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 March 31, 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 14 pages.
<PAGE>


                         POLARIS AIRCRAFT INCOME FUND I

            FORM 10-Q - For the Quarterly Period Ended March 31, 1999




                                      INDEX



Part I.       Financial Information                                         Page

         Item 1.      Financial Statements

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

              b)  Statements of Operations - Three Months Ended
                  March 31, 1999 and 1998.....................................4

              c)  Statements of Changes in Partners' Capital
                  (Deficit) - Year Ended December 31, 1998
                  and Three Months Ended March 31, 1999.......................5

              d)  Statements of Cash Flows - Three Months
                  Ended March 31, 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)

                                                         March 31,  December 31,
                                                           1999         1998
                                                           ----         ----
ASSETS:

CASH AND CASH EQUIVALENTS                               $3,904,988   $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 $78,750 in 1999 and $75,000 in 1998                  881,250      885,000
                                                        ----------   ----------

                                                        $4,983,096   $7,361,736
                                                        ==========   ==========



LIABILITIES AND PARTNERS' CAPITAL:

PAYABLE TO AFFILIATES                                   $   18,956   $   10,538

ACCOUNTS PAYABLE AND ACCRUED
   LIABILITIES                                             353,382      371,742

LESSEE SECURITY DEPOSITS                                    45,000       45,000

MAINTENANCE RESERVES                                     1,907,591    1,814,393
                                                        ----------   ----------

        Total Liabilities                                2,324,929    2,241,673
                                                        ----------   ----------

PARTNERS' CAPITAL:

   General Partner                                         219,928      493,422
   Limited Partners, 168,729 units
      issued and outstanding                             2,438,239    4,626,641
                                                        ----------   ----------

        Total Partners' Capital                          2,658,167    5,120,063
                                                        ----------   ----------

                                                        $4,983,096   $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 March 31,
                                                    ----------------------------

                                                        1999          1998
                                                        ----          ----

REVENUES:
   Rent from operating leases                         $ 90,000      $ 90,000
   Gain on sale of aircraft inventory                  196,858        49,453
   Claims related to lessee defaults                      --         231,072
   Interest and other                                   50,561        72,104
                                                      --------      --------

           Total Revenues                              337,419       442,629
                                                      --------      --------

EXPENSES:
   Depreciation                                          3,750         3,750
   Management fees to general partner                    4,500         4,500
   Administration and other                             25,784        40,966
                                                      --------      --------

           Total Expenses                               34,034        49,216
                                                      --------      --------

NET INCOME                                            $303,385      $393,413
                                                      ========      ========

NET INCOME ALLOCATED
   TO THE GENERAL PARTNER                             $  3,034      $  3,934
                                                      ========      ========

NET INCOME ALLOCATED TO
   LIMITED PARTNERS                                   $300,351      $389,479
                                                      ========      ========

NET INCOME PER LIMITED
   PARTNERSHIP UNIT                                   $   1.78      $   2.31
                                                      ========      ========



        The accompanying notes are an integral part of these statements.

                                       4
<PAGE>

                         POLARIS AIRCRAFT INCOME FUND I

              STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                   (Unaudited)


                                           Year Ended December 31, 1998 and
                                           Three Months Ended March 31, 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                                 3,034       300,351       303,385

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

Balance, March 31, 1999                 $   219,928   $ 2,438,239   $ 2,658,167
                                        ===========   ===========   ===========

        The accompanying notes are an integral part of these statements.

                                       5
<PAGE>

                         POLARIS AIRCRAFT INCOME FUND I

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                    Three Months Ended March 31,
                                                    ----------------------------

                                                         1999          1998
                                                         ----          ----
OPERATING ACTIVITIES:
   Net income                                        $   303,385   $   393,413
   Adjustments to reconcile net income to
      net cash provided by operating activities:
      Depreciation                                         3,750         3,750
      Gain on sale of aircraft inventory                (196,858)      (49,453)
      Changes in operating assets and liabilities:
        Decrease (increase) in rent and other
          receivable                                      58,154      (141,223)
        Increase (decrease) in payable to 
          affiliates                                       8,418        (3,490)
        (Decrease) increase in accounts payable 
           and accrued liabilities                       (18,360)        6,075
        Increase in maintenance reserves                  93,198        71,622
        Decrease in security deposits                       --         (50,000)
                                                     -----------   -----------
           Net cash provided by operating 
             activities                                  251,687       230,694
                                                     -----------   -----------

INVESTING ACTIVITIES:
   Net proceeds from sale of aircraft inventory             --          49,453
                                                     -----------   -----------

           Net cash provided by investing 
             activities                                     --          49,453
                                                     -----------   -----------

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                                        (2,513,594)   (1,219,666)

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

CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                     $ 3,904,988   $ 5,246,845
                                                     ===========   ===========

        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
                                               March 31, 1999     March 31, 1999
                                               --------------     --------------

Aircraft Management Fees                           $ 6,000           $ 1,518

Out-of-Pocket Administrative Expense
    Reimbursement                                   35,199            17,438

Out-of-Pocket Operating and
    Remarketing Expense Reimbursement                  200              --   
                                                   -------           -------

                                                   $41,399           $18,956
                                                   =======           =======


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.

                                       7
<PAGE>


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.


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 March 31, 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  $303,385,   or  $1.78  per  limited
partnership  unit,  for the three months  ended March 31, 1999,  compared to net
income of $393,413,  or $2.31 per unit for the same period in 1998.  The decline
in operating  results  during the first quarter of 1999, as compared to the same
period in 1998,  was  primarily  the  result of income  recognized  on  payments
received from the Braniff,  Inc.  bankruptcy estate of $138,462 and on Jet Fleet
deposits of $92,610 following the closing of bankruptcy  proceedings.  This 1998
income was partially  offset by gains on the sale of aircraft  inventory in 1999
of $196,858, compared to $49,453 in 1998.

Interest income  decreased  during the first quarter of 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 months ended March
31, 1999, as compared to the same period in 1998,  primarily due to decreases in
consulting fees and printing and postage costs.


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 $1,907,591 as of March 31, 1999. One
engine  underwent a  maintenance  event  subsequent to March 31, 1999 which will
result in a reimbursement to the lessee of approximately $400,000.

Polaris Investment Management  Corporation,  the general partner, has determined
that the Partnership  maintain cash reserves 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 three
months  ended  March 31,  1999 and 1998 were  $2,488,753,  or $14.75 per limited
partnership unit and $1,349,832, or $8.00 per unit, respectively. The timing and
amount of  future  cash  distributions  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.

                                       9
<PAGE>

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.

GECC and GECAS have  undertaken a global  effort 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 impact
their  customers.   Each  business  has  a  Year  2000  leader  who  oversees  a
multi-functional  remediation  project team responsible for 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. The progress of this program is monitored at each
business, and company-wide reviews with senior management are conducted monthly.
The first three  phases of the program  have been  completed  for a  substantial
majority of  mission-critical  activities.  Management  plans to have nearly all
significant  information  systems,  products and services and facilities through
the control phase of the program by mid-1999.

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.  GECAS is
requesting  information  from the  lessees  about the  status of their Year 2000
program.

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 the  Partnership's
lessees'  business  caused by Year 2000 failures,  the General  Partner does not

                                       10
<PAGE>

believe that  occurrences  of 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),  there  are a number of  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
discusses  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




        May 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