U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________  FORM 10-QSB ________________________________  x
        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended June 30, 2006  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  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.)  5455 Airport Road South, Richmond, B.C. Canada V7B 1B5 (Address of Principal Executive Offices)  (604) 233-7727 (Issuers telephone number)  SEGWAY V CORP. 9175 Mainwaring Rd., Sidney BC V8L 1J9 (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 June 30, 2006: 9,473,000 shares of common stock.         TABLE OF CONTENTS



PART I-- FINANCIAL INFORMATION




Item 1. Financial Statements


Item 2. Managements Discussion and Analysis of Financial Condition


Item 3. Control and Procedures

PART II-- OTHER INFORMATION




Item 1. Legal Proceedings


Item 2. Changes in Securities


Item 3. Defaults Upon Senior Securities


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


Item 5. Other Information


Item 6. Exhibits and Reports on Form 8-K

SIGNATURE




Item 1.
        Financial Information



















SERVICE AIR GROUP, INC.

(A Development Stage Company)



INTERIM CONSOLIDATED FINANCIAL STATEMENTS



FOR THE SIX MONTHS ENDED JUNE 30, 2006



Stated in US Dollars



Prepared by Management









































Service Air Group, Inc.
(Development Stage Company)
        Statement 1Interim Consolidated Balance SheetPrepared by managementUS Funds


ASSETS
        
        June  2006
        
        Dec, 2005CurrentCash
        $
        2,596
        $
        0Receivables
        
        33,282
        
        0Prepaids and Deposits
        
        1,401
        
        037,279
        
        0Long - TermProperty and Equipment(Note 4)
        $
        431,770
        $
        984469,049
        
        984LIABILITIESCurrentAccounts Payable and Liabilities
        $
        79,360
        $
        0Current Portion of Loans Payable
        
        72,580
        
        0151,940
        
        0Long- TermLoans Payable
        $
        289,985
        $
        0Due to Related Parties(Note 6)
        
        4,109
        
        10,638Due to Shareholder(Note 6)
        
        1,160,904
        
        15,2501,454,997
        
        25,888Stockholders Deficit(Note 5)Common stock, $0.0001 par value, 100,000,000 sharesPreferred stock, $0.0001 par value, 20,000,000 sharesIssued and outstanding9,473,000 shares of common stock
        
        98,613
        
        525Additional paid in capital
        
        425
        
        425Deficit(Statement 2)
        
        (1,236,926)
        
        (25,854)(1,137,889)
        
        (24,904)$
        469,049
        $
        984




ON BEHALF OF THE BOARD:




, Director


, Director



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







Service Air Group, Inc.
(Development Stage Company)
        Statement 2Interim Consolidated Statement of LossFor the Six Months Ended June 30,Prepared by managementUS Funds




2006
        
        2005
        
        From InceptionRevenues
        $
        190,223
        
        
        
        190,223Direct Costs
        
        167,032
        
        
        
        167,032Gross Profit
        $
        23,192
        $
        -
        $
        23,192General and Admin Expenses
        
        
        
        -Depreciation and Amortization
        
        68,223
        
        
        
        68,397Consulting
        
        50,730
        
        
        
        50,730Rent
        
        17,282
        
        
        
        17,282Interest and Bank Charges
        
        10,836
        
        
        
        10,836Other
        
        26,993
        
        400
        
        1,114,361Exchange Gain / Loss
        
        (1,488)
        
        
        
        (1,488)172,576
        
        400
        
        1,260,118Net Loss for the period
        $
        (149,385)
        $
        (400)
        $
        (1,236,926)Net Loss per share  basic and diluted
        
        (0.00)
        
        (0.00)
        
        (0.20)Weighted average number of shares outstanding
        
        6,305,750
        
        5,250,000
        
        6,305,750




Interim Consolidated Statement of DeficitFor the Six Months Ended June 30,Prepared by managementUS Funds




2006
        
        2005
        
        From InceptionDeficit  Beginning of Period
        $
        (25,854)
        $
        (25,454)
        $
        -Net loss
        
        (149,385)
        
        (400)
        
        (175,239)Net Deficit from SAG - CDA
        
        (1,061,687)
        
        
        
        (1,061,687)Deficit  End of Period
        $
        (1,236,926)
        $
        (25,854)
        $
        (1,236,926)







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



Service Air Group, Inc.
(Development Stage Company)
        Statement 3Interim Consolidated Statement of Stockholders DeficiencyPrepared by managementUS Funds






Common Stock
Shares                   Amount
        
        Additional Paid-in Capital
        
        Accumulated 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 Exchange for SAG CDA
        4,125,000
        
        88
        
        
        
        (1,061,687)
        
        (1,061,599)Stock Issued for cash at $1.00
        98,000
        
        98,000
        
        0
        
        0
        
        98,000Development stage net loss
        
        
        
        
        
        
        ( 149,385 )
        
        (149,385)Balance June 30, 2006
        9,473,000
        $
        98,613
        $
        425
        $
        (1,236,926)
        $
        (1,137,889)





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



Service Air Group, Inc.
(Development Stage Company)
        Statement 4Interim Consolidated Statement of Cash FlowsFor the Six Months Ended June 30, 2006Prepared by managementUS Funds




2006
        
        2005
        
        Inception to
2006Cash flows from operating activitiesNet loss for the period
        $
        (149,385)
        $
        (400)
        $
        (166,869)Exchange Gain / Loss
        
        (1,488)
        
        
        
        (1,488)Depreciation and Amortization
        
        68,223
        
        
        
        68,223Changes in working capital
        
        144,164
        
        -
        
        147,61561,514
        
        (400)
        
        47,481Cash flows from financing activitiesProceeds from sale of Common stock
        $
        88
        $
        -
        $
        838Capital Loans
        
        362,564
        
        -
        
        362,564Shareholder capital contribution
        
        77,438
        
        -
        
        77,638Advances from related party
        
        -
        
        400
        
        14,067440,090
        
        400
        
        455,107Cash flows from investing activitiesPurchase of equipment
        
        (499,009)
        
        -
        
        (499,993)Increase (Decrease) in Cash
        
        2,596
        
        -
        
        2,596Cash position  Beginning of period
        
        -
        
        -
        
        -Cash position  End of Period
        $
        2,596
        $
        -
        $
        2,596









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





Service Air Group, Inc.
(Development Stage Company)Notes to Interim Financial StatementsFor the Six Months Ended June 30, 2006Prepared by managementUS Funds






1.
        Organization and Going Concern

Service Air Group, Inc. (the Company) was incorporated on June 30, 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 June 30, 2000 to December 31, 2000.



On April 1, 2006, Service Air Group, Inc. Canada (SAGCA), a Canadian corporation, completed with the Company the reverse acquisition under a Stock Exchange Agreement (RTO) dated April 1, 2006 with a closing date set on or before April 15, 2006.



Pursuant to the agreement, the Company issued to SAGCA 4,125,000 shares in its common stock for 4,125,000 Class B non-voting common stock of SAGCA. Further to the agreement, the Company will receive 90% of the net income after tax from SAGCA as a dividend and agrees to provide US$4,975,000 in working capital and either lease or purchase an Aircraft at a minimum of US$10,000,000.



Immediately before the date of the RTO, the Company had 100,000,000 common stock and 20,000,000 preferred stock authorized, with 5,250,000 shares of common stock issued and outstanding, while no preferred stock was issued and outstanding. Pursuant to the RTO, an

additional 4,125,000 shares of the Companys common stock were issued to SAGCA and 4,125,000 newly issued shares of class B non-voting common stock of SAGCA were issued to the Company. Immediately after the RTO, the management of SAGCA took control of the board and officer positions of the Company, constituting a change of control. Because the former owners of SAGCA gained control of the Company, the transaction would normally have been considered a purchase by the Company. However, since the Company was not a business, the transaction was not considered to be a business combination. Instead, the transaction was accounted for as a recapitalization of SAGCA and the issuance of stock by the Company for the assets and liabilities of the Company. The value of the net assets of the Company acquired by SAGCA was the same as their historical book value, being $525.



These financial statements have been consolidated with SAGCA and are 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 June 30, 2006, , the Company has a loss from operations of $149,385, an accumulated deficit of $1,236,926 and a working capital deficiency of $114,660. 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.







Service Air Group, Inc.
(Development Stage Company)Notes to Interim Financial StatementsFor the Six Months Ended June 30, 2006Prepared by managementUS Funds




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, andiii)
        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




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)
        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.




g)
        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.




Service Air Group, Inc.
(Development Stage Company)Notes to Interim Financial StatementsFor the Six Months Ended June 30, 2006Prepared by managementUS Funds




3.
        Financial Instruments

The carrying values of the Companys financial instruments consisting of 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.




4.
        Long Term Assets




SAG - US
        
        June 30, 2006
        
        December 31, 2005Cost
        
        Accumulated Depreciation
        
        Net
        
        Cost
        
        Accumulated Depreciation
        
        NetComputer Equipment
        $
        1,158
        $
        322
        $
        836
        $
        1,158
        $
        174
        $
        984


SAG - Canada
        
        June 30, 2006
        
        December 31, 2005Cost
        
        Accumulated Depreciation
        
        Net
        
        Cost
        
        Accumulated Depreciation
        
        NetEquipment
        
        18,125
        
        2,006
        
        16,119
        
        -
        
        -
        
        -Leaseholds
        
        22,700
        
        5,675
        
        17,025
        
        -
        
        -
        
        -Vehicles
        
        458,184
        
        60,394
        
        397,790
        
        -
        
        -
        
        -Total
        $
        499,009
        $
        68,075
        $
        430,934
        $
        0
        $
        0
        $
        0






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 9,473,000 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 June 30, 2006 , the Company had owing to directors and officers payables in the amount of $1,165,013 (Dec 31, 2005 - $25,888). The directors and officers have agreed to defer payment indefinitely and there are no interest terms. Inter company balances of $ 19,613 between  the company  and SAGCA have been eliminated upon consolidation.



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.









Item 2.Managements Discussion and Analysis of Financial Conditions and Results of Operations

Plan of Operation



The registrant plans to operate in the aviation industry as a commercial airline, currently with some ground operations (Trucking/Hauling) pending income from its airline operations. A comprehensive business plan has been written and would be adopted by the management upon availability of the required funds.



Results of Operation



As at June 30, 2006, , the Company has a loss from operations of $150,873, an accumulated deficit of $1,238,414 and a working capital deficiency of $214,147. The increase in expenses are due to the Company nearing its operations.



Liquidity and Capital Resources



At June 30, 2006 the registrant held $469,049in assets, property & Equipment. The Company will rely upon the issuance of common stock and additional capital contributions from shareholders to fund expenses pending income from its operating company.




Item 3.
        Controls and Procedures


(a)
        Evaluation of disclosure controls and procedures.

Our Chief Executive Officer and Chief Financial Officer (collectively the Certifying Officers) maintain a system of disclosure controls and procedures that is designed to provide reasonable assurance that information, which is required to be disclosed, is accumulated and communicated to management timely. Under the supervision and with the participation of management, the Certifying Officers evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule [13a-14(c)/15d-14(c)]under the Exchange Act) within 90 days prior to the filing date of this report. Based upon that evaluation, the Certifying Officers concluded that our disclosure controls and procedures are effective in timely alerting them to material information relative to our company required to be disclosed in our periodic filings with the SEC.




(b)
        Changes in internal controls.

For the second quarter ending June 30, 2006, 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.







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.

None




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


(a)
        Exhibits


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


33.2 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.






SERVICE AIR GROUP, INC.


Date:
        Aug 21, 2006
        /s/Mohammad SultanMohammad SultanCFO and Director