are
inadequate, would result in a possible loss of invested capital in and any
profits anticipated from, such equipment, as well as a potential claim directly
against the Company.

Lessee Credit Risk. If a customer defaults upon its lease obligations, the
Company may be limited in its ability to enforce remedies. Most of the Company's
lessees are small regional passenger airlines, which may be even more sensitive
to airline industry market conditions than the major airlines. As a result, the
Company's inability to collect rent under a lease or to repossess equipment in
the event of a default by a lessee could have a material adverse effect on the
Company's revenue. If a lessee that is a certified U.S. airline is in default
under the lease and seeks protection under Chapter 11 of the United States
Bankruptcy Code, Section 1110 of the Bankruptcy Code would automatically prevent
the Company from exercising any remedies for a period of 60 days. After the
60-day period has passed, the lessee must agree to perform the obligations and
cure any defaults, or the Company will have the right to repossess the
equipment. This procedure under the Bankruptcy Code has been subject to
significant recent litigation, however, and it is possible that the Company's
enforcement rights may be further adversely affected by a declaration of
bankruptcy by a defaulting lessee. Most of the Company's lessees are foreign and
not subject to U.S. bankruptcy laws but there may be similar applicable foreign
bankruptcy debtor protection schemes available to foreign carriers.

International Risks. The Company has focused on leases in overseas markets,
which the Company believes present opportunities. Leases with foreign lessees,
however, may present somewhat different credit risks than those with domestic
lessees. A lease with a foreign lessee is subject to risks related to the
economy of the country or region in which such lessee is located, which may be
weaker than the U.S. economy. On the other hand, a foreign economy may remain
strong even though the U.S. economy does not. A foreign economic downturn may
impact a foreign lessee's ability to make lease payments, even though the U.S.
and other economies remain stable. Furthermore, foreign lessees are subject to
risks related to currency conversion fluctuations.

                                       12
<PAGE>

Foreign laws, regulations and judicial procedures may be more or less protective
of lessor rights than those which apply in the United States. The Company could
experience collection or repossession problems related to the enforcement of its
lease agreements under foreign local laws and the remedies in foreign
jurisdictions. The protections potentially offered by Section 1110 of the
Bankruptcy Code do not apply to non-U.S. carriers, and applicable local law may
not offer similar protections. Certain countries do not have a central
registration or recording system with which to locally establish the Company's
interest in equipment and related leases. This could make it more difficult for
the Company to recover an aircraft in the event of a default by a foreign
lessee.

The Company operates in one business segment, leasing of regional aircraft to
regional airlines, primarily foreign, and therefore does not present separate
segment information for lines of business. The tables noted below present
geographic information about the Company's revenues and related receivables.

<TABLE>
<S>     <C>

              Material concentrations of total revenues, by country

                                   Q1 2006                         Q1 2005
                               ----------------                ----------------
Venezuela                              168,000       3%                130,500       18%
Chile                                  240,000       4%                240,000       33%
Colombia                                30,000       1%                231,500       32%
Belgium                                 60,450       1%                 53,630       7%
USA                                  5,050,000       90%                50,000       7%
Others                                  50,270       1%                 23,667       3%
                               ----------------                ----------------
                                     5,598,720      100%               729,297      100%
                               ================                ================


             Material concentrations of total revenues, by customer

                                   Q1 2006                         Q1 2005
                               ----------------                ----------------
Aeropostal                             168,000       3%                130,500       18%
West Caribbean                         240,000       4%                231,500       32%
Sky Air                                      0       0%                240,000       33%
AAR Corp                             5,050,000       90%                     0       0%
Others                                 140,720       3%                127,297       17%
                               ----------------                ----------------
                                     5,598,720      100%               729,297      100%
                               ================                ================


                            Material concentrations of net trade receivables, by country

                                March 31, 2006
                               -----------------
Venezuela                             1,582,308       92%
Colombia                                 30,000       2%
USA                                      56,475       3%
Others                                   56,602       3%
                               -----------------
                                      1,725,385      100%
                               =================

                                       13
<PAGE>


   Material concentrations of aircraft and aircraft engines held for lease at
                      net book value, by lessee's country

                                March 31, 2006
                               ------------------
Venezuela                                468,448       9%
Chile                                  1,873,558       35%
Colombia                               1,612,473       31%
Belgium                                1,200,500       23%
Others                                   106,785       2%
                               ------------------
                                       5,261,764      100%
                               ==================


         Material concentrations of net accounts receivable by customer

                                March 31, 2006
                               -----------------
Aeropostal                            1,582,308       92%
West Caribbean                                0       0%
Avianca                                  30,000       2%
Southwest                                56,475       3%
Others <10% each                         56,602       3%
                               -----------------
                                      1,725,385      100%
                               =================
</TABLE>

(b). Commitments

The Company has a consulting agreement with a company controlled by the
principal shareholder and current Chairman. This agreement provides for the
entire senior management and executive staff resources of MK Aviation S A.
Consulting fees and expenses of $120,900 were charged to Selling, General and
Administrative expense in Q1 2006, and $75,000 in Q1 2005.

The Company leases office space in Shanghai and Hong Kong. The lease for
Shanghai expires in 2006, and Hong Kong in 2007. Based upon existing leases,
without renewals, the minimum lease payments up to expiry are as follows:

2006                                                 $   32,818
2007                                                      7,221
Thereafter                                                    0
                                                     -----------
                                                     $   40,039
                                                     ===========

(c). Contingencies

(i) Possible legal suit.

MKAC and its principals are named as co-defendants, along with Boeing, General
Electric, Pratt & Whitney, and some 25 other parties, to a suit filed by
deceased plaintiff Mr. Gustav Perez, of Martinique, on February 23, 2006. The
case references are: PEREZ, ELKIN (PERS REP) vs. WEST CARIBBEAN AIRWAYS
(COLOMBIAN CORP); Case Number (LOCAL) 2005-24253-CA-01; Case Number (STATE):
13-2005-CA-024253-0000-01. The case is pending in the United States District
Court for the Southern District of Florida (Miami). To date, the defendants have
not been formally served.

    The relief sought by the plaintiff is not stated in docket, #06-CV-20454,
                          and is unknown at this time.

Based upon correspondence from the counsel for the plaintiff, the suit arises
from the crash and destruction of an MD82 aircraft, operated by West Caribbean
Airways. The crash occurred during August 2005, and resulted in the death of the
plaintiff, other passengers, and flight crew. To date, the crash is under
investigation, and the cause is yet unknown. At the time of the crash, the
aircraft was owned by a subsidiary, MK Aviation SA. However, MK Aviation was not
involved in any way with the operations or maintenance of the aircraft, nor was
it in possession of the craft. MK Aviation placed a lien on the craft, and was
named as a party to the insurance policy for the aircraft. MKAC denies all
liability in the case, and has notified its insurer. MKAC believes the suit is
without merit, and will defend itself vigorously.

                                       14
<PAGE>

(ii) Possible penalty stock

The investments acquired in the combination with Fintel (see note 3 above) carry
contingent obligations on the part of the investor. The consideration issued by
Fintel to acquire the investments was the common stock of Fintel (which are now
MKAC shares following the business combination). The obligation of the investor
is to issue additional MKAC shares to the investee when the traded price of MKAC
shares falls below a floor price for an extended period of time. The number of
shares to be issued is determined by the formula in the agreements, and will
depend on the traded price of the shares at the time the investee requests
additional shares. The timing of the potential penalty will depend on when the
investee makes his request, which can be anytime following the anniversary date
of the investment transaction. However, the amount of the obligation, and the
shares to be issued, are amortized over the following three years, and therefore
the contingent annual expense is approximately 1/3 the total cost of the
penalty. The future price is unknown, and therefore the actual value of the
contingent obligation is unknown at this time.

The anniversary dates of all investments occur during 2006, and currently MKAC's
stock is trading below the floor price. Should the investees invoke the penalty
clauses, MKAC could be obligated to issue more common stock. At the time of
filing this 10QSB report, management estimates the total number shares MKAC
could be obligated to issue is 1,323,000 common shares.

Note 9. Depreciable Assets

(a) Aircraft and aircraft engines held for lease

Leased Assets are stated at cost, less accumulated depreciation and any
impairment in value. All aircraft and engines are held under operating leases.
The carrying values are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. Impairment
losses are recognized in the income statement.

<TABLE>
                                              Engines        Aircraft          Total
                                          ------------------------------------------------
<S>                                             <C>             <C>            <C>
At March 31, 2006
Cost                                            5,212,000       6,293,724      11,505,724
Accumulated depreciation                        1,823,796       4,420,164       6,243,960
                                          ------------------------------------------------
Net carrying value                              3,388,204       1,873,560       5,261,764
                                          ================================================

(b) Property, equipment and furnishings

Property, equipment and furnishings are stated at cost, less accumulated
depreciation and any impairment in value. The carrying values are reviewed for
impairment when events or changes in circumstances indicate the carrying value
may not be recoverable. Impairment losses are recognized in the income
statement.

                                  Land and        Vehicles         Office           Total
                                  Building
                               -----------------------------------------------------------
At March 31, 2006
Cost                              474,113         126,448          28,245         628,806
Accumulated depreciation            5,278          30,123          18,088          53,489
                               -----------------------------------------------------------
Net carrying value                468,835          96,325          10,157         575,317
                               ===========================================================
</TABLE>

Note 10. Operating Leases and Security Deposits

All lease transactions are "triple-net leases". A triple-net lease requires the
lessee to make the full lease payment and incur any other expenses associated
with the use of the equipment, such as maintenance, insurance, and taxes. The
leases contain detailed provisions specifying maintenance standards and the
required condition of the aircraft equipment upon return at the end of the
lease. During the term of the lease, the lessee is required to maintain the
aircraft equipment in accordance with an approved maintenance program, designed
to ensure the asset meets applicable regulatory requirements in the
jurisdictions in which the lessee operates.

In addition to lease rentals, maintenance fees are collected and taken into
revenues by the Company. The funds are normally held voluntarily in reserve by
the Company, and used when overhaul repairs associated with asset use or
maintenance is required. The lessee has no residual claim to the lease rentals
or maintenance fees.

Security deposits for the lease revenues are collected and placed in the current
accounts of the Company. All or part of the security deposits are returned to
the lessee, upon fulfillment of all lease terms.

                                       15
<PAGE>

Minimum lease payments receivable over the next five years and in aggregate will
depend on whether the leases are renewed. Historically, the leases for engines
are renewed. Based upon existing leases, without increases for renewals, the
minimum lease payments receivable for the next 5 years are as follows:

2006                                                   $ 1,344,000
2007                                                       960,000
2008                                                       240,000
2009                                                       240,000
2010                                                       240,000
Thereafter                                                 240,000
                                                       ------------
                                                       $ 3,264,000
                                                       ============

Note 11. Related Party Transactions

Related party transactions between the Company and its related parties are as
follows:

                                                           Q1 2006       Q1 2005
                                                           -------       -------

Dividends on preferred shares, paid to the principal
shareholder and current Chairman.                         $   48,250          0

Consulting fees for executive management staff paid to
a company controlled by the principal shareholder and
current Chairman                                          $  120,900     75,000

Note 12.  Stock-based Payments

The Company settled payment for salaries to officers by issuing Company stock at
the fair values of the goods or service received. During Q1 2006, 15,286 shares
were subscribed by officers as payment for salaries, valued at $18,834 and
charged to Selling, General and Administrative expense. The number of shares
issued was determined by the average trading price for the 20 days prior to the
transaction. No options, warrants, or conversion rights are attached to the
shares.

The Company settled payment for debts to unrelated parties by issuing Company
stock at the fair values of the goods or service received. During Q1 2006,
14,466 common shares were issued to settle debts, valued at $14,038. The number
of shares issued was determined by the average trading price for the 20 days
prior to the transaction. No options, warrants, or conversion rights are
attached to the shares.

The Company paid penalties in the form of common stock to certain investees in
its portfolio of private-equity investments, on account of a lower than expected
trading price for MKAC stock. The penalties were paid by issuing 116,385 common
shares of Company stock at the average 30-day trading price prior to the penalty
date, valued in total at $145,481. No options, warrants, or conversion rights
are attached to the shares. The transaction value is charged to income as an
expense for stock penalties.

Note 13.  Subsequent Events

(a) Discussions between the Company and its former directors were held during
the fourth fiscal quarter of 2005, to effect a divestment ("spin-off") of two
inactive subsidiaries (Fintel Wireless Internet Limited; and Fintel (USA) Ltd.)
to the former shareholders of Financial Telecom Limited USA Inc., of record
prior to the business combination with MK Aviation during November, 2005.
Procedures for the spin-off are underway, and completion is expected by the end
of Q2 2006. The Company expects no financial impact from these two transactions.
All costs related to the spin-off will be borne by the shareholders of the new
entity created in the spin-off.

(b) Discussions between the Company and its investees commenced during Q1 2006
to exit the investments sometime during Q2 or Q3 2006. The shares issued by each
party will be returned for the values numbers of shares and transacted at the
time of purchase. The investees may choose to retain some MKAC shares. Should
all investees choose to return all their holdings of MKAC shares, the total
number of MKAC shares returned could be possibly 1,900,000 shares. MKAC expects
to value the returned shares at par, and accordingly the total value to be
charged to net assets is possibly $1,900.


                                       16
<PAGE>

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

Item 2(a). Discussion for the Interim Operations and Financial Condition

Introduction

Management's discussion and analysis of results of operations and financial
condition ("MD&A") is provided as a supplement to the accompanying financial
statements and footnotes to help provide an understanding of our financial
condition, changes in financial condition and results of operations. The MD&A is
organized as follows:
         o        CAUTION CONCERNING FORWARD-LOOKING STATEMENTS AND RISK
                  FACTORS. This section discusses how certain forward-looking
                  statements made by us throughout the MD&A and in the financial
                  statements are based on our present expectations about future
                  events and are inherently susceptible to uncertainty and
                  changes in circumstances.
         o        OVERVIEW. This section provides a general description of our
                  business, as well as recent developments that we believe are
                  important in understanding the results of operations and to
                  anticipate future trends in those operations.
         o        RESULTS OF OPERATIONS. This section provides an analysis of
                  our results of operations for the three months ended March 31,
                  2006 compared to the same period in 2005. A brief description
                  is provided of transactions and events, including any related
                  party transactions that affect the comparability of the
                  results being analyzed.
         o        LIQUIDITY AND CAPITAL RESOURCES. This section provides an
                  analysis of our financial condition and cash flows for the
                  three months ended March 31, 2006 and 2005.
         o        CRITICAL ACCOUNTING POLICIES. This section provides an
                  analysis of the significant estimates and judgments that
                  affect the reported amounts of assets, liabilities, revenues
                  and expenses, and related disclosure of contingent assets and
                  liabilities.

Caution Concerning Forward-looking Statements and Risk Factors

We have sought to identify what we believe to be the most significant risks to
our business, but we cannot predict whether, or to what extent, any of such
risks may be realized nor can we guarantee that we have identified all possible
risks that might arise. Investors should carefully consider all of such risk
factors before making an investment decision with respect to our Common Stock.

The following discussion should be read in conjunction with our financial
statements and the notes thereto, and the other financial information appearing
elsewhere in this document. In addition to historical information, the following
discussion and other parts of this document contain certain forward-looking
information. When used in this discussion, the words "believes," "anticipates,"
"expects," and similar expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks and uncertainties,
which could cause actual results to differ materially from projected results,
due to a number of factors beyond our control. We do not undertake to publicly
update or revise any of our forward-looking statements, even if experience or
future changes show that the indicated results or events will not be realized.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Readers are also urged to
carefully review and consider our discussions regarding the various factors,
which affect our business, included in this section and elsewhere in this
report.

Factors that might cause actual results, performance or achievements to differ
materially from those projected or implied in such forward-looking statements
include, among other things: (i) the impact of competitive products; (ii)
changes in law and regulations; (iii) limitations on future financing; (iv)
increases in the cost of borrowings and unavailability of debt or equity
capital; (v) our inability to gain and/or hold market share; (vi) managing and
maintaining growth; (vii) customer demands; (viii) market and industry
conditions, (ix) the success of product development and new product
introductions into the marketplace; (x) the departure of key members of
management; as well as other risks and uncertainties that are described from
time to time in our filings with the Securities and Exchange Commission.

We provide the following cautionary discussion of risks, uncertainties and
possible inaccurate assumptions relevant to our business and our products. These
are factors that we think could cause our actual results to differ materially
from expected results. Other factors besides those listed here could adversely
affect us.

Potential Fluctuations In Periodic Operating Results

Our periodic operating results may fluctuate significantly in the future as a
result of a variety of factors, most of which are outside our control,
including: the demand for our products; seasonal trends in purchasing, the
amount and timing of capital expenditures and other costs relating to the
development of our products; price competition or pricing changes in the
industry; technical difficulties or system downtime; general economic
conditions, and economic conditions specific to the industry. Our results may
also be significantly impacted by the impact of the accounting treatment of
acquisitions, financing transactions or other matters. Particularly at our early
stage of development, such accounting treatment can have a material impact on
the results for any period. Due to the foregoing factors, among others, it is
likely that our operating results will fall below our expectations or those of
investors in some future period.

Chairman Has The Power To Make Major Decisions Regarding The Company

The Chairman is the controlling shareholder of the Company, and maintains
control of MK Aviation SA, a principal operating subsidiary which owns
substantially all the operating assets and liabilities.

                                       17
<PAGE>

Dependence Upon Management

Our future performance and success is dependant upon the efforts and abilities
of our Management. To a very significant degree, we are dependent upon the
continued services of Mordechay Kraselnick , Chairman of the Board of Directors
.. If the Company lost the services of Mr. Kraselnick , or other key employees
before we could get qualified replacements that loss could materially adversely
affect our business. We do not maintain key man life insurance on any of our
Management.

Lack of Independent Directors

We cannot guarantee that our Board of Directors will have a majority of
independent directors in the future. In the absence of a majority of independent
directors, our executive officers, who are also principal stockholders and
directors, could establish policies and enter into transactions without
independent review and approval thereof. This could present the potential for a
conflict of interest between the Company and its stockholders generally and the
controlling officers, stockholders or directors.

Limitation of Liability and Indemnification of Officers and Directors

Our officers and directors are required to exercise good faith and high
integrity in our Management affairs. Our Articles of Incorporation provide,
however, that our officers and directors shall have no liability to our
shareholders for losses sustained or liabilities incurred which arise from any
transaction in their respective managerial capacities unless they violated their
duty of loyalty, did not act in good faith, engaged in intentional misconduct or
knowingly violated the law, approved an improper dividend or stock repurchase,
or derived an improper benefit from the transaction. Our Articles and By-Laws
also provide for the indemnification by us of the officers and directors against
any losses or liabilities they may incur as a result of the manner in which they
operate our business or conduct the internal affairs, provided that in
connection with these activities they act in good faith and in a manner that
they reasonably believe to be in, or not opposed to, the best interests of the
Company, and their conduct does not constitute gross negligence, misconduct or
breach of fiduciary obligations. To further implement the permitted
indemnification, we have entered into Indemnity Agreements with our officers and
directors.

Management of Potential Growth

We anticipate rapid growth, which will place a significant strain on our
managerial, operational, and financial systems resources. To accommodate our
current size and manage growth, we must continue to implement and improve our
financial strength and our operational systems, and expand, train and manage our
sales and distribution base. There is no guarantee that we will be able to
effectively manage the expansion of our operations, or that our facilities,
systems, procedures or controls will be adequate to support our expanded
operations. Our inability to effectively manage our future growth would have a
material adverse effect on the Company.

Limited Market Due To Penny Stock

The Company's stock differs from many stocks, in that it is a "penny stock." The
Securities and Exchange Commission has adopted a number of rules to regulate
"penny stocks." These rules include, but are not limited to, Rules 3a5l-l,
15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6 and 15g-7 under the Securities and
Exchange Act of 1934, as amended. Because our securities probably constitute
"penny stock" within the meaning of the rules, the rules would apply to us and
our securities. The rules may further affect the ability of owners of our stock
to sell their securities in any market that may develop for them. There may be a
limited market for penny stocks, due to the regulatory burdens on
broker-dealers. The market among dealers may not be active. Investors in penny
stock often are unable to sell stock back to the dealer that sold them the
stock. The mark-ups or commissions charged by the broker-dealers may be greater
than any profit a seller may make. Because of large dealer spreads, investors
may be unable to sell the stock immediately back to the dealer at the same price
the dealer sold the stock to the investor. In some cases, the stock may fall
quickly in value. Investors may be unable to reap any profit from any sale of
the stock, if they can sell it at all. Stockholders should be aware that,
according to the Securities and Exchange Commission Release No. 34- 29093, the
market for penny stocks has suffered in recent years from patterns of fraud and
abuse. These patterns include: - Control of the market for the security by one
or a few broker-dealers that are often related to the promoter or issuer; -
Manipulation of prices through prearranged matching of purchases and sales and
false and misleading press releases; - "Boiler room" practices involving high
pressure sales tactics and unrealistic price projections by inexperienced sales
persons; - Excessive and undisclosed bid-ask differentials and markups by
selling broker-dealers; and - The wholesale dumping of the same securities by
promoters and broker- dealers after prices have been manipulated to a desired
level, along with the inevitable collapse of those prices with consequent
investor losses. Furthermore, the "penny stock" designation may adversely affect
the development of any public market for the Company's shares of common stock
or, if such a market develops, its continuation. Broker-dealers are required to
personally determine whether an investment in "penny stock" is suitable for
customers. Penny stocks are securities (i) with a price of less than five
dollars per share; (ii) that are not traded on a "recognized" national exchange;
(iii) whose prices are not quoted on the NASDAQ automated quotation system
(NASDAQ-listed stocks must still meet requirement (i) above); or (iv) of an
issuer with net tangible assets less than $2,000,000 (if the issuer has been in
continuous operation for at least three years) or $5,000,000 (if in continuous
operation for less than three years), or with average annual revenues of less
than $6,000,000 for the last three years. Section 15(g) of the Exchange Act and
Rule 15g-2 of the Commission require broker-dealers dealing in penny stocks to
provide potential investors with a document disclosing the risks of penny stocks
and to obtain a manually signed and dated written receipt of the document before
effecting any transaction in a penny stock for the investor's account. Potential
investors in the Company's common stock are urged to obtain and read such
disclosure carefully before purchasing any shares that are deemed to be "penny


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stock." Rule 15g-9 of the Commission requires broker-dealers in penny stocks to
approve the account of any investor for transactions in such stocks before
selling any penny stock to that investor. This procedure requires the
broker-dealer to (i) obtain from the investor information concerning his or her
financial situation, investment experience and investment objectives; (ii)
reasonably determine, based on that information, that transactions in penny
stocks are suitable for the investor and that the investor has sufficient
knowledge and experience as to be reasonably capable of evaluating the risks of
penny stock transactions; (iii) provide the investor with a written statement
setting forth the basis on which the broker-dealer made the determination in
(ii) above; and (iv) receive a signed and dated copy of such statement from the
investor, confirming that it accurately reflects the investor's financial
situation, investment experience and investment objectives. Compliance with
these requirements may make it more difficult for the Company's stockholders to
resell their shares to third parties or to otherwise dispose of them.

Overview of the Company and its Operations

MKAC is a lessor of commercial aircraft, engines, and other aircraft-related
equipment. The Company provides these services to passenger and cargo airlines
worldwide.

MKAC focuses on leasing mid-life aircraft. Such aircraft are in high demand
world-wide, as they provide operators with highly serviceable and competitive
aircraft to fulfill market niches. Leasing provides operators with lower capital
costs than would otherwise be incurred by purchasing the aircraft, thereby
improving operating margins. The Company's aircraft portfolio at any time
consists of aircraft manufactured by Boeing, Airbus, McConnell Douglas, and
others. These aircraft are the most widely used aircraft in the world, by all
the major carriers. The Company's engine portfolio at any time consists of noise
compliant Stage III commercial jet aircraft engines manufactured by CFM
International, General Electric, Pratt & Whitney, Rolls Royce and International
Aero Engines. These engines are the most widely used aircraft engines in the
world, powering Airbus, Boeing and McDonnell Douglas aircraft.

On March 31, 2006, MKAC had an aircraft portfolio consisting of 7 engines and 2
aircraft having a total net book value of $5.26 million. 5 engines and 2
aircraft are leased by 7 operators in 5 countries. 2 engines are under
interest-bearing purchase contracts.

Aircraft Leasing

On March 31, 2006, the Company's leases are operating leases. Under an operating
lease, the Company retains title to the aircraft equipment, thereby retaining
the benefit and assuming the risk of the residual value of the aircraft
equipment. Operating leases allow airlines greater fleet and financial
flexibility, due to the relatively small initial capital outlay necessary to
obtain use of the aircraft equipment. Operating lease rates are generally higher
than finance lease rates, in part because of the risks associated with the
residual value.

All lease transactions are "triple-net leases". A triple-net lease requires the
lessee to make the full lease payment and incur any other expenses associated
with the use of the equipment, such as maintenance, casualty and liability
insurance, sales or use taxes, and personal property taxes. The leases contain
detailed provisions specifying maintenance standards and the required condition
of the aircraft equipment upon return at the end of the lease. During the term
of the lease, the lessee is required to maintain the aircraft equipment in
accordance with an approved maintenance program, designed to ensure that it
meets applicable regulatory requirements in the jurisdictions in which the
lessee operates. Under short-term leases and certain medium-term leases, the
Company may undertake a portion of the maintenance and regulatory compliance
risk.

The Company mitigates risk however possible. For example, the Company makes an
independent analysis of the credit risk associated with the lessee before
entering into any significant lease transaction. The Company's credit analysis
generally consists of evaluating the prospective lessee's financial standing
utilizing financial statements and trade and/or banking references. In certain
circumstances, the Company may require its lessees to provide additional credit
support, such as a letter of credit, or a guarantee from a bank or a third
party, or a security deposit. The Company also evaluates insurance and
expropriation risk, and evaluates and monitors the political and legal climate
of the country in which a particular lessee is located, to determine the
Company's ability to repossess its equipment, should the need arise.

At the commencement of a lease, the Company may collect, in advance, a security
deposit (equal to at least one month's lease payment). The security deposit is
returned to the lessee after all return conditions have been met.

Maintenance costs are the responsibility of the lessee, and the lessee is
obligated to perform maintenance as scheduled by the FAA and manufacturer. In
addition to lease rentals, fees for maintenance costs are collected by the
Company, and used when extra repairs or overhauls are required. The fees are
taken into revenues as collected, and are not returnable to the lessee. Any
costs incurred by the Company are expensed when incurred. The lessee is further
obligated to pay for any maintenance costs that exceed the fees collected.

During the lease period, the Company's leases require that maintenance and
inspection of the leased equipment be performed at qualified maintenance
facilities certified by the FAA or its foreign equivalent. In addition, when a
lease ends, the asset undergoes independent inspection to verify compliance with
lease return conditions.

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<PAGE>

Despite these guidelines, the Company cannot assure it will not experience
collection problems or losses in future. However, the Company believes its
attention to its lessees and its emphasis on maintenance and inspection
contributes to residual values, and generally helps the Company to recover its
investment in its leased equipment.

Upon termination of a lease, the Company will re-lease or sell the aircraft
equipment. The demand for aftermarket aircraft equipment for either sale or
re-lease may be affected by a number of variables, including general market
conditions, regulatory changes (particularly those imposing environmental,
maintenance and other requirements on the operation of aircraft engines),
changes in demand for air travel, fuel costs, changes in the supply and cost of
aircraft equipment and technological developments. In addition, the value of
particular used aircraft, spare parts or aircraft engines varies greatly
depending upon their condition, upon the maintenance services performed during
the lease term, and upon the number of hours remaining until the next major
maintenance is required. If the Company is unable to re-lease or sell aircraft
equipment on favorable terms, its financial results and its ability to service
debt may be adversely affected.

The Company's management frequently reviews opportunities to acquire suitable
aircraft equipment based upon market demand, customer requirements, and the
Company's lease portfolio mix criteria and planning strategies for leasing.
Before committing to purchase specific equipment, the Company generally takes
into consideration such factors as estimates of future values, potential for
remarketing, trends in supply and demand for the particular make, model, and
configuration of the equipment, and the anticipated obsolescence of the
equipment.

Financing and Source of Funds

The Company typically acquires the aircraft and engines it leases with a
combination of cash reserves and funds borrowed from financial institutions.
Lenders can take a security interest in the equipment, and a portion of the
lease payments associated with the financed equipment to apply to debt service.
The Company retains ownership of the equipment, subject to such security
interest.

Competition

The markets for the Company's products and services are competitive, and the
Company faces competition from a number of sources. These include aircraft
engine and aircraft parts manufacturers, aircraft and aircraft engine lessors,
airline and aircraft service and repair companies, and aircraft spare parts
distributors. Many of the Company's competitors have substantially greater
resources than the Company. Those resources may include greater name
recognition; larger product lines; complementary lines of business; and greater
financial, marketing, information systems, and other resources. In addition,
equipment manufacturers, aircraft maintenance providers, FAA certified repair
facilities and other aviation aftermarket suppliers may vertically integrate
into the markets that the Company serves, thereby significantly increasing
industry competition. The Company can give no assurance competitive pressures
will not materially and adversely affect the Company's business, financial
condition, and results of operations.

Insurance

In addition to requiring full indemnification under the terms of its leases, the
Company requires its lessees to carry the types of insurance customary in the
air transportation industry: including comprehensive third party liability
insurance, and physical damage and casualty insurance. The Company requires that
it be named as an additional insured on liability insurance with the Company or
its lenders, and is normally identified as the loss payee for damage to the
equipment on policies carried by lessees. The Company monitors compliance with
the insurance provisions of the leases. The Company also carries contingent
physical damage and third party liability insurance, as well as product
liability insurance.

Government Regulations

The Company's customers are subject to a high degree of regulation in the
jurisdictions in which they operate. For example, the FAA regulates the
manufacture, repair and operation of all aircraft operated in the United States.
Equivalent regulatory agencies in other countries, such as the Joint Aviation
Authority ("JAA") in Europe, regulate aircraft operated in those countries. Such
regulations also indirectly affect the Company's business operations. All
aircraft operated in the United States must be maintained under a continuous
condition-monitoring program, and must periodically undergo thorough inspection
and maintenance. The inspection, maintenance and repair procedures for
commercial aircraft are prescribed by regulatory authorities, and can be
performed only by certified repair facilities utilizing certified technicians.
The FAA can suspend or revoke the authority of air carriers or their licensed
personnel for failure to comply with regulations and ground aircraft, if their
airworthiness becomes questionable.

While the Company's leasing and reselling business is not regulated, the
aircraft, engines and engine parts the Company leases and sells to its customers
must be accompanied by documentation that enables the customer to comply with
applicable regulatory requirements. Furthermore, before parts may be installed
in an aircraft, they must meet certain standards of condition established by the
FAA and equivalent regulatory agencies in other countries.

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<PAGE>

Specific regulations vary from country to country, although regulatory
requirements in other countries are generally satisfied by compliance with FAA
requirements. The Company utilizes FAA and JAA certified repair stations for the
repair and certification of engines and components, to ensure the asset remains
salable and FAA/JAA compliant.

Effective January 1, 2000, federal regulations stipulate that all aircraft
engines: (i) hold, or be capable of holding, a noise certificate issued under
Chapter 3 of Volume 1, Part II of Annex 16 of the Chicago Convention; or (ii)
have been shown to comply with Stage III noise levels set out in Section 36.5 of
Appendix C of Part 36 of the FAA Regulations of the United States if the engines
are to be used in the continental United States. Additionally, much of Europe
has adopted similar regulations. On December 31, 2005, all of the engines in the
Company's lease portfolio are Stage III engines and are generally suitable for
use on one or more commonly used aircraft. The Company believes the aviation
industry will be subject to continued regulatory activity. Additionally,
increased oversight has and will continue to originate from the quality
assurance departments of airline operators. The Company has been able to meet
all such requirements to date, and believes it will be able meet any additional
requirements that may be imposed. (Should new regulations be enacted in future,
the Company cannot assure such regulations would not adversely affect the
Company.)

Employees

At March 31, 2006, the Company had 15 employees in total (excluding
consultants), in sales and marketing, finance, technical service, and
administration. None of the Company's employees is covered by a collective
bargaining agreement and the Company believes its employee relations are
satisfactory.

Factors That May Affect Future Results

The business in which the Company is engaged is capital intensive. Accordingly,
the Company's ability to execute its business strategy and to sustain its
operations depends upon its ability to maintain or procure capital. There can be
no absolute assurance the necessary amount of capital will continue to be
available to the Company on favorable terms, or at all. The Company's inability
to obtain sufficient capital or to renew its credit facilities could result in
increased funding costs, and would limit the Company's ability to: (i) add new
equipment to its portfolio, (ii) fund its working capital needs, and (iii)
finance possible future acquisitions. The Company's access to capital may have a
material adverse effect on the Company's business, financial condition and/or
results of operations.

The Company retains title to the equipment that it leases to third parties. Upon
termination of a lease, the Company seeks to re-lease or sell the equipment. The
Company also engages in the selective purchase and resale of commercial aircraft
engines. The Company does not purchase engines and aircraft, without first
having a firm commitment for their lease or sale. Numerous factors, many of
which are beyond the Company's control, may affect the Company's ability to
re-lease or sell equipment, including: (i) general market conditions; (ii) the
condition of the equipment upon termination of the lease; (iii) the maintenance
services performed during the lease term and the number of hours remaining until
the next major maintenance is required; (iv) regulatory changes, particularly
those imposing environmental, maintenance and other requirements on the
operation of aircraft and engines; (v) changes in the supply of, or demand for,
or cost of aircraft engines; and (vi) technological developments. There is no
absolute assurance the Company will be able to re-lease or sell equipment on
favorable terms. Should aircraft or engines not be re-leased or sold on
favorable terms, such conditions may have a material adverse effect on the
Company's business, financial condition and/or results of operations.

The Company experiences fluctuations in its operating results. Such fluctuations
may be due to a number of factors, including: (i) general economic conditions;
(ii) the timing of sales of engines; (iii) financial difficulties experienced by
airlines; (iv) interest rates; (v) downturns in the air transportation industry;
(vi) changes in fuel prices; (vii) unanticipated early lease termination or a
default by a lessee; (viii) the timing of acquisitions; (ix) marketing
activities; (x) fluctuations in market prices for the Company's assets; (xi)
downward pressure on lease rates; and (xii) terrorism and other geo-political
risks. The Company anticipates that fluctuations from period to period will
continue in future. As a result, the Company believes comparisons to results of
operations for preceding periods may not be necessarily meaningful, and results
of prior periods should not be relied upon as an indication of future
performance.

A lessee may default in performance of its lease obligations, and the Company
may be unable to enforce its remedies under a lease. The Company's inability to
collect receivables, or to repossess aircraft equipment in the event of a
default, could possibly have a material adverse affect on the Company's
business, financial condition and/or results of operations. Various airlines
have experienced financial difficulties in the past, have filed for bankruptcy,
and a number of airlines have ceased operations. The Company's assets are
consequently under credit risk, to the extent the relevant jurisdictions do not
provide protection to the company.

The Company receives all of its lease revenues from assets leased to customers
outside the USA. International leases may present risks to the Company, greater
to those faced by a solely domestic provider, because certain foreign laws,
regulations and judicial procedures may not be as protective of a lessor's
rights as those laws in the United States. All leases require payment in US
dollars. If the lessees' currency devalues against the US dollar, the lessees
could possibly encounter difficulties in making their lease payments. Recourse
would depend on local laws and courts. In addition, political instability abroad
and changes in international policy also present risk of expropriation of the
Company's leased assets. Furthermore, some countries have currency and exchange
laws regulating the international transfer of currencies.

                                       21
<PAGE>

There can be no absolute assurance the Company will be able to effectively
manage its existing or the possible future expansion of its operations, or the
Company's systems, procedures or controls will be adequate to support the
Company's operations. Consequently, the Company's business, financial condition
and/or results of operations could be possibly and adversely affected.

The markets for the Company's products and services are competitive, and the
Company faces competition from a number of sources. These include aircraft
engine and aircraft parts manufacturers, aircraft and aircraft engine lessors,
aircraft and engine service and repair companies and aircraft spare parts
distributors. Some competitors have substantially greater resources than the
Company, including greater name recognition, a broader range of engines,
complementary lines of business and greater financial, marketing and other
resources. In addition, equipment manufacturers, and other aviation aftermarket
suppliers may vertically integrate into the markets that the Company serves,
thereby significantly increasing industry competition. There can be no absolute
assurance that competitive pressures will not materially and adversely affect
the Company's business, financial condition and results of operations.

The Company does not foresee changes in tax laws for the jurisdictions in which
the Company and its subsidiaries operate. There can be no absolute assurance
that changes will not occur, and therefore no absolute assurance such changes
will not materially and adversely affect the Company's business, financial
condition and results of operations.

As a public company, MKAC is subject to certain regulatory requirements
including, but not limited to, compliance with Section 404 of the Sarbanes-Oxley
Act of 2002 ("SOX404"). Such compliance results in significant additional costs
to the Company by increased audit and consulting fees, and the time required by
management to address the regulations. The SEC has recently delayed the
implementation date of SOX404 for non-accelerated filers until the fiscal year
ended December 31, 2007. However, should the Company successfully fulfill its
plans to procure financing and expand its operations, the Company may come under
the accelerated filer definition, and be required to comply with SOX404 during
2006. In any case, such costs will likely affect adversely the Company's
business, financial condition and results of operations.

The Company obtains a substantial portion of its engines and aircraft from
airlines, overhaul facilities and other suppliers. There is no organized market
for engines and aircraft. The Company relies on its representatives,
advertisements, and its reputation to generate opportunities for purchasing such
equipment. The market for bulk sales of engines and aircraft is highly
competitive, in some instances involving a bidding process. While the Company
has been able to purchase engines and aircraft in this manner successfully in
the past, there is no assurance that engines and aircraft will be available on
acceptable terms or that the Company will continue to compete effectively in the
purchase of such equipment.

The Company's leases are structured at fixed rental rates for specified terms,
and the Company's borrowings are also at fixed interest rates. Consequently, the
Company has avoided the risks associated with fluctuations in interest rates.

Results of Operations - Comparison between the first Quarters ended March 31,
2006 and 2005

Revenues.

Differences in Sales of Leased Assets reflect the differences in the proceeds
received for the underlying assets, and may vary widely between periods. In Q1
2006, revenues are generated by the sale of one aircraft for net proceeds of
$5,050,000. In Q1 2005, revenues are generated by the sale of three engines for
net proceeds of $50,000.

Operating lease revenues may also vary widely between periods, depending on when
a lease will expire, the price of a replacement asset, differences in lease
rates, whether leases are renewed, and related transaction timings. In Q1 2006,
lease revenues declined by $130,500 to $548,700 due to a combination of changes
in values of leased assets, lease rates, and related transaction timings to
arrange renewals and replacements.

Cost of leased assets.

Differences in Cost of assets sold reflect the differences in the costs of the
underlying assets, and may vary widely between periods. In Q1 2006, the cost of
the aircraft sold including related agent fees was $4,607,000. In Q1 2005, the
cost of the engines sold including related agent fees was $349,000.

Selling, General and Administrative Expenses.

SGA costs increased by $326,000 to $559,000 in Q1 2006 due to the addition of
overheads from the Fintel group acquired in late 2005, and an increase in
overheads for the aviation group. Primarily, the cost increases are: increased
staffing costs of $179,000; increased professional fees of 122,000; increased
travel costs of $15,000; and increased office related costs of $10,000.

                                       22
<PAGE>

Cost of penalty stock issued

A cost of $145,500 in Q1 2006 arises from the issuance of 116,385 common shares
to Chinese investees during Q1 2006. The penalty was incurred on account of the
inability of the Company to maintain a minimum trade price for the stock based
on its earnings, per contractual arrangements.

Depreciation Expense

Depreciation expense decreased to $428,000 in Q1 2006, due to the combination of
increases in assets, and changes in the estimates for useful lives and residual
values for older assets.

Other Income and Expenses.

Interest costs decreased by $100,000 to $10,100 in Q1 2006, due to large
payments made to reduce in average outstanding principal on long term debt.

Interest income is generated on short-term investments, and by trading various
commodities. Profits decreased by $7,390 in 2006, due to lower trading volumes
and lower margin per trade.

Income taxes

The provision of $14,000 for Income Taxes in Q1 2006, is made to estimate a
current reserve for taxes under generally accepted accounting principles,
including FAS 5, Accounting for Contingencies.

Liquidity and Capital Resources

Cash flows from operations are derived from payments made under the Company's
lease agreements, which provide lease revenues and maintenance fees.

The Company has financed its growth by utilizing cash reserves, borrowings, and
equity contributions. Borrowings are secured by the portfolio of leased assets,
and a general assignment of lease revenues in case of default. The company has
never defaulted on its loans.

The Company's primary use of funds is for the purchase of equipment for lease.
Total purchases were $1.67 million in Q1 2006, which were financed by cash
reserves.

Inflation

In the opinion of management, inflation has not had a material effect on the
Company's financial condition or results of its operations

Trends and uncertainties

Management believes there are no known trends, events, or uncertainties that
could, or reasonably be expected to, adversely affect the Company's liquidity in
the short and long terms, or its net sales, revenues, or income from continuing
operations.

The Company's operations are not affected by seasonal factors.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements in conformity with
accounting principles generally accepted in the United States requires us to
make estimates and judgments that affect our reported assets, liabilities,
revenues, and expenses, and the disclosure of contingent assets and liabilities.
We base our estimates and judgments on historical experience and on various
other assumptions we believe to be reasonable under the circumstances. Future
events, however, may differ markedly from our current expectations and
assumptions. While there are a number of significant accounting policies
affecting our consolidated financial statements; we believe the following
critical accounting policies involve the most complex, difficult and subjective
estimates and judgments: revenue recognition; allowance for doubtful accounts;
legal contingencies; income taxes; stock-based compensation; asset impairment.

Revenue Recognition

In accordance with generally accepted accounting principles ("GAAP") in the
United States, revenue is recognized only when the price is fixed or
determinable, persuasive evidence of an arrangement exists, the service is
performed, and collection of the resulting receivable is reasonably assured.
Noted below are brief descriptions of the product or service revenues that the
Company recognizes in the financial statements contained herein.

                                       23
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Lease rentals and maintenance fees for aircraft and engines are recognized as
operating lease revenue over the terms of the applicable lease agreements.
Revenue is not recognized when cash collection is not reasonably assured.

Proceeds on sales of tangible assets held for resale and under lease are
recognized as revenues upon closing of the sale transaction, which is the time
when all cash proceeds are received.

Revenue from the trading of commodities is recognized as the cash is received.
Such revenues are cash basis only, and are not accrued.

Revenue from service contracts associated with the investment portfolio is
recognized as the cash is received. Such revenues carry significant credit risk,
and accrued only when collection is reasonably assured. Payments received in
advance are deferred until the service is provided.

Amounts collected prior to satisfying the above revenue recognition criteria are
included in deferred revenue.

Allowance for doubtful accounts

We maintain an allowance for doubtful accounts to reduce amounts to their
estimated realizable value. A considerable amount of judgment is required when
we assess the realization of accounts receivables, including assessing the
probability of collection and the current credit-worthiness of each customer. If
the financial condition of our customers were to deteriorate, resulting in an
impairment of their ability to make payments, an additional provision for
doubtful accounts could be required. We initially record a provision for
doubtful accounts based on our historical experience, and then adjust this
provision at the end of each reporting period based on a detailed assessment of
our accounts receivable and allowance for doubtful accounts. In estimating the
provision for doubtful accounts, we consider: (i) the aging of the accounts
receivable; (ii) trends within and ratios involving the age of the accounts
receivable; (iii) the customer mix in each of the aging categories and the
nature of the receivable; (iv) our historical provision for doubtful accounts;
(v) the credit worthiness of the customer; and (vi) the economic conditions of
the customer's industry as well as general economic conditions, among other
factors.

Legal contingencies

We are currently involved in legal proceedings, which are discussed in Part II,
Item 1, to this Form 10-QSB. We record liabilities related to pending litigation
when an unfavorable outcome is probable and we can reasonably estimate the
amount of loss. We have not recorded liabilities for certain pending litigation
because of the uncertainties related to assessing both the amount and the
probable outcome of those claims. As additional information becomes available,
we continually assess the potential liability related to pending litigation.
While we currently believe that the liabilities recorded on our balance sheet
are sufficient to cover pending litigation for which an unfavorable outcome is
probable and the amount of loss can be reasonably estimated, the outcome of
litigation is inherently uncertain, and there can be no assurance that such
estimates will be accurate or that, in the future, additional reserves will not
be required.

Income taxes

We account for income taxes in accordance with SFAS No. 109, ACCOUNTING FOR
INCOME TAXES. SFAS 109 prescribes the use of the liability method. Under this
method, deferred tax assets and liabilities are recognized for the future tax
consequences attributable to temporary differences between the financial
statement carrying amounts and the tax basis of assets and liabilities. Deferred
tax assets and liabilities are measured using the enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. We then assess the likelihood that our
deferred tax assets will be recovered from future taxable income and to the
extent we believe that recovery is not likely, we establish a valuation
allowance. To the extent we establish a valuation allowance, or increase or
decrease this allowance in a period, we increase or decrease our income tax
provision in our statement of operations. If any of our estimates of our prior
period taxable income or loss prove to be incorrect, material differences could
impact the amount and timing of income tax benefits or payments for any period.
In addition, as a result of the significant change in the Company's ownership,
the Company's future use of its existing net operating losses may be limited.

The Company operates in several countries via cross border leasing arrangements.
As a result, we are subject to numerous domestic and foreign tax jurisdictions
and tax agreements and treaties among the various taxing authorities. Our
operations in these jurisdictions are taxed on various bases: income before
taxes, deemed profits and withholding taxes based on revenue. The calculation of
our tax liabilities involves consideration of uncertainties in the application
and interpretation of complex tax regulations in a multitude of jurisdictions
across our global operations.

We recognize potential liabilities and record tax liabilities for anticipated
tax audit issues in the U.S. and other tax jurisdictions based on our estimate
of whether, and the extent to which, additional taxes will be due. The tax
liabilities are reflected net of realized tax loss carry forwards. We adjust
these reserves upon specific events; however, due to the complexity of some of


                                       24
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these uncertainties, the ultimate resolution may result in a payment that is
different from our current estimate of the tax liabilities. If our estimate of
tax liabilities proves to be less than the ultimate assessment, an additional
charge to expense would result. If payment of these amounts ultimately proves to
be less than the recorded amounts, the reversal of the liabilities would result
in tax benefits being recognized in the period when the contingency has been
resolved and the liabilities are no longer necessary.

Changes in tax laws, regulations, agreements and treaties, foreign currency
exchange restrictions or our level of operations or profitability in each taxing
jurisdiction could have an impact upon the amount of income taxes that we
provide during any given year.

Stock-Based Compensation

In December 2002, the FASB issued SFAS No. 148 - ACCOUNTING FOR STOCK-BASED
COMPENSATION - TRANSITION AND Disclosure. This statement amends SFAS No. 123 -
ACCOUNTING FOR STOCK-BASED COMPENSATION, providing alternative methods of
voluntarily transitioning to the fair market value based method of accounting
for stock based employee compensation. FAS 148 also require disclosure of the
method used to account for stock-based employee compensation and the effect of
the method in both the annual and interim financial statements. The provisions
of this statement related to transition methods are effective for fiscal years
ending after December 15, 2002, while provisions related to disclosure
requirements are effective in financial reports for interim periods beginning
after December 31, 2002.

For stock options, we elected to continue to account for stock-based
compensation plans using the intrinsic value-based method of accounting
prescribed by APB No. 25, "Accounting for Stock Issued to Employees," and
related interpretations. Under the provisions of APB No. 25, compensation
expense is measured at the grant date for the difference between the fair value
of the stock and the exercise price.

For other items paid for by common stock, the value of the transaction is
determined by the value of the goods or services received, measured at the time
of the transaction. The corresponding stock value, used to determine the number
of share to be issued, is the value of the average price for the 20 to 30 days
prior to the transaction date.

Asset Impairment

We periodically evaluate the carrying value of other long-lived assets,
including, but not limited to, property and equipment and intangible assets,
when events and circumstances warrant such a review. The carrying value of a
long-lived asset is considered impaired when the anticipated undiscounted cash
flows from such asset is less than its carrying value. In that event, a loss is
recognized based on the amount by which the carrying value exceeds the fair
value of the long-lived asset. Fair value is determined primarily using the
anticipated cash flows discounted at a rate commensurate with the risk involved.
Significant estimates are utilized to calculate expected future cash flows
utilized in impairment analyses. We also utilize judgment to determine other
factors within fair value analyses, including the applicable discount rate.

Item 2(b).  Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely
to have a current or future effect on the Company's financial condition, changes
in financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources, that are material to investors.


ITEM 3.  CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we
conducted an evaluation of the effectiveness of the design and operation of its
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934, as of the end of the period covered
by this report (the "Evaluation Date"). Based on this evaluation, our principal
executive officer and principal financial officer concluded as of the Evaluation
Date, that our disclosure controls and procedures were effective such that the
material information required to be included in our Securities and Exchange
Commission ("SEC") reports is recorded, processed, summarized and reported
within the time periods specified in SEC rules and forms relating to us,
including our consolidating subsidiaries, and was made known to them by others
within those entities, particularly during the period when this report was being
prepared.

During the three months ended March 31, 2006, there were no changes in our
internal accounting controls or in other factors that materially affected our
internal controls over financial reporting.

                                       25
<PAGE>

PART II.  OTHER INFORMATION

Item 1. Legal Proceedings.

(i) The Company's subsidiary, MK Aviation SA, of Panama, is the plaintiff to a
suit filed against defendant Southwest Airlines Co., of Texas, on March 21,
2005. This suit is pending in the United States District Court for the Northern
District of Texas Dallas Division, under civil action 3:05-CV-01346. The suit
alleges Southwest Airlines failed to complete the return conditions of its lease
with MK Aviation for the lease of a two Boeing 737 aircraft. The relief sought
is financial compensation of $1.87mm. The case is expected to proceed to trial,
set for August 7, 2006.

(ii) MKAC and its principals are named as co-defendants to a suit filed by
deceased plaintiff Mr. Gustav Perez, of Martinique, on February 23, 2006. The
case references are: PEREZ, ELKIN (PERS REP) vs WEST CARIBBEAN AIRWAYS
(COLOMBIAN CORP); Case Number (LOCAL) 2005-24253-CA-01; Case Number (STATE):
13-2005-CA-024253-0000-01. The case is pending in the United States District
Court for the Southern District of Florida (Miami). To date, the defendants have
been notified of the suit, but not formally served. The relief sought by the
plaintiff is not stated in docket, #06-CV-20454, and is unknown at this time.

Based upon correspondence from the counsel for the plaintiff, the suit arises
from the crash and destruction of an MD82 aircraft, operated by West Caribbean
Airways. The crash occurred during August 2005, and resulted in the death of the
plaintiff, other passengers, and flight crew. To date, the crash is under
investigation, and the cause is yet unknown. At the time of the crash, the
aircraft was owned by a subsidiary, MK Aviation SA. However, MK Aviation was not
involved in any way with the operations or maintenance of the aircraft, nor was
it in possession of the craft. MK Aviation placed a lien on the craft, and was
named as a party to the insurance policy for the aircraft. MKAC denies all
liability in the case, and has notified its insurer. MKAC believes the suit is
without merit, and will defend itself vigorously.

The complete list of parties named in the case are noted in the Company's 10-KSB
for fiscal year 2005, filed upon April 26, 2006, which is incorporated by
reference herein.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

<TABLE>
<S>     <C>

    date           type        amount                  person                  consideration          transaction
    ----           ----        ------                  ------                  -------------          -----------
  1-Feb-06     common share     11,283              R. Gorthuis                  $ 14,668               Salary
  1-Feb-06     common share      4,003                 R. Yan                     $ 4,166               Salary
  1-Feb-06     common share      3,753    TWC Corporation Services Limited        $ 3,642          Settlement of debts
  1-Feb-06     common share      9,685              Bok, Wai Kee                  $ 9,398          Settlement of debts
  1-Feb-06     common share      1,028            Ng, Yu Yan Betty                  $ 998          Settlement of debts
 10-Feb-06     common share     54,539            Mr. Lu Zhao Hui                $ 68,174      Increase investment holdings
 10-Feb-06     common share     61,846              Mr. Song Lin                 $ 77,308      Increase investment holdings
</TABLE>

The number of shares issued was based on the average closing price of our common
shares on the OTCBB during the quarter ended March 31, 2006. The shares were
exempt from registration pursuant to Section 4(2) under the Securities Act of
1933, as amended, pursuant to Rule 903, as a sale by the issuer in an offshore
transaction. No underwriting or other commissions were paid in connection with
the issuance of these shares. No forms of conversion or exercise options are
attached to the shares.


Item 3.  Defaults Upon Senior Securities.

None.


Item 4.  Submission of Matters to a Vote of Security Holders.

Matters for a vote of security holders were submitted to security holders in the
Company's Proxy Statement, filed upon December 6, 2005. The remainder of the
information required by this item is incorporated by reference to the Company's
Proxy Statement.


Item 5.  Other Information.

None.

                                       26
<PAGE>

Item 6.  Exhibits

The following list describes the exhibits filed as part of this Report on Form
10-QSB.

Exhibit
Number       Note   Description of Document
------       ----   -----------------------

3.1           (1)   Articles of Incorporation of Financial Telecom Limited
                    (USA), Inc.
3.2           (1)   Amended and Restated Bylaws of Financial Telecom Limited
                    (USA), Inc.
10.1          (1)   Agreement between Hong Kong Futures Exchange Limited and
                    Financial Telecom Limited
10.2          (1)   Market Service Datafeed Agreement between Stock Exchange
                    Information Services Limited and Financial Telecom
                    Limited
10.3          (2)   Option agreement dated December 14, 2004 between Fintel
                    Group Limited and shareholders of Shanghai Longterms
                    Technology Limited.
10.4          (2)   Option agreement dated January 5, 2005 between Fintel Group
                    Limited and shareholders of Beijing JCL Technology Commerce
                    Limited.
10.5          (2)   Option agreement dated January 20, 2005 between Fintel Group
                    Limited and shareholders of Shanghai Qianhou Computer
                    Technology Limited.
10.6          (2)   Independent contractor agreement between Fintel Group
                    Limited and Mr. Sam Chong Keen.
10.7          (2)   Independent contractor agreement between Fintel Group
                    Limited and Info Media Company.
10.8          (2)   Independent contractor agreement between Fintel Group
                    Limited and China Digital Distribution Limited.
10.9          (3)   Sales and purchase agreement dated March 25, 2005 between
                    Fintel Group Limited and shareholders of Enjoy Media
                    Holdings Limited
10.10         (4)   Sales and purchase agreement dated April 25, 2005 between
                    Fintel Group Limited and shareholders of Beijing Genial
                    Technology Co. Ltd.
10.11         (4)   Option agreement dated March 7, 2005 between Fintel Group
                    Limited and shareholders of Beijing Sinoskyline technology
                    Trading Co. Ltd.
14.1          (9)   Code of Ethics
16.1          (7)   Change in Certifying Accountants
17.1          (6)   Correspondence on departure of Directors
20.1          (8)   Proxy Statement dated December 6, 2005
21.1          (9)   Subsidiaries of the registrant
24.1          (5)   Power of Attorney
31.1          (5)   Certification of Chief Executive Officer, pursuant to 18
                    U.S.C. Section 1350, as adopted pursuant to Section
                    302 of the Sarbanes-Oxley Act of 2002
31.2          (5)   Certification of Chief Financial Officer, pursuant to 18
                    U.S.C. Section 1350, as adopted pursuant to Section
                    302 of the Sarbanes-Oxley Act of 2002
32.1          (5)   Certification of Officers, pursuant to 18 U.S.C. Section
                    1350, as adopted pursuant to Section 906 of the
                    Sarbanes-Oxley Act of 2002
______________________

(1)  Incorporated herein by reference to the registrant's initial Registration
     Statement on Form 10-SB (File No. 000-50760) filed on May 13, 2004.
(2)  Incorporated herein by reference to the registrant's Annual Report on Form
     10-KSB (File No. 000-50760) filed April 15, 2005.
(3)  Incorporated herein by reference to the registrant's Quarterly Report of
     Form 10-QSB (File No. 000-50760) filed May 6, 2005.
(4)  Incorporated herein by reference to the registrant's Quarterly Report of
     Form 10-QSB (File No. 000-50760) filed August 6, 2005.
(5)  Filed herewith.
(6)  Incorporated herein by reference to the registrant's Current Report on Form
     8K/A (File No. 000-50760) filed November 29, 2005.
(7)  Incorporated herein by reference to the registrant's Current Report on Form
     8K/A (File No. 000-50760) filed January 25, 2006.
(8)  Incorporated herein by reference to the registrant's Proxy Statement (File
     No. 000-50760) filed December 6, 2005.
(9)  Incorporated herein by reference to the registrant's Annual Report on Form
     10-KSB (File No. 000-50760) filed April 26, 2006.

                                       27
<PAGE>

SIGNATURES


In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                                MKA Capital, Inc

Date:  May 15, 2006
                                                              By: /s/ David Chen
                                                       -------------------------
                                                                      David Chen
                                                         Chief Executive Officer



In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

                                                               MKA Capital, Inc

Date:  May 15, 2006
                                                             By: /s/ David Chen
                                               --------------------------------
                                                                     David Chen
                                           Chief Executive Officer and Director

Date:  May 15, 2006
                                                       By:  /S/ Ronald Gorthuis
                                                     --------------------------
                                                                Ronald Gorthuis
                                                        Chief Financial Officer

Date:  May 15, 2006
                                                  By:  /S/ Mordechay Kraselnick
                                                     --------------------------
                                                           Mordechay Kraselnick
                                                                       Chairman

Date:  May 15, 2006
                                                      By:  /S/ Ariel Kraselnick
                                                     --------------------------
                                                               Ariel Kraselnick
                                                                       Director

                                       28