EXHIBIT A
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month September-00
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Sep-00
Current Calculation Date 11-Sep-00
Previous Payment Date 15-Aug-00
Previous Calculation Date 9-Aug-00
--------------------------------------------------------------------------------
<TABLE>
1. Account Activity Summary between Calculation Dates
----------------------------------------------------------------------------------------------
Prior Deposits Withdrawals Balance on
Balance Calculation Date
9-Aug-00 11-Sep-00
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expense Account 98,980.33 4,714,023.94 (2,758,123.78) 2,054,880.49
Collection Account 18,835,856.12 26,610,194.97 (18,835,856.12) 26,610,194.97
Aircraft Purchase Account - - - -
Liquidity Reserve cash balance 48,309,891.00 250,000.00 (200,000.00) 48,359,891.00
----------------------------------------------------------------------------------------------
Total 67,244,727.45 31,574,218.91 (21,793,979.90) 77,024,966.46
----------------------------------------------------------------------------------------------
2. Analysis of Expenses Account Activity
----------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 98,980.33
Transfer from Collection Account on previous Payment Date 4,702,573.04
Permitted Aircraft Accrual -
Interim Transfer from Collection Account -
Transfers from Aircraft Purchase Account -
Interest Income 11,450.90
Balance on current Calculation Date
- Payments on previous payment date (702,573.04)
- Interim payments (2,055,550.74)
- Other
----------------------------------------------------------------------------------------------
Balance on current Calculation Date 2,054,880.49
----------------------------------------------------------------------------------------------
3. Analysis of Collection Account Activity
----------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 18,835,856.12
Collections during period
- Lease rentals 21,638,079.37
- Maintenance reserves 3,602,988.31
- Other leasing income 1,011,710.26
- Interest income 357,417.03
- Lease rental received in error -
- Interim transfer to Expense A/C -
Transfers from Aircraft Purchase Account -
Drawings under Credit or Liquidity Enhancement Facilities -
Repayment of Drawings under Credit or Liquidity Enhancement Facilities -
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (4,702,573.04)
- Permitted Aircraft Modifications -
Net Swap payments on previous Payment Date 39,481.92
Aggregate Note Payments on previous Payment Date (14,172,765.00)
----------------------------------------------------------------------------------------------
Balance on current Calculation Date 26,610,194.97
----------------------------------------------------------------------------------------------
Analysis of Liquidity Reserve Amount
First Collection Account Reserve 30,000,000.00
Cash Held
- Accrued Expenses 2,054,880.49
- Security Deposits 18,359,891.00 20,414,771.49
Morgan Stanley Facility 30,000,000.00
ILFC Facility
- Letter of Credit 20,000,000.00
-Security Deposits 20,730,851.00 40,730,851.00
-----------------
Liquidity Reserve Amount 121,145,622.49
-----------------
Minimum Liquidity Reserve Amount 30,000,000.00
----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month September-00
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Sep-00
Current Calculation Date 11-Sep-00
Previous Payment Date 15-Aug-00
Previous Calculation Date 9-Aug-00
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Balance in Collection Account 26,610,194.97
Liquidity Reserve Amount 121,145,622.49
-----------------
Available Collections 147,755,817.46
=================
3. Analysis of Collection Account Activity (Continued)
---------------------------------------------------------------------------------------------------------------
Analysis of Current Payment Date Distributions
(i) Required Expense Amount
- Servicer Fee 727,474.45
- Administration Agent Fee 99,350.63
- Other Service Providers 12,500.01
- Accrued Expenses 3,100,000.00
------------------
Total Required Expense Amount 3,939,325.10
(ii) a) Class A Interest but excluding Step-up 8,415,550.43
b) Swap Payments other than subordinated swap payments (14,854.18)
(iii)a) Repayment of Primary Eligible Credit Facilities -
b) First Collection Account top-up (Minimum liquidity reserve $30 m) 30,000,000.00
(iv) Class A Minimum principal payment -
(v) Class B Interest 1,039,144.88
(vi) Class B Minimum principal payment 358,703.89
(vii) Class C Interest 1,012,585.00
(viii) Class C Minimum principal payment -
(ix) Class D Interest 797,500.00
(x) Class D Minimum principal payment -
(xi)a) Secondary Eligible Credit Facilities (ILFC and Morgan Stanley Facilities) -
b) Second collection account top-up 91,145,622.49
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal 209,886.06
(xiv) Class C Scheduled principal 80,000.00
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications
(xvii) Step-up interest -
(xviii) Beneficial interest -
(xix) Class A Supplemental principal 10,772,353.79
(xx) Class B Supplemental principal -
(xxi) Class D Redemption Price -
(xxii) Class C Redemption Price -
(xxiii) Class B Redemption Price -
(xxiv) Class A Redemption Price -
(xxv) Subordinated Swap payments -
(xxvi) all remaining amounts to holders of Beneficial interests
Total Payments with respect to Payment Date 147,755,817.46
less collection Account Top Ups (iii) (b) and (xi) (b) above 121,145,622.49
-----------------
26,610,194.97
=================
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month September-00
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Sep-00
Current Calculation Date 11-Sep-00
Previous Payment Date 15-Aug-00
Previous Calculation Date 9-Aug-00
--------------------------------------------------------------------------------
<TABLE>
4. Payments on the Notes by Subclass
-------------------------------------------------------------------------------------------------------------------------
Subclass Subclass Subclass Subclass Total
Floating Rate Notes A-2 A-3 A-4 A-5 Class A
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Applicable LIBOR 6.61875% 6.61875% 6.61875% 6.61875%
Applicable Margin 0.3500% 0.5200% 0.5400% 0.5800%
Applicable Interest Rate 6.96875% 7.13875% 7.15875% 7.19875%
Day Count Act/360 Act/360 Act/360 Act/360
Actual Number of Days 31 31 31 31
Interest Amount Payable 1,309,463.72 3,565,409.03 1,232,895.83 2,307,781.85
Step-up Interest Amount Payable NA NA NA NA
-------------------------------------------------------------------------------------------------------------------------
Total Interest Paid 1,309,463.72 3,565,409.03 1,232,895.83 2,307,781.85 8,415,550.43
-------------------------------------------------------------------------------------------------------------------------
Expected Final Payment Date 15-Sep-05 15-Mar-02 15-Mar-03 15-Jun-08
Excess Amortization Date 15-Apr-98 15-Mar-02 15-Mar-03 15-Apr-00
-------------------------------------------------------------------------------------------------------------------------
Original Balance 340,000,000.00 580,000,000.00 200,000,000.00 400,000,000.00
Opening Outstanding Principal Balance 218,212,383.69 580,000,000.00 200,000,000.00 372,287,512.41 1,370,499,896.10
-------------------------------------------------------------------------------------------------------------------------
Extended Pool Factors 78.02% 100.00% 100.00% 100.00%
Pool Factors 67.77% 100.00% 100.00% 92.61%
-------------------------------------------------------------------------------------------------------------------------
Extension Amount - - - -
Pool Factor Amount - - - 1,847,512.41
Surplus Amortisation 3,308,422.71 - - 5,616,418.68
-------------------------------------------------------------------------------------------------------------------------
Total Principal Distribution Amount 3,308,422.71 - - 7,463,931.09 10,772,353.80
-------------------------------------------------------------------------------------------------------------------------
Redemption Amount
- amount allocable to principal
- amount allocable to premium
-------------------------------------------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 214,903,960.98 580,000,000.00 200,000,000.00 364,823,581.32 1,359,727,542.30
-------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Subclass Subclass Total
Floating Rate Notes B-1 B-2 Class B
--------------------------------------------------------------------------------------
Applicable LIBOR 6.6188% 6.6188%
Applicable Margin 0.6500% 1.0500%
Applicable Interest Rate 7.26875% 7.66875%
Day Count Act/360 Act/360
Actual Number of Days 31 31
Interest Amount Payable 543,871.44 495,273.44
Step-up Interest Amount Payable NA NA
--------------------------------------------------------------------------------------
Total Interest Paid 543,871.44 495,273.44 1,039,144.88
--------------------------------------------------------------------------------------
Expected Final Payment Date 15-Mar-13 15-Mar-07
Excess Amortisation Date 15-Apr-98 15-Mar-07
--------------------------------------------------------------------------------------
Original Balance 100,000,000.00 75,000,000.00
Opening Outstanding Principal Balance 86,891,507.32 75,000,000.00 161,891,507.32
--------------------------------------------------------------------------------------
Extended Pool Factors 94.12% 100.00%
Pool Factors 90.07% 99.99%
--------------------------------------------------------------------------------------
Extension Amount - -
Pool Factor Amount - 7,500.00
Surplus Amortisation 561,089.95 -
--------------------------------------------------------------------------------------
Total Principal Distribution Amount 561,089.95 7,500.00 568,589.95
--------------------------------------------------------------------------------------
Redemption Amount
- amount allocable to principal
- amount allocable to premium
--------------------------------------------------------------------------------------
Closing Outstanding Principal Balance 86,330,417.37 74,992,500.00 161,322,917.37
--------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------- ----------------
Subclass Subclass Total Subclass
Fixed Rate Notes C-1 C-2 Class C D-1
-------------------------------------------------------------------------------------- ----------------
Applicable Interest Rate 6.90000% 9.60000% 8.70000%
Day count 30 / 360 30 / 360 30 / 360
Number of Days 30 30 30
Interest Amount Payable 572,585.00 440,000.00 797,500.00
-------------------------------------------------------------------------------------- ----------------
Total Interest Paid 572,585.00 440,000.00 1,012,585.00 797,500.00
-------------------------------------------------------------------------------------- ----------------
Expected Final Payment Date 15-Mar-13 15-Oct-16 15-Mar-14
Excess Amortisation Date 15-Mar-13 15-Oct-16 15-Mar-10
Original Balance 100,000,000.00 55,000,000.00 110,000,000.00
Opening Outstanding Principal Balance 99,580,000.00 55,000,000.00 154,580,000.00 110,000,000.00
-------------------------------------------------------------------------------------- ----------------
Extended Pool Factors 100.00% 100.00% 100.00%
Expected Pool Factors 99.50% 100.00% 100.00%
-------------------------------------------------------------------------------------- ----------------
Extended Amount - - -
Expected Pool Factor Amount 80,000.00 - -
Surplus Amortisation - -
-------------------------------------------------------------------------------------- ----------------
Total Principal Distribution Amount 80,000.00 - 80,000.00 -
-------------------------------------------------------------------------------------- ----------------
Redemption Amount - - -
- amount allocable to principal - - -
- amount allocable to premium - - -
------------------------------------------------------------------------------------- ----------------
Closing Outstanding Principal Balance 99,500,000.00 55,000,000.00 154,500,000.00 110,000,000.00
------------------------------------------------------------------------------------ ----------------
</TABLE>
<PAGE>
MORGAN STANLEY AIRCRAFT FINANCE
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month September-00
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Sep-00
Current Calculation Date 11-Sep-00
Previous Payment Date 15-Aug-00
Previous Calculation Date 9-Aug-00
--------------------------------------------------------------------------------
5. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 15-Sep-00
End of Interest Accrual Period 16-Oct-00
Reference Date 12-Oct-00
<TABLE>
------------------------------------------------------------------------------------------------------------------------------
A-2 A-3 A-4 A-5 B-1 B-2
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Applicable LIBOR 6.62125% 6.62125% 6.62125% 6.62125% 6.62125% 6.62125%
Applicable Margin 0.3500% 0.5200% 0.5400% 0.5800% 0.6500% 1.0500%
Applicable Interest Rate 6.9713% 7.1413% 7.1613% 7.2013% 7.2713% 7.6713%
Actual Pool Factor 63.21% 100.00% 100.00% 91.21% 86.33% 99.99%
------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Fixed Rate Notes C-1 C-2 D-1
--------------------------------------------------------------------------------------
Actual Pool Factor 99.50% 100.00% 100.00%
--------------------------------------------------------------------------------------
6. Payments per $ 100,000 Initial Outstanding Principal Balance of Notes
------------------------------------------------------------------------------------------------------------------------------
(a) Floating Rate Notes A-2 A-3 A-4 A-5 B-1 B-2
------------------------------------------------------------------------------------------------------------------------------
Opening Outstanding Principal Balance 64,180.11 100,000.00 100,000.00 93,071.88 86,891.51 100,000.00
Total Principal Payments 973.07 - - 1,865.98 561.09 10.00
Closing Outstanding Principal Balance 63,207.05 100,000.00 100,000.00 91,205.90 86,330.42 99,990.00
Total Interest 385.14 614.73 616.45 576.95 543.87 660.36
Total Premium 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
(b) Fixed Rate Notes C-1 C-2 D-1
--------------------------------------------------------------------------------------
Opening Outstanding Principal Balance 99,580.00 100,000.00 100,000.00
Total Principal Payments 80.00 - -
Closing Outstanding Principal Balance 99,500.00 100,000.00 100,000.00
Total Interest 572.59 800.00 725.00
Total Premium - - -
--------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
MORGAN STANLEY AIRCRAFT FINANCE
Cumulative Performance to Date - March 15, 2000 to September 15, 2000
-----------------------------------------------------------------------------------------------------------------------------------
All amounts in millions of U.S. Dollars amounts expressed as a percentage
dollars unless otherwise stated 2000 Base Case Lease Rentals
------------------------------------------------------------------------------------- ------------------------------------------
Cumulative to Date Cumulative to Date
Actual Base Case Variance Actual Base Case Variance
------------------------------------------------------------------------------------- -----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CASH COLLECTIONS
[1] Lease Rentals 125.0 125.0 0.0 100.0% 100.0% 0.0%
[2] - Renegotiated Leases - - - 0.0%
[3] - Rental Resets (0.0) - (0.0) 0.0%
------------------------------ ------------------------------------------
[4] S [1]...[3] Contracted Lease Rentals 125.0 125.0 (0.0) 100.0% 100.0% 0.0%
[5] Movement in Current Arrears Balance (2.4) - (2.4) -2.0% 0.0% -2.0%
less Net Stress-related Costs
[6] - Bad Debts - 0.0%
[7] - Security Deposits Draw Down - 0.0%
[8] - Restructured Arrears - 0.0%
[9] - AOG (3.2) -2.5%
[10] - Other Leasing Income 5.6 4.4%
[11] - Repossession Costs (0.4) -0.3%
------------------------------ ------------------------------------------
[12] S [6]...[11] sub-total 2.0 (5.6) 7.6 1.6% -4.5% 6.1%
[13] [4]+[5]+[12] NetLease Rentals 124.5 119.4 5.1 99.6% 95.5% 4.1%
[14] Interest Earned 1.9 1.2 0.7 1.5% 0.9% 0.6%
Maintenance Receipts 14.5 - 14.5 11.6% 0.0% 11.6%
Maintenance Payments (15.5) - (15.5) -12.4% 0.0% -12.4%
[15] Net Maintenance (1.0) - (1.0) -0.8% 0.0% -0.8%
[16] S [13]...[15] Total Cash Collections 125.4 120.6 4.9 100.3% 96.4% 3.9%
------------------------------ ------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses
[17] - Insurance (0.5) -0.4% -0.4%
[18] - Re-leasing and other overheads (0.6) -0.5% -0.5%
------------------------------ ------------------------------------------
[19] [17]+[18] sub-total (1.2) (1.0) (0.2) -0.9% -0.8% -0.1%
SG&A Expenses
Aircraft Servicer Fees
- Base Fee (1.3) -1.1%
- Rent Collected Fee (1.5) -1.2%
- Rent Contracted Fee (1.2) -0.9%
- Incentive Fee - 0.0%
------------------------------ ------------------------------------------
[20] sub-total (4.0) (4.2) 0.2 -3.2% -3.4% 0.2%
Cabot (1.3) (0.6) (0.7) -1.1% -0.5% -0.6%
Other Service Providers (0.0) (0.4) 0.3 0.0% -0.3% 0.3%
------------------------------ ------------------------------------------
[21] sub-total (1.4) (1.0) (0.4) -1.1% -0.8% -0.3%
[22] S [19]...[21] Total Cash Expenses (6.6) (6.2) (0.4) -5.3% -5.0% -0.3%
------------------------------ ------------------------------------------
NET CASH COLLECTIONS
[23] [16] Total Cash Collections 125.4 120.6 4.9 100.3% 96.4% 3.9%
[24] [22] Total Cash Expenses (6.6) (6.2) (0.4) -5.3% -5.0% -0.3%
[25] Drawings from Expense Account 7.2 - 7.2 5.8% 0.0% 5.8%
[26] Transfer to Expense Acccount (9.6) - (9.6) -7.7% 0.0% -7.7%
[27] Interest Payments (66.1) (62.4) (3.6) -52.8% -49.9% -2.9%
[28] Swap Payments (1.6) (5.1) 3.4 -1.3% -4.1% 2.7%
[29] Exceptional Items - - - 0.0% 0.0% 0.0%
------------------------------ ------------------------------------------
[30] S [23]...[29] TOTAL 48.7 46.8 1.9 39.0% 37.5% 1.5%
============================== ==========================================
[31] PRINCIPAL PAYMENTS
subclass A2 9.7 9.6 0.2 7.8% 7.6% 0.1%
subclass A3 - - - 0.0% 0.0% 0.0%
subclass A4 - - - 0.0% 0.0% 0.0%
subclass A5 35.2 33.5 1.7 28.1% 26.8% 1.3%
subclass B1 3.5 3.4 0.1 2.8% 2.7% 0.1%
subclass B2 0.0 0.0 - 0.0% 0.0% 0.0%
subclass C1 0.3 0.4 (0.0) 0.3% 0.3% 0.0%
subclass C2 - - - 0.0% 0.0% 0.0%
subclass D1 - - - 0.0% 0.0% 0.0%
------------------------------ ------------------------------------------
Total 48.7 46.8 1.9 39.0% 37.5% 1.5%
============================== ==========================================
Debt Balances
-------------
subclass A2 215.0 215.1 0.2
subclass A3 580.0 580.0 -
subclass A4 200.0 200.0 -
subclass A5 364.8 366.5 1.7
subclass B1 86.2 86.3 0.1
subclass B2 75.0 75.0 -
subclass C1 99.5 99.5 (0.0)
subclass C2 55.0 55.0 -
subclass D1 110.0 110.0 -
------------------------------
TOTAL 1,785.5 1,787.4 1.9
==============================
</TABLE>
<PAGE>
<TABLE>
MORGAN STANLEY AIRCRAFT FINANCE
Cumulative Performance to Date - March 15, 2000 to September 15, 2000
-----------------------------------------------------------------------------------------------------------------------------------
Coverage Ratios 2000
--------------- Closing Actual Base Case
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Cash Collections 48.7 46.8
Add Back Interest 66.1 62.4
-----------------
Add Back Swap Payments 1.6 5.1
----------------------
a Net Cash Collections 116.4 114.3
b Swaps 1.6 5.1
c Class A Interest 49.1 45.9
d Class A Minimum 5.8 4.8
e Class B Interest 6.1 5.7
f Class B Minimum 2.6 2.6
g Class C Interest 6.1 6.1
h Class C Minimum - -
I Class D Interest 4.8 4.8
j Class D Minimum - -
k Class A Scheduled 0.8 0.1
l Class B Scheduled 0.8 0.8
m Class C Scheduled 0.4 0.4
n Class D Scheduled - -
o Permitted Aircraft Modifications - -
p Class A Supplemental 38.4 38.1
------------ --------------
Total 116.4 114.3
------------ --------------
[1] Interest Coverage Ratio
Class A 2.29 2.24 = a / (b+c)
Class B 1.86 1.86 = a / (b+c+d+e)
Class C 1.63 1.63 = a / (b+c+d+e+f+g)
Class D 1.53 1.53 = a / (b+c+d+e+f+g+h+i)
[2] Debt Coverage Ratio
Class A 1.51 1.52 = a / (b+c+d+e+f+g+h+i+j+k)
Class B 1.50 1.51 = a / (b+c+d+e+f+g+h+i+j+k+l)
Class C 1.49 1.50 = a / (b+c+d+e+f+g+h+i+j+k+l+m)
Class D 1.49 1.50 = a / (b+c+d+e+f+g+h+i+j+k+l+m+n)
Loan-to-Value Ratios
--------------------
-------------------------------------------------------------------------
2000 Base Case Actual 2000 Base Case
15-Mar-00 15-Sep-00 15-Sep-00
-------------------------------------------------------------------------
<S> <C> <C> <C>
[3] Assumed Portfolio Value 2,000.9 1,959.3 1,959.3
Liquidity Reserve Amount
Cash 30.0 30.0 30.0
- Accrued Expenses 6.0 5.2 5.2
- Security Deposits 7.1 18.4 18.4
----------- ------------ --------------
subtotal cash 43.1 53.5 53.5
Letters of Credit 82.1 70.7 70.7
----------- ------------ --------------
Total Liquidity Reserve 125.2 124.2 124.2
[4] Total Asset Value 2,126.1 2,083.5 2,083.5
Note Balance
Class A 1,404.7 66.1% 1,359.8 65.3% 1,361.6 65.4%
Class B 164.7 73.8% 161.2 73.0% 161.3 73.1%
Class C 154.9 81.1% 154.5 80.4% 154.5 80.5%
Class D 110.0 86.3% 110.0 85.7% 110.0 85.8%
------------ ------------ --------------
Total 1,834.3 1,785.5 1,787.4
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
[1] Interest Coverage Ratio is equal to Net Cash Collections, before Interest
and swap payments, expressed as a ratio of the swap costs and interest payable
on each subclass of Notes plus the interest and minimum principal payments
payable on each subclass of Notes that rank senior in priority of payment to
the relevant subclass of Notes.
[2] Debt Service Ratio is equal to Net Cash Collections before interest and
swap payments, expressed as a ratio of the interest and minimum and scheduled
principal payments payable on each subclass of Notes plus the interest and
minimum and scheduled principal payments payable on each subclass of Notes that
ranks equally with or senior to the relevant subclass of Notes in the priority
of payments.
[3] Assumed Portfolio Value represents the Initial Appraised Value of each
aircraft in the Portfolio multiplied by the Depreciation Factor at Calculation
date divided by the Depreciation Factor at Closing date.
[4] Total Asset Value is equal to Total Portfolio Value plus Liquidity Reserve
Amount
<PAGE>
<TABLE>
------------------------------------------------------------------------------------------------------------------------------------
Note: Report Line Name Description
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH COLLECTIONS
[1] Lease Rentals Assumptions per the March 2000 Prospectus
[2] - Renegotiated Leases Change in contracted rental cash flow caused by a renegotiated lease
[3] - Rental Resets Re-leasing events where new lease rate deviated from the 2000 Base Case
[4] S [1]...[3] Contracted Lease Rentals Current Contracted Lease Rentals due as at the latest Calculation Date
[5] Movement in Current Arrears Balance Current contracted lease rentals not received as at the latest Calculation
Date, excluding Bad debts
less Net Stress-related Costs
[6] - Bad Debts Arrears owed by former lessees and deemed irrecoverable.
[7] - Security Deposits Drawn Down Current arrears that have been capitalized and restructured as a Note
Payable.
[8] - Restructured Arrears Security deposits received following a lessee default
[9] - AOG Lost of rental due to an aircraft being off-lease and non-revenue earning
[10] - Other Leasing Income Includes lease termination payments, rental guarantees and late payments
charges
[11] - Repossession Costs Legal and technical costs incurred in repossessing aircraft
[12] S [6]...[11] sub-total
[13] [4]+[5]+[12] Net Lease Rentals Contracted Lease Rentals less Movement in Current Arrears Balance and Net
Stress related costs
[14] Interest Earned Interest earned on monthly cash balances
[15] Net Maintenance Maintenance Revenue Reserve received less any reimbursements to lessees
[16] S [14]...[16] Total Cash Collections Net Lease Rentals + Interest Earned + Drawings from Expense Account + Net
Maintenance
------------------------------------------------------------------------------------------------------------------------------------
CASH EXPENSES
Aircraft Operating Expenses All operational costs related to the leasing of aircraft
[17] - Insurance Premium for contingent insurance policies
[18] - Re-leasing and other overheads Costs associated transferring an aircraft from one lessee to another
[19] [17]+[18] sub-total
SG&A Expenses All fees paid to the Aircraft Servicer and to other service providers
[20] Aircraft Servicer Fees Monthly and annual fees paid to the Aircraft Servicer
- Base Fee Fixed amount per month per aircraft
- Rent Contracted Fee 1.00% of rental contracted for the month
- Rent Collected Fee 1.25% of rental received for the month
- Incentive Fee Annual fee paid to Servicer for performance above an annually agreed target
[21] Other Servicer Fees Administrative Agent, trustee and professional fees paid to other service
providers.
[22] S [19]...[21] Total Cash Expenses Aircraft Operating Expenses + SG&A Expenses
------------------------------------------------------------------------------------------------------------------------------------
NET CASH COLLECTIONS
[23] [16] Total Cash Collections as per line 17 above
[24] [22] Total Cash Expenses as per line 24 above
[25] Drawings from Expense Account Cash drawn from the Expense Account and used to pay for expenses during the
period
[26] Transfer to Expense Account Cash set aside in the Expense Account to pay for future expected expense
obligations
[27] Interest Payments Interest paid on all outstanding debt
[28] Swap payments Net swap payments (paid)/received
[29] Exceptional Items Includes adjustment for aircraft included in the 1998 Base Case but not
acquired by MSAF
[30] S [24]...[29] TOTAL
------------------------------------------------------------------------------------------------------------------------------------
[31] PRINCIPAL PAYMENTS Principal Payments to Noteholders
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
