| [X]            | Quarterly      Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|----------------|---------------------------------------------------------------------------------------------------|
|           |                                                                                              |
|           | For      the quarterly period ended October 31,      2009                                         |
|           |                                                                                              |
| [  ] | Transition      Report pursuant to 13 or 15(d) of the Securities Exchange Act of      1934        |
|           |                                                                                              |
|           | For      the transition period   to __________                                          |
|           |                                                                                              |
|           | Commission      File Number:  333-145794                                                |

| Nevada                                                              | 26-0164981                             |
|---------------------------------------------------------------------|----------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (IRS      Employer Identification No.) |

| 7437 S. Eastern Ave., #307, Las Vegas,      Nevada  89123-1538 |
|--------------------------------------------------------------------------|
| (Address      of principal executive offices)                            |

| 702-885-3072                                                                                       |
|----------------------------------------------------------------------------------------------------|
| (Issuer’s      telephone number)                                                             |
|  _____________________________________________________________________                        |
| (Former      name, former address and former fiscal year, if changed since last      report)  |

| [ ]      Large accelerated filer[ ]      Non-accelerated filer | [ ]      Accelerated filer[X]      Smaller reporting company |
|----------------------------------------------------------------|--------------------------------------------------------------|
|                                                           |                                                         |

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Table of Contents

|                                          | TABLE OF      CONTENTS                                                                           |   Page |
|-----------------------------------------------|--------------------------------------------------------------------------------------------------|------------------|
| PART I – FINANCIAL INFORMATION     |
| Item 1:                                       | Financial Statements                                                                             | 3                |
| Item 2:                                       | Management’s Discussion and Analysis of Financial Condition and      Results of Operations | 4                |
| Item 3:                                       | Quantitative and Qualitative Disclosures About Market      Risk                                  |        7    |
| Item 4T:                                      | Controls and Procedures                                                                          |  7          |
|  PART II – OTHER INFORMATION  |
| Item 1:                                       | Legal Proceedings                                                                                |        8    |
| Item 1A:                                      | Risk Factors                                                                                     |  8          |
| Item 2:                                       | Unregistered Sales of Equity Securities and Use of      Proceeds                                 |        8    |
| Item 3:                                       | Defaults Upon Senior Securities                                                                  |        8    |
| Item 4:                                       | Submission of Matters to a Vote of Security      Holders                                         |        8    |
| Item 5:                                       | Other Information                                                                                |        8    |
| Item 6:                                       | Exhibits                                                                                         |        9    |

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Item1

| Our      financial statements included in this Form 10-Q are as      follows:  |
|-------------------------------------------------------------------------------------|
|  F-1                                                                           |  Balance      Sheets as of October 31, 2009 (unaudited) and July 31,    2009; |
|  F-2                                                                           |  Statements      of Operations for the three months ended October 31, 2009 and 2008 and      from inception on May 1, 2007 through October 31, 2009      (unaudited); |
|  F-3                                                                           |  Statements      of Stockholders’ Equity as of October 31, 2009  (unaudited); |
|  F-4                                                                           |  Statements      of Cash Flows for the three months ended October 31, 2009 and 2008 and      from inception on May 1, 2007 through October 31, 2009      (unaudited); |
|  F-5                                                                           |  Notes      to Financial Statements. |

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| AVIATION      SURVEILLANCE SYSTEMS, INC                                     |             |
|-----------------------------------------------------------------------------|------------------|
| (Formerly      Fairytale Ventures Inc.)                                     |             |
| (A      Development Stage Company)                                          |             |
| Balance      Sheets                                                         |             |
|                                                                        |             |
|                                                                        |             |   |   |   |   |   |
|                                                                        |             |   |   |   |   |   |
| ASSETS                                                                      |             |
|                                                                        |             |   |   |   |   |   |
|                                                                        | October      31, |   | July      31, |   |
|                                                                        | 2009             |   | 2009 |   |
|                                                                        | (unaudited)      |   | (audited) |   |
|                                                                        |             |   |   |   |   |   |
| CURRENT      ASSETS                                                         |             |   |   |   |   |   |
|                                                                        |             |   |   |   |   |   |
| Cash                                                                        |             | $ | 1,638 |   |   | $ | 1,638 |   |
|                                                                        |             |   |   |   |   |   |   |   |
| Total      Current Assets                                                   |             |   | 1,638 |   |   |   | 1,638 |   |
|                                                                        |             |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                           |             | $ | 1,638 |   |   | $ | 1,638 |   |
|                                                                        |             |   |   |   |   |   |   |   |
|                                                                        |             |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      DEFICIT                                  |             |
|                                                                        |             |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                    |             |   |   |   |   |   |   |   |
|                                                                        |             |   |   |   |   |   |   |   |
| Notes      payable - related party                                          |             | $ | 1,000 |   |   | $ | 1,000 |   |
| Accounts      payable and accrued expenses                                  |             |   | 113,191 |   |   |   | 69,148 |   |
|                                                                        |             |   |   |   |   |   |   |   |
| Total      Current Liabilities                                              |             |   | 114,191 |   |   |   | 70,148 |   |
|                                                                        |             |   |   |   |   |   |   |   |
| STOCKHOLDERS'      DEFICIT                                                  |             |   |   |   |   |   |   |   |
|                                                                        |             |   |   |   |   |   |   |   |
| Preferred      stock - $0.001 par value; 10,000,000 shares                  |             |   |   |   |   |   |   |   |
|    authorized;      no shares issued and outstanding         |             |   | - |   |   |   | - |   |
| Common      stock - $0.001 par value; 90,000,000 shares                     |             |   |   |   |   |   |   |   |
|    authorized;      16,488,827 shares issued and outstanding |             |   | 16,489 |   |   |   | 16,489 |   |
| Additional      paid-in capital                                             |             |   | (264 | ) |   |   | (264 | ) |
| Deficit      accumulated during the development stage                       |             |   | (128,778 | ) |   |   | (84,735 | ) |
|                                                                        |             |   |   |   |   |   |   |   |
| Total      Stockholders' Deficit                                            |             |   | (112,553 | ) |   |   | (68,510 | ) |
| TOTAL      LIABILITIES AND                                                  |             |   |   |   |   |   |   |   |
|   STOCKHOLDERS'      DEFICIT                                      |             | $ | 1,638 |   |   | $ | 1,638 |   |
|                                                                        |             |   |   |   |   |   |   |   |

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| AVIATION      SURVEILLANCE SYSTEMS, INC  |                            |
|------------------------------------------|---------------------------------|
| (Formerly      Fairytale Ventures, Inc.) |                            |
| (A      Development Stage Company)       |                            |
| Statements      of Operations            |                            |
| (Unaudited)                              |                            |
|                                     |                            |   |   |   |   |   |   |   |   |
|                                     |                            |   |   |   |   |   |   |   |   |
|                                     |                            |   |   |   |   |   |   |   |   |
|                                     |                            |   |   |   |   |   |   |   |   |
|                                     |                            |   |   |   |   | From      Inception |   |
|                                     |                            |   |   |   | on      May 1, |   |
|                                     | For      the Three Months Ended |   | 2007      Through |   |
|                                     | October      31,                |   | October      31, |   |
|                                     | 2009                            |   | 2008 |   | 2009 |   |
|                                     |                            |   |   |   |   |   |   |   |   |
| REVENUES                                 |                            | $ | - |   |   | $ | - |   |   | $ | 200 |   |
| COST      OF GOODS SOLD                  |                            |   | - |   |   |   | - |   |   |   | - |   |
| GROSS      MARGIN                        |                            |   | - |   |   |   | - |   |   |   | 200 |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                  |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative          |                            |   | 44,020 |   |   |   | 4,324 |   |   |   | 128,792 |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| Total      Operating Expenses            |                            |   | 44,020 |   |   |   | 4,324 |   |   |   | 128,792 |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      EXPENSES                      |                            |   |   |   |   |   |   |   |   |   |   |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense                    |                            |   | 23 |   |   |   | 20 |   |   |   | 186 |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS BEFORE INCOME TAXES        |                            |   | (44,043 | ) |   |   | (4,344 | ) |   |   | (128,778 | ) |
| INCOME      TAX EXPENSE                  |                            |   | - |   |   |   | - |   |   |   | - |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                            |                            | $ | (44,043 | ) |   | $ | (4,344 | ) |   | $ | (128,778 | ) |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      LOSS PER SHARE                |                            | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER             |                            |   |   |   |   |   |   |   |   |   |   |   |
|   OF      SHARES OUTSTANDING   |                            |   | 16,488,827 |   |   |   | 10,305,517 |   |   |   |   |   |
|                                     |                            |   |   |   |   |   |   |   |   |   |   |   |

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| AVIATION      SURVEILLANCE SYSTEMS, INC      |   |
|----------------------------------------------|--------|
| (Formerly      Fairytale Ventures, Inc.)     |   |
| (A      Development Stage Company)           |   |
| Statements      of Stockholders' Deficit     |   |
| (Unaudited)                                  |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |   |   |   |   |   |   |   |   |   | Deficit |   |   |   |   |
|                                         |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                         |   |   |   |   |   |   |   | Additional |   |   | During      the |   |   |   |   |
|                                         |   | Common      Stock |   |   | Paid-In |   |   | Development |   |   |   |   |
|                                         |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Total |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      May 1, 2007                     |   |   | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed      capital                     |   |   | - |   |   |   | - |   |   |   | 300 |   |   |   | - |   |   |   | 300 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for cash                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  at      $0.001 per share               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  on      May 14, 2007                   |   |   | 11,798,803 |   |   |   | 11,799 |   |   |   | (7,799 | ) |   |   | - |   |   |   | 4,000 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for cash                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  at      $0.004 per share               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  on      June 22, 2007                  |   |   | 4,690,024 |   |   |   | 4,690 |   |   |   | 7,235 |   |   |   | - |   |   |   | 11,925 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss from inception                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    through      July 31, 2007 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (153 | ) |   |   | (153 | ) |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      July 31, 2007                  |   |   | 16,488,827 |   |   |   | 16,489 |   |   |   | (264 | ) |   |   | (153 | ) |   |   | 16,072 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss for the year                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   ended      July 31, 2008         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (15,709 | ) |   |   | (15,709 | ) |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      July 31, 2008                  |   |   | 16,488,827 |   |   |   | 16,489 |   |   |   | (264 | ) |   |   | (15,862 | ) |   |   | 363 |   |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss for year ended                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    ended      July 31, 2009   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (68,873 | ) |   |   | (68,873 | ) |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      July 31, 2009                  |   |   | 16,488,827 |   |   |   | 16,489 |   |   |   | (264 | ) |   |   | (84,735 | ) |   |   | (68,510 | ) |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss for the three months           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   ended      October 31, 2009      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (44,043 | ) |   |   | (44,043 | ) |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      October 31, 2009                |   |   | 16,488,827 |   |   | $ | 16,489 |   |   | $ | (264 | ) |   | $ | (128,778 | ) |   | $ | (112,553 | ) |
|                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| AVIATION      SURVEILLANCE SYSTEMS, INC                                              |   |
|--------------------------------------------------------------------------------------|--------|
| (Formerly      Fairytale Ventures, Inc).                                             |   |
| (A      Development Stage Company)                                                   |   |
| Statements      of Cash Flows                                                        |   |
| (Unaudited)                                                                          |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   | From      Inception |   |
|                                                                                 |   |   |   |   |   |   |   | on      May 1, |   |
|                                                                                 |   | For      the Three Months Ended |   |   | 2007      Through |   |
|                                                                                 |   | October      31, |   |   | October      31, |   |
|                                                                                 |   | 2009 |   |   | 2008 |   |   | 2009 |   |
| OPERATING      ACTIVITIES                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                        |   | $ | (44,043 | ) |   | $ | (4,344 | ) |   | $ | (128,778 | ) |
| Adjustments      to reconcile net loss to                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   net      cash used by operating activities:                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes      in operating assets and liabilities:                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      (decrease) in accounts payable                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   and      accrued expenses                                                |   |   | 44,043 |   |   |   | 3,107 |   |   |   | 113,191 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Used in                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|    Operating      Activities                                          |   |   | - |   |   |   | (1,237 | ) |   |   | (15,587 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                            |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from common stock issued                                               |   |   | - |   |   |   | - |   |   |   | 16,225 |   |
| Increase      in notes payable-related parties                                       |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Provided by                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Financing      Activities                                          |   |   | - |   |   |   | - |   |   |   | 17,225 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH                                                 |   |   | - |   |   |   | (1,237 | ) |   |   | 1,638 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AT BEGINNING OF PERIOD                                                     |   |   | 1,638 |   |   |   | 9,075 |   |   |   | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AT END OF PERIOD                                                           |   | $ | 1,638 |   |   | $ | 7,838 |   |   | $ | 1,638 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOW INFORMATION                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      PAID FOR:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                             |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Income      Taxes                                                                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements. |   |

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| ExhibitNumber |  Description      of Exhibit                                                                                                                                                        |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1           | Articles      of Incorporation (1)                                                                                                                                                       |
| 3.2           | Bylaws      (1)                                                                                                                                                                          |
| 31.1          | Certification of Chief Executive Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                              |
| 31.2          | Certification of Chief Financial Officer pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                              |
| 32.1          | Certification of Chief Executive Officer and Chief      Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant      to Section 906 of the Sarbanes-Oxley Act of  2002 |

| 1   | Incorporated      by reference to Registration Statement on Form SB-2 filed August 30,      2007. |
|---------------|---------------------------------------------------------------------------------------------------|

|   | Aviation      Surveillance Systems, Inc.                                                                                                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                        |
| Date:  | December      11, 2009                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                        |
|   | By:      /s/Anusha Kumar             Anusha      KumarTitle:    Chief      Executive Officer andDirector |

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