**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





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





FORM
      10-KSB





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





Annual
      Report Under Section 13 or 15(d) of the





SECURITIES
      EXCHANGE ACT OF 1934





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





**For
      Fiscal Year Ended**


December
      31, 2006





Commission
      File #0-30329





SERVICE
      AIR GROUP, INC.


(Exact
      name of registrant as specified in its charter)





New
      Jersey


(State
      or
      other jurisdiction of incorporation or organization)





22-3719171


(IRS
      Employer Identification Number)





7164-120th
      Street, Surrey, BC, V3W 3M8


(Address
      of principal executive offices) (Zip Code)





(604)722-2147


(Registrant's
      telephone no., including area code)





SEGWAY
      V
      CORP.


(Former
      name, former address and former fiscal year,


if
      changed since last report)





Securities
      registered pursuant to Section 12(b) of the Act: None





Securities
      registered pursuant to Section 12(g) of the Act: Common Stock, $0.0001 par
      value





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for the past 90 days.





Yes
      [ ]
      No [ X ]


1


Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B not contained in this form, and no disclosure will be contained,
      to the best of the registrant's knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any amendment
      to this Form 10-KSB. ( )





Revenues
      for year ended December 31, 2006: $ 6,405





Aggregate
      market value of the voting common stock held by non-affiliates of the registrant
      as of Dec 31, 2006, was: $ 0





Number
      of
      shares of the registrant's common stock outstanding as of Dec 31, 2006 is:
      5,482,400.





Our
      Transfer Agent is:


**Fidelity
      Transfer Company,** 1800
      S.
      West Temple #301, Salt Lake City, UT 84115, Phone: 801-484-7222, Fax:
      801-466-4122, http://www.fidelitytransfer.com


2


**PART
      I**





**ITEM
      1. DESCRIPTION OF BUSINESS**





**GENERAL**


Segway
      V
      Corp., was incorporated March 31, 2000, under the laws of the State of New
      Jersey to engage in any lawful corporate undertaking, including, but not limited
      to, selected mergers and acquisitions. We changed Company’s name to Service Air
      Group Inc. on January 27, 2004, in lieu of a possible merger with a commercial
      airline based in Canada, Service Air Group Inc. (“SAGCA”), a private Company,
      registered under the provincial laws of British Columbia, Canada. On September
      8, 2004, we entered into an agreement with SAGCA for the Exchange of Stock
      for
      Assets which was cancelled on Oct 1, 2005 by both parties of the agreement
      for
      restructuring. On April 1, 2006, we entered again into an agreement with SAGCA
      for an exchange of Stock for Stock, However, due to the fact that Canadian
      Government restricts foreign ownership of Canadian Airlines, we could only
      receive non-voting stock of SAGCA in exchange of our voting stock, turned into
      an unfair deal for our shareholders, as well as consolidation of the financial
      statements became an extremely complicated task for the managements of both
      companies. In light of the aforementioned facts, on November 20, 2006, we
      decided to unwind all agreements with the airline and on November 29, 2006
      we
      entered into a Release & Settlement Agreement with SAGCA and cancelled the
      merger with SAGCA, filed on November 30, 2006 under 10-qsb as an exhibit 10.1
      for the period ended September 30, 2006. From January 31 to October 31, 2006,
      we
      raised equity capital under private placement subscription agreements in the
      aggregated amount of $232,400, funds were raised privately through the sale
      of
      our stock, common shares, at the fixed price of $1.00 per share to prior
      business associates of SAGCA, all of the investors were from British Columbia,
      Canada. Since our merger agreement with SAGCA was still active at the time
      these
      funds were raised, $227,400 were advanced to SAGCA, however, on November 20,
      2006, when merger cancellation was decided, we entered into a loan agreement
      with SAGCA and converted funds advanced to SAGCA into a loan, term of the loan
      is 10-Year with 6% interest, payable quarterly and repayment at the end of
      the
      term. The Principal Sum and all accrued but unpaid Interest at the rate
      aforesaid will become due and payable on the 21 st day of
      November, 2016. Loan Agreement with SAGCA was filed on November 30, 2006 under
      10-qsb as an exhibit 10.2 for the period ended September 30, 2006. Upon
      cancellation of the merger with SAGCA, on November 29, 2006, we decided to
      adopt
      Equipment Lease & Finance industry.





**EMPLOYEES**


As
      of
      December 31, 2006, we had no full or part-time employees.





**ITEM
      2. DESCRIPTION OF PROPERTY**


Company’s
      registered offices are located at 7164-120th Street, Surrey, British Columbia,
      Canada, V3W 3M8. We have not entered into any lease agreement; our cost at
      the
      present for the office is a nominal monthly fee of $35. Our telephone number
      is
      604-722-2147. Our Website address is www.pacificleasegroup.com ,
      Company
      owns this domain name.




**ITEM
      3. LEGAL PROCEEDINGS**





There
      are
      no known litigation pending or threatened by or against us.





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





-None-


3


**PART
      II**





**ITEM
      5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS**


On
      December 31, 2006, there were 76 shareholders of record of our common stock.
      Our
      shares of common stock have never been traded on any recognized stock
      exchange.





**DIVIDENDS**


We
      currently intend to retain any future earnings to fund growth and, therefore,
      do
      not expect to pay any dividends in the foreseeable future. Any payment of cash
      dividends in the future will be dependent upon: the amount of funds legally
      available; our earnings; financial condition; capital requirements; and
      other


factors
      which our Board of Directors deems relevant.





**ITEM
      6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
      RESULTS**


**OF
      OPERATIONS**





The
      following discussion and analysis should be read in conjunction with our audited
      financial statements for the fiscal year ended December 31, 2006.





**Plan
      of Operation**




The
      registrant plans to operate in the lease and finance industry as a Commercial
      Lessor. A comprehensive business plan has been written and would be implemented
      by the management upon availability of the required funds.







**Results
      of Operation**


We
      did
      not have any operating income from inception (March 31, 2000) through December
      31, 2006. For the fiscal year ended December 31, 2006, we had a loss from
      operations of $35,333, as compare to $13,898 for the fiscal year ended December
      31, 2005, an accumulated deficit of $61,187, as compare to $25,854 for the
      for
      the fiscal year ended December 31, 2005, and a working capital deficiency of
      $67,710, as compare to $25,888 for the for the fiscal year ended December 31,
      2005. Some general and administrative expenses during the fiscal year were
      accrued comprised of costs mainly associated with legal, accounting, filings
      and
      transportation.





**Liquidity
      and Capital Resources**


At
      December 31, 2006, we had closed private placement subscription agreements
      in
      the aggregated amount of $232,400, we have no other capital resources and will
      rely upon the issuance of common stock and loans from our major shareholder
      and
      CEO, Mr. Mohammad Sultan, who has been funding our administrative expenses
      since
      December 18, 2003, when he acquired 95% of the Company’s issued and outstanding
      stock at that time. As of December 31, 2006, Mr. Sultan had loaned $50,923
      to
      the Company, see under shareholders loan in the financial statements of this
      report, this loan is interest-free of which repayment has been deferred
      indefinitely, there is no agreement with Mr. Sultan and he is not legally
      obligated to fund the Company, however, Mr. Sultan has indicated to fund
      Company’s operating expenses, pending income from our intended operations. At
      December 31, 2006, we held $234,493 in assets, comprising Interest Receivable,
      Property & Equipment and Note Receivables. We are in the development stage
      and have incurred losses since inception and have no operating history. We
      are
      assuming that we will continue as a going concern, which contemplates, among
      other things, the realization of assets and satisfaction of liabilities in
      the
      normal course of business for the foreseeable future. The successful outcome
      of
      future activities cannot be determined at this time, and there has been no
      assurance that, if achieved, we will have sufficient funds to execute our
      intended business plan or generate positive operating results. These factors,
      among others, raise substantial doubt about our ability to continue as a going
      concern.


4


**ITEM
      7. FINANCIAL STATEMENTS**


Our
      financial statements, as of December 31, 2006 together with the report of
      auditors, are as follows:









































**SERVICE
      AIR GROUP, INC.**


(A
      Development Stage Company)





**FINANCIAL
      STATEMENTS**





**DECEMBER
      31, 2006**






































5





**MOORE
      & ASSOCIATES, CHARTERED**


** *ACCOUNTANTS
      AND ADVISORS*


*PCAOB
      REGISTERED*








REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








To
      the
      Board of Directors


Service
      Air Group Inc.








We
      have
      audited the accompanying balance sheet of Service Air Group Inc. as of December
      31, 2006, and the related statements of operations, stockholders’ equity and
      cash flows for the year then ended. Financial statements as of December 31,
      2005, 2004 and 2003 and the related statements of operations, stockholders’
equity and cash flows for those years ended were audited by another auditing
      firm and included in Registration statement SB-2 filed with the United States
      Securities and Exchange Commission. These financial statements are the
      responsibility of the Company’s management. Our responsibility is to express an
      opinion on these financial statements based on our audits.





We
      conducted our audits in accordance with standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audits to obtain reasonable assurance about whether the
      financial statements are free of material misstatement. An audit includes
      examining, on a test basis, evidence supporting the amounts and disclosures
      in
      the financial statements. An audit also includes assessing the accounting
      principles used and significant estimates made by management, as well as
      evaluating the overall financial statement presentation. We believe that our
      audits provide a reasonable basis for our opinion.





In
      our
      opinion, the financial statements referred to above present fairly, in all
      material respects, the financial position of Service Air Group Inc. as of
      December 31, 2006 and the results of its operations and its cash flows for
      the
      year then ended, in conformity with accounting principles generally accepted
      in
      the United States of America.





The
      accompanying financial statements have been prepared assuming that the Company
      will continue as a going concern. As discussed in Note 1 to the financial
      statements, the Company’s net losses and working capital deficits as of December
      31, 2006 raise substantial doubt about its ability to continue as a going
      concern. Management’s plans concerning these matters are also described in Note
      1. The financial statements do not include any adjustments that might result
      from the outcome of this uncertainty.








***/s/
      Moore & Associates, Chartered***





Moore
      & Associates Chartered


Las
      Vegas, Nevada


March
      28,
      2007








*2675
      S. Jones Blvd. Suite 109, Las Vegas, NV 89146 (702) 253-7511 Fax (702)
      253-7501*





F-1







**Service
                Air Group, Inc.**
              *(Development
                Stage Company)*
            Statement
                1**Balance
                Sheet****As
                at December 31,***US
                Funds*











**ASSETS**
            
            **2006**
            
            2005**Current**Interest
                Receivables
            
            $
            **6,405**
            
            $
            -Long
                - TermProperty
                and equipment*(Note
                4)*
            
            $
            **688**
            
            $
            984Note
                Receivables*(Note
                8)*
            
            $
            **227,400**
            
            
            -$
            **234,493**
            
            $
            984**LIABILITIES****Current**Accounts
                payable
            
            $
            **11,403**
            
            
            -**Long
                - Term**Due
                to SAG Canada*(Note
                6)*
            
            
            -
            
            
            10,638Due
                to Shareholder*(Note
                6)*
            
            
            **50,923**
            
            
            15,250**62,330**
            
            
            25,888**Stockholders’
                Deficit***(Note
                4)*Common
                stock, $0.0001 par value, 100,000,000 sharesPreferred
                stock, $0.0001 par value, 20,000,000 sharesIssued
                and outstanding5,482,400
                shares of common stock
            
            
            **548**
            
            
            525Additional
                paid in capital
            
            
            **232,802**
            
            
            425Deficit
                (Statement 2)
            
            
            **(61,187**
            **)**
            
            (25,854
            )**172,163**
            
            
            (24,904
            )$
            **234,494**
            
            $
            984





ON
      BEHALF
      OF THE BOARD:





/s/
      Mohammad Sultan ,
      Director





-
      See
      Accompanying Notes -






F-2






**Service
                Air Group, Inc.**
              *(Development
                Stage Company)*
            Statement
                2**Statement
                of Operations****For
                the Years Ended December 31,***US
                Funds*








**2006**
            
            2005
            
            Inception
                to
              2006**Interest
                Revenue**
            
            $
            **6,405**
            
            
            -
            
            
            6,405**Expenditures**Automotive
            
            $
            **17,478**
            
            $
            4,818
            
            $
            22,296Depreciation
            
            
            **296**
            
            
            174
            
            
            470Filing
                and listing fees
            
            
            **4,281**
            
            
            4,663
            
            
            8,944Legal
                and professional
            
            
            **19,683**
            
            
            4,243
            
            
            35,883Loss
                from operations
            
            
            **41,738**
            
            
            13,898
            
            
            67,592Net
                Loss for the year
            
            $
            **(35,333**
            )
            $
            (13,898
            )
            $
            (61,187
            )Net
                Loss per share - basic and diluted
            
            
            **(0.006**
            **)**
            
            (0.003
            )
            
            (0.011
            )Weighted
                average number of shares outstanding
            
            
            **5,482,400**
            
            
            5,250,000
            
            
            5,482,400










**Statement
                of Deficit****For
                the Years Ended December 31,***US
                Funds*








**2006**
            
            2005
            
            Inception
                to
              2006**Deficit
                - Beginning of Year**
            
            $
            **(25,854**
            )
            $
            (11,956
            )
            $
            -Net
                loss
            
            
            **(35,333**
            **)**
            
            (13,898
            )
            
            61,187**Deficit
                - End of Year**
            
            $
            **(61,187**
            )
            $
            (25,854
            )
            $
            61,187










-
      See
      Accompanying Notes -






F-3






**Service
                Air Group, Inc.**
              *(Development
                Stage Company)*
            Statement
                3**Statement
                of Stockholders’ Deficiency***US
                Funds*








Common
                  Stock
              
              Additional
              
              AccumulatedShares
              
              Amount
              
              Paid-in
                  Capital
              
              Deficit
              
              TotalInception,
                  March 30, 2000
              
              
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              
              -Stock
                  issued for cash at $0.0001 per share
              
              
              5,000,000
              
              
              500
              
              
              -
              
              
              -
              
              
              500Stock
                  issued for cash at $0.001 per share
              
              
              250,000
              
              
              25
              
              
              225
              
              
              -
              
              
              250Development
                  stage net loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (837
              )
              
              (837
              )Balance
                  December 31, 2000
              
              
              5,250,000
              
              $
              525
              
              $
              225
              
              $
              (837
              )
              
              (87
              )Capital
                  contributed by shareholders
              
              
              -
              
              $
              -
              
              $
              124
              
              $
              -
              
              
              124Development
                  stage net loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (926
              )
              
              (926
              )Balance
                  December 31, 2001
              
              
              5,250,000
              
              $
              525
              
              $
              349
              
              $
              (1,763
              )
              
              (889
              )Capital
                  contributed by shareholders
              
              
              -
              
              $
              -
              
              $
              76
              
              $
              -
              
              
              76Development
                  stage net loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (1,112
              )
              
              (1,112
              )Balance
                  December 31, 2002
              
              
              5,250,000
              
              $
              525
              
              $
              425
              
              $
              (2,875
              )
              
              (1,925
              )Development
                  stage net loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (1,525
              )
              
              (1,525
              )Balance
                  December 31, 2003
              
              
              5,250,000
              
              $
              525
              
              $
              425
              
              $
              (4,400
              )
              
              (3,450
              )Development
                  stage net loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (7,556
              )
              
              (7,556
              )Balance
                  December 31, 2004
              
              
              5,250,000
              
              $
              525
              
              $
              425
              
              $
              (11,956
              )
              
              (11,006
              )Development
                  stage net loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (13,898
              )
              
              (13,898
              )Balance
                  December 31, 2005
              
              
              5,250,000
              
              $
              525
              
              $
              425
              
              $
              (25,854
              )
              
              (24,904
              )Stock
                  issued for cash at $ 1.00
                Per
                  share
              
              
              232,400
              
              $
              23
              
              $
              232,377
              
              
              
              
              $
              $232,400Development
                  stage net loss
              
              
              -
              
              $
              -
              
              $
              -
              
              $
              (35,333
              )
              
              (61,187
              )Balance
                  December 31, 2006
              
              
              5,482,400
              
              $
              548
              
              $
              232,802
              
              $
              (61,187
              )
              
              171,213









-
      See
      Accompanying Notes -






F-4








**Service
                Air Group, Inc.**
              *(Development
                Stage Company)*
            Statement
                4**Statement
                of Cash Flows****For
                the Years Ended December 31,***US
                Funds*








**2006**
            
            2005
            
            Inception
                to
              2006**Cash
                flows from operating activities**Net
                loss for the year
            
            $
            **(35,333**
            **)**
            $
            (13,897
            )
            $
            (61,187
            )Depreciation
            
            $
            **296**
            
            $
            174
            
            $
            470Changes
                in working capital
            
            
            **-**
            
            
            -
            
            $
            3,451$
            **(35,038**
            **)**
            $
            (13,723
            )
            $
            (57,266
            )**Cash
                flows from financing activities**Proceeds
                from sale of Common stock
            
            $
            **232,400**
            
            $
            -
            
            $
            233,150Shareholder
                capital contribution
            
            
            
            
            
            -
            
            
            200Advances
                from SAG Canada
            
            $
            **-**
            
            $
            10,638
            
            $
            10,638Advances
                from shareholder
            
            $
            **35,673**
            
            $
            4,243
            
            $
            50,923**Cash
                flows from investing activities**Purchase
                of equipment
            
            $
            **(688**
            **)**
            $
            (984
            )
            $
            (1,158
            )Loan
                to SAG Canada
            
            $
            **(227,400**
            **)**
            
            -
            
            $
            (227,400
            )**Increase
                (Decrease) in Cash**
            
            
            **-**
            
            
            -
            
            
            -Cash
                position - Beginning of year
            
            
            **-**
            
            
            -
            
            
            -**Cash
                position - End of Year**
            
            $
            -
            
            $
            -
            
            $
            -















-
      See
      Accompanying Notes -




F-5






**Service
                Air Group, Inc.**
              *(Development
                Stage Company)***Notes
                to Financial Statements****December
                31, 2006***US
                Funds*









**1.**  **Organization
      and Going Concern**





Service
      Air Group, Inc. (“the Company”) was incorporated on March 31, 2000 in the State
      of New Jersey. The Company was incorporated under the name of Segway V Corp
      and
      on January 27, 2004 the Company changed its name to Service Air Group, Inc.
      The
      Company’s fiscal year end is December 31 with its initial period being from
      March 31, 2000 to December 31, 2000.





The
      Company is considered to be in the initial development stage and has incurred
      losses since inception. To date the Company has had no business operations
      and
      was organized for the purpose of creating a corporate vehicle to locate and
      acquire an operating business.





These
      financial statements have been prepared assuming that the Company will continue
      as a going concern, which contemplates, among other things, the realization
      of
      assets and satisfaction of liabilities in the normal course of business for
      the
      foreseeable future. As at December 31, 2006, the Company has a loss from
      operations of **$35,333** ,
      an
      accumulated deficit of $61,187 and a working capital deficiency of **$67,710** . The
      Company intends to fund operations through equity financing agreements, which
      may be insufficient to fund its capital expenditures, working capital and other
      cash requirements for the next twelve months.





Thereafter,
      the Company will be required to seek additional funds, either through debt
      and/or equity financing, to finance its long-term operations. The successful
      outcome of future activities cannot be determined at this time, and there has
      been no assurance that, if achieved, the Company will have sufficient funds
      to
      execute its intended business plan or generate positive operating
      results.





These
      factors, among others, raise substantial doubt about the Company’s ability to
      continue as a going concern. These financial statements do not include any
      adjustments that might result from the outcome of this uncertainty.







**2.**  **Significant
      Accounting Policies**





a)  **Basis
      of Presentation**





These
      financial statements are presented in United States dollars and have been
      prepared in accordance with United States generally accepted accounting
      principles.





b)  **Foreign
      Currency Translation**





The
      Company’s functional and reporting currency is the U.S. dollar. All transactions initiated in other currencies are re-measured into the functional
      currency as follows:





|i) | Monetary
              assets and liabilities at the rate of exchange in effect at the balance
              sheet date,
|-- | ------------------------------------------------------------------------------------------------------------------------



ii)
            Non-monetary
                assets and liabilities, and equity at historical rates,
                and


iii)
              Revenue
                    and expense items at the average rate of exchange prevailing
                    during the
                    period.




Gains
      and
      losses on re-measurement are included in determining net income for the
      period





F-6





**Service
                Air Group, Inc.**
              *(Development
                Stage Company)***Notes
                to Financial Statements****December
                31, 2006***US
                Funds*










**2.**  **Significant
      Accounting Policies** *-
      Continued*





c)  **Use
      of Estimates and Assumptions**





Preparation
      of the Company's financial statements in conformity with generally accepted
      accounting principles in the United States of America requires management to
      make estimates and assumptions that affect the reported amount of assets and
      liabilities and disclosure of contingent liabilities at the date of the
      financial statements and the reported amounts of revenues and expenses during
      the reporting period. Actual results could differ from those
      estimates.





d)  **Cash
      and Cash Equivalent**





The
      Company considers all liquid investments, with an original maturity of 90 days
      or less when purchased, to be cash equivalents.





e)  **Property
      and equipment**





Property
      and equipment are stated at cost. Depreciation is computed using the declining
      balance method over the estimated useful lives of the assets. Expenditures
      for
      repairs and maintenance are charged to expense as incurred, as are any items
      purchased which are below the Company's capitalization threshold of
      $1,000.





For
      assets sold or otherwise disposed of, the cost and related accumulated
      depreciation are removed from the accounts, and any related gain or loss is
      reflected in income for the period.





f)  **Obligations
      under Capital Lease**





Leases
      are classified as either capital or operating. Leases that transfer
      substantially all of the benefits and risks of ownership of property to the
      Company are accounted for as capital leases. At the time a capital lease is
      entered into, an asset is recorded along with its related long-term financing
      obligation, net of interest. Interest on capital lease financing is expensed
      as
      financing payments are made. Payments made under operating leases are expensed
      as incurred.





g)  **Environmental**





The
      Company conducts its operations in a manner to protect public health and the
      environment and believes its operations are materially in compliance with all
      applicable laws and regulations.





h)  **Capital
      Stock**





Capital
      stock issued for non-monetary consideration is recorded at an amount based
      on
      fair market value as determined by the board of directors.





F-7





**Service
                Air Group, Inc.**
              *(Development
                Stage Company)***Notes
                to Financial Statements****December
                31, 2006***US
                Funds*









**2.**  **Significant
      Accounting Policies** - *Continued*





i)  **Stock
      Based Compensation**





Effective
      from fiscal 2004, the Company adopted Financial Accounting Standards Board
      (FASB) Statement of Financial Accounting Standard (SFAS) No. 123R, “Share Based
      Payment”. SFAS 123R requires a public entity to measure the cost of employee
      services received in exchange for an award of equity instruments based on the
      grant-date fair value of the award (with limited exceptions). That cost is
      recognized over the period during which an employee is required to provide
      service in exchange for the award - the requisite service period (usually the
      vesting period). SFAS 123R requires that the compensation cost relating to
      share-based payment transactions be recognized in financial statements. That
      cost is measured based on the fair value of the equity or liability instruments
      issued. The adoption of this accounting policy did not have any effect on prior
      periods.





j)  **Loss
      per Share**





Basic
      loss per share is computed by dividing income available to common shareholders
      by the weighted-average number of common shares outstanding during the year.
      The
      computation of diluted earnings per share assumes the conversion, exercise
      or
      contingent issuance of securities only when such conversion, exercise or
      issuance would have a dilutive effect on earnings per share.





k)  **Income
      Taxes**





Income
      taxes are accounted for using the asset and liability method. Deferred tax
      assets and liabilities are recognized for the future tax consequences
      attributable to differences between the financial statement carrying amounts
      of
      existing assets and liabilities and their respective tax bases and operating
      loss and tax credit carry forwards. Deferred tax assets and liabilities are
      measured using enacted tax rates expected to apply to taxable income in the
      years in which those temporary differences are expected to be recovered or
      settled. The effect on deferred tax assets and liabilities of a change in tax
      rates is recognized in income in the period that includes the enactment date.
      A
      valuation allowance is provided for significant deferred tax assets when it
      is
      more likely than not that such assets will not be recovered.








**3.**  **Financial
      Instruments**





The
      carrying values of the Company’s financial instruments consisting of accounts
      payable, and amounts due to related parties, materially approximate their
      respective fair values at each balance sheet date due to the immediate or
      short-term maturity of these instruments





F-8





**Service
                Air Group, Inc.**
              *(Development
                Stage Company)***Notes
                to Financial Statements****December
                31, 2006***US
                Funds*




4.**Equipment**


Cost
              
              Accumulated
                  Amortization
              
              **2006**
                **Net
                  Book**
                **Value**
              
              2005
                Net
                  Book
                ValueComputer
                  Equipment
              
              $
              1,158
              
              $
              470
              
              $
              **688**
              
              $
              984$
              1,158
              
              $
              470
              
              $
              **688**
              
              $
              984







**5.**  **Capital
      Stock**





a)  The
      Company's capitalization is 100,000,000 shares of common stock with a par value
      of $0.0001 per share and 20,000,000 shares of preferred stock with a par value
      of $0.0001 per share.





b)  The
      Company has 5,482,400 common shares issued and outstanding.





c)  The
      Company has not granted any stock options and has not recorded any stock-based
      compensation.








**6.**  **Related
      Party Transactions**





As
      of
      December 31, 2006, the Company had the following amounts owing to a director,
      officer and shareholder of the Company, the shareholder has agreed to defer
      payment indefinitely and there are no interest terms. SAG Canada is the former
      merger party to the Company who has waived amount owing to it when it entered
      into an agreement with the Company for “Exchange of Stock for Stock” on April
      01, 2006 which was terminated on November 29, 2006.




**2006**
              
              2005SAG
                  Canada
              
              $
              **0**
              
              $
              10,638Mohammad
                  Sultan
              
              $
              **50,923**
              
              $
              15,250$
              **50,923**
              
              $
              25,888




The
      above
      transactions, occurring in the normal course of operations, are measured at
      the
      exchange amount, which is the amount or consideration established and agreed
      to
      by the related parties.







**7.**  **Income
      Taxes**





The
      Company has accumulated net operating losses for U.S. federal income tax
      purposes of approximately $35,333, which may be carried forward and used to
      reduce taxable income of future years. These losses expire between 2020 and
      2025.














F-9











**Service
                Air Group, Inc.**
              *(Development
                Stage Company)***Notes
                to Financial Statements****December
                31, 2006***US
                Funds*







**7.**  **Income
      Taxes -** ***Continued***





**2006**
            
            2005Loss
                before income taxes for accounting and tax purposes
            
            $
            **(35,333**
            **)**
            $
            (13,897
            )Tax
                rate
            
            
            **35**
            **%**
            
            35
            %Expected
                tax recovery for the year
            
            
            **(12,367**
            **)**
            
            (4,864
            )Valuation
                allowance
            
            
            **12,367**
            
            
            4,864Tax
                recovery for the year
            
            $
            -
            
            $
            -









**8.**  **Subsequent
      Events**




On
      September 8, 2004, Company entered into an agreement with Service Air Group
      Inc.
      (“SAGCA”), a private commercial airline, registered under the provincial laws of
      British Columbia, Canada, for the Exchange of Stock for Assets which was
      cancelled on Oct 1, 2005 by both parties of the agreement for the purpose of
      restructuring. On April 1, 2006, Company entered again into an agreement with
      SAGCA for an exchange of Stock for Stock, however, due to the fact that Canadian
      Government restricts foreign ownership of Canadian Airlines, Company could
      only
      receive non-voting stock of SAGCA in exchange of its voting stock, turned the
      transaction into an unfair deal for Company's shareholders, as well as
      consolidation of the financial statements turned into an extremely complicated
      task for the management. In light of the aforementioned facts, on November
      20,
      2006, Company decided to unwind all agreements with the airline and on November
      29, 2006 Company entered into a Release & Settlement Agreement with SAGCA
      and cancelled the merger which was filed with the SEC on November 30, 2006
      under
      form 10-qsb as an exhibit 10.1 for the period ended September 30,
      2006.




On
      November 29, 2006, Company decided to adopt Lease & Finance industry and
      completed writing its our own comprehensive business plan. We have been in
      the
      development stage since our inception. From January 31, 2006 to October 31,
      2006, Company raised equity capital under private placement subscription
      agreements in the aggregated amount of $232,400, funds were raised privately
      through the sale of our stock at the fixed price of $1.00 per share to prior
      business associates of SAGCA, all of the investors were Non-US. Since Company's
      merger with SAGCA was still active at the time these funds were raised, $227,400
      were advanced to SAGCA, however, on November 20, 2006, when merger cancellation
      was decided, Company entered into a loan agreement with SAGCA and converted
      funds advanced to SAGCA into a loan, term of the loan is 10-Years with 6%
      interest, payable quarterly and repayment at the end of the term. Company
      received a promissory note from SAGCA for the amount of $227,400 issued on
      November 20, 2006 and has a due date of November 21, 2016. Loan agreement
      including promissory note was filed with the SEC on November 30, 2006 under
      form
      10-qsb as an exhibit 10.2 for the period ended September 30,
      2006.


F-10


**ITEM
      8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE**





On
      February 19, 2007, Staley, Okada & Partners, Chartered Accountants resigned
      as our independent accountants. The resignation of Staley, Okada & Partners
      (“Staley, Okada”) resulted from a transaction entered into by Staley, Okada and
      PricewaterhouseCoopers LLP, under which certain assets of Staley, Okada were
      sold to PricewaterhouseCoopers LLP and a number of the professional staff and
      partners of Staley, Okada joined PricewaterhouseCoopers LLP and will carry
      on
      practicing as members of PricewaterhouseCoopers LLP. On February 19, 2006,
      our
      Board of Directors has approved a change of accountants to Moore &
Associates, CHTD (Chartered Accountants) to be our certifying accountants for
      the fiscal year ending 2006.




The
      reports of Moore & Associates, CHTD for the fiscal years ended Dec 31, 2006
      did not contain any adverse opinion or disclaimer of opinion. There are no
      disagreements between us and Moore & Associates, CHTD on any matter of
      accounting principles or practices, financial statement disclosure, or auditing
      scope or procedure which, if not resolved, would have caused the auditors to
      include in their report a reference to the subject matter of such disagreement.




**ITEM
      8A CONTROLS AND PROCEDURES**





As
      required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the
      end
      of the period covered by this annual report, being December 31, 2006, we have
      carried out an evaluation of the effectiveness of the design and operation
      of
      our company’s disclosure controls and procedures. This evaluation was carried
      out under the supervision and with the participation of our President (Principal
      Executive Officer) and Chief Financial Officer. Based upon that evaluation,
      our
      our President (Principal Executive Officer) and Chief Financial Officer
      concluded that our company’s disclosure controls and procedures are effective as
      at the end of the period covered by this report. There
      have been no changes in our internal controls over financial reporting that
      occurred during the period covered by this report that have materially affected,
      or are reasonably likely to materially affect our internal controls over
      financial reporting .





Disclosure
      controls and procedures and other procedures that are designed to ensure that
      information required to be disclosed in our reports filed or submitted under
      the
      Securities Exchange Act of 1934 is recorded, processed, summarized and reported,
      within the time period specified in the Securities and Exchange Commission’s
      rules and forms. Disclosure controls and procedures include, without limitation,
      controls and procedures designed to ensure that information required to be
      disclosed in our reports filed under the Securities Exchange Act of 1934 is
      accumulated and communicated to management including our President, Chief
      Executive Officer, Secretary and Treasurer **** as
      appropriate, to allow timely decisions regarding required
      disclosure.





**PART
      III**





**ITEM
      9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS: COMPLIANCE
      WITH
      SECTION 16(A) OF THE EXCHANGE ACT**





Our
      directors and officers, as of December 31, 2006, are set forth below. The
      directors hold office for their respective term and until their successors
      are
      duly elected and qualified. Vacancies in the existing Board are filled by a
      majority vote of the remaining directors. The officers serve at the will of
      the
      Board of Directors.





**Name**
            **Age**
            **Position(s)
                Held**
              **with
                the Company**
            **Period
                Served**Mohammad
                Sultan
            37
            President,
                CEO, CFO, Director
            December-2003
                to
              Present






6





**BUSINESS
      EXPERIENCE**


Set
      forth
      below is the name of our directors and officers, all positions and offices
      held,
      the period during which he has served as such, and the business experience
      during at least the last five years:





**Mr.
      Mohammad Sultan - President, CEO & Director:**


Mr. Sultan
      has served as President, CEO, and director of the Company since December 18,
      2003 to the present, when he personally acquired 95% of SAG’ s issued and
      outstanding common stock from Service Merchants Corp. Before his involvement
      in
      SAG, Mr. Sultan was serving Service Air Group Inc. BC, Canada (“SAGCA”), as CFO
      from March 2003 to December 2003. During his office held with SAGCA, Mr. Sultan
      dealt with various companies included but not limited to Boeing Corporation,
      Bristol Associates, GECAS, Export-Import Bank of the United States, CIBC, TD
      Bank, EDC, and BDC which enhanced his communication and business development
      skills. Prior to that Mr. Sultan had also served as a director of Zorox
      Construction Ltd. (BC, Canada) from October 2001 to March 2003. From January
      2004 to present, Mr. Sultan has also been personally involved in 2 Real
      Estate Land Development Projects as Owner Developer in the City of Surrey,
      British Columbia, Canada. Both projects are for the rezoning and subdivision
      of
      3 large land parcels into 15 Single Family Residential lots.




**CERTAIN
      LEGAL PROCEEDINGS**





No
      director, nominee for director, or executive officer has appeared as a party
      in
      any legal proceeding material to an evaluation of his ability or integrity
      during the past five years to the best knowledge of the certifying
      officers.





**COMPLIANCE
      WITH SECTION 16(A) OF THE EXCHANGE ACT**


We
      have
      not filed Form 5 for the year ending December 31, 2006.





**ITEM
      10. EXECUTIVE COMPENSATION**


We
      did
      not pay salaries or other compensation to directors or officers in either of
      our
      two most recent fiscal years. Our board of directors expects to adopt during
      fiscal 2007 a modest non-cash compensation plan for executive officers in lieu
      of salaries or other cash compensation. No funds were set aside or accrued
      by
      the Company during fiscal year 2006 or 2005 to provide pension, retirement
      or
      similar benefits for directors or executive officers.





**ITEM
      11. SECURITY OWNERSHIP OF CERTAIN BEN EFICIAL OWNERS AND
      MANAGEMENT**





We
      have
      issued a total of 5,482,400 shares of common stock for a total of $233,150
      in
      cash:





**Name**
            **Number
                of Total Shares**
            **Consideration**
            **%
                of Shareholdings**Rick
                Plotnikoff
            250,000
            $250
            4.6%Mohammad
                Sultan
            5,000,000
            $500
            91.2%Minor
                Shareholders (1)
            232,400
            $232,400
            4.2%**Total:**
            **5,482,400**
            **$233,150**
            **100%**




The
      address for Mr. Plotnikoff is 9175 Mainwaring Rd. Sidney, B.C. V8L
      1J9


The
      address for Mr. Sultan is 12692-97 Th Ave.
      Surrey, BC, Canada V3V 2E9


For
      the
      addresses and details of the Minority Shareholders, please see Item
      12.2


7


**ITEM
      12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.**





**1.
      Equity Stock for Services**




On
      November 29, 2006, we entered into a consulting agreement with Mr. Karl Dhillon
      (Mr. Karl Dhillon is related to Mr. Jag Dhillon, President & CEO of “SAGCA”)
      to serve the Company as an executive officer in the capacity of Chief Financial
      Officer under a 10-year term starting from December 01, 2006 and ending on
      November 30, 2016, services were to be rendered for an aggregated number of
      960,000, restricted shares of the Company, 8,000 shares per month in
      compensation, pursuant to the terms and conditions of the respective consulting
      agreement. On November 29, 2006, we also entered into a consulting agreement
      with Mr. Mahmood Mawji to serve the Company as an executive officer in the
      capacity of Vice-President, under a 10-year term starting from December 01,
      2006
      and ending on November 30, 2016, services were to be rendered for an aggregated
      number of 960,000, restricted shares of the Company, 8,000 shares per month
      in
      compensation, pursuant to the terms and conditions of the respective consulting
      agreement, with first installment was to be issued on January 01, 2007. As
      of
      December 31, 2006, both officers had not rendered any services to the Company
      and been non-responsive to Company’s requests to provide the contractual
      services, therefore, Company had no option but to consider the an early
      termination of the aforementioned consulting agreements, Company has filed
      an
      8-K on April 13, 2007 to report early termination of a Material Definitive
      Agreement and Departure of Directors or Principal Officers.





**2.
      Equity Stock for Cash:**




From
      January 31 to October 31, 2006, we raised equity capital under private placement
      subscription agreements in the aggregated amount of $232,400, funds were raised
      privately through the sale of our stock, common shares, at the fixed price
      of
      $1.00 per share to prior business associates of SAGCA, all of the investors
      were
      from British Columbia, Canada. Since our merger agreement with SAGCA was still
      active at the time these funds were raised, $227,400 were advanced to SAGCA,
      however, on November 20, 2006, when merger cancellation was decided, we entered
      into a loan agreement with SAGCA and converted funds advanced to SAGCA into
      a
      loan, term of the loan is 10-Year with 6% interest, payable quarterly and
      repayment at the end of the term. The Principal Sum and all accrued but unpaid
      Interest at the rate aforesaid will become due and payable on the 21 st day of
      November, 2016. Loan Agreement with SAGCA was filed on November 30, 2006 under
      10-qsb as an exhibit 10.2 for the period ended September 30, 2006. Following
      is
      detailed information on all of our minority shareholders to whom we sold the
      shares for cash, their respective subscription agreements were filed under
      Form
      8-K Reports:




**Shareholder
                  Name**
              **Address**
              **#
                  of Shares Held**Bebi
                  Abadeen
              #303-4181
                  Norfolk St Burnaby B.C. V5G 1E8
              5,000Billy
                  Lo
              7322
                  Goleta Place Burnaby B.C. V5A 1S9
              2,000Dave
                  Evans
              4807
                  47A Ave Delta B.C. V4K1T2
              5,000Michael
                  Whatley
              1603-1033
                  Marinaside Cr Vancouver B.C. V6Z 3A3
              1,000Stanley
                  Van Eyk
              10615
                  238th st Maple Ridge B.C. V2W 1E4
              1,000Selina
                  Van Eyk
              10615
                  238th st Maple Ridge B.C. V2W 1E4
              1,000Kin
                  Wing Cheung
              5665
                  College St Vancouver B.C. V5R 3Z6
              5,000Quang
                  Tu Tran
              9920
                  Bates Rd Richmond B.C. V7A 1E4
              3,000Larry
                  Popil
              9842
                  Waller Court Richmond B.C. V7E5S9
              2,000Minh
                  Tu Tran
              9920
                  Bates Rd Richmond B.C. V7A 1E4
              1,000Nasirdin
                  Mohamed
              9542
                  Dawson Cr Delta B.C. V4C 5H1
              2,000Bashir
                  Hirjee
              5751
                  Minoru Blvd Richmond B.C. V6X 2B1
              2,000Deborah
                  Leroux
              #536-202nd
                  Street Langley B.C. V2Z 1V7
              5,000Parmjit
                  Rai
              733
                  East 54th ave Vancouver B.C. V5X 1L8
              2,300Winkie
                  Investments Ltd
              4149
                  Cypress St Vancouver B.C. V6J 3P7
              1,000Ajmal
                  Gundhra
              7219
                  124A street Surrey B.C. V3W 0S9
              20,000Timothy
                  Tucker
              11692
                  Summit Cr. Delta B.C. V4E 2Z5
              3,000






8




Lloyd
                  Ratsoy
              2441
                  139th Street Surrey B.C. V4P 1S2
              5,000Avtar
                  Randhawa
              #116-5880
                  Dover Cr Richmond B.C. V7C 5P5
              3,500Farouk
                  Mohamed
              1329
                  Guildford Town Cenre Surrey B.C. V3R 7B7
              3,000David
                  Martino
              9897
                  Rathburn Dr Burnaby B.C. V3J 7J4
              1,200Chantel
                  Conkin
              6775
                  eustace Rd Sooke B.C. V0S 1N0
              2,000Andrew
                  Horsfall
              10612
                  238th St Maple Ridge B.C. V2W 1E4
              1,000Shelley
                  Horsfall
              10612
                  238th St Maple Ridge B.C. V2W 1E4
              1,000Jolanta
                  Radomski
              6093
                  Sprott St Burnaby B.C. V5G 1T9
              10,000Nicole
                  Marie Anaka
              4807
                  47A Ave Delta B.C. V4K1T2
              10,000Parmjit
                  Bhanwer
              10131
                  Aintree Cr Richmond B.C. V7A 3T9
              2,500Jagjivan
                  Bhanwer
              10131
                  Aintree Cr Richmond B.C. V7A 3T9
              1,500Parminder
                  Shawn Bhanwer
              10131
                  Aintree Cr Richmond B.C. V7A 3T9
              1,000Mohammed
                  Ali
              8275
                  Kudo Drive Mission B.C. V2V 7J5
              1,000Bernard
                  Bramhall
              #181-6001
                  Promontory Rd. Chilliwack B.C. V2R 3E3
              1,000Krista
                  Natasha Vrolyk
              46430
                  Edgemont Pl Chilliwack B.C. V2R 3Y5
              1,000Mark
                  Ronnie Ingalls
              45896
                  Henley Ave Chilliwack B.C. V2P 3J7
              1,000Marie
                  lauretta Christian
              45896
                  Henley Ave Chilliwack B.C. V2P 3J7
              5,000Lyn
                  Christian
              7137
                  Elwood Rd Chilliwack B.C. V2R 1G8
              1,000Geoffrey
                  David Christian
              2
                  Mansfield St Brampton On L6S 2Y2
              1,000Maggie
                  Angela Christian
              2
                  Mansfield St Brampton On L6S 2Y2
              1,000David
                  M Christian
              34154
                  Larch St Abbotsford B.C. V2S 2P5
              1,000Kerry
                  Kristin Lancaster
              46426
                  Chester Dr Chilliwack B.C. V2R 5N4
              1,000Charlene
                  Katrina Merry
              10182
                  Oval Dr Chilliwack B.C. V2P 6S7
              1,000Lesley
                  Dale Illes
              31928
                  Coral Ave Abbotsford B.C. V2T 2K2
              1,500Robert
                  James Grouette
              #10-105
                  Young St N Chilliwack B.C. V2P 8C3
              2,000Marcus
                  William Weston
              #113-12711
                  64th Ave Surrey B.C. V3W 1X1
              3,100Steven
                  Giesbrecht
              8422
                  Hilton Dr Chilliwack B.C. V2P 4Y1
              1,000Jeffrey
                  Robert Giesbrecht
              8422
                  Hilton Dr Chilliwack B.C. V2P 4Y1
              1,000Allen
                  Kenneth Giesbrecht
              8422
                  Hilton Dr Chilliwack B.C. V2P 4Y1
              1,000Linda
                  Darlyne Giesbrecht
              8422
                  Hilton Dr Chilliwack B.C. V2P 4Y1
              1,000Michael
                  Allen Giesbrecht
              8422
                  Hilton Dr Chilliwack B.C. V2P 4Y1
              1,000Fatehali
                  Akberali Dhalla
              #105-1545
                  West 8th ave Vancouver B.C. V6J 1T5
              6,000Vic
                  Bikram Berar
              8291
                  #4 Road Richmond B.C. V6Y 2T7
              1,000Indira
                  Kaur Fisher
              1133
                  west 22nd St North Vancouver B.C. V7P 2E9
              1,000Deenu
                  Haji
              2535
                  west 16th Ave Vancouver B.C. V6K 3B9
              1,000Krishan
                  Singh Berar
              7088
                  Cypress St Vancouver B.C. V6P 5M3
              1,000Raveena
                  Kaur Haji
              7088
                  Cypress St Vancouver B.C. V6P 5M3
              1,000Mahinder
                  Berar
              7088
                  Cypress St Vancouver B.C. V6P 5M3
              1,000Robert
                  D Rorison
              #146-6875
                  121st St Surrey B.C. V3W 1C2
              1,200Anar
                  Popatia
              2536
                  Fuschia Pl Coquitlam B.C.
              5,000David
                  Martin Philips
              7540
                  Waterton Dr. Richmond B.C. V7A 4G4
              10,000Suraksha
                  Devi Bhardwaj
              4475
                  Fraserbank Pl. Richmond B.C. V6V 2L8
              10,000David
                  Martin Philips
              7540
                  Waterton Dr. Richmond B.C. V7A 4G4
              7,100Daljit
                  Badyal
              79
                  Knotty Pine Drive Whitby On L1R 2H3
              25,000Karnail
                  Singh Sangha
              7621
                  Prince Edward St Vancouver B.C. V5X 3R4
              1,000Lakbir
                  S Johal
              896
                  East 53rd Ave Vancouver B.C. V5X 1L8
              1,000Surjinder
                  S Johal
              896
                  East 53rd Ave Vancouver B.C. V5X 1L8
              1,000Jagdip
                  Mann
              17430-100
                  Ave, Surrey, BC, V4N 4L3
              5,000Gurninderjit
                  Grewal
              8939
                  140 A Street Surrey B.C. V3V 7H1
              1,000Tarsem
                  S Guru
              7972
                  Sophia St Vancouver B.C. V5X 3W8
              5,500Dilbag
                  S Mand
              625
                  63rd Ave East Vancouver B.C. V5X 2K3
              1,000Surjinder
                  S Johal
              896
                  East 53rd Ave Vancouver B.C. V5X 1L8
              4,000






9




Shiro
                  K Johal
              1055
                  64th Ave East Vancouver B.C. V5X 2W6
              1,000Madho
                  Singh Mannan
              6408
                  Elgin St Vancouver B.C. V5W 3K3
              1,000Lakbir
                  S Johal
              896
                  East 53rd Ave Vancouver B.C. V5X 1L8
              4,000Devki
                  Nandan
              7657
                  Prince Edward St Vancouver B.C. V5X 3R4
              2,000E.Patricia
                  Connor
              8933
                  112th Street Delta B.C. V4C 4X5
              5,000


**ITEM
      13. EXHIBITS AND REPORTS ON FORM 8-K**





(a)
      The
      following documents are filed as part of this report:





1.
      Financial statements; see index to financial statements and schedules in Item
      7
      herein.





2.
      Financial statement schedules; see index to financial statements and schedules
      in Item 7 herein.





3.
      Exhibits:





The
      following exhibits are filed with this Form 10-KSB and are identified by the
      numbers indicated; see index to exhibits immediately following financial
      statements and schedules of this report.








EXHIBIT
            DESCRIPTION3.1
            Articles
                of Incorporation (1)3.2
            By-laws
                (1)31.1
            Certification
                pursuant to Section 302 of Sarbanes Oxley Act of 200232.1
            Certification
                pursuant to Section 906 of Sarbanes Oxley Act of 2002(1)
                Incorporated by reference to our Form 10-SB (SEC File No.
                0-30329).


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**ITEM
      14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**





**Audit
      Fees**





For
      the
      Company's fiscal year ended December 31, 2006, we were billed $14,605.00 for
      professional services rendered for the audit and review of our financial
      statements included in our periodic and other reports filed with the Securities
      and Exchange Commission for our year ended December 31, 2005, and
      2006.





**Tax
      Fees**





For
      the
      Company's fiscal year ended December 31, 2006 and December 31, 2005, we were
      billed $0.00 and $0.00 for professional services rendered for tax compliance,
      tax advice, and tax planning.





**All
      Other Fees**





The
      Company did not incur any other fees related to services rendered by our
      principal accountant for the fiscal year ended December 31, 2006.





Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
      1934, the registrant has duly caused this report to be signed on its behalf
      by
      the undersigned thereunto duly authorized.





**SIGNATURES**





Pursuant
      to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
      1934, the registrant has duly caused this report to be signed on its behalf
      by
      the undersigned, there unto duly authorized.








**SERVICE
      AIR GROUP, INC.**





By: */s/ Mohammad Sultan*


Mohammad
      Sultan


CEO,
      President and Director





**Dated:** **April
      15, 2007**





Pursuant
      to the requirements of the Securities Exchange Act of 1934, this report has
      been
      signed below by the following persons on behalf of the registrant and in the
      capacities and on the dates indicated.





NAME
            TITLE
            DATE/s/
                Mohammad Sultan
            Chief
                Executive Officer, President and Director
            **April
                15, 2007**Mohammad
                Sultan






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