<TABLE>
Item 1
AERCO LIMITED
Report to Noteholders
All amounts 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
-----------------
==================================================================================================
</TABLE>
Page 1 of 8
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
All amounts 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 8
</TABLE>
<PAGE>
AERCO LIMITED
Report to Noteholders
All amounts US dollars unless otherwise stated
<TABLE>
Current Payment Date 15-Dec-00
Current Calculation Date 11-Dec-00
Previous Payment Date 15-Nov-00
Previous Calculation Date 09-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> <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 Balane 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 Balane 190,382,711.30 565,000,000.00 217,659,219.42 973,041,930.79 73,254,609.49 78,328,717.00
==============================================================================================================================
5. Payments on the Notes by Subclass (Cont'd)
-------------------------------- -------------------------------------------------------------
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 Balane 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 Balane 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 Balan 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 Balane 96,341,617.00
----------------------------------------------
Page 3 of 8
</TABLE>
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
Amounts 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 8
</TABLE>
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
Cashflow Performance
All amounts in
millions of US dollars
unless otherwise stated
------------------------------------------------------------------------------------------------------------------------
Jul 17 Jul 17- Oct-15 Nov-15 Dec-15 Cumulative to Date
2000 Sept 15 2000 2000 2000 Actual Base Case Variance
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CASH COLLECTIONS
[1] Lease Rentals 30.6 19.3 14.6 15.7 80.2 78.7 1.5%
[2] - Renegotiated Leases - - - - - - -
[3] - Rental Resets - - - - - - -
----------------------------------------------------------------
[4]S(1)..(3) Contracted Lease Rentals 30.6 19.3 14.6 15.7 80.2 78.7 1.5%
[5] Movement in Current
Arrears Balance (1.9) 0.5 (1.2) (0.3) (2.9) - (2.9)
less Net Stress-related
Costs
[6] - Bad Debts - - (0.8) 0.8
[7] - Security Deposits
Drawn Down - - - - - -
[8] - Restructured Arrears 0.3 0.1 - 0.1 0.5 1.9 (1.4)
[9] - AOG - - - (0.7) (0.7 (0.7)
[10] - Other Leasing Income - - - - - (3.3) 3.3
[11] - Repossession Costs - - - - - (0.6) 0.6
----------------------------------------------------------------
[12]S[6]..[11] sub-total 0.3 0.1 - (0.6) (0.2) (2.8) 2.6
[13][4]+[5]+[12] Net Lease Rentals 29.0 19.9 13.4 14.8 77.1 75.9 1.2
[14] Interest Earned 0.7 0.6 0.5 0.5 2.3 1.4 0.9
[15] Drawings from Expense
Account 1.0 - 1.0 - 1.0
Maintenance Receipts 3.2 1.9 1.3 2.2 8.6 - 8.6
Maintenance Payments (0.7) - (0.8) (1.2) (2.7) - (27)
-----------------------------------------------------------------
[15] Net Maintenance 2.5 1.9 0.5 1.0 5.9 - 5.9
[16]S[13]..[15] Total Cash Collections 32.2 22.4 15.4 16.3 86.3 77.3 9.0
=========================================================================================================================
CASH EXPENSES
Aircraft Operating
Expenses
[17] - Insurance - - (0.1) - (0.1)
[18] - Re-leasing and
other overheads (0.1) (0.5) (4.0) (0.4) (5.0) (1.6) (3.4)
-----------------------------------------------------------------
[19] [17]+[18] subtotal (0.1) (0.5) (4.1) (0.4) (5.1) (1.6) (3.5)
SG&A Expenses
[20] Aircraft Servicer
Fees
- Retainer Fee (0.3) (0.1) (0.5) (0.1) (1.0) (0.9) (0.1)
- Rent Collected
Fee (0.3) (0.2) (0.3) (0.2) (1.0) (0.9) (0.1)
- Previous
Servicer Fees (1.8) - - - (1.8) (1.8)
-----------------------------------------------------------------
[21] sub-total (2.4) (0.3) (0.8) (0.3) (3.8) (1.8) (2.0)
[22] Other Servicer Fees (0.5) (1.6) (1.8) (1.2) (5.1) (3.3) (1.8)
-----------------------------------------------------------------
[23] [21]+[22] subtotal (2.9) (1.9) (2.6) (1.5) (8.9) (5.1) (3.8)
[24] [20]+[23] Total Cash Expenses (3.0) (2.4) (6.7) (1.9) (14.0) (6.7) (7.3)
=========================================================================================================================
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 32.2 22.4 15.4 16.3 86.3 77.3 9.0
[26] [24] Total Cash Expenses (3.0) (2.4) (6.7) (1.9) (14.0) (6.7) (7.3)
[27] Movement in Expense
Account 2.8 1.0 2.4 (3.4) 2.8 - 2.8
[28] Interest Payments (18.2) (11.1) (8.5) (8.5) (46.3) (44.0) (2.3)
[29] Swap Payments 0.5 0.1 0.1 0.1 0.8 1.1 (0.3)
[30] Exceptional Items - - - - - 7.6 (7.6)
-----------------------------------------------------------------
[31]S[25]..[30] TOTAL] 14.3 10.0 2.7 2.6 29.6 35.3 (5.7)
============================================================================================================---==========
[32] PRINCIPAL PAYMENTS
subclass A 14.2 9.5 1.6 - 25.3 30.1 (4.8)
subclass B - 0.4 1.0 2.5 3.9 4.8 (0.9)
subclass C 0.1 0.1 0.1 0.1 0.3 0.4 (0.1)
subclass D - - - - - - -
-----------------------------------------------------------------
Total 14.3 10.0 2.7 2.6 29.5 35.3 (5.8)
============================================================================================================---==========
Debt Balances
subclass A 998.4 984.2 974.7 973.1 973.1 973.1 968.3 4.8
subclass B 154.8 154.8 154.4 153.4 150.9 150.9 150.0 0.9
subclass C 164.1 164.0 164.0 163.9 163.8 163.8 163.7 0.1
subclass D 100.0 100.0 100.0 100.0 100.0 100.0 100.0 -
----------------------------------------------------------------------------
TOTAL 1,417.3 1,403.0 1,393.1 1,390.4 1,387.8 1,387.8 1,382.0 5.8
=====================================================================================================================
AERCO LIMITED
Report to Noteholders
Cashflow Performance (Cont's)
Dollar amounts
expressed as a percentage
2000 Base Case Lease Rentals
--------------------------------------------------------------------------------
Cumulative to Date
Actual Base Case Variance
--------------------------------------------------------------------------------
CASH COLLECTIONS
[1] Lease Rentals 101.9% 100.0% 1.9%
[2] - Renegotiated Leases 0.0% 0.0% 0.0%
[3] - Rental Resets 0.0% 0.0% 0.0%
---------------------------
[4]S(1)..(3) Contracted Lease Rentals 101.9% 100.0% 1.9%
[5] Movement in Current
Arrears Balance -3.7% 0.0% -3.7%
less Net Stress-related
Costs
[6] - Bad Debts 0.0% -1.0% 1.0%
[7] - Security Deposits
Drawn Down 0.0% 0.0% 0.0%
[8] - Restructured Arrears 0.6% 2.4% -1.8%
[9] - AOG -0.9% 0.0% -0.9%
[10] - Other Leasing Income 0.0% -4.2% 4.2%
[11] - Repossession Costs 0.0% -0.8% 0.8%
---------------------------
[12]S[6]..[11] sub-total -0.3% -3.6% 3.3%
[13][4]+[5]+[12] Net Lease Rentals 98.0% 96.4% 1.5%
[14] Interest Earned 2.9% 1.8% 1.2%
[15] Drawings from Expense
Account 1.3% 0.0% 1.3%
Maintenance Receipts 10.9% 0.0% 10.9%
Maintenance Payments -3.4% 0.0% -3.4%
---------------------------
[15] Net Maintenance 7.5% 0.0% 7.5%
[16]S[13]..[15] Total Cash Collections 109.7% 98.2% 11.4%
=============================================================================
CASH EXPENSES
Aircraft Operating
Expenses
[17] - Insurance -0.1% 0.0% 0.0%
[18] - Re-leasing and
other overheads -6.3% -2.0% -4.3%
---------------------------
[19] [17]+[18] subtotal -6.5% -2.0% -4.3%
SG&A Expenses
[20] Aircraft Servicer
Fees
- Retainer Fee -1.2% -1.1% -0.1%
- Rent Collected
Fee -1.3% -1.1% -0.1%
- Previous
Servicer Fees -2.3% 0.0% -2.3%
---------------------------
[21] sub-total -4.8% -2.3% -2.5%
[22] Other Servicer Fees -6.5% -4.2% -2.3%
---------------------------
[23] [21]+[22] subtotal
[24] [20]+[23] Total Cash Expenses -17.8% -8.5% -9.3%
=============================================================================
NET CASH COLLECTIONS
[25] [17] Total Cash Collections 109.7% 98.2% 11.4%
[26] [24] Total Cash Expenses -17.8% -8.5% -9.3%
[27] Movement in Expense
Account 3.5% 0.0% 3.5%
[28] Interest Payments -58.8% -55.9% -2.9%
[29] Swap Payments 1.0% 1.4% -0.4%
[30] Exceptional Items 0.0% 9.7% -9.7%
---------------------------
[31]S[25]..[30] TOTAL] 37.6% 44.9% -7.3%
=============================================================================
[32] PRINCIPAL PAYMENTS
subclass A 32.1% 38.2% -6.1%
subclass B 5.0% 6.1% -1.1%
subclass C 0.4% 0.5% -0.1%
subclass D 0.0% 0.0% 0.0%
---------------------------
Total 37.5% 44.9% -7.4%
=============================================================================
</TABLE>
Page 5 of 8
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
====================================================================================================================================
Note: Report Line Name Description
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH COLLECTIONS
[1] Lease Rentals Assumptions per the July 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] - Restructured arrears Current arrears that have been capitalised and restructured as a Note
Payable.
[8] - Security deposits drawn down Security deposits received following a lesse 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 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 and reimbursements to lessees.
[16]S [13]..[15] Total Cash Collections Net Lease Rentals + Interest Earned + 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 Costs associated transferring an aircraft from one lessee to another
[19] [17]+[18] subtotal
SG&A Expenses
[20] Aircraft Servicer Fees Monthly and annual fees paid to 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
- Previous Servicer Fees Fees paid to the previous Servicer of AerFi
[21] [20] subtotal
[22] Other Servicer Fees Administrative Agent, trustee and professional fees paid to other
service providers.
[23] [21]+[22] subtotal
[24] [19]+[23] Total Cash Expenses Aircraft Operating Expenses + SG&A Expenses
====================================================================================================================================
NET CASH COLLECTIONS
[25] [16] Total Cash Collections line 16 above
[26] [24] Total Cash Expenses line 24 above
[27] Movement in Expense Account Movement in Expense Account
[28] Interest Payments Interest paid on all outstanding debt
[29] Swap payments Net swap payments (paid) /received
[30] Proceeds from Aircraft Sales Proceeds, net of fees and expenses, from the sale of aircraft
[31]S [25]..[30] Exceptional Items Includes adjustment for aircraft included in the Basecase but not
acquired by AerCo
TOTAL
====================================================================================================================================
Page 6 of 8
</TABLE>
<PAGE>
<TABLE>
AERCO LIMITED
Report to Noteholders
====================================================================================================================================
Coverage Ratios
--------------- 2000
Closing Actual Base Case
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Cash Collections 86.3 77.3
Add Back Interest 46.3 44.0
--------
Add Back Swap Payments - 0.8 - 1.1
----------------------
a Net Cash Collections 131.8 120.2
b Swaps - 0.8 - 1.1
c Class A Interest 29.1 29.0
d Class A Minimum - 7.5
e Class B Interest 4.8 4.8
f Class B Minimum 1.6 3.1
g Class C Interest 5.6 5.6
h Class C Minimum - -
I Class D Interest 3.5 3.5
j Class D Minimum - -
k Class A Scheduled - -
l Class B Scheduled 1.6 1.7
m Class C Scheduled 0.4 0.4
n Class D Scheduled - -
o Permited Aircraft Modifications -
p Class A Supplemental 25.3 22.7
---------------------------
Total 71.1 77.2
---------------------------
[1] Interest Coverage Ratio
Class A 4.66 4.31 = a / (b+c)
Class B 3.98 2.99 = a / (b+c+d+e)
Class C 3.27 2.46 = a / (b+c+d+e+f+g)
Class D 3.01 2.29 = a / (b+c+d+e+f+g+h+i)
[2] Debt Coverage Ratio
Class A 2.90 2.22 = a / (b+c+d+e+f+g+h+i+ j+k)
Class B 2.90 2.22 = a / (b+c+d+e+f+g+h+i+j+k+l)
Class C 2.90 2.22 = a / (b+c+d+e+f+g+h+i+j+k+l+m)
Class D 2.90 2.22 = a / (b+c+d+e+f+g+h+i+j+k+l+m+n)
Loan-to-Value Ratios
</TABLE>
<TABLE>
--------------------------------------------------------------------
2000 Base Case Actual 2000 Base Case
15-Jul-00 15-Dec-00 15-Dec-00
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
[3] Assumed Portfolio Value 1,566.7 1,531.1 1,514.2
Liquidity Reserve Amount
Cash 65.0 65.0 65.0
- Accrued Expenses 5.0 5.0 5.0
- Security Deposits 22.4 21.2 22.4
------- ------ ------
subtotal cash 92.4 91.2 92.4
Letters of Credit - - -
------- ------ ------
Total Liquidity Reserve 92.4 91.2 92.4
[4] Total Asset Value 1,659.1 1,622.3 1,606.6
Note Balance
Class A 998.4 60.2% 973.1 60.0% 968.3 60.3%
Class B 154.8 69.5% 150.9 69.3% 150.0 69.6%
Class C 164.1 79.4% 163.8 79.4% 163.7 79.8%
Class D 100.0 85.4% 100.0 85.5% 100.0 86.0%
------- ------- --------
Total 1,417.3 1,387.8 1,382.0
------------------------------------------------------------------------------------------------------
[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 Inital Appraised Value of each
aircraft in the Portfolio multipled 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 7 of 8
</TABLE>
<PAGE>
AerCo Limited
The attached document is identical to that filed by AerCo as a Form 6-K on
December 13,2000, except for three pages of additional information which are
included in this filing for Noteolders information, namely Cumulative Cash
Performance to date - July 17, 2000 to December 15, 2000 (2 pages) and Coverage
Ratios.
page 8 of 8
