UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                               ------------------

                                    FORM 10-Q

                               ------------------




            X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
           ---           SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1999

                                       OR

              TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          ---            SECURITIES EXCHANGE ACT OF 1934

                     For the transition period from ___ to ___


                                -----------------

                           Commission File No. 2-91762

                                -----------------




                         POLARIS AIRCRAFT INCOME FUND I

                        State of Organization: California
                   IRS Employer Identification No. 94-2938977
                201 High Ridge Road, Stamford, Connecticut 06927
                           Telephone - (203) 357-3776



Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the  preceding  12 months,  and (2) has been  subject to such filing
requirements for the past 90 days.



                              Yes  X          No
                                  ---            ---





                       This document consists of 13 pages.

<PAGE>

                         POLARIS AIRCRAFT INCOME FUND I

            FORM 10-Q - For the Quarterly Period Ended June 30, 1999




                                      INDEX



Part I.  Financial Information                                              Page
                                                                            ----
         Item 1.      Financial Statements

              a)  Balance Sheets - June 30, 1999 and
                  December 31, 1998...........................................3

              b)  Statements of Operations - Three and Six Months
                  Ended June 30, 1999 and 1998................................4

              c)  Statements of Changes in Partners' Capital -
                  Year Ended December 31, 1998
                  and Six Months Ended June 30, 1999..........................5

              d)  Statements of Cash Flows - Six Months
                  Ended June 30, 1999 and 1998................................6

              e)  Notes to Financial Statements...............................7

         Item 2.      Management's Discussion and Analysis of
                      Financial Condition and Results of Operations...........9



Part II. Other Information

         Item 1.      Legal Proceedings......................................12

         Item 6.      Exhibits and Reports on Form 8-K.......................12

         Signature    .......................................................13


                                       2
<PAGE>

                          Part 1. Financial Information
                          -----------------------------

Item 1.       Financial Statements

                         POLARIS AIRCRAFT INCOME FUND I

                                 BALANCE SHEETS
                                   (Unaudited)

                                                        June 30,    December 31,
                                                          1999          1998
                                                          ----          ----
ASSETS:

CASH AND CASH EQUIVALENTS                              $3,696,122   $6,418,582

RENT AND OTHER RECEIVABLES, net of
   allowance for credit losses of  $30,365 in
   1999 and 1998                                          196,858       58,154

AIRCRAFT ENGINES, net of accumulated depreciation
    of $82,500 in 1999 and $75,000 in 1998                877,500      885,000
                                                       ----------   ----------

                                                       $4,770,480   $7,361,736
                                                       ==========   ==========


LIABILITIES AND PARTNERS' CAPITAL :

PAYABLE TO AFFILIATES                                  $   12,264   $   10,538

ACCOUNTS PAYABLE AND ACCRUED
   LIABILITIES                                            360,295      371,742

LESSEE SECURITY DEPOSITS                                   45,000       45,000

DEFERRED INCOME                                            30,000         --

MAINTENANCE RESERVES                                    1,571,956    1,814,393
                                                       ----------   ----------

        Total Liabilities                               2,019,515    2,241,673
                                                       ----------   ----------

PARTNERS' CAPITAL :
   General Partner                                        220,856      493,422
   Limited Partners, 168,729 units
      issued and outstanding                            2,530,109    4,626,641
                                                       ----------   ----------

        Total Partners' Capital                         2,750,965    5,120,063
                                                       ----------   ----------

                                                       $4,770,480   $7,361,736
                                                       ==========   ==========

        The accompanying notes are an integral part of these statements.

                                       3
<PAGE>


                         POLARIS AIRCRAFT INCOME FUND I

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                          Three Months Ended   Six Months Ended
                                               June 30,            June 30,
                                               --------            --------

                                            1999      1998      1999      1998
                                            ----      ----      ----      ----
REVENUES:
   Rent from operating leases             $ 90,000  $ 90,000  $180,000  $180,000
   Gain on sale of aircraft inventory         --      14,856   196,858    64,309
   Interest and other                       45,649    73,333    96,210   376,509
                                          --------  --------  --------  --------

           Total Revenues                  135,649   178,189   473,068   620,818
                                          --------  --------  --------  --------

EXPENSES:
   Depreciation                              3,750     3,750     7,500     7,500
   Management fees to general partner        4,500     4,500     9,000     9,000
   Operating                                  --       3,514      --       3,514
   Administration and other                 34,601    47,200    60,385    88,166
                                          --------  --------  --------  --------

           Total Expenses                   42,851    58,964    76,885   108,180
                                          --------  --------  --------  --------

NET INCOME                                $ 92,798  $119,225  $396,183  $512,638
                                          ========  ========  ========  ========

NET INCOME ALLOCATED
   TO THE GENERAL PARTNER                 $    928  $  1,192  $  3,962  $  5,126
                                          ========  ========  ========  ========

NET INCOME ALLOCATED
   TO LIMITED PARTNERS                    $ 91,870  $118,033  $392,221  $507,512
                                          ========  ========  ========  ========

NET INCOME PER LIMITED
   PARTNERSHIP UNIT                       $   0.54  $   0.70  $   2.32  $   3.01
                                          ========  ========  ========  ========

        The accompanying notes are an integral part of these statements.

                                       4
<PAGE>

                         POLARIS AIRCRAFT INCOME FUND I

                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
                                   (Unaudited)


                                           Year Ended December 31, 1998 and
                                            Six Months Ended June 30, 1999
                                            ------------------------------

                                          General       Limited
                                          Partner       Partners        Total
                                          -------       --------        -----


Balance, December 31, 1997              $   392,302   $ 4,923,414   $ 5,315,716

   Net income                               251,101     1,053,059     1,304,160

   Cash distributions to partners          (149,981)   (1,349,832)   (1,499,813)
                                        -----------   -----------   -----------

Balance, December 31, 1998                  493,422     4,626,641     5,120,063

   Net income                                 3,962       392,221       396,183

   Cash distributions to partners          (276,528)   (2,488,753)   (2,765,281)
                                        -----------   -----------   -----------

Balance, June 30, 1999                  $   220,856   $ 2,530,109   $ 2,750,965
                                        ===========   ===========   ===========

        The accompanying notes are an integral part of these statements.

                                       5
<PAGE>

                         POLARIS AIRCRAFT INCOME FUND I

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                       Six Months Ended June 30,
                                                       -------------------------

                                                          1999           1998
                                                          ----           ----
OPERATING ACTIVITIES:
   Net income                                         $   396,183   $   512,638
   Adjustments to reconcile net income to
      net cash provided by operating activities:
      Depreciation                                          7,500         7,500
      Gain on sale of aircraft inventory                 (196,858)      (64,309)
      Changes in operating assets and liabilities:
        Increase in rent and other receivables             58,154        (1,224)
        Increase (decrease) in payable to affiliates        1,726       (14,159)
        Increase in deferred income                        30,000        30,000
        (Decrease) increase in accounts payable and
           accrued liabilities                            (11,447)        9,725
        (Decrease) increase in maintenance reserves      (242,437)      184,880
        Decrease in security deposits                        --         (50,000)
                                                      -----------   -----------

           Net cash provided by operating activities       42,821       615,051
                                                      -----------   -----------

INVESTING ACTIVITIES:
   Net proceeds from sale of aircraft inventory              --          64,309
                                                      -----------   -----------

           Net cash provided by investing activities         --          64,309
                                                      -----------   -----------

FINANCING ACTIVITIES:
   Cash distributions to partners                      (2,765,281)   (1,499,813)
                                                      -----------   -----------

           Net cash used in financing activities       (2,765,281)   (1,499,813)
                                                      -----------   -----------

CHANGES IN CASH AND CASH
   EQUIVALENTS                                         (2,722,460)     (820,453)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                                  6,418,582     6,466,511
                                                      -----------   -----------

CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                      $ 3,696,122   $ 5,646,058
                                                      ===========   ===========

        The accompanying notes are an integral part of these statements.

                                       6
<PAGE>


                         POLARIS AIRCRAFT INCOME FUND I

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


1.    Accounting Principles and Policies

In the opinion of management,  the financial statements presented herein include
all  adjustments,  consisting  only of  normal  recurring  items,  necessary  to
summarize fairly Polaris Aircraft Income Fund I's (the Partnership's)  financial
position and results of operations.  The financial statements have been prepared
in accordance with the  instructions  of the Quarterly  Report to the Securities
and  Exchange  Commission  (SEC)  Form  10-Q  and  do  not  include  all  of the
information  and note  disclosures  required by  generally  accepted  accounting
principles  (GAAP).  These  statements  should be read in  conjunction  with the
financial  statements  and notes thereto for the years ended  December 31, 1998,
1997,  and 1996 included in the  Partnership's  1998 Annual Report to the SEC on
Form 10-K.


2.    Related Parties

Under the Limited Partnership  Agreement,  the Partnership paid or agreed to pay
the following  amounts for the current quarter to the general  partner,  Polaris
Investment  Management  Corporation,  in connection  with  services  rendered or
payments made on behalf of the Partnership:

                                        Payments for
                                     Three Months Ended       Payable at
                                        June 30, 1999        June 30, 1999
                                        -------------        -------------

Aircraft Management Fees                   $ 1,500             $ 4,518

Out-of-Pocket Administrative Expense
    Reimbursement                           38,854               7,746
                                           -------             -------

                                           $40,354             $12,264
                                           =======             =======


3.       Partners' Capital

The Partnership  Agreement (the Agreement) stipulates different methods by which
revenue,  income  and  loss  from  operations  and  gain or loss on the  sale of
aircraft are to be allocated  to the general  partner and the limited  partners.
Such  allocations are made using income or loss  calculated  under GAAP for book
purposes, which varies from income or loss calculated for tax purposes.

Cash  available  for  distributions,  including  the  proceeds  from the sale of
aircraft,  is  distributed  10% to the  general  partner  and 90% to the limited
partners.

The different methods of allocating items of income, loss and cash available for
distribution  combined with the calculation of items of income and loss for book
and  tax  purposes  result  in  book  basis  capital   accounts  that  may  vary
significantly  from tax basis capital  accounts.  The ultimate  liquidation  and
distribution  of remaining cash will be based on the tax basis capital  accounts
following liquidation, in accordance with the Agreement.

                                       7
<PAGE>


4.       Sale of Aircraft Inventory to Soundair, Inc.

The Partnership  recognized  income of $196,858 during the first quarter of 1999
from the sale of aircraft inventory to Soundair, Inc.



                                       8
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

At June 30, 1999,  Polaris Aircraft Income Fund I (the Partnership)  owned three
JT8D-9A  engines and certain  inventoried  aircraft  parts,  which  includes one
engine,  out of its original  portfolio of eleven  aircraft.  The three  JT8D-9A
engines  are  leased  to Royal  Aviation  Inc.  and  Royal  Cargo,  Inc.  (Royal
Aviation).


Partnership Operations

The Partnership recorded net income of $92,798, or $0.54 per limited partnership
unit for the  three  months  ended  June 30,  1999  compared  to net  income  of
$119,225, or $0.70 per limited partnership unit, for the three months ended June
30, 1998. The Partnership recorded net income of $396,183,  or $2.32 per limited
partnership unit for the six months ended June 30, 1999,  compared to net income
of $512,638,  or $3.01 per limited  partnership  unit,  for the six months ended
June 30, 1998. The decrease in operating results during the three and six months
ended June 30, 1999,  as compared to the same periods in 1998,  is primarily the
result of bankruptcy  settlements  in the 1998  periods,  related to Braniff and
Jetfleet.  Also contributing to the decrease in operating results was a decrease
in interest  revenue  partially  offset by a decrease in certain  administrative
expenses.

Interest income  decreased  during the three and six months ended June 30, 1999,
as compared to the same period in 1998,  primarily due to a decrease in the cash
reserves over the same period.

Administration  and other  expenses  decreased  during  the three and six months
ended June 30, 1999,  as compared to the same period in 1998,  primarily  due to
decreases in consulting fees and printing and postage costs.

There were no operating  expenses during the three and six months ended June 30,
1999, as compared to the same periods in 1998.  During the six months ended June
30, 1998,  the  Partnership  recognized  legal expenses of $3,514 related to the
Braniff bankruptcy.


Liquidity and Cash Distributions

Liquidity - The Partnership  receives  maintenance  reserve  payments from Royal
Aviation that may be reimbursed to the lessee or applied  against  certain costs
incurred by the Partnership for maintenance work performed on the  Partnership's
aircraft or engines,  as specified in the leases.  Maintenance  reserve balances
remaining  at  the  termination  of the  lease,  if  any,  may  be  used  by the
Partnership to offset future maintenance  expenses or recognized as revenue. The
net maintenance  reserves balances aggregate $1,571,956 as of June 30, 1999. One
engine  underwent a maintenance  event which resulted in a reimbursement  to the
lessee of $414,844 during the second quarter of 1999.

Polaris Investment Management  Corporation,  the general partner, has determined
that cash  reserves  be  maintained  as a  prudent  measure  to insure  that the
Partnership has available funds in the event that the engines presently on lease
to Royal Aviation require remarketing,  and for other  contingencies,  including
expenses of the Partnership.  The Partnership's  cash reserves will be monitored
and may be revised from time to time as further information becomes available in
the future.

Cash  Distributions  - Cash  distributions  to limited  partners  during the six
months ended June 30, 1999 were  $2,488,753,  or $14.75 per limited  partnership
unit, compared to $1,349,832,  or $8.00 per limited partnership unit for the six
months ended June 30, 1998.  The timing and amount of future cash  distributions

                                       9
<PAGE>

to partners are not yet known and will depend upon the Partnership's future cash
requirements, including the receipt of rental payments from Royal Aviation.


Impact of the Year 2000 Issue

The inability of business  processes to continue to function correctly after the
beginning of the Year 2000 could have serious  adverse  effects on companies and
entities throughout the world. As discussed in prior filings with the Securities
and Exchange  Commission,  the General  Partner has engaged GE Capital  Aviation
Services,   Inc.  ("GECAS")  to  provide  certain  management  services  to  the
Partnership.  Both the General Partner and GECAS are  wholly-owned  subsidiaries
(either direct or indirect) of General  Electric Capital  Corporation  ("GECC").
All of the Partnership's operational functions are handled either by the General
Partner  and  GECAS  or  by  third   parties  (as  discussed  in  the  following
paragraphs), and the Partnership has no information systems of its own.

As discussed in the Partnership's Annual Report on Form 10-K, GECC and GECAS are
applying a Six Sigma quality  approach to identify and mitigate Year 2000 issues
in their information systems, products and services, facilities and suppliers as
well as to  assess  the  extent to which  Year 2000  issues  will  affect  their
customers.  Each business has a Year 2000 leader who oversees a multi-functional
remediation  project team responsible for remediation and contingency  planning,
applying a Six Sigma  quality  approach in four phases:  (1)  define/measure  --
identify and  inventory  possible  sources of Year 2000  issues;  (2) analyze --
determine the nature and extent of Year 2000 issues and develop project plans to
address  those  issues;  (3)  improve --  execute  project  plans and  perform a
majority  of  the  testing;  and  (4)  control  --  complete  testing,  continue
monitoring readiness and complete necessary  contingency plans. As of the end of
June 1999, virtually all significant information systems, products and services,
facilities,  and  suppliers  were in the control  phase.  As a final step in the
control phase, GECC is developing, testing and implementing contingency plans to
ameliorate any potential  internal or external  disruption of critical  business
processes.

As noted elsewhere,  the Partnership has sold all of its aircraft-related assets
other than three aircraft engines on lease and the spare parts inventory,  which
includes  one  engine.  Three of the  remaining  engines are on lease with Royal
Aviation,  Inc. and Royal Cargo,  Inc.,  and under the terms of the leases,  the
lessees have the  obligation to repair and maintain the engines.  Royal Aviation
has advised  GECAS that it has adopted  procedures  to identify and address Year
2000 issues and that it has  developed a plan to fix any  problems by the end of
this year.  To the extent,  however,  that Royal  Aviation  suffers any material
disruption of its business and  operations due to Year 2000 failure of equipment
or information  systems,  such disruption  would likely have a material  adverse
effect on the Partnership's operations and financial condition.

Aside  from  maintenance  and  other  matters  relating  to  the   Partnership's
aircraft-related  assets discussed above, the principal  third-party  vendors to
the  Partnership  are those  providing  the  Partnership  with  services such as
accounting,  auditing, banking and investor services. GECAS intends to apply the
same standards in determining the Year 2000  capabilities  of the  Partnership's
third-party  vendors,  as GECAS will apply with  respect to its outside  vendors
pursuant to its internal Year 2000 program.

The  scope  of the  global  Year  2000  effort  encompasses  many  thousands  of
applications  and computer  programs,  products  and  services,  facilities  and
facilities-related equipment suppliers, and customers. The Partnership, like all
business   operations,   is  also  dependent  on  the  Year  2000  readiness  of
infrastructure   suppliers   in   areas   such   as   utility,   communications,
transportation  and other services.  In this  environment,  there will likely be
instances of failure that could cause disruptions in business  processes or that
could affect  customers'  ability to repay  amounts owed to the  Partnership  or
vendors' ability to provide services  without  interruption.  The likelihood and
effects of failures in infrastructure systems, over which the Partnership has no
control,  cannot  be  estimated.  However,  aside  from the  impact  of any such
possible  failures or the possibility of a disruption of Royal's business caused
by Year 2000 failures,  the General Partner does not believe that occurrences of

                                       10
<PAGE>

Year  2000  failures  will  have a  material  adverse  effect  on the  financial
position, results of operations or liquidity of the Partnership.

To date, the Partnership has not incurred any Year 2000 expenditures nor does it
expect  to incur any  material  costs in the  future.  However,  the  activities
involved in the Year 2000 effort  necessarily  involve estimates and projections
of activities and resources that will be required in the future. These estimates
and projections could change as work progresses.





                                       11
<PAGE>


                           Part II. Other Information
                           --------------------------


Item 1.           Legal Proceedings

As  discussed  in Item 3 of Part I of  Polaris  Aircraft  Income  Fund  I's (the
Partnership) 1998 Annual Report to the Securities and Exchange  Commission (SEC)
on Form 10-K (Form 10-K) and in Item 1 of Part II of the Partnership's Quarterly
Report to the SEC on Form 10-Q (Form 10-Q) for the period  ended March 31, 1999,
there  are  several   pending  legal  actions  or   proceedings   involving  the
Partnership.  There have been no material  developments with respect to any such
actions or proceedings during the period covered by this report.

Other Proceedings - Item 10 in Part III of the Partnership's  1998 Form 10-K and
Item 1 in Part II of the Partnership's  Form 10-Q for the period ended March 31,
1999 discuss certain  actions which have been filed against  Polaris  Investment
Management  Corporation  and others in connection  with the sale of interests in
the Partnership and the management of the Partnership.  The Partnership is not a
party to these actions. There have been no material developments with respect to
any of the actions described therein during the period covered by this report.


Item 6.           Exhibits and Reports on Form 8-K

a)    Exhibits (numbered in accordance with Item 601 of Regulation S-K)

           27. Financial Data Schedule (in electronic format only).

b)    Reports on Form 8-K

      No reports on Form 8-K were filed by the Registrant during the quarter for
      which this report is filed.


                                       12
<PAGE>

                                    SIGNATURE



Pursuant to the  requirements of section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                          POLARIS AIRCRAFT INCOME FUND I
                                          (Registrant)
                                          By:   Polaris Investment
                                                Management Corporation,
                                                General Partner




          August 11, 1999                 By: /S/Marc A. Meiches
----------------------------------            ---------------------------------
                                              Marc A. Meiches
                                              Chief Financial Officer
                                              (principal financial officer and
                                              principal accounting officer of
                                              Polaris Investment Management
                                              Corporation, General Partner of
                                              the Registrant)


                                       13