U.S.
SECURITIES AND EXCHANGE COMMISSION


Washington,D.C.20549


________________________________




FORM 10-KSB


________________________________




x
            ANNUAL
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
the period ended December 31, 2007




o
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
the transition period from




Commission
File No. 000-31329




Pacific
Lease Group, Inc.


(fka.
Service Air Group, Inc.)


(Exact
name of small business issuer as specified in its charter)




New
      Jersey
            22-3719171(State
      or other jurisdiction of incorporation or
    organization)
            (I.R.S.
      Employer Identification No.)




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


(Address
of Principal Executive Offices)




(604)
722-2147


(Issuer’s
telephone number)




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




Check
whether the issuer (1) has filed all reports required to be filed by Section 13
or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
period that the issuer was required to file such reports), and (2)has been
subject to such filing requirements for the past 90 days.
      Yes |_| No |_|




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




Check
whether the registrant has filed all documents and reports required to be filed
by Sections 12, 13, or 15(d) of the Exchange Act subsequent to the distribution
of securities under a plan confirmed by a court.


Yes|_| No
|_|




State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of December 31, 2007: 5,482,400 shares of common stock.






















TABLE
OF CONTENTS




PART
I-- FINANCIAL INFORMATION




Item
      1.
            Financial
      StatementsItem
      2.
            Management’s
      Discussion and Analysis of Financial ConditionItem
      3.
            Control
      and Procedures




PART
II-- OTHER INFORMATION




Item
      1.
            Legal
      ProceedingsItem
      2.
            Changes
      in SecuritiesItem
      3.
            Defaults
      Upon Senior SecuritiesItem
      4.
            Submission
      of Matters to a Vote of Security HoldersItem
      5.
            Other
      InformationItem
      6.
            Exhibits
      and Reports on Form 8-K




SIGNATURE




Item
1.                      Financial
Information






BASIS OF
PRESENTATION




The
accompanying financial statements are presented in accordance with generally
accepted accounting principles for financial information and the instructions to
Form 10-KSB and item 310 under subpart A of Regulation S-B. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting only of normal occurring accruals)
considered necessary in order to make the financial statements not misleading,
have been included. Operating results for the three months ended December 31,
2007 are not necessarily indicative of results that may be expected for the
period ending on December 31, 2007. The financial statements are presented on
the accrual basis.






1






PACIFIC
LEASE GROUP, INC.
 (fka.
Service Air Group, Inc.)
 (A
Development Stage Company)
 
 FINANCIAL
STATEMENTS FOR THE YEAR ENDED
 
 DECEMBER
31, 2007
 
 Stated in
US Dollars
     2
   MOORE
& ASSOCIATES, CHARTERED
 ACCOUNTANTS AND
ADVISORS
 PCAOB REGISTERED
 
 
 REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
 
 
 To
the Board of Directors
 Pacific
Lease Group, Inc.
 (fka
Service Air Group, Inc.)
 (A
Development Stage Company)
 
 We have
audited the accompanying balance sheet of Pacific Lease Group, Inc. (A
Development Stage Company) as of December 31, 2007, and the related statements
of operations, stockholders’ equity and cash flows for the year then ended and
since inception on March 31, 2000 to December 31, 2007. 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 Pacific Lease Group, Inc. (A
Development Stage Company) as of December 31, 2007, and the related statements
of operations, stockholders’ equity and cash flows for the year then ended and
since inception on March 31, 2000 to December 31, 2007, 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 has a loss from operations of $583,209, an
accumulated deficit of $644,396 and a working capital deficiency of $500,470,
which raises 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
 April 15,
2008
 
 2675 S. Jones Blvd. Suite
109, Las Vegas, NV 89146 (702) 253-7499 Fax (702)
253-7501
   3
   Pacific
      Lease Group, Inc.
                  (fka.
      Service Air Group, Inc.)
                  (A
      Development Stage Company)
                Statement
      1Balance
      SheetsUS
      Funds
  December
      31, 2007
                
                
                December
      31, 2006ASSETSCurrentInterest
      receivable
                
                $
                -
                
                
                $
                6,405Equipment
      ( Note 3 )
                
                
                1,348
                
                
                
                688TOTAL
      CURRENT ASSETS
                
                
                1,348
                
                
                
                7,093Note
      receivable ( Note 6)
                
                
                202,168
                
                
                
                227,400TOTAL
      ASSETS
                
                $
                203,516
                
                
                $
                234,493LIABILITIESAND STOCKHOLDRS’EQUITY(DEFICIT)CurrentAccounts payable
      and accrued liabilities
                
                $
                501,818
                
                
                $
                11,407TOTAL
      CURRENT LIABILITIES
                
                
                501,818
                
                
                
                11,407Due
      to related party ( Note 5 )
                
                
                112,744
                
                
                
                50,923TOTAL
      LIABILITIES
                
                
                614,562
                
                
                
                62,330STOCKHOLDERS’EQUITY(DEFICIT)Preferred
      Stock, 20,000,000 shares, $0.0001 par value
                  Common
      Stock, 100,000,000 shares, $0.0001 par value
                  Issued
      and outstanding
                  5,482,400
      shares of common stock
                
                
                548
                
                
                
                548Additional
      paid in capital
                
                
                232,802
                
                
                
                232,802Deficit
      accumulated during the Development stage ( Statement
    2)
                
                
                (644,396
                )
                
                
                (61,187
                )TOTAL
      SHAREHOLDER EQUITY (DEFICIT)
                
                
                (411,046
                )
                
                
                172,163Total
      Liabilities and Stockholders’ Equity (Deficit)
                
                $
                203,516
                
                
                $
                234,493
  The
accompanying notes are an integral part of these financial
statements.
    4
   Pacific
      Lease Group, Inc.
                  (fka.
      Service Air Group, Inc.)
                  (A
      Development Stage Company)
                Statement
      2Statements
      of OperationsFor
      the Year Ended December 31US
      Funds
  Year
      ended Dec. 31
                
                
                Cumulative
      from Incorporation March 31, 2000 to December 31,2007
                
                
                2006
                
                
                2007RevenueInterest
                
                $
                20,266
                
                
                
                6,405
                
                
                
                20,266ExpensesAccounting
      & auditing
                
                $
                14,182
                
                
                $
                -
                
                
                $
                35,268Legal
      & professional
                
                
                28,549
                
                
                
                19,683
                
                
                
                38,667Bad
      debts
                
                
                45,498
                
                
                
                -
                
                
                
                45,498Automotive
                
                
                5,291
                
                
                
                17,478
                
                
                
                27,587Depreciation
                
                
                356
                
                
                
                296
                
                
                
                826Filing
      & listing fees
                
                
                7,388
                
                
                
                4,281
                
                
                
                14,605Transfer/
      resident agents
                
                
                727
                
                
                
                -
                
                
                
                727Office
      rent
                
                
                417
                
                
                
                -
                
                
                
                417Office
      supplies
                
                
                342
                
                
                
                -
                
                
                
                342Officer
      compensation
                
                
                490,000
                
                
                
                -
                
                
                
                490,000Bank
      charges
                
                
                133
                
                
                
                -
                
                
                
                133Website,
      phone & fax
                
                
                2,090
                
                
                
                -
                
                
                
                2,090Travelling
      & meetings
                
                
                7,707
                
                
                
                -
                
                
                
                7,707Miscellaneous
                
                
                795
                
                
                
                -
                
                
                
                795Total
      Expenses
                
                
                603,475
                
                
                
                41,738
                
                
                
                664,662Net
      (loss)
                
                $
                (583,209
                )
                
                $
                (35,333
                )
                
                $
                (644,396
                )Basic
      and Diluted
                  (Loss)
      per share
                
                
                (0.11
                )
                
                
                (0.006
                )Weighted
      average number of shares
                
                
                5,482,400
                
                
                
                5,482,400
   Statements
      of DeficitFor
      the Year Ended December 31US
      Funds
  Year
      ended Dec. 31
                
                
                Cumulative
      from Incorporation March 31, 2000 to December 31,2007
                
                
                2006
                
                
                2007Deficit,
      beginning of period
                
                $
                (61,187
                )
                
                $
                (25,854
                )
                
                $
                -Net
      loss
                
                
                (583,209
                )
                
                
                (35,333
                )
                
                
                (644,396
                )Deficit,
      end of year
                
                $
                (644,396
                )
                
                $
                (61,187
                )
                
                $
                (644,396
                )
   The
accompanying notes are an integral part of these financial
statements.
    5
  Pacific
      Lease Group, Inc.
                  (fka.
      Service Air Group, Inc.)
                  (A
      Development Stage Company)
                Statement
      3Statements
      of Stockholders’ Equity
                  For
      the Year ended December 31, 2007US
      Funds
  Common
      Stock
                
                
                Additional
      Paid-in
                
                
                Accumulated
      Deficit During Development
                
                
                TotalShares
                
                
                Amount
                
                
                Capital
                
                
                Stage
                
                
                EquityIncorporation,
      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
                )
                
                
                (35,333
                )Balance
      December 31, 2006
                
                
                5,482,400
                
                
                
                548
                
                
                
                232,802
                
                
                
                (61,187
                )
                
                
                172,163Development
      stage net loss
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (583,209
                )
                
                
                (583,209
                )Balance
      December 31, 2007
                
                
                5,482,400
                
                
                $
                548
                
                
                $
                232,802
                
                
                $
                (644,396
                )
                
                $
                (411,046
                )
  The
accompanying notes are an integral part of these financial
statements.
    6
  Pacific
      Lease Group, Inc.
                  (fka.
      Service Air Group, Inc.)
                  (A
      Development Stage Company)
                Statement
      4Statements
      of Cash FlowsFor
      the Year Ended December 31US
      Funds
   Year
      ended Dec. 31
                
                
                Cumulative
      from Incorporation March 31, 2000 to December 31,2007
                
                
                2006
                
                
                2007Operating
      activitiesNet
      loss
                
                $
                (583,209
                )
                
                $
                (35,333
                )
                
                $
                (644,396
                )Depreciation
                
                
                356
                
                
                
                296
                
                
                
                826Allowances
      for bad debts
                
                
                45,498
                
                
                
                -
                
                
                
                45,498Change
      in non cash working capital
                
                
                476,550
                
                
                
                10,002
                
                
                
                481,552(60,805
                )
                
                
                (25,035
                )
                
                
                (116,520
                )Investing
      activitiesInvestment
      in note receivable
                
                
                -
                
                
                
                -
                
                
                
                (227,400
                )Purchase
      of equipment
                
                
                (1,016
                )
                
                
                -
                
                
                
                (2,174
                )(1,016
                )
                
                
                -
                
                
                
                (229,574
                )Financing
      activitiesProceeds
      from sale of common stock
                
                
                -
                
                
                
                -
                
                
                
                233,350Proceeds
      from contributed capital
                
                
                61,821
                
                
                
                25,035
                
                
                
                112,74461,821
                
                
                
                25,035
                
                
                
                346,094Increase
      in cash
                
                
                -
                
                
                
                -
                
                
                
                -Cash,
      beginning of period
                
                
                -
                
                
                
                -
                
                
                
                -Cash,
      end of year
                
                
                -
                
                
                
                -
                
                
                
                -
   The
accompanying notes are an integral part of these financial
statements.
    7
    Pacific
Lease Group, Inc.
 (fka.
Service Air Group, Inc.)
 (A
Development Stage Company)
 Notes
to Financial Statements for the year ended
 December
31, 2007
 US
Funds
  1.
                Organization
      and Going Concern
 
 Pacific
Lease 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 has again changed its name to Pacific Lease Group Inc. on
24th
December 2007. 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, 2007, the Company has a loss from
operations of $583,209, an accumulated deficit of $644,396 and a working capital
deficiency of $500,470. 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 and Basis of
Presentation
 
 a)
Basis of Presentation
 
 The
assets acquired, the liabilities assumed, and any non-controlling interest
acquired as at 31st
December 2007, measured at their fair market values as of that date. In addition
to that, identifiable assets and liabilities, as well as the non-controlling
interest acquired at the full amount of their fair values recognized in
generally accepted accounting principles.
 
 b)
Recent Accounting Pronouncements
 
 In
September 2006, the FASB issued SFAS No. 157, Fair Value Measurements,
which defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles, and expands disclosures about fair
value measurements. SFAS No. 157 does not require any new fair value
measurements, but provides guidance on how to measure fair value by providing a
fair value hierarchy used to classify the source of the information. This
statement is effective for us beginning January 1, 2008. The Company is
currently assessing the potential impact that adoption of SFAS No. 157
would have on the financial statements.
 
 In
February 2007, the FASB issued SFAS No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities. SFAS No. 159 gives the
irrevocable option to carry many financial assets and liabilities at fair
values, with changes in fair value recognized in earnings. SFAS No. 159 is
effective beginning January 1, 2008, although early adoption is permitted.
The Company is currently assessing the potential impact that adoption of SFAS
No. 159 will have on the financial statements.
 
 The FASB
has revised SFAS No. 141.  This revised statement establishes uniform
treatment for all acquisitions.  It defines the acquiring
company.  The statement further requires an acquirer to recognize the
assets acquired, the liabilities assumed, and any non-controlling interest in
the acquired at the acquisition date, measured at their fair market values as of
that date.  It requires the acquirer in a business combination
achieved in stages to recognize the identifiable assets and liabilities, as well
as the non-controlling interest in the acquired, at the full amounts of their
fair values. This changes the way that minority interest is recorded and
modified as a parent’s interest in a subsidiary changes over
time.  This statement also makes corresponding significant amendments
to other standards that related to business combinations, namely, 109, 142 and
various EITF’s.  This statement applies prospectively to business
combinations for which the acquisition date is on or after the beginning of the
first annual reporting period beginning on or after 12/15/08.  The
Company believes the implementation of this standard will have no effect on our
financial statements.
   8
  Pacific
Lease Group, Inc.
 (fka.
Service Air Group, Inc.)
 (A
Development Stage Company)
 Notes
to Financial Statements for the year ended
 December
31, 2007
 US
Funds
 For a
complete description of the Company’s significant accounting policies, please
refer to the significant accounting policies in the Company’s most recent annual
report (10-KSB) filed with the Securities and Exchange Commission.
  3.
                Equipment
 
 
 December
      31, 2007
                
                
                December
      31, 2006Cost
                
                
                Accumulated
      Depreciation
                
                
                Net
      Book Value
                
                
                Cost
                
                
                Accumulated
      Depreciation
                
                
                Net
      Book ValueComputer
      Equipment
                
                $
                2,174
                
                
                $
                826
                
                
                $
                1,348
                
                
                $
                1,158
                
                
                $
                470
                
                
                $
                688
 
 4.
                Capital
      Stock
 
 a)
                The Company's authorized capital
      stock consists of 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. Totalnumber
      of shares 94,517,600 isoutstanding.
 
 c)
                The Company has not granted any
      stock options and has notrecorded any stock-based
      compensation.
 
 
 5.
                Due
      to Related Party
 
 As of
December 31, 2007, the Company owed $112,744 (December 31, 2006 - $50,923) to a
director and officer of the Company.  The director and officer have
agreed to defer payment indefinitely and there are no interest
terms.
 
 6.
                Note
      Receivable
  Total note
      receivable
                
                
                227,400Less:      Allowance
      for uncollectible receivable
                
                
                25,232202,168
 
 As of
December 31, 2007 the Company has a note receivable issued by its former merger
candidate Service Air Group Inc. based in British Columbia, Canada
(“SAGCA”).  Face value of the note is $227,400.  The term of
the note is 10 years with 6% interest per annum, payable quarterly. The
principal sum and all accrued but unpaid interest at the rate aforesaid will
become due and payable on November 21, 2016.
 
 As per
evaluation of the note receivable and related interest receivable as at December
31, 2007, management has recorded an allowance for impairment loss on the note
receivable of $5,732 in addition to $19,500 accumulated allowance for
uncollectible note receivable and on interest receivable of $3,496 in addition
to $16,770 accumulated allowance for uncollectible interest
receivable.
   9


Item 2.   Management’s Discussion and Analysis of
Financial Conditions 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 and period
ended December 31, 2007.





Plan
of Operation




The
registrant plans to operate in the lease and finance industry. 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, 2007. For the period ended December 31, 2007, we have a loss from operations
of $583,209-, as compared to $35,333-, for the period ended December 31, 2006,
an accumulated deficit of $644,396, as compared to $61,187 for the period ended
December 31, 2006, and a working capital deficiency of $ 500,470- as compared to
$4,314- for the period ended December 31, 2006. Some general and administrative
expenses during the period ended December 31, 2007 were accrued comprised of
costs mainly associated with legal, accounting, filings and
transportation.




Liquidity
and Capital Resources




As of
December 31, 2007, 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, 2007, Mr. Sultan had loaned $112,744 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, 2007, we held $203,516 in assets, comprising Interest Receivable,
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.




Item 3.Controls and
Procedures





(a)      Evaluation of disclosure 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, 2007, 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
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 Treasureras appropriate, to allow
timely decisions regarding required disclosure.





(b)        Changes in internal
controls.




For the
period ended at December 31, 2007, our Certifying Officer has indicated that
there were no significant changes in our internal controls or other factors that
could significantly affect such controls subsequent to the date of his
evaluation, and there were no such control actions with regard to significant
deficiencies and material weaknesses.







10








PART
II - OTHER INFORMATION





Item 1. Legal Proceedings




None




Item 2. Changes in
Securities.




None





Item 3.  Defaults Upon Senior
Securities.




None




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




None




Item 5. Other Information.




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
March 31, 2007, 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 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.





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





(a) Exhibits





31.1
Certification pursuant to Section 302 of Sarbanes Oxley Act of 2002





32.1
Certification pursuant to Section 906 of Sarbanes Oxley Act of
2002




(b) Reports of Form
8-K





-none-




SIGNATURES




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




PACIFIC
      LEASE GROUP, INC.
              (FKA.
      SERVICE AIR GROUP, INC.)Date:
            April
      16, 2008
            /s/Mohammad
      SultanMohammad
      SultanCEO,
      CFO and Director