Item 1
<TABLE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Month December-00
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 15-Dec-00
Current Calculation Date 11-Dec-00
Previous Payment Date 15-Nov-00
Previous Calculation Date 9-Nov-00
============================================================================================================
1. Account Activity Summary between Calculation Dates
------------------------------------------------------------------------------------------------------------
Prior Deposits Withdrawals Balance on
Balance Calculation Date
9-Nov-00 11-Dec-00
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expense Account 74,177.24 4,536,599.47 (3,256,609.41) 1,354,167.30
Collection Account 101,411,767.99 18,431,397.51 (15,565,158.99) 104,278,006.51
Aircraft Purchase Account 156,782,417.20 532,700.89 (41,705,315.26) 115,609,802.83
- Liquidity Reserve cash balance 84,716,609.00 - 86,166,609.00
-----------------------------------------------------------------------------------------------------------
Total 258,268,362.43 23,500,697.87 (60,527,083.66) 221,241,976.64
------------------------------------------------------------------------------------------------------------
2. Analysis of Aircraft Purchase Account Activity
------------------------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 156,782,417.20
Interest Income 532,700.89
Aircraft Purchase Payments (38,030,507.00)
Economic Swap Payments (3,674,808.26)
------------------------------------------------------------------------------------------------------------
Balance on current Calculation Date 115,609,802.83
-----------------------------------------------------------------------------------------------------------
3. Analysis of Expenses Account Activity
------------------------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 74,177.24
Transfer from Collection Account on previous Payment Date 4,528,732.87
Permitted Aircraft Accrual -
Interim Transfer from Collection Account -
Transfers from Aircraft Purchase Account -
Interest Income 7,866.60
Balance on current Calculation Date
- Payments on previous payment date (943,083.91)
- Interim payments -
- Other (2,313,525.50)
------------------------------------------------------------------------------------------------------------
Balance on current Calculation Date 1,354,167.30
------------------------------------------------------------------------------------------------------------
4. Analysis of Collection Account Activity
------------------------------------------------------------------------------------------------------------
Opening Balance on Previous Calculation Date 101,411,767.99
Collections during period 18,431,397.51
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (4,353,178.29)
- Permitted Aircraft Modifications -
Net Swap payments on previous Payment Date (175,554.58)
Aggregate Note Payments on previous Payment Date (11,036,426.12)
------------------------------------------------------------------------------------------------------------
Balance on current Calculation Date 104,278,006.51
------------------------------------------------------------------------------------------------------------
Analysis of Liquidity Reserve Amount
First Collection Account Reserve 65,000,000.00
Cash Held
- Security Deposits 21,166,609.00
-----------------
Liquidity Reserve Amount 86,166,609.00
-----------------
============================================================================================================
Page 1 of 4
</TABLE>
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Dec-00
Current Calculation Date 11-Dec-00
Previous Payment Date 15-Nov-00
Previous Calculation Date 9-Nov-00
============================================================================================================
<S> <C>
Balance in Collection and Expense Account 105,632,173.81
Liquidity Reserve Amount (86,166,609.00)
------------------
Available Collections 19,465,564.81
==================
4. Analysis of Collection Account Activity (Continued)
------------------------------------------------------------------------------------------------------------
Analysis of Current Payment Date Distributions
(I) Total Required Expense Amount 8,696,907.87
(II) a) Class A Interest but excluding Step-up 5,729,619.04
b) Swap Payments other than subordinated swap payments 175,522.49
(iii) First Collection Account top-up (Minimum liquidity reserve $30 m) 30,000,000.00
(iv) Class A Minimum principal payment -
(v) Class B Interest 953,704.30
(vi) Class B Minimum principal payment 1,368,831.92
(vii) Class C Interest 1,135,499.16
(viii) Class C Minimum principal payment -
(ix) Class D Interest 678,112.77
(x) Class D Minimum principal payment -
(xi) Second collection account top-up 56,166,609.00
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal 612,457.88
(xiv) Class C Scheduled principal 114,909.38
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications
(xvii) Step-up interest -
(xviii) Class A Supplemental principal -
(xix) Class E Primary Interest -
(xx) Class B Supplemental principal -
(xxi) Class A Outstanding Principal -
(xxii) Class B Outstanding Principal -
(xxiii) Class C Outstanding Principal -
(xxiv) Class D Outstanding Principal -
(xxv) Subordinated Swap payments -
------------------
Total Payments with respect to Payment Date 105,632,173.81
less collection Account Top Ups (iii) (b) and (xi) (b) above 86,166,609.00
------------------
19,465,564.81
==================
------------------------------------------------------------------------------------------------------------
Page 2 of 4
</TABLE>
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 15-Dec-00
Current Calculation Date 11-Dec-00
Previous Payment Date 15-Nov-00
Previous Calculation Date 9-Nov-00
===========================================================================================
5. Payments on the Notes by Subclass
--------------------------------------------------------------------------------------------------------------------------
Subclass Subclass Subclass Total Subclass Subclass
Floating Rate Notes A-2 A-3 A-4 Class A B-1 B-2
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Applicable LIBOR 6.62000% 6.62000% 6.62000% 6.62000% 6.62000%
Applicable Margin 0.3200% 0.4600% 0.5200% 0.6000% 1.0500%
Applicable Interest Rate 6.94000% 7.08000% 7.14000% 7.22000% 7.67000%
Day Count Act/360 Act/360 Act/360 Act/360 Act/360
Actual Number of Days 30 30 30 30 30
Interest Amount Payable 1,101,046.68 3,333,500.00 1,295,072.36 446,509.43 507,194.87
Step-up Interest Amount
Payable NA NA NA NA NA
--------------------------------------------------------------------------------------------------------------------------
Total Interest Paid 1,101,046.68 3,333,500.00 1,295,072.36 5,729,619.04 446,509.43 507,194.87
--------------------------------------------------------------------------------------------------------------------------
Expected Final Payment
Date 15-Dec-05 15-Jun-02 15-May-11 15-Jul-13 15-Jul-08
Excess Amortisation Date 17-Aug-98 15-Feb-06 15-Aug-00 17-Aug-98 15-Aug-00
--------------------------------------------------------------------------------------------------------------------------
Original Balance 290,000,000.00 565,000,000.00 235,000,000.00 85,000,000.00 80,000,000.00
Opening Outstanding
Principal Balance 190,382,711.37 565,000,000.00 217,659,219.42 973,041,930.79 74,212,093.50 79,352,522.79
--------------------------------------------------------------------------------------------------------------------------
Extended Pool Factors 77.31% 100.00% 100.00% 93.97% 100.00%
Pool Factors 68.99% 100.00% 92.76% 88.69% 99.90%
--------------------------------------------------------------------------------------------------------------------------
Minimum Principal
Payment - - - - 661,505.79 707,326.13
Scheduled Principal
Payment - - - - 295,978.22 316,479.66
Supplemental Principal
Payment - - - - - -
--------------------------------------------------------------------------------------------------------------------------
Total Principal
Distribution Amount - - - - 957,484.01 1,023,805.79
--------------------------------------------------------------------------------------------------------------------------
Redemption Amount
- amount allocable
to principal -
- amount allocable
to premium
--------------------------------------------------------------------------------------------------------------------------
Closing Outstanding
Principal Balance 190,382,711.37 565,000,000.00 217,659,219.42 973,041,930.79 73,254,609.49 78,328,717.00
--------------------------------------------------------------------------------------------------------------------------
5. Payments on the Notes by Subclass
-----------------------------------------------------------------------------------------
Total Subclass Subclass Total
Floating Rate Notes Class B C-1 C-2 Class C
-----------------------------------------------------------------------------------------
Applicable LIBOR 6.62000% 6.62000%
Applicable Margin 1.3500% 2.0500%
Applicable Interest Rate 7.97000% 8.67000%
Day Count Act/360 Act/360
Actual Number of Days 30 30
Interest Amount Payable 557,763.31 577,735.85
Step-up Interest Amount
Payable NA NA
-----------------------------------------------------------------------------------------
Total Interest Paid 953,704.30 557,763.31 577,735.85 1,135,499.16
-----------------------------------------------------------------------------------------
Expected Final Payment
Date 15-Jul-13 15-Jun-08
Excess Amortisation Date 17-Aug-98 15-Aug-00
-----------------------------------------------------------------------------------------
Original Balance 85,000,000.00 80,000,000.00
Opening Outstanding
Principal Balance 153,564,616.29 83,979,420.00 79,963,438.86 163,942,858.86
-----------------------------------------------------------------------------------------
Extended Pool Factors 99.97% 100.00%
Pool Factors 98.47% 99.84%
-----------------------------------------------------------------------------------------
Minimum Principal
Payment 1,368,831.92 - - -
Scheduled Principal
Payment 612,457.88 86,615.50 28,293.88 114,909.38
Supplemental Principal
Payment - - - -
-----------------------------------------------------------------------------------------
Total Principal
Distribution Amount 1,981,289.80 86,615.50 28,293.88 114,909.38
------------------------------------- ---------------------------------------------------
Redemption Amount - -
- amount allocable
to principal - -
- amount allocable
to premium - -
-----------------------------------------------------------------------------------------
Closing Outstanding
Principal Balance 151,583,326.49 83,892,804.50 79,935,144.98 163,827,949.48
-----------------------------------------------------------------------------------------
=========================================
Fixed Rate Notes D-2
-----------------------------------------
Applicable Interest Rate 8.50000%
Day count 30 / 360
Number of Days 30
Interest Amount Payable 678,112.77
-----------------------------------------
Total Interest Paid 678,112.77
-----------------------------------------
Expected Final Payment Date 15-Mar-14
Excess Amortisation Date 15-Jul-10
-----------------------------------------
Original Balance 100,000,000.00
Opening Outstanding
Principal Balance 96,341,617.00
-----------------------------------------
Extended Pool Factors 100.00%
Expected Pool Factors 100.00%
-----------------------------------------
Extended Amount -
Expected Pool Factor Amount -
Surplus Amortisation
-----------------------------------------
Total Principal Distribution Amount -
-----------------------------------------
Redemption Amount -
- amount allocable to principal -
--------------
- amount allocable to premium -
-----------------------------------------
Closing Outstanding
Principal Balance 96,341,617.00
=========================================
Page 3 of 4
</TABLE>
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
Amounts in US Dollars unless otherwise stated
Current Payment Date 15-Dec-00
Current Calculation Date 11-Dec-00
Previous Payment Date 15-Nov-00
Previous Calculation Date 9-Nov-00
==========================================================================================================================
6. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 15-Dec-00
End of Interest Accrual Period 15-Jan-01
Reference Date 13-Dec-00
--------------------------------------------------------------------------------------------------------------------------
A-2 A-3 A-4 B-1 B-2 C-1 C-2
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Applicable LIBOR 6.71000% 6.71000% 6.71000% 6.71000% 6.71000% 6.71000% 6.71000%
Applicable Margin 0.3200% 0.4600% 0.5200% 0.6000% 1.0500% 1.3500% 2.0500%
Applicable Interest Rate 7.0300% 7.1700% 7.2300% 7.3100% 7.7600% 8.0600% 8.7600%
---------------------------------------------------------------------------------------------------------------------------
==================================================
Fixed Rate Notes D-1
--------------------------------------------------
Actual Pool Factor 100.00%
--------------------------------------------------
==========================================================================
7. Payments per $ 100,000 Inital Outstanding Principal Balance of Notes
-------------------------------------------------------------------------------------------------------------------------
(a) Floating Rate Notes A-2 A-3 A-4 B-1 B-2 C-1 C-2
-------------------------------------------------------------------------------------------------------------------------
Opening Outstanding Principal Balance 190,382.71 565,000.00 217,659.22 74,212.09 79,352.52 83,979.42 79,963.44
Total Principal Payments - - - 957.48 1,023.81 86.62 28.29
Closing Outstanding Principal Balance 190,382.71 565,000.00 217,659.22 73,254.61 78,328.72 83,892.80 79,935.14
Total Interest 1,101.05 3,333.50 1,295.07 446.51 507.19 557.76 577.74
Total Premium 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
-------------------------------------------------------------------------------------------------------------------------
==================================================
(b) Fixed Rate Notes D-2
--------------------------------------------------
Opening Outstanding Principal Balance 96,341.62
Total Principal Payments -
Closing Outstanding Principal Balance 96,341.62
Total Interest 678.11
Total Premium -
==================================================
=========================================================================================================================
Page 4 of 4
</TABLE>
