Item 1
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
<TABLE>
Month January-01
Payment Date 15th of each month
Convention Modified Following Business Day
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
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1. Account Activity Summary between Calculation Dates
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Prior Deposits Withdrawals Balance on
Balance Calculation Date
11-Dec-00 9-Jan-01
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<S> <C> <C> <C> <C>
Expense Account 1,354,167.30 7,538,425.23 (2,040,345.98) 6,852,246.55
Collection Account 104,278,006.51 15,539,266.15 (18,111,397.51) 101,705,875.15
Aircraft Purchase Account 115,609,802.83 420,460.02 (80,455,720.85) 35,574,542.00
- Liquidity Reserve cash balance 84,716,609.00 - 86,982,761.00
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Total 221,241,976.64 23,498,151.40 (100,607,464.34) 144,132,663.70
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2. Analysis of Aircraft Purchase Account Activity
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Opening Balance on Previous Calculation Date 115,609,802.83
Interest Income 420,460.02
Aircraft Purchase Payments (79,817,769.00)
Economic Swap Payments (637,951.85)
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Balance on current Calculation Date 35,574,542.00
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3. Analysis of Expenses Account Activity
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Opening Balance on Previous Calculation Date 1,354,167.30
Transfer from Collection Account on previous Payment Date 7,518,263.06
Permitted Aircraft Accrual -
Interim Transfer from Collection Account -
Transfers from Aircraft Purchase Account -
Interest Income 20,162.17
Balance on current Calculation Date
- Payments on previous payment date (895,299.82)
- Interim payments -
- Other (1,145,046.16)
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Balance on current Calculation Date 6,852,246.55
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<PAGE>
4. Analysis of Collection Account Activity
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Opening Balance on Previous Calculation Date 104,278,006.51
Collections during period 15,539,266.15
Transfer to Expense Account on previous Payment Date
- Required Expense Amount (7,342,740.57)
- Permitted Aircraft Modifications -
Net Swap payments on previous Payment Date (175,522.49)
Aggregate Note Payments on previous Payment Date (10,593,134.45)
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Balance on current Calculation Date 101,705,875.15
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Analysis of Liquidity Reserve Amount
First Collection Account Reserve 65,000,000.00
Cash Held
- Security Deposits 21,982,761.00
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Liquidity Reserve Amount 86,982,761.00
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<PAGE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
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<S> <C> <C>
Balance in Collection and Expense Account 108,558,121.70
Liquidity Reserve Amount (86,982,761.00)
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Available Collections 21,575,360.70
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4. Analysis of Collection Account Activity (Continued)
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Analysis of Current Payment Date Distributions
(I) Total Required Expense Amount 7,600,000.00
(II) a) Class A Interest but excluding Step-up 6,189,436.99
b) Swap Payments other than subordinated swap payments 133,837.32
(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 1,016,286.26
(vi) Class B Minimum principal payment 72,922.22
(vii) Class C Interest 1,223,473.67
(viii) Class C Minimum principal payment -
(ix) Class D Interest 700,522.66
(x) Class D Minimum principal payment -
(xi) Second collection account top-up 56,982,761.00
(xii) Class A Scheduled principal -
(xiii) Class B Scheduled principal 609,699.82
(xiv) Class C Scheduled principal 131,325.01
(xv) Class D Scheduled principal -
(xvi) Permitted accruals for Modifications
(xvii) Step-up interest -
(xviii) Class A Supplemental principal 3,897,856.75
(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 -
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Total Payments with respect to Payment Date 108,558,121.70
less collection Account Top Ups (iii) (b) and (xi) (b) above 86,982,761.00
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21,575,360.70
==================
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<PAGE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
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5. Payments on the Notes by Subclass
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Subclass Subclass Subclass Total
Floating Rate Notes A-2 A-3 A-4 Class A
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<S> <C> <C> <C>
Applicable LIBOR 6.71000% 6.71000% 6.71000%
Applicable Margin 0.3200% 0.4600% 0.5200%
Applicable Interest Rate 7.03000% 7.17000% 7.23000%
Day Count Act/360 Act/360 Act/360
Actual Number of Days 32 32 32
Interest Amount Payable 1,189,680.41 3,600,933.33 1,398,823.25
Step-up Interest Amount Payable NA NA NA
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Total Interest Paid 1,189,680.41 3,600,933.33 1,398,823.25 6,189,436.99
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Expected Final Payment Date 15-Dec-05 15-Jun-02 15-May-11
Excess Amortisation Date 17-Aug-98 15-Feb-06 15-Aug-00
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Original Balance 290,000,000.00 565,000,000.00 235,000,000.00
Opening Outstanding
Balance 190,382,711.37 565,000,000.00 217,659,219.42 973,041,930.79
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Extended Pool Factors 76.45% 100.00% 100.00%
Pool Factors 67.90% 100.00% 91.61%
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Minimum Principal Payment - - - -
Scheduled Principal Payment - - - -
Supplemental Principal Payment 710,193.27 - 3,187,663.48 3,897,856.75
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Total Principal Distribution
Amount 710,193.27 - 3,187,663.48 3,897,856.75
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Redemption Amount
- amount allocable to principal -
- amount allocable to premium
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Closing Outstanding Principal
Balance 189,672,518.10 565,000,000.00 214,471,555.94 969,144,074.04
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(Table to be continued)
<PAGE>
(Table continued)
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Subclass Subclass Total
Floating Rate Notes B-1 B-2 Class B
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Applicable LIBOR 6.71000% 6.71000%
Applicable Margin 0.6000% 1.0500%
Applicable Interest Rate 7.31000% 7.76000%
Day Count Act/360 Act/360
Actual Number of Days 32 32
Interest Amount Payable 475,992.17 540,294.08
Step-up Interest Amount Payable NA NA
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Total Interest Paid 475,992.17 540,294.08 1,016,286.26
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Expected Final Payment Date 15-Jul-13 15-Jul-08
Excess Amortisation Date 17-Aug-98 15-Aug-00
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Original Balance 85,000,000.00 80,000,000.00
Opening Outstanding
Balance 73,254,609.49 78,328,717.00 151,583,326.49
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Extended Pool Factors 93.50% 100.00%
Pool Factors 88.31% 99.86%
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Minimum Principal Payment 35,240.61 37,681.61 72,922.22
Scheduled Principal Payment 294,645.35 315,054.47 609,699.82
Supplemental Principal Payment - - -
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Total Principal Distribution
Amount 329,885.96 352,736.08 682,622.04
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Redemption Amount
- amount allocable to principal
- amount allocable to premium
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Closing Outstanding Principal
Balance 72,924,723.53 77,975,980.92 150,900,704.45
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(Table to be continued)
<PAGE>
(Table continued)
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Subclass Subclass Total
Floating Rate Notes C-1 C-2 Class C
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Applicable LIBOR 6.71000% 6.71000%
Applicable Margin 1.3500% 2.0500%
Applicable Interest Rate 8.06000% 8.76000%
Day Count Act/360 Act/360
Actual Number of Days 32 32
Interest Amount Payable 601,045.34 622,428.33
Step-up Interest Amount Payable NA NA
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Total Interest Paid 601,045.34 622,428.33 1,223,473.67
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Expected Final Payment Date 15-Jul-13 15-Jun-08
Excess Amortisation Date 17-Aug-98 15-Aug-00
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Original Balance 85,000,000.00 80,000,000.00
Opening Outstanding Principal
Balance 83,892,804.50 79,935,144.98 163,827,949.48
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Extended Pool Factors 99.96% 100.00%
Pool Factors 98.35% 99.77%
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Minimum Principal Payment - - -
Scheduled Principal Payment 93,572.00 37,753.01 131,325.01
Supplemental Principal Payment - - -
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Total Principal Distribution
Amount 93,572.00 37,753.01 131,325.01
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Redemption Amount - -
- amount allocable to principal - -
- amount allocable to premium - -
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Closing Outstanding Principal
Balance 83,799,232.50 79,897,391.97 163,696,624.47
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Fixed Rate Notes D-2
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Applicable Interest Rate 8.50000%
Day count 30 / 360
Number of Days 30
Interest Amount Payable 700,522.66
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Total Interest Paid 700,522.66
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Expected Final Payment Date 15-Mar-14
Excess Amortisation Date 15-Jul-10
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Original Balance 100,000,000.00
Opening Outstanding Principal
Balance 98,897,317.00
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Extended Pool Factors 100.00%
Expected Pool Factors 100.00%
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Extended Amount -
Expected Pool Factor Amount -
Surplus Amortisation
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Total Principal Distribution Amount -
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Redemption Amount -
- amount allocable to principal -
--------------
- amount allocable to premium -
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Closing Outstanding Principal
Balance 98,897,317.00
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</TABLE>
<PAGE>
AERCO LIMITED
Report to Noteholders
All amounts in US dollars unless otherwise stated
<TABLE>
Current Payment Date 16-Jan-01
Current Calculation Date 9-Jan-01
Previous Payment Date 15-Dec-00
Previous Calculation Date 11-Dec-00
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6. Floating Rate Note information for next Interest Accrual Period
Start of Interest Accrual Period 16-Jan-01
End of Interest Accrual Period 15-Feb-01
Reference Date 11-Jan-01
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A-2 A-3 A-4 B-1 B-2 C-1 C-2
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<S> <C> <C> <C> <C> <C> <C> <C>
Applicable LIBOR 5.88250% 5.88250% 5.88250% 5.88250% 5.88250% 5.88250% 5.88250%
Applicable Margin 0.3200% 0.4600% 0.5200% 0.6000% 1.0500% 1.3500% 2.0500%
Applicable Interest Rate 6.2025% 6.3425% 6.4025% 6.4825% 6.9325% 7.2325% 7.9325%
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Fixed Rate Notes D-1
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Actual Pool Factor 100.00%
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7. Payments per $100,000 Initial Outstanding Principal Balance of Notes
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(a) Floating Rate Notes A-2 A-3 A-4 B-1 B-2 C-1 C-2
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Opening 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 Principal Payments 710.19 - 3,187.66 329.89 352.74 93.57 37.75
Closing Outstanding Principal Balance 189,672.52 565,000.00 214,471.56 72,924.72 77,975.98 83,799.23 79,897.39
Total Interest 1,189.68 3,600.93 1,398.82 475.99 540.29 601.05 622.43
Total Premium 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000% 0.0000%
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(b) Fixed Rate Notes D-2
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Opening Outstanding Principal Balance 98,897.32
Total Principal Payments -
Closing Outstanding Principal Balance 98,897.32
Total Interest 700.52
Total Premium -
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</TABLE>
