<TABLE>
Item 1
AERCO Limited
Report to Noteholders
Payment Date: 15 September 2000.
Calculation Date: 11 September, 2000. All numbers in US$ unless otherwise stated
(i) ACCOUNT ACTIVITY SUMMARY (Between Calculation Dates)
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Balance on
Prior Balance Deposits Withdrawals Calculation Date
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9-Aug-00 11-Sep-00
Aircraft Purchase Account (note ii) 360,787,023.13 0.00 (1,128,205.13) 359,658,818.00
Expense Account (note iii) 6,530,807.70 2,483,606.77 (1,628,372.20) 7,386,042.27
Collection Account (note iv) 96,268,349.21 45,971,129.43 (40,160,349.21) 102,079,129.43
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- Liquidity Reserve 65,000,000.00 65,000,000.00
- Security Deposit 16,108,000.00 16,208,000.00
- Other Collections 15,160,349.21 20,871,129.43
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Total 102,799,156.91 48,454,736.20 (40,660,516.28) 109,465,171.70
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(ii) ANALYSIS OF AIRCRAFT PURCHASE ACCOUNT ACTIVITY
-------------------------------------------------------------------------
Balance on Previous Calculation Date (9 August, 2000) 360,787,023.13
Proceeds from Bond Issuance 0.00
Interest Earned during period 0.00
Purchase of Aircraft 0.00
Economic Swap Payments (1,128,205.13)
----------------
Balance on relevant Calculation Date (11 September, 2000) 359,658,818.00
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(iii) ANALYSIS OF EXPENSE ACCOUNT ACTIVITY
-------------------------------------------------------------------------
Balance on Previous Calculation Date (9 August, 2000) 6,530,807.70
Transfer from Collection Account 2,455,014.15
Additional amount to cover refinancing expenses 0.00
Interest Earned during period 28,592.62
Payments during period between previous Calculation Date
and the relevant Calculation Date: 0
- Payments on previous Payment Date (715,333.15)
- Other payments (913,039.05)
----------------
Balance on relevant Calculation Date (11 September, 2000) 7,386,042.27
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(iv) ANALYSIS OF COLLECTION ACCOUNT ACTIVITY
-------------------------------------------------------------------------
Balance on Previous Calculation Date (9 August, 2000) 96,268,349.21
Collections during period 20,668,026.08
Swap receipts 303,103.35
Transfer to Expense Account (2,292,305.63)
Increase in Liquidity Reserve Amount 0.00
Transfer from the Aircraft Purchase Account 0.00
Aggregate Note Payments (12,705,335.06)
Swap payments (162,708.52)
----------------
Balance on relevant Calculation Date (11 September, 2000) 102,079,129.43
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Report 1
AERRCH0900
Page 1 of 5
</TABLE>
<PAGE>
<TABLE>
AERCO Limited
Report to Noteholders
(iv) ANALYSIS OF COLLECTION ACCOUNT ACTIVITY (Cont'd) All numbers in US$ unless otherwise stated
=========================================================================================
<S> <C> <C> <C> <
ANALYSIS OF CURRENT PAYMENT DATE DISTRIBUTIONS
Priority of Payments
(i) Required Expense Amount 7,818,460.48
(ii) a) Class A Interest 6,049,506.78
b) Swap Payments 181,909.03
(iii) First Collection Account Top-up 30,000,000.00
(iv) Class A Minimum Principal 0.00
(v) Class B Interest 993,182.52
(vi) Class B Minimum Principal 0.00
(vii) Class C Interest 1,174,545.55
(viii) Class C Minimum Principal 0.00
(ix) Class D Interest 627,274.32
(x) Class D Minimum Principal 0.00
(xi) Second Collection Account Top-up 51,208,000.00
(xii) Class A Scheduled Principal 0.00
(xiii) Class B Scheduled Principal 0.00
(xiv) Class C Scheduled Principal 65,655.94
(xv) Class D Scheduled Principal 0.00
(xvi) Modification Payments 0.00
(xvii) Soft Bullet Note Step Up Interest 0.00
(xviii) Class A Supplemental Principal 10,201,722.49
(xix) Class E Interest 477,180.26
(xx) Class B Supplemental Principal 0.00
(xxi) Class A Outstanding Principal 0.00
(xxii) Class B Outstanding Principal 0.00
(xxiii) Class C Outstanding Principal 0.00
(xxiv) Class D Outstanding Principal 0.00
(xxv) Subordinated Swap Payments 0.00
(xxvi) Subordinated Tax Related Disposition Payments 0.00
(xxvii) Class E Accrued Unpaid Interest 0.00
(xxviii) Class E Outstanding Principal 0.00
----------------
Total Payments with respect to Payment Date 108,797,437.37
Less Collection Account Top-Ups ((iii) and (xi)above) (81,208,000.00)
----------------
27,589,437.37
================
=========================================================================================
Report 1
AERRCH0900
Page 2 of 5
</TABLE>
<PAGE>
<TABLE>
AERCO Limited
Report to Noteholders
All numbers in US$ unless otherwise stated
(v) PAYMENT ON THE NOTES
-----------------------------------------------------------------------------------------------------------------
(a) FLOATING RATE NOTES A-1 A-2 A-3 A-4
-------------------
<S> <C> <C> <C> <C>
Applicable LIBOR N/A 6.61875% 6.61875% 6.61875%
Applicable Margin 0.32000% 0.46000% 0.52000%
Applicable Interest Rate 6.93875% 7.07875% 7.13875%
Interest Amount Payable 0.00 1,185,365.97 3,444,008.51 1,420,132.30
Step Up Interest Amount 0.00 0.00 0.00 0.00
Opening Principal Balance 0.00 198,386,457.12 565,000,000.00 231,018,862.18
Minimum Principal Payment Amount 0.00 0.00 0.00 0.00
Scheduled Principal Payment Amount 0.00 0.00 0.00 0.00
Supplemental Principal Payment Amount 0.00 2,795,976.45 0.00 7,405,746.04
Outstanding Principal Payment Amount 0.00 0.00 0.00 0.00
Total Principal Distribution Amount 0.00 2,795,976.45 0.00 7,405,746.04
Redemption Amount
- amount allocable to principal 0.00 0.00 0.00 0.00
- premium allocable to premium 0.00 0.00 0.00 0.00
-------------------------------------------------------------------
Outstanding Principal Balance (Sept 15, 2000) 0.00 195,590,480.67 565,000,000.00 223,613,116.14
-----------------------------------------------------------------------------------------------------------------
(v) PAYMENT ON THE NOTES
--------------------------------------------------------------------------------------------------------------
(a) FLOATING RATE NOTES B-1 B-2 C-1 C-2
-------------------
Applicable LIBOR 6.61875% 6.61875% 6.61875% 6.61875%
Applicable Margin 0.60000% 1.05000% 1.35000% 2.05000%
Applicable Interest Rate 7.21875% 7.66875% 7.96875% 8.66875%
Interest Amount Payable 464,890.85 528,291.67 577,375.80 597,169.75
Step Up Interest Amount 0.00 0.00 0.00 0.00
Opening Principal Balance 74,787,636.35 80,000,000.00 84,141,293.29 79,998,553.08
Minimum Principal Payment Amount 0.00 0.00 0.00 0.00
Scheduled Principal Payment Amount 0.00 0.00 57,211.27 8,444.67
Supplemental Principal Payment Amount 0.00 0.00 0.00 0.00
Outstanding Principal Payment Amount 0.00 0.00 0.00 0.00
Total Principal Distribution Amount 0.00 0.00 57,211.27 8,444.67
Redemption Amount
- amount allocable to principal 0.00 0.00 0.00 0.00
- premium allocable to premium 0.00 0.00 0.00 0.00
----------------------------------------------------------------
Outstanding Principal Balance (Sept 15, 2000) 74,787,636.35 80,000,000.00 84,084,082.02 79,990,108.41
--------------------------------------------------------------------------------------------------------------
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(b) FIXED RATE NOTES D-1 D-2
----------------
Applicable Interest Rate N/A 8.5000%
Interest Amount Payable 627,274.32
Opening Principal Balance 80,000,000.00 88,556,375.00
Minimum Principal Payment Amount 0.00 0.00
Scheduled Principal Payment Amount 0.00 0.00
Additional Notes Issued during Period 0.00 0.00
Redemption Amount
- amount allocable to principal 80,000,000.00 0.00
- amount allocable to premium 0.00 0.00
Actual Pool Factor 1.0000000
-------------------------------
Outstanding Principal Balance (Sept 15, 2000) 0.00 88,556,375.00
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Report 1
AERRCH0900
Page 3 of 5
</TABLE>
<PAGE>
<TABLE>
AERCO Limited
Report to Noteholders
All numbers in US$ unless otherwise stated
(vi) FLOATING RATE NOTE INFORMATION FOR NEXT INTEREST ACCRUAL PERIOD (Aggregate Amounts)
-----------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
A-1 A-2 A-3 A-4 B-1 B-2 C-1 C-2
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Applicable LIBOR 0.00000% 6.62125% 6.62125% 6.62125% 6.62125% 6.62125% 6.62125% 6.62125%
Applicable Margin 0.19000% 0.32000% 0.46000% 0.52000% 0.60000% 1.05000% 1.35000% 2.05000%
Applicable Interest Rate 0.19000% 6.94125% 7.08125% 7.14125% 7.22125% 7.67125% 7.97125% 8.67125%
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(vii) CURRENT PERIOD PAYMENTS Per $100,000 Initial Outstanding Principal Balance of Notes)
------------------------------------------------------------------------------------
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(a) FLOATING RATE NOTES
A-1 A-2 A-3 A-4 B-1 B-2 C-1 C-2
Opening Principal Amount 0.00 1,983.86 5,650.00 2,310.19 747.88 800.00 841.41 799.99
Total Principal Payments 3,400.00 27.96 0.00 74.06 0.00 0.00 0.57 0.08
------------------------------------------------------------------------------------------------
Closing Outstanding
Principal Balance (3,400.00) 1,955.90 5,650.00 2,236.13 747.88 800.00 840.84 799.90
Total Interest 0.00 11.85 34.44 14.20 4.65 5.28 5.77 5.97
Total Premium 0.00 0.00 1.00 2.00 0.00 1.00 2.00 3.00
-----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------
(b) FIXED RATE NOTES
D-2
Opening Principal Amount 885.56
Total Principal Payments 0.00
---------
Outstanding Principal
Balance 885.56
Total Interest 6.27
Total Premium 0.00
-------------------------------------------
Report 1
AERRCH0900
Page 4 of 5
</TABLE>
<PAGE>
<TABLE>
AERCO Limited
Report to Noteholders
All numbers in US$ unless otherwise stated
(viii) (a) SUMMARY OF TRANSFERRING AIRCRAFT
Allocation of
Appraised Aircraft Purchase
Status Number Value Account
$'000 $'000
<S> <C> <C> <C>
Aircraft transferred to date 14 309,763 235,341
Aircraft targeted to be transferred 16 414,289 359,659
------------------------------------------------
Total 30 724,052 595,000
------------------------------------------------
(b) AIRCRAFT TRANSFERRED AS OF SEPTEMBER 11, 2000
No Serial No. Lessee Appraised Value
$'000
1 24651 Braathens 18,810
2 25041 Virgin Express Ireland Ltd 23,237
3 27074 Blue Panorama 26,867
4 25789 British Airways 20,513
5 23345 Delta 14,530
6 411 JMC 30,617
7 24856 Frontier 21,987
8 26442 Frontier 23,063
9 26440 Frontier 23,483
10 354 JMC 29,980
11 24901 Blue Panorama 24,597
12 11320 TAM 12,783
13 11322 TAM 12,673
14 25594 LOT 26,623
--------------
Total Aircraft Transferred 309,763
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Report 1
AERRCH0900
Page 5 of 5
</TABLE>
<PAGE>
<TABLE>
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(a) FLOATING RATE NOTES A-2 A-2 A-3 A-3 A-4 A-4
-------------------
<S> <C> <C> <C> <C> <C> <C>
Exchanged Not Exchanged Exchanged Not Exchanged Exchanged Not Exchanged
99.4137931% 0.5862069% 79.3805310% 20.6194690% 76.5957440% 23.4042560%
Applicable LIBOR 6.61875% 6.61875% 6.61875% 6.61875% 6.61875% 6.61875%
Applicable Margin 0.32000% 0.32000% 0.46000% 0.46000% 0.52000% 0.52000%
Applicable Interest Rate 6.93875% 6.93875% 7.07875% 7.07875% 7.13875% 7.13875%
Interest Amount Payable 1,102,390.35 6,500.39 2,557,493.39 664,321.02 1,017,582.79 310,928.07
Step Up Interest Amount 0.00000% 0.00000%
Opening Principal Balance 197,223,502.02 1,162,955.10 448,500,000.00 116,500,000.00 176,950,617.89 54,068,244.31
Minimum Principal Payment Amount 0.00 0.00 0.00 0.00 0.00 0.00
Scheduled Principal Payment
Amount 0.00 0.00 0.00 0.00 0.00 0.00
Supplemental Principal Payment
Amount 2,779,586.24 0.00 0.00 0.00 5,672,486.28 1,733,259.76
Outstanding Principal Payment
Amount 0.00 0.00 0.00 0.00 0.00 0.00
Total Principal Distribution
Amount 2,779,586.24 0.00 0.00 0.00 5,672,486.28 1,733,259.76
Redemption Amount
- amount allocable to principal 0.00 0.00 0.00 0.00 0.00 0.00
- premium allocable to premium 0.00 0.00 0.00 0.00 0.00 0.00
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Outstanding Principal Balance
(Sept. 15, 2000) 194,443,915.78 1,162,955.10 448,500,000.00 116,500,000.00 171,278,131.59 52,334,984.55
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(a) FLOATING RATE NOTES B-2 B-2 C-1 C-1 C-2 C-2
-------------------
Exchanged Not Exchanged Exchanged Not Exchanged Exchanged Not Exchanged
51.2500000% 48.7500000% 95.2941177% 4.7058823% 63.7500000% 36.2500000%
Applicable LIBOR 6.61875% 6.61875% 6.61875% 6.61875% 6.61875% 6.61875%
Applicable Margin 1.05000% 1.05000% 1.35000% 1.35000% 2.05000% 2.05000%
Applicable Interest Rate 7.66875% 7.66875% 7.96875% 7.96875% 8.66875% 8.66875%
Interest Amount Payable 253,281.77 240,926.56 514,708.07 25,417.68 356,141.15 202,511.63
Step Up Interest Amount
Opening Principal Balance 41,000,000.00 39,000,000.00 80,181,703.06 3,959,590.23 51,000,000.00 29,000,000.00
Minimum Principal Payment
Amount 0.00 0.00 0.00 0.00 0.00 0.00
Scheduled Principal Payment
Amount 0.00 0.00 54,518.97 2,692.30 5,383.48 3,061.19
Supplemental Principal Payment
Amount 0.00 0.00 0.00 0.00 0.00 0.00
Outstanding Principal Payment
Amount 0.00 0.00 0.00 0.00 0.00 0.00
Total Principal Distribution
Amount 0.00 0.00 54,518.97 2,692.30 5,383.48 3,061.19
Redemption Amount
- amount allocable to principal 0.00 0.00 0.00 0.00 0.00 0.00
- premium allocable to premium 0.00 0.00 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------------------------
Outstanding Principal Balance
(Sept 15, 200) 41,000,000.00 39,000,000.00 80,127,184.09 3,956,897.93 50,994,616.52 28,996,938.81
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</TABLE>
