Exhibit 99.1
Analysis of Activity in the Collection Account during the Quarter
Aircraft Finance makes payments on the Notes monthly on the 15th of each month,
or the next business day if the 15th is not a business day (the "Payment Date").
The amount of cash available for payment is determined on the Calculation Date,
which is defined as being four business days prior to the Payment Date. For the
purposes of this report, the "Three Month Period" comprises information from the
three Monthly Reports to Noteholders through September 15, 2000 and the
"Cumulative to Date", comprises information from all of the Monthly Reports to
Noteholders since the Closing Date, May 5, 1999, through September 15, 2000.
The April 21, 1999 Offering Memorandum (the "Offering Memorandum") contains
assumptions in respect of Aircraft Finance's future cash flows and expenses (the
"Assumed Case"). The following reports contain an analysis of the actual cash
flows versus the Assumed Case for the Three Month Period and Cumulative to Date.
<PAGE>
Aircraft Finance Trust
Asset Backed Notes, Series 1999-1
Actual Cash Flows versus Assumed Case
Three Month Period - June 16, 2000 to September 15, 2000
<TABLE>
<CAPTION>
Three months ended September 15, 2000 As % of Assumed Lease Rentals
Actual Assumed Variance Actual Assumed Variance
------ ------- -------- ------ ------- --------
<S> <C> <C> <C> <C> <C> <C>
CASH COLLECTIONS
Lease rentals 34,072,617 34,072,617 0 100.00% 100.00% 0.00%
- Renegotiated leases 248,865 0 248,865 0.73% 0.00% 0.73%
- Rental resets (694,854) 0 (694,854) -2.04% 0.00% -2.04%
----------------------------------------------- -----------------------------------------
Contracted lease rentals 33,626,628 34,072,617 (445,989) 98.69% 100.00% -1.31%
Movement in current arrears
balance 1,232,426 0 1,232,426 3.62% 0.00% 3.62%
Less net stress related costs
- Bad debts (933,585) (341,659) (591,926) -2.74% -1.00% -1.74%
- AOG (1,143,708) (1,024,978) (118,730) -3.36% -3.01% -0.35%
- Other leasing income 40,997 0 40,997 0.12% 0.00% 0.12%
----------------------------------------------- -----------------------------------------
Sub-total (803,870) (1,366,637) 562,767 -2.36% -4.01% 1.65%
Net lease revenues 32,822,758 32,705,980 116,778 96.33% 95.99% 0.34%
----------------------------------------------- -----------------------------------------
Interest earned 1,470,618 748,463 722,155 4.32% 2.20% 2.12%
Maintenance receipts 5,276,751 5,276,751 15.49% 15.49%
Maintenance disbursements (5,000,269) (5,000,269) -14.68% -14.68%
----------------------------------------------- -----------------------------------------
Net maintenance 276,482 0 276,482 0.81% 0.00% 0.81%
----------------------------------------------- -----------------------------------------
Total cash
collections 34,569,858 33,454,443 1,115,415 101.46% 98.19% 3.27%
----------------------------------------------- -----------------------------------------
CASH EXPENSES
Aircraft operating expenses (596,453) (1,366,638) 770,185 -1.75% -4.01% 2.26%
SG&A expenses
Aircraft servicer fees (1,103,334) (1,116,120) 12,786 -3.24% -3.28% 0.04%
Other (207,191) (525,000) 317,809 -0.61% -1.54% 0.93%
----------------------------------------------- -----------------------------------------
Sub-total (1,310,525) (1,641,120) 330,595 -3.85% -4.82% 0.97%
----------------------------------------------- -----------------------------------------
Total cash expenses (1,906,978) (3,007,758) 1,100,780 -5.60% -8.83% 3.23%
----------------------------------------------- -----------------------------------------
NET CASH COLLECTIONS
Total cash collections 34,569,858 33,454,443 1,115,415 101.46% 98.19% 3.27%
Total cash expenses (1,906,978) (3,007,758) 1,100,780 -5.60% -8.83% 3.23%
Movement in expense account (183,138) 0 (183,138) -0.54% 0.00% -0.54%
Interest payments (21,961,327) (17,769,808) (4,191,519) -64.45% -52.15% -12.30%
Swap receipts (payments) 2,234,465 (1,208,775) 3,443,240 6.56% -3.55% 10.11%
----------------------------------------------- -----------------------------------------
Total 12,752,880 11,468,102 1,284,778 37.43% 33.66% 3.77%
----------------------------------------------- -----------------------------------------
Principal payments
A1 0 0 0 0.00% 0.00% 0.00%
A2 (10,761,820) (9,472,949) (1,288,871) -31.58% -27.80% -3.78%
B (1,991,060) (1,995,153) 4,093 -5.84% -5.86% 0.01%
C 0 0 0 0.00% 0.00% 0.00%
D 0 0 0 0.00% 0.00% 0.00%
----------------------------------------------- -----------------------------------------
Total (12,752,880) (11,468,102) (1,284,778) -37.43% -33.66% -3.77%
----------------------------------------------- -----------------------------------------
</TABLE>
<PAGE>
Aircraft Finance Trust
Asset Backed Notes, Series 1999-1
Actual Cash Flows versus Assumed Case
Cumulative to Date - May 5, 1999 to September 15, 2000
<TABLE>
<CAPTION>
Cumulative to Date As % of Assumed Lease Rentals
Actual Assumed Variance Actual Assumed Variance
------ ------- -------- ------ ------- --------
<S> <C> <C> <C> <C> <C> <C>
CASH COLLECTIONS
Lease rentals 183,326,108 183,326,108 0 100.00% 100.00% 0.00%
- Renegotiated leases (380,795) 0 (380,795) -0.21% 0.00% -0.21%
- Rental resets (787,304) 0 (787,304) -0.43% 0.00% -0.43%
- Excess rents at closing 5,924,523 0 5,924,523 3.23% 0.00% 3.23%
------------------------------------------------ -----------------------------------------
Contracted lease rentals 188,082,532 183,326,108 4,756,424 102.59% 100.00% 2.59%
Movement in current arrears
balance (882,610) 0 (882,610) -0.48% 0.00% -0.48%
Less net stress related costs
- Bad debts (2,173,418) (1,838,282) (335,136) -1.19% -1.00% -0.18%
- AOG (1,561,094) (5,514,847) 3,953,753 -0.85% -3.01% 2.16%
- Other leasing income 284,561 0 284,561 0.16% 0.00% 0.16%
------------------------------------------------ -----------------------------------------
Sub-total (4,332,561) (7,353,129) 3,020,568 -2.36% -4.01% 1.65%
Net lease revenues 183,749,971 175,972,979 7,776,992 100.23% 95.99% 4.24%
------------------------------------------------ -----------------------------------------
Investment income 6,212,354 4,055,544 2,156,810 3.39% 2.21% 1.18%
Maintenance receipts 25,278,169 25,278,169 13.79% 13.79%
Maintenance disbursements (13,452,646) (13,452,646) -7.34% -7.34%
------------------------------------------------ -----------------------------------------
Net maintenance 11,825,523 0 11,825,523 6.45% 0.00% 6.45%
------------------------------------------------ -----------------------------------------
Total cash
collections 201,787,848 180,028,523 21,759,325 110.07% 98.20% 11.87%
------------------------------------------------ -----------------------------------------
CASH EXPENSES
Aircraft operating expenses (2,436,329) (7,353,129) 4,916,800 -1.33% -4.01% 2.68%
SG&A expenses
Aircraft servicer fees (6,068,823) (5,984,025) (84,798) -3.31% -3.26% -0.05%
Other (2,002,901) (2,800,000) 797,099 -1.09% -1.53% 0.43%
------------------------------------------------ -----------------------------------------
Sub-total (8,071,724) (8,784,025) 712,301 -4.40% -4.79% 0.39%
------------------------------------------------ -----------------------------------------
Total cash expenses (10,508,053) (16,137,154) 5,629,101 -5.73% -8.80% 3.07%
------------------------------------------------ -----------------------------------------
NET CASH COLLECTIONS
Total cash collections 201,787,848 180,028,523 21,759,325 110.07% 98.20% 11.87%
Total cash expenses (10,508,053) (16,137,154) 5,629,101 -5.73% -8.80% 3.07%
Movement in expense account (18,021,424) 0 (18,021,424) -9.83% 0.00% -9.83%
Interest payments (110,098,153) (98,265,765) (11,832,388) -60.06% -53.60% -6.45%
Swap receipts (payments) 2,607,334 (6,951,567) 9,558,901 1.42% -3.79% 5.21%
------------------------------------------------ -----------------------------------------
Total 65,767,552 58,674,037 7,093,515 35.87% 32.01% 3.87%
------------------------------------------------ -----------------------------------------
Principal payments
A1 0 0 0 0.00% 0.00% 0.00%
A2 (62,070,364) (55,036,977) (7,033,387) -33.86% -30.02% -3.84%
B (3,697,188) (3,637,060) (60,128) -2.02% -1.98% -0.03%
C 0 0 0 0.00% 0.00% 0.00%
D 0 0 0 0.00% 0.00% 0.00%
------------------------------------------------ -----------------------------------------
Total (65,767,552) (58,674,037) (7,093,515) -35.87% -32.01% -3.87%
------------------------------------------------ -----------------------------------------
</TABLE>
<PAGE>
Notes:
The line item descriptions below should be read in conjunction with the Actual
Cash Flows versus Assumed Case reports provided above.
Lease rentals. Lease rentals refers to gross revenue based on the assumptions in
the offering memorandum dated April 21, 1999.
Renegotiated leases. Renegotiated leases refer to the loss in rental revenue
caused by a lessee negotiating a reduction in the lease rental. This can be a
permanent reduction over the remaining lease term in exchange for other
contractual concessions or a result of seasonal adjustments in the monthly
rental amount.
Rental resets. Rental resets are a measure of the gain or loss in rental revenue
when new lease rates are different from those assumed in the Assumed Case,
including lease rate adjustments for changes in interest rates on floating rate
leases, lease extensions or renewals with current lessees at the end of the
lease term.
Excess rents at closing. Excess rents at Closing refer to the excess of the
actual rental revenue over the anticipated rental revenue under the Assumed
Case. Aircraft Finance received rents from April 29, 1999 forward and pro-rated
rental payment from the seller, for rents earned by Aircraft Finance, but
received by the seller(s) prior to the close of Aircraft Finance.
Contracted lease rentals. Contracted lease rentals represent the current
contracted lease rental rollout which equates to the Assumed Case lease rentals
less adjustments for renegotiated leases, rental resets and excess rent at
closing.
Movement in current arrears balance. Movement in current arrears balance is the
total contracted lease rentals outstanding from current lessees at a given date
and excludes any amounts classified as bad debts.
Net stress-related costs. Net stress-related costs is a combination of all the
factors which can cause actual lease rentals received to differ from the
contracted lease rentals. The Assumed Case estimated net stress-related costs
based on a percentage of the sum of the Assumed Case lease rentals and the
interest on the lease rentals.
Bad debts. Bad debts are total contracted lease rentals in arrears, net of
security deposits drawn down, owed by lessees who have defaulted and which are
deemed irrecoverable. Rental arrears from non-accrual lessees are reclassified
to Bad Debts when the aircraft is redelivered from the lessee.
Aircraft on ground ("AOG"). AOG is defined as the Assumed Case lease rental lost
when an aircraft is off-lease and non-revenue earning.
Other leasing income. Other leasing income consists of miscellaneous income
received in connection with a lease other than contracted rentals, maintenance
receipts and security deposits, such as early termination payments or default
interest.
Net lease rentals. Net lease rentals is contracted lease rentals less any
movement in current arrears balance and net stress-related costs.
<PAGE>
Interest earned. Interest earned mainly relates to interest received on cash
balances held in the collection, expense and certain lessee funded accounts.
Cash held in the collection account consists of the cash liquidity reserve
amount of $52 million, in addition to the intra-month cash balances for all the
rentals and maintenance payments collected prior to the monthly payment date.
The expense account contains cash set aside to pay for expenses which are
expected to be payable over the next five months. Lessee funded accounts consist
of cash security deposits. In most instances, interest earned from the lessee
funded accounts, accrues in favor of Aircraft Finance.
Net maintenance. Net maintenance refers to maintenance reserve revenue received
less any maintenance reimbursements paid. The Assumed Case assumes that, over
time, maintenance revenue will equal maintenance expenditures. However, it is
unlikely that in any particular note payment period, maintenance revenue will
exactly equal maintenance expenses.
Aircraft operating expenses. Aircraft operating expenses includes all
operational costs related to the leasing of an aircraft including costs of
re-leasing, repossession and other overhead costs.
Aircraft servicer fees. Aircraft servicer fees are amounts paid to the aircraft
servicer, GE Capital Aviation Services Ltd., in accordance with the terms of the
servicing agreement.
Other. Other relates to fees and expenses paid to and for other service
providers including the administrative agent, financial advisor, legal advisors,
auditors, rating agencies, the trustees, and other selling, general and
administrative expenses.
Movement in expense account. Movement in expense account relates to increases or
decreases in the accrued expense amounts transferred in or out of the expense
account.
Interest payments. Interest payments represent the amount of interest paid on
Aircraft Finance's outstanding classes of Notes issued on May 5, 1999.
Swap receipts (payments). According to the terms of the interest rate swap
agreements, Aircraft Finance pays a fixed rate of interest on the notional
amount of the swaps to the counterparty and in turn the counterparty pays
Aircraft Finance a rate of interest on the notional amount based on the 30 day
LIBOR rate, which will results in monthly net swap payments paid or received.
