ORGANIZATION	9 Months Ended
Sep. 30, 2011
ORGANIZATION	Note 1 - ORGANIZATION Universal Travel Group was incorporated on January 28, 2004 under the laws of the State of Nevada. Full Power Enterprise Global Limited was incorporated under the laws of the British Virginia Islands. Shenzhen Yuzhilu Aviation Service Co., Ltd. was incorporated on March 9, 1998 under the laws of the People’s Republic of China (PRC)., Xi’an Golden Net Travel Serve Services Co., Ltd. was incorporated on July 25, 2001 under the laws of PRC, Shanghai Lanbao Travel Service Co., Ltd. was established in 2002 under the laws of PRC. Foshan Overseas International Travel Service Co., Ltd. was incorporated in 1990 under the laws of PRC. Chongqing Universal Travel E-Commerce Co., Ltd. and Universal Travel International Travel Agency Co., Ltd. (formerly named Shenzhen Universal Travel Agency Co., Ltd.) were both incorporated in 2009 under the laws of PRC. Hebei Tianyuan Travel Agency Co., Ltd. was incorporated in April 1999 under the laws of PRC. Huangshan Holiday Travel Service Co., Ltd. was incorporated in April 1999 under the laws of PRC. Zhengzhou Yulongkang Travel Agency Co., Ltd. was incorporated in 2000 under the laws of PRC. Kunming Business Travel Service Co., Ltd. was incorporated in 1993 under the laws of PRC. Shanxi Jinyang Travel Agency Co., Ltd. was incorporated in 1988 under the laws of PRC. Collectively these corporations are referred to herein as the Company. Universal Travel Group owns 100% of the equity interest in Full Power Enterprise Global Limited, which in turn owns 100% of the equity interest in Shenzhen Yuzhilu Aviation Service Co., Ltd., a wholly foreign owned entity in the PRC. Universal Travel Group and Full Power Enterprise Global Limited do not conduct any substantive operations of their own. Instead, all operations of the consolidated company are conducted through its subsidiary, Shenzhen Yuzhilu Aviation Service Co., Ltd. (“YZL”). YZL and its subsidiaries, and various variable interest entities, collectively, are herein referred to as subsidiaries. In 2007 and 2009, YZL entered into certain shareholding agreements with various related PRC residents and Shenzhen Yuzhixing Aviation Service, Co. Limited (“Party B”) to hold YZL shares of ownership of Xi’an Golden Net Travel Serve Services Co., Ltd. (“XGN”) and Universal Travel International Travel Agency Co., Ltd., formerly known as Shenzhen Universal Travel Agency Co., Ltd. (“STA”).The significant details of the agreements and other important information, among others, are outlined below: Universal Travel Group funded the start up activities and incorporation of XGN and STA and related subsidiaries, through cash or common stock issuance; YZL entrusted Party B as the name holder only of YZL equity interest in XGN and STA; Party B shall neither participate in the management of operation nor shareholder meeting decisions of YZL, XGN or STA; YZL, as the actual fund provider of XGN and STA, will enjoy all shareholder rights and profit sharing; YZL, is entitled to all profits and is required to absorb all losses of XGN and STA and its subsidiaries; Party B is not responsible for losses nor to benefit from any income of XGN and/or STA; YZL will cover any capital infusion requirements of XGN and STA and related subsidiaries; and If XGN and/or STA were to dissolve, YZL will enjoy the right to allocate and divide assets. Based on these contractual arrangements, management believes that XGN and STA and related subsidiaries should be considered “Variable Interest Entity” (“VIE”) under ASC 810 “Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51”, because the equity holders in XGN and STA no longer have the characteristics of a controlling financial interest, and the Company, through YZL, is the primary beneficiary of XGN and STA and its operations. On March 17, 2011, the shareholders of XGN transferred 100% of the equity interests in XGN to STA and completed the registration of change in ownership with the PRC authorities on April 2, 2011. As a result, XGN is no longer subject to the aforementioned VIE arrangements and is no longer considered our VIE under ASC 810. Universal Travel Group and YZL are responsible to fund any capital share shortfalls for STA and its subsidiaries. In addition, Universal Travel Group funded through cash and common stock the acquisitions as discussed in Note 2. The Company, through its subsidiaries and VIE, engaged in the travel business, including airline ticketing, hotel reservation services and domestic and international packaged tour services in the PRC. The following diagram illustrates our corporate structure.

ORGANIZATION

9 Months Ended

Sep. 30, 2011

Note 1 - ORGANIZATION

Universal Travel Group was incorporated on January 28, 2004 under the laws of the State of Nevada. Full Power Enterprise Global Limited was incorporated under the laws of the British Virginia Islands. Shenzhen Yuzhilu Aviation Service Co., Ltd. was incorporated on March 9, 1998 under the laws of the People’s Republic of China (PRC)., Xi’an Golden Net Travel Serve Services Co., Ltd. was incorporated on July 25, 2001 under the laws of PRC, Shanghai Lanbao Travel Service Co., Ltd. was established in 2002 under the laws of PRC. Foshan Overseas International Travel Service Co., Ltd. was incorporated in 1990 under the laws of PRC. Chongqing Universal Travel E-Commerce Co., Ltd. and Universal Travel International Travel Agency Co., Ltd. (formerly named Shenzhen Universal Travel Agency Co., Ltd.) were both incorporated in 2009 under the laws of PRC. Hebei Tianyuan Travel Agency Co., Ltd. was incorporated in April 1999 under the laws of PRC. Huangshan Holiday Travel Service Co., Ltd. was incorporated in April 1999 under the laws of PRC. Zhengzhou Yulongkang Travel Agency Co., Ltd. was incorporated in 2000 under the laws of PRC. Kunming Business Travel Service Co., Ltd. was incorporated in 1993 under the laws of PRC. Shanxi Jinyang Travel Agency Co., Ltd. was incorporated in 1988 under the laws of PRC. Collectively these corporations are referred to herein as the Company.

Universal Travel Group owns 100% of the equity interest in Full Power Enterprise Global Limited, which in turn owns 100% of the equity interest in Shenzhen Yuzhilu Aviation Service Co., Ltd., a wholly foreign owned entity in the PRC. Universal Travel Group and Full Power Enterprise Global Limited do not conduct any substantive operations of their own. Instead, all operations of the consolidated company are conducted through its subsidiary, Shenzhen Yuzhilu Aviation Service Co., Ltd. (“YZL”). YZL and its subsidiaries, and various variable interest entities, collectively, are herein referred to as subsidiaries.

In 2007 and 2009, YZL entered into certain shareholding agreements with various related PRC residents and Shenzhen Yuzhixing Aviation Service, Co. Limited (“Party B”) to hold YZL shares of ownership of Xi’an Golden Net Travel Serve Services Co., Ltd. (“XGN”) and Universal Travel International Travel Agency Co., Ltd., formerly known as Shenzhen Universal Travel Agency Co., Ltd. (“STA”).The significant details of the agreements and other important information, among others, are outlined below:

Universal Travel Group funded the start up activities and incorporation of XGN and STA and related subsidiaries, through cash or common stock issuance;

YZL entrusted Party B as the name holder only of YZL equity interest in XGN and STA;

Party B shall neither participate in the management of operation nor shareholder meeting decisions of YZL, XGN or STA;

YZL, as the actual fund provider of XGN and STA, will enjoy all shareholder rights and profit sharing;

YZL, is entitled to all profits and is required to absorb all losses of XGN and STA and its subsidiaries;

Party B is not responsible for losses nor to benefit from any income of XGN and/or STA;

YZL will cover any capital infusion requirements of XGN and STA and related subsidiaries; and

If XGN and/or STA were to dissolve, YZL will enjoy the right to allocate and divide assets.

Based on these contractual arrangements, management believes that XGN and STA and related subsidiaries should be considered “Variable Interest Entity” (“VIE”) under ASC 810 “Consolidation of Variable Interest Entities, an Interpretation of ARB No. 51”, because the equity holders in XGN and STA no longer have the characteristics of a controlling financial interest, and the Company, through YZL, is the primary beneficiary of XGN and STA and its operations.

On March 17, 2011, the shareholders of XGN transferred 100% of the equity interests in XGN to STA and completed the registration of change in ownership with the PRC authorities on April 2, 2011. As a result, XGN is no longer subject to the aforementioned VIE arrangements and is no longer considered our VIE under ASC 810.

Universal Travel Group and YZL are responsible to fund any capital share shortfalls for STA and its subsidiaries. In addition, Universal Travel Group funded through cash and common stock the acquisitions as discussed in Note 2.

The Company, through its subsidiaries and VIE, engaged in the travel business, including airline ticketing, hotel reservation services and domestic and international packaged tour services in the PRC.

The following diagram illustrates our corporate structure.

UNIVERSAL TRAVEL GROUP 10-Q