U. S. Securities and Exchange Commission
                          Washington, D. C.  20549


                                 FORM 10-QSB


[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

        For the quarterly period ended March 31, 1998

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

         For the transition period from                to
                                        --------------    ------------------


                         Commission File No. 0-22711


                            NATIONAL AIR CORPORATION
                 (Name of Small Business Issuer in its Charter)


             Nevada                                  87-05065948
   (State or Other Jurisdiction of             (I.R.S. Employer I.D. No.)
    incorporation or organization)


                         5525 SOUTH 900 EAST, SUITE 110
                           Salt Lake City, Utah 84117
                    (Address of Principal Executive Offices)

                    Issuer's Telephone Number: (801) 262-8844


     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the  Securities  Exchange Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

(1)  Yes  X  No             (2)  Yes  X    No
        ----    ----                 ----      ----

     APPLICABLE ONLY TO ISSUERS  INVOLVED IN BANKRUPTCY  PROCEEDINGS  DURING THE
PRECEDING FIVE YEARS

     Check whether the Issuer has filed all documents and reports required to be
filed by Sections 12, 13 or 15(d) of the Exchange Act after the  distribution of
securities under a Plan confirmed by a court. Yes__X___ No ______






<PAGE>



     APPLICABLE  ONLY  TO  CORPORATE  ISSUERS  Indicate  the  number  of  shares
outstanding  of each of the  Registrant's  classes  of common  stock,  as of the
latest practicable date:

                                  March 31, 1998
                              Common Voting Stock
                                     737,505

                                 March 31, 1998
                              Preferred - Class A
                                 March 26, 1998
                                      -0-

                                 March 31, 1998
                              Preferred - Class B
                                 March 26, 1998
                                      -0-



PART I - FINANCIAL INFORMATION

Item 1.Financial Statements.

     The Financial  Statements of the Registrant  required to be filed with this
10-QSB  Quarterly  Report  were  prepared  by  management  and  commence  on the
following page,  together with related Notes. In the opinion of management,  the
Financial Statements fairly present the financial condition of the Registrant.


Item 2.Management's Discussion and Analysis or Plan of Operation.

Plan of Operation.

     The Company has not engaged in any material operations in the period ending
March 31, 1998, or since  approximately 1992. The Company intends to continue to
seek out the acquisition of assets,  property or business that may be beneficial
to the Company and its stockholders.

     The Company's only foreseeable cash requirements  during the next 12 months
will relate to maintaining the Company in good standing in the State of Delaware
and keeping its reports  "current" with the Securities and Exchange  Commission.
Management  does not anticipate  that the Company will have to raise  additional
funds during the next 12 months.

Results of operations.
----------------------

     The Company has had no  operations  since  approximately 1992.  During the
quarterly period covered by this Report, the Company received no revenue and had
no expenses.

<PAGE>


PART II - OTHER INFORMATION

Item 1.Legal Proceedings.
-------------------------

None; not applicable.

Item 2.Changes in Securities.
-----------------------------

None; not applicable.

Item 3.Defaults Upon Senior Securities.
---------------------------------------

None; not applicable.

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

     No matter was submitted to a vote of security holders of the Company during
the  period  covered by this Report.

Item 5.Other Information.
-------------------------

None; not applicable.

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

(a)Exhibits.*

<TABLE>
<S>            <C>
27             Financial Data Schedule

</TABLE>


(b)Reports on Form 8-K.

None; not applicable.

     *A summary of any Exhibit is modified in its  entirety by  reference to the
actual Exhibit.



<PAGE>
<TABLE>
<CAPTION>

                            NATIONAL AIR CORPORATION
                                 BALANCE SHEETS
                                 March 31, 1998

                                                                      3/31/98   
                                                                  ----------------   
                                                                     [Unaudited]
<S>                                                            <C>     <C>          
ASSETS

     TOTAL ASSETS                                               $               0   
                                                                  ================    

                       LIABILITIES & STOCKHOLDERS' EQUITY

LIABILITIES

      Current Liabilities                                                     275
      Loans from Stockholders                                   $           6,360  
                                                                  ----------------   
          Total Liabilities                                                 6,635             
                                                                  ----------------    

               

STOCKHOLDERS' DEFICIT
     Preferrec stock
       Class A, $.25 par value; authorized
       1,000,000 shares; 0 issued
       Class B, $.10 par value; authorized 
       1,000,000 shares; 0 isssued
     Common Stock, $.001 par value;
       authorized 20,000,000 shares; issued
       and outstanding 737,505 shares                                         738                
       Additional paid-in capital                                          57,469             
       Accumulated Deficit                                                (64,842)            
                                                                  ----------------    
          Total Stockholder's Deficit                                      (6,635)             

                                                                  ----------------    
          Total Liabilities and 
            Stockholders Defecit                                $               0  
                                                                  ================   

</TABLE>


     NOTE TO FINANCIAL  STATEMENTS:  Interim  financial  statements  reflect all
adjustments  which  are,  in the  opinion  of  management,  necessary  to a fair
statement of the results for the periods.  These  interim  financial  statements
conform with the requirements for interim financial  statements and consequently
do not include all the  disclosures  normally  required  by  generally  accepted
accounting principles.

<PAGE>
<TABLE>
<CAPTION>

                            NATIONAL AIR CORPORATION
                            STATEMENTS OF OPERATIONS
            For the Three Month Periods Ended March 31, 1998 and 1997

                                             Three Months          Three Months        
                                                 Ended                 Ended              
                                               3/31/98                3/31/98            
                                          -------------------   -------------------  
                                              [Unaudited]           [Unaudited]        
<S>                                      <C>     <C>           <C>         <C>    
REVENUE
      Income                             $                  0  $                  0 
                                          -------------------   -------------------   
NET REVENUE                                                 0                     0   

OPERATING EXPENSES
      Office Expenses                                      85                   253   
      Professional Fees                                   944                 1,369  
                                          -------------------   -------------------  
TOTAL OPERATING EXPENSES                                1,029                 1,622   

                                          -------------------   -------------------   
NET INCOME/(LOSS)                        $             (1,029) $             (1,622)
                                          ===================   ===================   
NET LOSS PER SHARE                       $             (0.01)                 (0.01)  
                                          ===================   ===================   

WEIGHTED AVERAGE NUMBER OF SHARES
  OUTSTANDING                                         737,505               737,505   
                                          ===================   ===================   
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                            NATIONAL AIR CORPORATION
                            STATEMENTS OF CASH FLOWS
            For the Three Month Periods Ended March 31, 1998 and 1997

                                                              Three Months         Three Months        
                                                                  Ended                Ended             
                                                                 3/31/98              3/31/97            
                                                             ----------------     ----------------   
                                                               [Unaudited]          [Unaudited]        

<S>                                                       <C>                   <C>                  
Cash Flows Used For Operating Activities
---------------------------------------------------------
  Net Loss                                                 $          (1,029)   $          (1,622) 
  Adjustments to reconcile net loss to net cash
    used in operating activities:
  Increase/(Decrease) in loans from shareholder                        1,029                1,622
                                                             ----------------     ----------------  
      Net Cash Used For Operating Activities                               0                    0             
                                                             ================     ================   

Cash Flows Provided by Financing Activities                                0                    0               
---------------------------------------------------------    ----------------     ----------------   
     Net Increase In Cash                                                  0                    0

     Beginning Cash Balance                                                0                    0

     Ending Cash Balance                                                   0                    0
                                                             ================     ================
          
</TABLE>


<PAGE>

SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                   NATIONAL AIR CORPORATION



Date: 4/13/98                     /S/ JEFF D. JENSON             
                                  Jeffrey D. Jenson, Director and President



Date: 4/13/98                     /S/ NICK LOVATO
                                  Nick Lovato, Director and Vice President



Date: 4/13/98                     /S/ KIRSTEN LOVATO
                                  Kirsten Lovato, Director, Secretary/TR