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


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

                                    FORM 10-Q

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

                  For the quarterly period ended June 30, 2001

                                       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, 2001




                                      INDEX



Part I.       Financial Information                                         Page

         Item 1.      Financial Statements

              a)  Balance Sheets - June 30, 2001 and
                  December 31, 2000............................................3

              b)  Statements of Operations - Three and Six Months
                  Ended June 30, 2001 and 2000.................................4

              c)  Statements of Changes in Partners' Capital
                  - Year Ended December 31, 2000
                  and Six Months Ended June 30, 2001...........................5

              d)  Statements of Cash Flows - Six Months
                  Ended June 30, 2001 and 2000.................................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.......................................11

         Item 6.      Exhibits and Reports on Form 8-K........................11

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


                                       2
<PAGE>

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

Item 1.  Financial Statements

                         POLARIS AIRCRAFT INCOME FUND I

                                 BALANCE SHEETS
                                   (Unaudited)

                                                       June 30,    December 31,
                                                         2001          2000
                                                         ----          ----

ASSETS:

CASH AND CASH EQUIVALENTS                              $1,568,315    $2,469,034

OTHER ASSETS                                                 --           6,297

AIRCRAFT ENGINES, held for sale                           858,750       858,750
                                                       ----------    ----------

        Total Assets                                   $2,427,065    $3,334,081
                                                       ==========    ==========



LIABILITIES AND PARTNERS' CAPITAL:

PAYABLE TO AFFILIATES                                  $   17,048    $   48,904

ACCOUNTS PAYABLE AND ACCRUED
   LIABILITIES                                            370,430       364,071

MAINTENANCE RESERVES                                         --         631,316
                                                       ----------    ----------

        Total Liabilities                                 387,478     1,044,291
                                                       ----------    ----------

PARTNERS' CAPITAL:

   General Partner                                        134,965       137,474
   Limited Partners, 168,729 units
      issued and outstanding                            1,904,622     2,152,316
                                                       ----------    ----------

        Total Partners' Capital                         2,039,587     2,289,790
                                                       ----------    ----------

        Total Liabilities and Partners' Capital        $2,427,065    $3,334,081
                                                       ==========    ==========


        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,
                                               --------            --------

                                            2001      2000      2001      2000
                                            ----      ----      ----      ----
REVENUES:
   Rent from operating leases             $   --    $ 90,000  $   --    $180,000
   Other income - Maintenance reserves     631,316      --     631,316      --
   Interest                                 17,568    42,111    40,619    92,745
   Lessee settlement (Notes 4, 5)            8,897      --      85,667    61,513
                                          --------  --------  --------  --------

           Total Revenues                  657,781   132,111   757,602   334,258
                                          --------  --------  --------  --------

EXPENSES:
   Depreciation                               --       3,750      --       7,500
   Management fees to general partner         --       4,500      --       9,000
   Operating expenses                        4,300      --       4,300      --
   Administration and other                 35,246    41,505    66,122    69,710
                                          --------  --------  --------  --------

           Total Expenses                   39,546    49,755    70,422    86,210
                                          --------  --------  --------  --------

NET INCOME                                $618,235  $ 82,356  $687,180  $248,048
                                          ========  ========  ========  ========

NET INCOME ALLOCATED
   TO THE GENERAL PARTNER                 $  6,183  $    823  $ 91,229  $  8,074
                                          ========  ========  ========  ========

NET INCOME ALLOCATED
   TO LIMITED PARTNERS                    $612,052  $ 81,533  $595,951  $239,974
                                          ========  ========  ========  ========

NET INCOME PER LIMITED
   PARTNERSHIP UNIT                       $   3.63  $   0.48  $   3.53  $   1.42
                                          ========  ========  ========  ========


        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, 2000 and
                                             Six Months Ended June 30, 2001
                                             ------------------------------

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


Balance, December 31, 1999              $   222,894   $ 2,731,907   $ 2,954,801

   Net income                                 8,318       264,054       272,372

   Cash distributions to partners           (93,738)     (843,645)     (937,383)
                                        -----------   -----------   -----------

Balance, December 31, 2000                  137,474     2,152,316     2,289,790

   Net income                                91,229       595,951       687,180

   Cash distributions to partners           (93,738)     (843,645)     (937,383)
                                        -----------   -----------   -----------

Balance, June 30, 2001                  $   134,965   $ 1,904,622   $ 2,039,587
                                        ===========   ===========   ===========

        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,
                                                      -------------------------

                                                          2001          2000
                                                          ----          ----

OPERATING ACTIVITIES:
   Net income                                         $   687,180   $   248,048
   Adjustments to reconcile net income to
      net cash provided by operating activities:
      Depreciation                                           --           7,500
      Changes in operating assets and liabilities:
        Decrease in rent and other receivable                --          30,000
        Decrease in payable to affiliates                 (31,856)      (10,737)
        Decrease in other assets                            6,297          --
        Increase in accounts payable and
           accrued liabilities                              6,359         4,209
        Decrease in maintenance reserves                 (631,316)   (1,156,075)
                                                      -----------   -----------

           Net cash provided by (used in)
             operating activities                          36,664      (877,055)
                                                      -----------   -----------

FINANCING ACTIVITIES:
   Cash distributions to partners                        (937,383)     (937,383)
                                                      -----------   -----------

           Net cash used in financing activities         (937,383)     (937,383)
                                                      -----------   -----------

CHANGES IN CASH AND CASH
   EQUIVALENTS                                           (900,719)   (1,814,438)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                                  2,469,034     4,190,421
                                                      -----------   -----------

CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                      $ 1,568,315   $ 2,375,983
                                                      ===========   ===========

        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, 2000,
1999,  and 1998 included in the  Partnership's  2000 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, 2001      June 30, 2001
                                                -------------      -------------

Out-of-Pocket Administrative Expense
    Reimbursement                                   $14,735           $17,048
                                                    -------           -------

                                                    $14,735           $17,048
                                                    =======           =======


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.       CanAir Bankruptcy Settlement

On June 27, 2001, the Partnership  received $8,897 in connection with the CanAir
Bankruptcy  Settlement,  which is  comprised  of  amounts  received  for  rents,
maintenance reserve obligations and accrued interest.  This settlement may prove
to be the final  settlement  if certain  additional  claims are made  before the
statutory period expires.


5.       Braniff Bankruptcy Settlement

On January  16,  2001,  Braniff's  bankrupt  estate  made a $110,890  payment in
respect of the  unsecured  claims of the  Partnership  and other  affiliates  of
Polaris Investment Management Corporation, of which $76,770 was allocated to the
Partnership based on its pro rata share of the total claims.


6.       Engine Lease Expiration

The lease for the three JT8D-9A engines to Royal Aviation, Inc. and Royal Cargo,
Inc. (Royal  Aviation)  expired on August 31, 2000. The engines were redelivered
on  September  7, 2000 and  security  deposit of $45,000  was  refunded to Royal
Aviation on November 21, 2000. The Partnership has subsequently sold the engines
to Aeroturbine, Inc. as discussed below. The Partnership has ceased depreciating
these  assets and is currently  reporting  these assets at the lower of carrying
amount or fair  value  less cost to sell.  Due to the fact that the  Partnership
decided to sell the engines in an as-is-where-is  condition, the net maintenance
reserve  balance of $631,316 was taken into income during the quarter ended June
30, 2001.


7.       New Accounting Pronouncements

On January 1, 2001, the Partnership  adopted  Statement of Financial  Accounting
Standard No. 133, "Accounting for Derivative Instruments and Hedging Activities"
(SFAS 133), as amended by SFAS 138, which  establishes  accounting and reporting
standards  requiring  that  every  derivative   instrument   (including  certain
derivative  instruments  embedded in other contracts) be recorded in the balance
sheet  as  either  an  asset  or  liability  measured  at its  fair  value.  The
Partnership  does  not  own  any  derivative  instruments,   and  as  such,  the
implementation  of  this  statement  did  not  have  a  material  impact  on the
Partnership's financial position or result of operations.


8        Subsequent Event - Sale of Engines

On July 19, 2001 the  Partnership  sold the three  remaining  JT8D-9A engines to
Aeroturbine,  Inc., on an as-is-where-is basis for $900,000. The Partnership has
received the proceeds for these engines in the third quarter of 2001.

                                       8
<PAGE>


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

At June 30, 2001,  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,  which were leased to Royal Aviation Inc. and Royal Cargo,  Inc. (Royal
Aviation),  were  redelivered  to the  Partnership  on  September  7, 2000.  The
Partnership  has made these engines  available for sale along with the remaining
inventory  of spare  parts such that all the assets of the  Partnership  will be
liquidated  and a final  distribution  made  thereafter.  On July  19,  2001 the
Partnership sold the three remaining JT8D-9A engines to Aeroturbine, Inc., on an
as-is-where-is basis for $900,000.


Partnership Operations

The  Partnership  recorded  net  income  of  $618,236,   or  $3.63  per  limited
partnership  unit,  for the three months  ended June 30,  2001,  compared to net
income  of  $82,356,  or  $0.48  per  unit for the  same  period  in  2000.  The
Partnership  recorded net income of $687,181,  or $3.53 per limited  partnership
unit for the six months ended June 30, 2001, compared to net income of $248,048,
or $1.42 per limited  partnership  unit, for the six months ended June 30, 2000.
The  increase  in  operation  results  was  primarily  due to the  reduction  in
maintenance reserves. This was supplemented by lower depreciation and management
fees  partially  offset by the  Partnership  receiving no income from  operating
leases during 2001 due to the  expiration of the engine leases to Royal Aviation
in August 2000 as well as lower interest income in 2001.

Due to marketing the engines for sale on an as-is-where-is  basis,  there was no
further need to hold the maintenance  reserves.  Hence maintenance reserves were
booked to income during the three months ended June 30, 2001

Interest income  decreased during the six months ended June 30, 2001 as compared
to the same period in 2000,  primarily  due to lower  average cash  reserves and
lower average interest rates over the same period.

Lessee  settlement  increased  during the six months  ended  June 30,  2001,  as
compared to the same period in 2000,  primarily due to the receipt of $76,770 in
January  2001  related to the Braniff  bankruptcy,  as  discussed  in Note 5 and
$8,897 received from the CanAir bankruptcy as discussed in Note 4, compared to a
$61,513 settlement in the CanAir bankruptcy proceedings, received in 2000.

Depreciation  expense  decreased  during the three and six months ended June 30,
2001,  as compared to the same periods in 2000, as a result of the engines being
off lease and classified as held-for-sale.

Management  fees decreased  during the three and six months ended June 30, 2001,
as  compared  to the same  periods in 2000 due to the  expiration  of the engine
leases to Royal Aviation in August 2000.


Liquidity and Cash Distributions

Liquidity - The  Partnership  received  maintenance  reserve  payments  from its
lessee 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

                                       9
<PAGE>

remaining  at  the  termination  of the  lease,  if  any,  may  be  used  by the
Partnership to offset future maintenance  expenses or recognized as revenue. Due
to  the  fact  that  the   Partnership   decided  to  sell  the  engines  in  an
as-is-where-is  condition,  the net maintenance  reserve balance of $631,316 was
taken into income during the quarter ended June 30, 2001.

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  to  cover  expenses   incurred  by  the
Partnership.  Since  the  General  Partner  has  sold  the  Partnership's  three
remaining engines in July 2001, final  distributions  will be made after Polaris
Investment Management  Corporation,  the general partner, has sold the remaining
inventory  of spare  parts and  determined  what costs will be  incurred  in the
liquidation of the Partnership.

Cash  Distributions  - Cash  distributions  to limited  partners  during the six
months ended June 30, 2001 and 2000 were $843,645 or $5 per limited  partnership
unit. The timing and amount of future cash distributions to partners are not yet
known and will depend upon circumstances  such as the Partnership's  future cash
requirements.

Since the General Partner has sold the Partnership's  three remaining engines in
July 2001, final distributions will be made after Polaris Investment  Management
Corporation,  the general  partner,  has sold the  remaining  inventory of spare
parts and  determined  what costs will be  incurred  in the  liquidation  of the
Partnership.

                                       10
<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) 2000 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, 2001,
there  are  several   pending  legal  actions  or   proceedings   involving  the
Partnership. Except as described below, there have been no material developments
with respect to any such  actions or  proceedings  during the period  covered by
this report.

Kepford, et al. V. Prudential Securities, et al. - In connection with the action
filed in the District Court of Harris County,  Texas against Polaris  Investment
Management Corporation, Polaris Securities Corporation, Polaris Holding Company,
Polaris Aircraft Leasing Corporation,  the Partnership,  Polaris Aircraft Income
Fund I,  Polaris  Aircraft  Income Fund III,  Polaris  Aircraft  Income Fund IV,
Polaris  Aircraft  Income  Fund V,  Polaris  Aircraft  Income  Fund VI,  General
Electric Capital Corporation,  Prudential Securities, Inc., Prudential Insurance
Company of America and James J. Darr, on June 5, 2001, the remaining  plaintiffs
who did not ask the court to dismiss their claims, Gerald and Judy Beckman, made
a motion  to  retain  the case on the  docket  of the  District  Court of Harris
County,  Texas with respect to their  purported  claims  against all  defendants
except  Prudential  Insurance  Company of America and James J. Darr. On June 27,
2001,  the Court  entered a docket  control  order  providing for a schedule for
discovery and a trial date of December 3, 2001.

CanAir Cargo Ltd. (CanAir) Order under the Companies' Creditors  Arrangement Act
of Canada - On June 27, 2001, the Partnership  received  $8,897 U.S.  Dollars in
connection with this matter. This amount reflects the Partnership's net pro rata
share of the March 29, 2001 payment made to GE Capital Aviation  Services,  Inc.
(GECAS) on behalf of the GECAS  Parties  (GECAS , as agent for  Polaris  Holding
Company,  General Electric Capital Leasing Canada,  Inc. and the Partnership) by
the  receiver  appointed  by the Ontario  court of Justice on behalf of CanAir's
creditors in the amount of 620,116 Canadian Dollars (approximately $397,122 U.S.
Dollars converted as of 4/24/01).

Other Proceedings - Item 10 in Part III of the Partnership's  2000 Form 10-K and
Item 1 of Part II of the Partnership's  Form 10-Q for the period ended March 31,
2001 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

                                       11
<PAGE>


      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 13, 2001                    By:     /S/Steve Yost
   -----------------------------                     -------------
                                                     for Keith Helming
                                                     Chief Financial Officer


                                       13