U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  ________________________________  FORM 10-QSB  ________________________________  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended March 31, 2005  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    Noo  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     Noo  State the number of shares outstanding of each of the issuers classes of common equity, as of March 31, 2005: 9,375,000 shares of common stock.       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



BASIS OF PRESENTATION



The accompanying reviewed 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 March 31, 2005 are not necessarily indicative of results that may be expected for the mid-year ending June 30, 2005. The financial statements are presented on the accrual basis.









SERVICE AIR GROUP, INC.

(a development stage company)



INTERIM FINANCIAL STATEMENTS



MARCH 31, 2005











BALANCE SHEET
F-1

INTERIM STATEMENTS OF OPERATIONS
F-2

STATEMENT OF STOCKHOLDERS' EQUITY
F-3

INTERIM STATEMENTS OF CASH FLOWS
F-4

NOTES TO INTERIM FINANCIAL STATEMENTS
F-5









SERVICE AIR GROUP, INC.

BALANCE SHEET

As of March 31, 2005 and December 31, 2004



ASSETS



CURRENT ASSETS
March 31,

2005
December 31,

2004Cash
$
-
$
-OTHER CURRENT ASSETSAffiliated company receivable
$
12,746
$
12,746PROPERTY AND EQUIPMENTEquipment and office furniture

83,082

83,082Less: Accumulated depreciation

(33,523)

(33,523)Leasehold improvements

63,762

63,762Less: Accumulated amortization

(21,504)

(21,504)Total Property and Equipment
$
91,817
$
91,817OTHER ASSETSDeposit

1,574

1,574Aviation Policy and training manuals

134,698

134,698Licenses

43,372

43,372Total Other Assets

179,644

179,644$
284,207
$
284,207LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESAccounts payable and accrued liabilities
$
6,400
$
6,000STOCKHOLDERS EQUITY

(CAPITAL DEFICIENCY)Capital stock (Note 3)Preferred stock, $0.0001 par value,20,000,000 sharesIssued and outstanding are none

-

-Common stock, $0.0001 par value,100,000,000 sharesIssued and outstanding are 9,375,000 and9,375,000 shares of common stock,respectively

938

938Additional paid in capital

310,060

310,060Deficit accumulated during developmentstage

(33,191)

(32,791)277,807

278,207$
284,207
$
284,207



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



F-1







SERVICE AIR GROUP, INC.

(a development stage company)

STATEMENT OF OPERATIONS

For the three months ended March 31, 2005 and 2004, and

from inception (March 31, 2000) through March 31, 2005



Three Months Ended
Three Months Ended
From InceptionMar. 31, 2005
Mar. 31, 2004
To Mar. 31, 2005GENERAL AND ADMINISTRATIVE EXPENSESOffice and general
$
400
$
250
$
33,191NET LOSS FOR THE PERIOD
$
(400)
$
(250)
$
(33,191)BASIS NET LOSS PER SHARE
$
(0.00)
$
(0.00)WEIGHTED AVERAGECOMMON SHARES OUTSTANDING

9,375,000

5,250,000





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



F-2







SERVICE AIR GROUP, INC.

(a development stage company)

STATEMENT OF STOCKHOLDERS' EQUITY

FOR THE PERIOD FROM MARCH 31, 2000 (INCEPTION) TO MARCH 31, 2005





Common StockNumber of shares

Amount

Additional

Paid in

Capital

Deficit Accumulated

During

Development

Stage

Stockholders' Equity

(Capital Deficiency)Common stock issued for cash at $0.0001 per share
5,000,000
$
500
$
-
$
-
$
500Common stock issued for cash at $0.001 per share
250,000

25

225

-

250Net loss for the period March 31, 2000(inception) to December 31, 2000
-

-

-

(837)

(837)Balance, December 31, 2000
5,250,000

525

225

(837)

(87)Capital contributed by shareholders
-

-

124

-

124Net loss for the year
-

-

-

(926)

(926)Balance, December 31, 2001
5,250,000

525

349

(1,763)

(889)Capital contributed by shareholders
-

-

76

-

76Net loss for the year
-

-

-

(1,112)

(1,112)Balance, December 31, 2002
5,250,000

525

425

(2,875)

(1,925)Net loss for the year
-

-

-

(1,525)

(1,525)Balance, December 31, 2003
5,250,000

525

425

(4,400)

(3,450)Stock issued for the purchase ofAssets and revenues of Service AirGroup, Inc. of Canada for $0.08 per share
4,125,000

413

309,635



310,048Net loss for the year






(28,391)

(28,391)Balance, December31, 2004
9,375,000

938

310,060

(32,791)

278,207Net loss for the period(400)






(400)

(400)Balance, March 31, 2005
9,375,000
$
938
$
310,060
$
(33,191)
$
277,807The accompanying notes are an integral part of these financial statements.



F-3







SERVICE AIR GROUP, INC.

(a development stage company)

STATEMENTS OF CASH FLOWS

For the three months ended March 31, 2005 and 2004, and

from inception (March 31, 2000) through March 31, 2005





CASH FLOWS FROM OPERATING ACTIVITIES
Mar. 31, 2005
Mar. 31, 2004
March 31, 2000

(inception) to

March 31, 2005Net loss for the period
$
(400)
$
(250)
$
(33,191)Adjusted for items not involving cash:- Depreciation and Amortization

0

0

25,841- accounts payable

400

250

6,400NET CASH USED IN OPERATING ACTIVITIES

-

-

(950)CASH FLOWS FROM FINANCING ACTIVITIESBank overdraft

-

-

-Proceeds on sale of common stock

-

-

750Shareholder capital contributions

-

-

200NET CASH FLOWS FROM FINANCING ACTIVITIES

-

-

950INCREASE (DECREASE IN CASH)

-

-

-CASH BEGINNING OF PERIOD

-

-

-CASH END OF PERIOD
$
-
$
-
$
-



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



F-4






SEVICE AIR GROUP, INC.

(a development stage company)

NOTES TO THE FINANCIAL STATEMENTS



MARCH 31, 2005



NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION



Organization:



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



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.



Going concern:



The Company is in the initial development stage and has incurred losses since inception totaling $32,791. 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. The ability of the Company to continue as a going concern is dependent on raising capital to acquire a business venture and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company's ability to continue as a going concern.



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Use of Estimates and Assumptions:



Preparation of the Company's financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.



Cash and Cash Equivalents:



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



F-5









SEVICE AIR GROUP, INC.

(a development stage company)

NOTES TO THE FINANCIAL STATEMENTS



MARCH 31, 2005





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.



Leasehold Improvements:



Leasehold improvements are being amortized on a straight line method over the period of the lease term which is 5 years



Training Manuals:



The costs represent expenses for the development of manuals. Completion of the manuals is expected during 2005. An amortization policy will be set at that time.



License fees:



These costs represent license fees paid for the use of specific airplanes in Canada. Upon legal filing and granting of all licenses and permits an amortization policy will be established.



Fair Value of Financial Instruments:



In accordance with the requirements of SFAS No. 107, the Company has determined the estimated fair value of financial instruments using available market information and appropriate valuation methodologies. The fair value of financial instruments classified as current assets or liabilities approximate carrying value due to the short-term maturity of the instruments.



Net Loss per Common Share:



Basic earnings per share includes no dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Dilutive earnings per share reflects the potential dilution of securities that could share in the earnings of the Company. Because the Company does not have any potentially dilutive securities, the accompanying presentation is only of basic loss per share.



F-6





SERVICE AIR GROUP, INC.

NOTES TO THE FINANCIAL STATEMENTS

MARCH 31, 2005



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Income taxes:



The Company follows the liability method of accounting for income taxes. Under this method, future 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 balances. Future tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in whichthose differences are expected to be recovered or settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment. As at December 31, 2002 the Company had net operating loss carryforwards; however, due to the uncertainty of realization the Company has provided a full valuation allowance for the deferred tax
assets resulting from these loss carryforwards.



Stock-Based Compensation:



The Company accounts for stock-based compensation in respect to stock options granted to employees and officers using the intrinsic value based method in accordance with APB 25. Stock options granted to non-employees are accounted for using the fair value method in accordance with SFAS No. 123. In addition, with respect to stock options granted to employees, the Company provides pro-forma information as required by SFAS No. 123 showing the results of applying the fair value method using the Black-Scholes option pricing model.



The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with SFAS No. 123and the conclusions reached by the Emerging Issues Task Force in Issue No.96-18. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by EITF 96-18.



The Company has also adopted the provisions of the Financial Accounting Standards Board Interpretation No.44, Accounting for Certain Transactions Involving Stock Compensation - An Interpretation of APB Opinion No. 25 ("FIN44"), which provides guidance as to certain applications of APB 25. FIN 44 is generally effective July 1, 2000 with the exception of certain events occurring after December 15, 1998.





F-7




SERVICE AIR GROUP, INC.

NOTES TO THE FINANCIAL STATEMENTS

MARCH 31, 2005





NOTE 3 - CAPITAL STOCK



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.



The Company has 9,375,000 common shares issued and outstanding.



On September 8, 2004, the Company entered into an agreement with Service Air Group, A Canadian corporation, whereby the Company issued 4,125,000 shares of common stock For 100% of the Projected Net Income and 100% of the assets as of February 9, 2004 On Service Air Group, Inc.s financial statements. The value of the transaction Was determined to be $310,048, or $0.08 per share.



During the year ended December 31, 2002 the shareholders contributed an additional $76 in capital (2001 - $124).



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



NOTE 5 - INCOME TAXES



The Company has net operating loss carry-forwards which may be available to offset future taxable income. Due to the uncertainty of realization of these loss carry-forwards, a full valuation allowance has been provided for this deferred tax asset. These net operating losses expire as follows:



Year2020
$8372021
9262022
1,1122023
1,5252024
28,391Total
32,391



F-8




SERVICE AIR GROUP, INC.

NOTES TO THE FINANCIAL STATEMENTS

MARCH 31, 2005





Note 5  CONTINGENT LIABILITIES AND RELATED PART DISCLOSURE



The Company has entered into an arrangement with its affiliated company as described in note 3, Capital Stock. The stock issued represent a 44% holding ownership of the affiliated company.



The company has an auto which is used as collateral for a loan established by its affiliated company. The loan calls for payment of $756 per month and will expire during May of 2008.



The Company has a receivable from its affiliated company in the amount of $12,746.





F-9




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



Plan of Operation



We have an operating company, Service Air Group Inc. (BC, Canada), to implement our operating companys business plan, we would need fifteen Million United States Dollars (US$15,000,000) for which we may have to raise equity capital, there is no guarantee that we would be able to secure needed funds to implement our operational companys business plan.



Results of Operation



We did not have any operating income from inception (March 31, 2000) through March 31, 2005. For the quarter ended March 31, 2005, we recognized a net loss of $400. Some general and administrative expenses during the quarter were accrued. Expenses for the quarter were comprised of costs mainly associated with legal, accounting and office.



Liquidity and Capital Resources



At March 31, 2005, we had no capital resources and will rely upon the issuance of common stock and additional capital contributions from shareholders to fund administrative expenses pending income from our 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.

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

No reports on Form 8-K were filed during the quarter ended March 31, 2005.



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:
May 20, 2005
/s/ Jag DhillonJag DhillonPresident, CEO and Director