U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________  FORM 10-QSB ________________________________  xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended June 30, 2007  oTRANSITION 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 Jersey22-3719171(State or other jurisdiction ofincorporation 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 June 30, 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 interim financial information and the instructions to Form 10-QSB 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 June 30, 2007 are not necessarily indicative of results that may be expected for the period ending on September 30, 2007. The financial statements are presented on the accrual basis.                         SERVICE AIR GROUP, INC. (A Development Stage Company)  INTERIM FINANCIAL STATEMENTS  JUNE 30, 2007  Stated in US Dollars  Unaudited  Prepared by Management                         Service Air Group, Inc.
(A Development Stage Company)Statement 1Interim Balance SheetsUnaudited  Prepared by managementUS Funds  ASSETSJune 30, 2007December 31, 2006CurrentInterest receivable$                                     -$                           6,405Equipment ( Note 3 )1,586688Note receivable ( Note 6 )213,632227,400$                       215,218$                      234,493LIABILITIESCurrentAccounts payable and accrued liabilities$                          13,320$                         11,407Due to related party ( Note 5 )84,93050,92398,25062,330STOCKHOLDERS EQUITYCapital stock ( Note 4 )548548Additional paid in capital232,802232,802Deficit ( Statement 2)(116,382)(61,187)(116,968)172,163$                       215,218$                      234,493  Organization and Going Concern ( Note 1 )   ON BEHALF OF THE BOARD:  /s/Mohammad Sultan, Director  , Director   The accompanying notes are an integral part of these financial statements.           Service Air Group, Inc.
(A Development Stage Company)Statement 2Interim Statements of LossFor the Three and Six Months Ended June 30Unaudited  Prepared by managementUS Funds  Three Months ended June 30Six Months ended June 30Cumulative from Incorporation March 31, 2000 to June 30, 20072007200620072006ExpensesAccounting and auditing$              1,700$                      -$           5,700$             10,450$                26,786Legal and professional21,44313,86725,3226,06635,440Bad debts27,042-27,042-27,042Automotive8395,2901,16510,46723,461Depreciation4474118148588Filing and listing fees2,3881,6396,1862,11013,403Transfer/resident agents--727-727Office rent101-197-197Website, phone and fax402-707-707Traveling and meetings510-510-510Miscellaneous--795-79554,46920,87068,46929,241129,656Interest income(3,458)(490)(13,274)(490)(13,274)Net loss$            51,011$          20,380$         55,195$             28,751$              116,382Net loss per share  basic and diluted0.010.000.010.01Weighted average number of shares outstanding5,482,4005,482,4005,482,0005,323,900  Interim Statements of DeficitFor the Three and Six Months Ended June 30Unaudited  Prepared by managementUS Funds  Three Months ended June 30Six Months ended June 30Cumulative from Incorporation March 31, 2000 to June 30, 20072007200620072006Deficit, beginning of period$            65,371$          34,225$         61,187$             25,854$                            -Net loss51,01120,38055,19528,751116,382Deficit, end of period$         116,382$          54,605$       116,382$             54,605$              116,382  The accompanying notes are an integral part of these financial statements.    Service Air Group, Inc.
(A Development Stage Company)Statement 3Interim Statements of Stockholders EquityUnaudited  Prepared by managementUS Funds   Common StockSharesAmountAdditional Paid-In CapitalAccumulated DeficitTotalIncorporation, March 30, 2000$                   -$              -$                -$                      -$                       -Stock issued for cash at $0.0001 per share5,000,000500-500Stock issued for cash at $0.001 per share250,00025225-250Development stage net loss---(837)(837)Balance December 31, 20005,250,000525225(837)(87)Capital contributed by shareholders--124-124Development stage net loss---(926)(926)Balance December 31, 20015,250,000525349(1,763)(889)Capital contributed by shareholders--76-76Development stage net loss---(1,112)(1,112)Balance December 31, 20025,250,000525425(2,875)(1,925)Development stage net loss---(1,525)(1,525)Balance December 31, 20035,250,000525425(4,400)(3,450)Development stage net loss---(7,556)(7,556)Balance December 31, 20045,250,000525425(11,956)(11,006)Development stage net loss---(13,898)(13,898)Balance December 31, 20055,250,000525425(25,854)(24,904)Stock issued for cash at $ 1.00
per share232,40023232,377-232,400Development stage net loss---(35,333)(35,333)Balance December 31, 20065,482,400548232,802(61,187)172,163Development stage net loss---(55,195)(55,195)Balance June 30, 20075,482,400$               548$       232,802$         (116,382)$          116,968    The accompanying notes are an integral part of these financial statements.       Service Air Group, Inc.
(A Development Stage Company)Statement 4Interim Statements of Cash FlowsFor the Three and Six Months Ended June 30Unaudited  Prepared by managementUS Funds  Three Months ended June 30Six Months ended June 30Cumulative from Incorporation March 31, 2000 to June 30, 20072007200620072006Cash provided by (used in)Operating activitiesNet loss$          (51,011)$       (20,380)$       (55,195)$          (28,751)$           (116,382)Depreciation4474118148588Allowances for bad debts27,042-33,447-27,042Change in non cash working
capital(2,354)13,42311,36113,42346(26,279)(6,883)(32,991)(15,180)(88,706)Investing activitiesInvestment in note receivable----(227,400)Purchase of equipment(1,016)-(1,016)-(2,174)(1,016)-(1,016)-(229,574)Financing activitiesProceeds from sale of common
stock----233,350Advances from related party27,2956,88334,00715,18084,93027,2956,88334,00715,180318,280Increase in cash-----Cash, beginning of period-----Cash, end of period-----    The accompanying notes are an integral part of these financial statements.           Service Air Group, Inc.
(A Development Stage Company)Notes to Interim Financial StatementsJune 30, 2007Unaudited  Prepared by managementUS 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 June 30, 2007, the Company has a loss from operations of $55,195, an accumulated deficit of $116,382 and a working capital deficiency of $13,320. The Company intends to fund operations through equity financing agreements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the next twelve months.  Thereafter, the Company will be required to seek additional funds, either through debt and/or equity financing, to finance its long-term operations. The successful outcome of future activities cannot be determined at this time, and there has been no assurance that, if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.  These factors, among others, raise substantial doubt about the Companys ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.  2. Significant Accounting Policies and Basis of Presentation  These interim financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2006.  These interim financial statements are presented in United States dollars and have been prepared in accordance with United States generally accepted accounting principles following the same accounting policies and methods as the annual financial statements.  These interim financial statements include all adjustments which in the opinion of management are necessary in order to make the financial statements not misleading.  For a complete description of the Companys significant accounting policies, please refer to the significant accounting policies in the Companys most recent annual report (10-KSB) filed with the Securities and Exchange Commission.  3. Equipment  June 30, 2007December 31, 2006CostAccumulated DepreciationNet Book ValueCostAccumulated DepreciationNet Book ValueComputer Equipment$ 2,174$ 588$ 1,586$ 1,158$ 470$ 688     Service Air Group, Inc.
(A Development Stage Company)Notes to Interim Financial StatementsJune 30, 2007Unaudited  Prepared by managementUS Funds   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 and outstanding.  c) The Company has not granted any stock options and has not recorded any stock-based compensation.   5. Due to Related Party  As of June 30, 2007, the Company owed $84,930 (December 31, 2006 - $50,923) to a director and officer of the Company.  The director and officer has agreed to defer payment indefinitely and there are no interest terms.   6. Note Receivable  Total note receivable 227,400 Less:      Allowance for uncollectible receivable 13,768 213,632  As of June 30, 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 June 30, 2007, management has recorded an allowance for impairment loss on the note receivable of $13,768 and on interest receivable of $13,274.         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 interim period ended June 30, 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 June 30, 2007. For the period ended June 30, 2007, we had a loss from operations of $51,011, as compare to $ 28,750, for the period ended June 30, 2006, an accumulated deficit of $116,382, as compare to $ 54,604 for the period ended June 30, 2006, and a working capital deficiency of $ 116,968 as compare to $ 94,146 for the period ended June 30, 2006. Some general and administrative expenses during the period ended June 30, 2007 were accrued comprised of costs mainly associated with legal, accounting, filings and transportation.  Liquidity and Capital Resources  As of June 30, 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 June 30, 2007, Mr. Sultan had loaned $ 84,930 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 June 30, 2007, we held $215,218 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.     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 June 30, 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.            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  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:August 17, 2007/s/Mohammad SultanMohammad SultanCEO, CFO and Director