----

----

**U.S.        SECURITIES AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**________________________________**

**AMENDMENT        NO. 1 TO 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, 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**

**SERVICE        AIR GROUP, INC.**

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

| **New                  Jersey**                                                | **22-3719171**                                        |
|--------------------------------------------------------------------------------|-------------------------------------------------------|
| (State                  or other jurisdiction ofincorporation or organization) | (I.R.S.                  Employer Identification No.) |

**(604)        722-2147**

----

**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.**

**INTERIM        FINANCIAL STATEMENTS**

**JUNE        30, 2007**

----

| **Service                    Air Group, Inc.***(A                    Development Stage Company)* | Statement                    1 |
|--------------------------------------------------------------------------------------------------|--------------------------------|
| **Interim                    Balance Sheets**                                                    |                           |
| *Unaudited                    – Prepared by management*                               |                           |
| *US                    Funds*                                                                    |                           |
|                                                                                             |                           |

| **ASSETS**                                                              |   | **June                    30, 2007** |         |    | December                    31, 2006 |   |
|-------------------------------------------------------------------------|--------|-------------------------------------------|--------------|---------|--------------------------------------|--------|
| **Current**                                                             |   |                                      |         |    |                                 |   |
|  Interest                      receivable                          |   | **$**                                     | **-**        |    |                                 | $      | 6,405 |   |
|                                                                    |   |                                      |         |    |                                 |   |   |   |
|                                                                    |   | ** **                                |         |    |                                 |   |   |   |
| Equipment                      ( Note 3 )                          |   | ** **                                | **1,586**    |    |                                 |   | 688 |   |
| Note                      receivable ( Note 6 )               |   | ** **                                | **213,632**  |    |                                 |   | 227,400 |   |
|                                                                    |   |                                      |         |    |                                 |   |   |   |
|                                                                    |   | **$**                                     | **215,218**  |    |                                 | $      | 234,493 |   |
|                                                                    |   |                                      |         |    |                                 |   |   |   |
|                                                                    |   |                                      |         |    |                                 |   |   |   |
| **LIABILITIES**                                                         |   | ** **                                |         |    |                                 |   |   |   |
| **Current**                                                             |   | ** **                                |         |    |                                 |   |   |   |
| ** **Accounts                      payable and accrued liabilities |   | **$**                                     | **13,320**   |    |                                 | $      | 11,407 |   |
|                                                                    |   | ** **                                |         |    |                                 |   |   |   |
|                                                                    |   | ** **                                |         |    |                                 |   |   |   |
| Due                      to related party ( Note 5 )               |   | ** **                                | **84,930**   |    |                                 |   | 50,923 |   |
|                                                                    |   | ** **                                | **98,250**   |    |                                 |   | 62,330 |   |
|                                                                    |   | ** **                                |         |    |                                 |   |   |   |
| **STOCKHOLDERS’                      EQUITY**                     |   | ** **                                |         |    |                                 |   |   |   |
| Capital                      stock ( Note 4 )                           |   | ** **                                | **548**      |    |                                 |   | 548 |   |
| Additional                      paid in capital                         |   | ** **                                | **232,802**  |    |                                 |   | 232,802 |   |
| Deficit                      ( Statement 2)                             |   | ** **                                | **(116,382** | )  |                                 |   | (61,187 | ) |
|                                                                    |   | ** **                                | **116,968**  |    |                                 |   | 172,163 |   |
|                                                                    |   | ** **                                |         |    |                                 |   |   |   |
|                                                                    |   | **$**                                     | **215,218**  |    |                                 | $      | 234,493 |   |

**Organization          and Going Concern ( Note 1 )**

*/s/Mohammad          Sultan*

----

| **Service                      Air Group, Inc.***(A                      Development Stage Company)* | Statement                      2 |
|------------------------------------------------------------------------------------------------------|----------------------------------|
| **Interim                      Statements of Loss**                                                  |                             |
| **For                      the Three and Six Months Ended June 30**                                  |                             |
| *Unaudited                      – Prepared by management*                                 |                             |
| *US                      Funds*                                                                      |                             |

|                                                               |   | **Three                      Months ended June 30** |          |   | **Six                      Months ended June 30** |   |      | **Cumulative                      from Incorporation March 31, 2000 to June 30,                      2007** |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------------|---------------|--------|---------------------------------------------------|--------|-----------|-------------------------------------------------------------------------------------------------------------|--------|
|                                                               |   | **2007**                                            |          |   | 2006                                              |   |      | **2007**                                                                                                    |   |   | 2006 |   |   |   |   |
| Expenses                                                           |   |                                                |          |   |                                              |   |      |                                                                                                        |   |   |   |   |   |   |   |
| Accounting                      and auditing                       |   | **$**                                               | **1,700**     |   |                                              | $      | -         |                                                                                                        |   | **$** | **5,700** |   |   | $ | 10,450 |   |   | $ | 26,786 |   |
| Legal                      and professional                        |   | ** **                                          | **21,443**    |   |                                              |   | 13,867    |                                                                                                        |   | ** ** | **25,322** |   |   |   | 6,066 |   |   |   | 35,440 |   |
| Bad                      debts                                     |   | ** **                                          | **27,042**    |   |                                              |   | -         |                                                                                                        |   | ** ** | **27,042** |   |   |   | - |   |   |   | 27,042 |   |
| Automotive                                                         |   | ** **                                          | **839**       |   |                                              |   | 5,290     |                                                                                                        |   | ** ** | **1,165** |   |   |   | 10,467 |   |   |   | 23,461 |   |
| Depreciation                                                       |   | ** **                                          | **44**        |   |                                              |   | 74        |                                                                                                        |   | ** ** | **118** |   |   |   | 148 |   |   |   | 588 |   |
| Filing                      and listing fees                       |   | ** **                                          | **2,388**     |   |                                              |   | 1,639     |                                                                                                        |   | ** ** | **6,186** |   |   |   | 2,110 |   |   |   | 13,403 |   |
| Transfer/resident                      agents                      |   | ** **                                          | **-**         |   |                                              |   | -         |                                                                                                        |   | ** ** | **727** |   |   |   | - |   |   |   | 727 |   |
| Office                      rent                                   |   | ** **                                          | **101**       |   |                                              |   | -         |                                                                                                        |   | ** ** | **197** |   |   |   | - |   |   |   | 197 |   |
| Website,                      phone and fax                        |   | ** **                                          | **402**       |   |                                              |   | -         |                                                                                                        |   | ** ** | **707** |   |   |   | - |   |   |   | 707 |   |
| Traveling                      and meetings                        |   | ** **                                          | **510**       |   |                                              |   | -         |                                                                                                        |   | ** ** | **510** |   |   |   | - |   |   |   | 510 |   |
| Miscellaneous                                                      |   | ** **                                          | **-**         |   |                                              |   | -         |                                                                                                        |   | ** ** | **795** |   |   |   | - |   |   |   | 795 |   |
|                                                               |   | ** **                                          | **54,469**    |   |                                              |   | 20,870    |                                                                                                        |   | ** ** | **68,469** |   |   |   | 29,241 |   |   |   | 129,656 |   |
|                                                               |   |                                                |          |   |                                              |   |      |                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                      income                               |   | ** **                                          | **(3,458**    | **)**  |                                              |   | (490      | )                                                                                                           |   | ** ** | **(13,274** | **)** |   |   | (490 | ) |   |   | (13,274 | ) |
|                                                               |   |                                                |          |   |                                              |   |      |                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                      loss                                      |   | **$**                                               | **51,011**    |   |                                              | $      | 20,380    |                                                                                                        |   | **$** | **55,195** |   |   | $ | 28,751 |   |   | $ | 116,382 |   |
| Net                      loss per share – basic and diluted  |   | ** **                                          | **0.01**      |   |                                              |   | 0.00      |                                                                                                        |   | ** ** | **0.01** |   |   |   | 0.01 |   |   |   |   |   |
| Weighted                      average number of shares outstanding |   | ** **                                          | **5,482,400** |   |                                              |   | 5,482,400 |                                                                                                        |   | ** ** | **5,482,400** |   |   |   | 5,323,900 |   |   |   |   |   |
|                                                               |   |                                                |          |   |                                              |   |      |                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |

| **Interim                      Statements of Deficit**               |   |
|----------------------------------------------------------------------|--------|
| **For                      the Three and Six Months Ended June 30**  |   |
| *Unaudited                      – Prepared by management* |   |
| *US                      Funds*                                      |   |

|                                              |   | **Three                      Months ended June 30** |        |   | **Six                      Months ended June 30** |   |   | **Cumulative                      from Incorporation March 31, 2000 to June 30,                      2007** |   |
|---------------------------------------------------|--------|-----------------------------------------------------|-------------|--------|---------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------|--------|
|                                              |   | **2007**                                            |        |   | 2006                                              |   |   | **2007**                                                                                                    |   |   | 2006 |   |   |   |   |
|                                              |   |                                                |        |   |                                              |   |   |                                                                                                        |   |   |   |   |   |   |   |
| Deficit,                      beginning of period |   | **$**                                               | **65,371**  |   |                                              | $      | 34,225 |                                                                                                        |   | **$** | **61,187** |   |   | $ | 25,854 |   |   | $ | - |   |
| Net                      loss                     |   | ** **                                          | **51,011**  |   |                                              |   | 20,380 |                                                                                                        |   | ** ** | **55,195** |   |   |   | 28,751 |   |   |   | 116,382 |   |
| Deficit,                      end of period       |   | **$**                                               | **116,382** |   |                                              | $      | 54,605 |                                                                                                        |   | **$** | **116,382** |   |   | $ | 54,605 |   |   | $ | 116,382 |   |

----

| **Service                    Air Group, Inc.***(A                    Development Stage Company)* | Statement                    3 |
|--------------------------------------------------------------------------------------------------|--------------------------------|
| **Interim                    Statements of Stockholders’ Equity**                     |                           |
| *Unaudited                    – Prepared by management*                               |                           |
| *US                    Funds*                                                                    |                           |

|                                                                           |   | Common                    Stock                                     Shares                                                      Amount |      |   | Additional                    Paid-in Capital |   |   | Accumulated                    Deficit |   |   | Total   |   |
|--------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|-----------------------------------------------|--------|--------|----------------------------------------|--------|--------|---------|--------|
| Incorporation,                    March 30, 2000                               |   |                                                                                                                                                                                                                                                                                                                                                                                                  | -         |   |                                          | $      | -      |                                   |   | $      | -       |   |   | $ | - |   |   | $ | - |   |
| Stock                    issued for cash at $0.0001 per share                  |   |                                                                                                                                                                                                                                                                                                                                                                                                  | 5,000,000 |   |                                          |   | 500    |                                   |   |   | -       |   |   |   | - |   |   |   | 500 |   |
| Stock                    issued for cash at $0.001 per share                   |   |                                                                                                                                                                                                                                                                                                                                                                                                  | 250,000   |   |                                          |   | 25     |                                   |   |   | 225     |   |   |   | - |   |   |   | 250 |   |
| Development                    stage net loss                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                  | -         |   |                                          |   | -      |                                   |   |   | -       |   |   |   | (837 | ) |   |   | (837 | ) |
| Balance                    December 31, 2000                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                  | 5,250,000 |   |                                          |   | 525    |                                   |   |   | 225     |   |   |   | (837 | ) |   |   | (87 | ) |
|                                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                  |      |   |                                          |   |   |                                   |   |   |    |   |   |   |   |   |   |   |   |   |
| Capital                    contributed by shareholders                         |   |                                                                                                                                                                                                                                                                                                                                                                                                  | -         |   |                                          |   | -      |                                   |   |   | 124     |   |   |   | - |   |   |   | 124 |   |
| Development                    stage net loss                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                  | -         |   |                                          |   | -      |                                   |   |   | -       |   |   |   | (926 | ) |   |   | (926 | ) |
| Balance                    December 31, 2001                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                  | 5,250,000 |   |                                          |   | 525    |                                   |   |   | 349     |   |   |   | (1,763 | ) |   |   | (889 | ) |
|                                                                           |   |                                                                                                                                                                                                                                                                                                                                                                                                  |      |   |                                          |   |   |                                   |   |   |    |   |   |   |   |   |   |   |   |   |
| Capital                    contributed by shareholders                         |   |                                                                                                                                                                                                                                                                                                                                                                                                  | -         |   |                                          |   | -      |                                   |   |   | 76      |   |   |   | - |   |   |   | 76 |   |
| Development                    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 $ 1.00per                    share |   |                                                                                                                                                                                                                                                                                                                                                                                                  | 232,400   |   |                                          |   | 23     |                                   |   |   | 232,377 |   |   |   |   |   |   | $ | 232,400 |   |
| Development                    stage net loss                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                  | -         |   |                                          |   | -      |                                   |   |   | -       |   |   |   | (35,333 | ) |   |   | (35,333 | ) |
| Balance                    December 31, 2006                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                  | 5,482,400 |   |                                          |   | 548    |                                   |   |   | 232,802 |   |   |   | (61,187 | ) |   |   | 172,163 |   |
| Development                    stage net loss                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                  | -         |   |                                          |   | -      |                                   |   |   | -       |   |   |   | (55,195 | ) |   |   | (55,195 | ) |
| Balance                    June 30, 2007                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                  | 5,482,400 |   |                                          | $      | 548    |                                   |   | $      | 232,802 |   |   | $ | (116,382 | ) |   | $ | 116,968 |   |

----

| **Service                    Air Group, Inc.***(A                    Development Stage Company)* | Statement                    4 |
|--------------------------------------------------------------------------------------------------|--------------------------------|
| **Interim                    Statements of Cash Flows**                                          |                           |
| **For                    the Three and Six Months Ended June 30**                                |                           |
| *Unaudited                    – Prepared by management*                               |                           |
| *US                    Funds*                                                                    |                           |

|                                                  |   | **Three                    Months ended June 30** |        |   | **Six                    Months ended June 30** |   |    | **Cumulative                    from Incorporation****March                    31, 2000 to June 30,** |   |
|-------------------------------------------------------|--------|---------------------------------------------------|-------------|--------|-------------------------------------------------|--------|---------|-------------------------------------------------------------------------------------------------------|--------|
| **Cash                    provided by (used in)**     |   | **2007**                                          |        |   | 2006                                            |   |    | **2007**                                                                                              |   |   | 2006 |   |   |  **2007** |   |
|                                                  |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |
| Operating                    activities               |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |
| Net                    loss                           |   | **$**                                             | **(51,011** | **)**  |                                            | $      | (20,380 | )                                                                                                |   | **$** | **(55,195** | **)** |   | $ | (28,751 | ) |   | $ | (116,382 | ) |
| Depreciation                                          |   | ** **                                        | **44**      |   |                                            |   | 74      |                                                                                                  |   | ** ** | **118** |   |   |   | 148 |   |   |   | 588 |   |
| Allowances                    for bad debts           |   | ** **                                        | **27,042**  |   |                                            |   | -       |                                                                                                  |   | ** ** | **33,447** |   |   |   | - |   |   |   | 27,042 |   |
| Change                    in non cash working capital |   | ** **                                        | **(2,354**  | **)**  |                                            |   | 13,423  |                                                                                                  |   | ** ** | **11,361** |   |   |   | 13,423 |   |   |   | 46 |   |
|                                                  |   | ** **                                        | **(26,279** | **)**  |                                            |   | (6,883  | )                                                                                                     |   | ** ** | **(32,991** | **)** |   |   | (15,180 | ) |   |   | (88,706 | ) |
|                                                  |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Investing                    activities               |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                    in note receivable      |   | ** **                                        | **-**       |   |                                            |   | -       |                                                                                                  |   | ** ** | **-** |   |   |   | - |   |   |   | (227,400 | ) |
| Purchase                    of equipment              |   | ** **                                        | **(1,016**  | **)**  |                                            |   | -       |                                                                                                  |   | ** ** | **(1,016** | **)** |   |   | - |   |   |   | (2,174 | ) |
|                                                  |   | ** **                                        | **(1,016**  | **)**  |                                            |   | -       |                                                                                                  |   | ** ** | **(1,016** | **)** |   |   | - |   |   |   | (229,574 | ) |
|                                                  |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing                    activities               |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                    from sale of common stock |   | ** **                                        | **-**       |   |                                            |   | -       |                                                                                                  |   | ** ** | **-** |   |   |   | - |   |   |   | 233,350 |   |
| Advances                    from related party        |   | ** **                                        | **27,295**  |   |                                            |   | 6,883   |                                                                                                  |   | ** ** | **34,007** |   |   |   | 15,180 |   |   |   | 84,930 |   |
|                                                  |   | ** **                                        | **27,295**  |   |                                            |   | 6,883   |                                                                                                  |   | ** ** | **34,007** |   |   |   | 15,180 |   |   |   | 318,280 |   |
|                                                  |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase                    in cash                   |   | ** **                                        | **-**       |   |                                            |   | -       |                                                                                                  |   | ** ** | **-** |   |   |   | - |   |   |   | - |   |
|                                                  |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash,                    beginning of period          |   | ** **                                        | **-**       |   |                                            |   | -       |                                                                                                  |   | ** ** | **-** |   |   |   | - |   |   |   | - |   |
|                                                  |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash,                    end of period                |   | ** **                                        | **-**       |   |                                            |   | -       |                                                                                                  |   | ** ** | **-** |   |   |   | - |   |   |   | - |   |
|                                                  |   |                                              |        |   |                                            |   |    |                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

| **Service                  Air Group, Inc.***(A                  Development Stage Company)* |   |
|----------------------------------------------------------------------------------------------|--------|
| **Notes                  to Interim Financial Statements**                                   |   |
| **June                  30, 2007**                                                           |   |
| *Unaudited                  – Prepared by management*                             |   |
| *US                  Funds*                                                                  |   |

| **1.** | **Organization                  and Going Concern** |
|--------|-----------------------------------------------------|

| **2.** | **Significant                  Accounting Policies and Basis of                  Presentation** |
|--------|-------------------------------------------------------------------------------------------------|

| **3.** | **Equipment** |
|--------|---------------|

|                                  |   | **June                    30, 2007** |      |   | **December                    31, 2006**    |   |
|---------------------------------------|--------|--------------------------------------|-----------|--------|---------------------------------------------|--------|
|                                  |   | Cost                                 |      |   | Accumulated                    Depreciation |   |   | **Net                    Book Value** |   |   | Cost |   |   | Accumulated                    Depreciation |   |   | Net                    Book Value |   |
| Computer                    Equipment |   | **$**                                | **2,174** |   |                                        | **$**  | **588** |   |   | **$** | **1,586** |   |   | $ | 1,158 |   |   | $ | 470 |   |   | $ | 688 |   |

----

| **Service                  Air Group, Inc.***(A                  Development Stage Company)* |   |
|----------------------------------------------------------------------------------------------|--------|
| **Notes                  to Interim Financial Statements**                                   |   |
| **June                  30, 2007**                                                           |   |
| *Unaudited                  – Prepared by management*                             |   |
| *US                  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 commonshares                  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** |
|--------|-------------------------------------------|

| **6.** | **Note                  Receivable** |
|--------|--------------------------------------|

| **Total                  note receivable**                                                           |   | ** ** | **227,400** |   |
|------------------------------------------------------------------------------------------------------|--------|------------|-------------|--------|
| **Less:      Allowance                  for uncollectible receivable** |   | ** ** | **13,768**  |   |
|                                                                                                 |   | ** ** | **213,632** |   |

----

**Item        2.**
**Management**
**’**
**s        Discuss**
**ion and Analysis of Financial Conditions and Results of        Operations**

**Plan        of Operation**

**Results        of Operation**

**Liquidity        and Capital Resources**

**Item        3.   Controls and Procedures**

**(a)           Evaluation        of disclosure controls and        procedures.**

** **

**(b)          Changes        in internal        controls.**

----

**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        of Form        8-K.**

**SIGNATURES**

|   |                                   | **SERVICE                  AIR GROUP, INC.** |
|--------|----------------------------------------|----------------------------------------------|
|   |                                   |                                         |
| Date:  | August 17,                  2007  | /s/                  *Mohammad Sultan*       |
|   | Mohammad                  Sultan       |                                         |
|   | CEO,                  CFO and Director |                                         |