EXHIBIT 13

                        JetStream, L.P.
                       1997 Annual Report
                         JetStream, L.P.


     JetStream, L.P. commenced operations in 1987, and was
     formed to acquire used commercial aircraft subject to
     triple net operating leases with commercial airlines.
     Since inception, limited partners have received cash
     distributions totalling approximately $16.32 per $20.00
     Unit.  The following table provides the quarterly cash
     distributions per Unit paid by the Partnership for the
     years ended December 31, 1997 and 1996.



       Quarter Declared                1997           1996
       First Quarter                 $ .244         $ .226
       Second Quarter                  .169           .258
       Third Quarter                   .275           .227
       Fourth Quarter                  .290           .273
       Total                         $ .978         $ .984


                        Contents

                    1  Message to Investors
                    2  Portfolio and Financial Highlights
                    3  Financial Statements
                    6  Notes to the Financial Statements
                   11  Report of Independent Public Accountants



     Administrative Inquiries               Performance Inquiries/Form 10-Ks
     Address Changes/Transfers              First Data Investor Services Group
     Service Data Corporation               P.O. Box 1527
     2424 South 130th Circle                Boston, Massachusetts 02104-1527
     Omaha, Nebraska 68144-2596             Attn: Financial Communications
     800-223-3464                           800-223-3464



                      Message to Investors

Presented for your review is the 1997 Annual Report for JetStream,
L.P. (the "Partnership").  This message includes an overview of
conditions in the airline and aircraft leasing industries, an update
on the Partnership's portfolio of aircraft, and highlights of the
Partnership's financial results.  Also provided are the
Partnership's audited financial statements for the year ended
December 31, 1997.

Industry Overview

The U.S. airline industry continued to improve during 1997, with a
strong economy contributing to increased passenger traffic and
increased net profits for the industry.  The approximate 5.7% growth
in passenger traffic combined with reduced fuel costs and strict
cost containment initiatives, led to significant improvement in
operating profitability and net earnings for the industry in 1997.
These conditions have had a favorable effect on the level of
aircraft leasing activity, and have brought about a sustained
reduction in the number of serviceable aircraft available for lease.
The reduced inventory of available planes has, in turn, favorably
affected lease rates.

Future opportunities for leasing Stage 2 aircraft, such as the
Partnership's, however, are likely to be restricted due to the
implementation of noise compliance regulations developed in
accordance with the Airport Noise and Capacity Act of 1990,
requiring airlines to reduce the number of older aircraft in their
fleets.  These regulations specify, among other things, phase-out
and non-addition rules under which the number of Stage 2 aircraft
operated by domestic carriers are limited to 25% of 1990 base levels
by the end of 1998 and ultimately to 0% by December 31, 1999.  The
scheduled phase-out of Stage 2 aircraft combined with the prolonged
difficulties in the airline industry during the early 1990's has had
a substantial impact on residual aircraft values of Stage 2
aircraft.

Portfolio Update

The Partnership's investment is comprised of a fleet of six
commercial aircraft, all of which are currently on lease. The lease
agreement with Continental Airlines ("Continental") for the
Partnership's MD-80 Series aircraft was previously scheduled to
expire in March 1998.  In September 1997, the Partnership reached
an agreement with Continental to extend the lease through March
1999, with the remaining terms of the lease unchanged.  The lease
agreement requires Continental to make monthly lease payments to
the Partnership of $180,000.  Of the Partnership's five remaining
aircraft, one is on-lease to Delta Air Lines ("Delta"), two are on-
lease to Eastwind Airlines ("Eastwind") and two are on lease to
Trans World Airlines ("TWA").  Please refer to the Aircraft
Portfolio Highlights section on page 2 of this report for
additional information on these leases.

General Information

As you are probably aware, several third parties have commenced tender
offers to purchase Units of the Partnership at prices which are
below the Partnership's estimate of net asset value per Unit.  In
response, we recommended that limited partners reject these offers
because we believe that they do not reflect the underlying value of
the Partnership's assets.  According to published industry sources,
most of the investors who hold units of limited partnerships similar
to the Partnership have rejected these types of tender offers due to
their inadequacy.

Summary

The General Partners will continue their efforts to effectively manage
the Partnership's assets and our focus remains on keeping the
Partnership's aircraft on-lease and producing revenue.  It must be
noted, however, that since the total return from your investment in
the Partnership relies upon the aircrafts' ultimate selling prices,
declines in residual values in recent years have had an adverse
impact on your investment.  The future performance of the
Partnership will be dependent upon the General Partners' ability to
keep the remaining aircraft on-lease, which, in turn, is largely
dependent on the demand of aircraft by the airline industry. We will
update you on the status of the Partnership's operations in future
correspondence.

Very truly yours,

Jet Aircraft Leasing Inc.              CIS Aircraft Partners, Inc.
A General Partner                      A General Partner

/s/Jeffrey C. Carter                   /s/Thomas J. Prinzing
Jeffrey C. Carter                      Thomas J. Prinzing
President                              President

March 27, 1998


               Portfolio and Financial Highlights

Aircraft Portfolio Highlights

                                       Estimated               Monthly   Noise
Aircraft Model           Acquisition      Market     Lease      Lease     Com-
Year Delivered  Lessee       Cost(1)     Value(2) Expiration(3)  Rate    pliance

MD-80 Series  Continental  $27,396,997 $15,925,700  3-15-99  $180,000   Stage 3
1986
B-737-200 ADV Delta         15,222,609   4,284,600  9-30-99  $ 80,000   Stage 2
1979
B-737-200     Eastwind       7,601,999   1,362,500 11-30-99  $ 35,000   Stage 2
1971
B-737-200     Eastwind       7,601,999   1,508,200 11-30-99  $ 35,000   Stage 2
1971
B-727-200     TWA            5,448,499     524,000   N/A(4)  $ 32,500   Stage 2
1969
B-727-200     TWA            5,448,499     524,000   N/A(4)  $ 32,500   Stage 2
1969

(1)  Includes a 1.5% fee paid to the Managing General Partner at the
     acquisition of the aircraft.
(2)  Estimated market values for the aircraft are based upon annual
     independent appraisals which are subject to a variety of
     assumptions.  Additionally, there can be no assurance that the
     Partnership would receive an amount equal to the market value
     shown above upon the sale of any of the aircraft.
(3)  Lease expiration dates do not include renewal options.
(4)  TWA currently leases the Partnership's two 727-200 non-
     advanced aircraft on a month-to-month basis.

Financial Results

The following table summarizes the Partnership's financial results
for the last five years.  For additional information, please refer
to the financial statements and notes to the financial statements
beginning on page 3 of this report.

                           1997        1996        1995        1994        1993

Rental Revenues      $5,037,980  $5,248,593  $4,837,439  $5,067,500 $ 4,979,382
Write-down of
  Aircraft                    _           _           _           _  18,266,022
Total Expenses        4,117,718   4,884,852   5,669,154   5,977,244  25,138,968
Net Income (Loss)     1,149,074     687,834    (170,290)   (783,993)(17,876,870)
Net Income (Loss)
 per Limited
 Partnership Unit(1)        .23         .14       (0.03)      (0.16)      (3.62)
Total Assets         11,507,572  15,107,551   18,936,402 23,457,496  29,886,833
Partners' Capital     9,625,851  13,316,748   17,492,977 21,939,577  27,674,021
Net Cash Provided by
 Operating Activities 5,212,862   4,150,326    4,282,201  6,301,101   3,979,973
Cash Distributions
 per Unit (1)(2)            .98         .98          .87       1.00         .91

(1)  4,895,005 units outstanding
(2)  Distribution amounts are reflected in the year for which they
     are declared.  The Partnership's fourth quarter cash
     distribution is usually paid in late January or early February
     of the following year.

* Rental revenues for the year ended December 31, 1997
  decreased slightly from 1996 primarily due to a reduction in the
  maintenance reserve on the two aircraft leased by Eastwind.
  Pursuant to the terms of the lease agreements with Eastwind, in
  addition to its monthly payments, Eastwind is required to pay
  maintenance charges based on usage.  These maintenance charges
  decreased in 1997 because both aircraft were not operated on a
  daily basis for the first two months of 1997 due to maintenance
  work.

* Total expenses during 1997 decreased from 1996 due primarily
  to a decrease in depreciation expense recorded by the Partnership
  as a result of the two aircraft currently on-lease to Eastwind
  being fully depreciated in December 1996.  The decrease in
  depreciation expense is also the primary reason for the increase
  in net income for 1997.

The increase in net cash from operating activities is primarily
due to the receipt, in January 1997, of rental income from
Eastwind for the third and fourth quarters of 1996.


Balance Sheets                        At December 31,       At December 31,
                                                1997                  1996
Assets
 Aircraft, at cost:                     $ 25,987,000          $ 25,987,000
 Less accumulated depreciation           (16,689,816)          (13,478,166)
                                           9,297,184            12,508,834

 Cash and cash equivalents                 2,131,335             1,573,594
 Restricted cash                                   _               321,797
 Rent receivable (net of allowance
  for doubtful accounts of $0 in 1997
  and $70,000 in 1996)                        79,053               603,311
 Loan receivable                                   _                99,688
 Interest receivable                               _                   327
  Total Assets                          $ 11,507,572          $ 15,107,551

Liabilities and Partners' Capital
Liabilities:
 Accounts payable and accrued expenses  $    307,831          $    302,075
 Distribution payable                      1,433,890             1,348,728
 Deferred revenue                             90,000                90,000
 Security deposit                             50,000                50,000
  Total Liabilities                        1,881,721             1,790,803
Partners' Capital (Deficit):
 General Partners                           (880,452)             (843,544)
 Limited Partners (4,895,005 units
  outstanding)                            10,506,303            14,160,292
  Total Partners' Capital                  9,625,851            13,316,748
  Total Liabilities and
   Partners'Capital                     $ 11,507,572          $ 15,107,551



Statements of Partners' Capital (Deficit)
For the years ended December 31, 1997, 1996 and 1995

                                     General         Limited
                                    Partners        Partners           Total

Balance at December 31, 1994      $ (758,616)   $ 22,698,193    $ 21,939,577
Net loss                              (1,703)       (168,587)       (170,290)
Distributions                        (42,763)     (4,233,547)     (4,276,310)
Balance at December 31, 1995        (803,082)     18,296,059      17,492,977
Net income                             6,878         680,956         687,834
Distributions                        (47,340)     (4,816,723)     (4,864,063)
Balance at December 31, 1996        (843,544)     14,160,292      13,316,748
Net income                            11,491       1,137,583       1,149,074
Distributions                        (48,399)     (4,791,572)     (4,839,971)
Balance at December 31, 1997      $ (880,452)    $10,506,303    $  9,625,851



Statements of Operations
For the years ended December 31,             1997          1996          1995

Income
Rental                               $  5,037,980  $  5,248,593  $  4,837,439
Interest                                  129,090       150,740       215,050
Other                                      99,722        43,353             _
  Total Income                          5,266,792     5,442,686     5,052,489
Expenses
Depreciation                            3,211,650     4,076,214     4,919,101
Management fees (Note 7)                  447,868       421,751       438,631
General and administrative                230,295       192,656       191,715
Operating                                 227,905       194,231        49,707
Bad debt expense                                _             _        70,000
  Total Expenses                        4,117,718     4,884,852     5,669,154
Income (Loss) from Operations           1,149,074       557,834      (616,665)
Other Income
Gain on sale of aircraft
 and engine (Note 5)                            _       130,000       446,375
  Net Income (Loss)                  $  1,149,074  $    687,834  $   (170,290)
Net Income (Loss) Allocated:
To the General Partners              $     11,491  $      6,878  $     (1,703)
To the Limited Partners                 1,137,583       680,956      (168,587)
                                     $  1,149,074  $    687,834  $   (170,290)
Per limited partnership unit
(4,895,005 outstanding)                     $0.23         $0.14        $(0.03)



Statements of Cash Flows
For the years ended December 31,                1997         1996          1995
Cash Flows From Operating Activities
Net Income (Loss)                       $  1,149,074  $   687,834  $   (170,290)
Adjustments to reconcile net income
 (loss) to net cash provided by
 operating activities:
   Depreciation                            3,211,650    4,076,214     4,919,101
 Gain on sale of aircraft and engine               _     (130,000)     (446,375)
 Increase (decrease) in cash arising from
 changes in operating assets and
 liabilities:
    Restricted cash                          321,797            _             _
    Rent receivable                          524,258     (544,553)      (58,758)
    Interest receivable                          327          278           293
    Prepaid expenses                               _        3,125        (3,125)
    Accounts payable and accrued expenses      5,756       57,428        (8,645)
    Security deposit                               _            _        50,000
Net cash provided by operating activities  5,212,862    4,150,326     4,282,201
Cash Flows From Investing Activities
Additions to aircraft                              _   (1,700,000)            _
Loan receivable                               99,688       72,948        67,358
Proceeds from sale of aircraft and
engine-net                                         _      130,000       751,750
Net cash provided by (used for)
 investing activities                         99,688   (1,497,052)      819,108
Cash Flows From Financing Activities
Cash distributions                        (4,754,809)  (4,574,113)   (4,392,159)
Net cash used for financing activities    (4,754,809)  (4,574,113)   (4,392,159)
Net increase (decrease) in cash and
 cash equivalents                            557,741   (1,920,839)      709,150
Cash and cash equivalents, beginning
 of period                                 1,573,594    3,494,433     2,785,283
Cash and cash equivalents, end
 of period                               $ 2,131,335  $ 1,573,594 $   3,494,433



Notes to the Financial Statements
December 31, 1997, 1996 and 1995

1. Organization

JetStream, L.P. (the "Partnership"), a Delaware limited
partnership, was formed on April 16, 1987 for the purpose of
acquiring and leasing used commercial aircraft.  The Managing
General Partner of the Partnership is CIS Aircraft Partners, Inc.
("CAP"), a third-tier, wholly owned subsidiary of Continental
Information Systems Corporation.  The Administrative General
Partner is Jet Aircraft Leasing Inc. ("JAL"), formerly Hutton
Aircraft Leasing, Inc., an affiliate of Lehman Brothers Inc.

Upon formation of the Partnership, the General Partners each
contributed $500 and the initial Limited Partner contributed $100
for five limited partner units.  An additional 4,895,000 limited
partnership depositary units were then sold at a price of $20.00
per unit.  The Partnership had a closing for these additional
units on October 28, 1987 and received gross offering proceeds of
$97,900,000.

The Partnership is required to dissolve and distribute all of its
assets no later than December 31, 2027.  The Partnership may
reinvest the proceeds from sales of aircraft occurring prior to
October 28, 1998.  Thereafter, the net proceeds from any sales of
aircraft will be distributed to the partners.

Title to the aircraft owned by the Partnership is held by
nonaffiliated trusts of which the Partnership is the beneficiary.
The purpose of this method of holding title is to satisfy certain
registration requirements of the Federal Aviation Administration.

2. Significant Accounting Policies

Basis of Accounting - The accompanying financial statements have
been prepared on the accrual basis of accounting in accordance
with generally accepted accounting principles.  Revenues are
recognized as earned and expenses are recorded as obligations are
incurred.

Aircraft and Depreciation - The aircraft were recorded at cost,
which includes acquisition costs.  Through
December 31, 1993, depreciation to an estimated salvage value of
10% was computed using the straight-line method over an estimated
average economic life of twelve years for all aircraft owned by
the Partnership.  Beginning in 1994, depreciation was computed
using the straight-line method over an estimated remaining
economic life of two to six years for all aircraft owned by the
Partnership.

Improvements to aircraft required to comply with regulatory
requirements will be capitalized when incurred and depreciated
over the useful life of the improvement.

Accounting for Impairment - The Partnership accounts for impairment
losses on long-lived assets used in operations when indicators of
impairment are present and the undiscounted cash flows estimated
to be generated by those assets are less than the assets'
carrying amount.

Cash Equivalents - Cash equivalents consist of highly liquid
short-term investments with original maturities of three months
or less from the date of issuance.  The carrying amount
approximates fair value because of the short maturity of these
instruments.

Restricted Cash - Restricted cash consisted of funds the General
Partners believed would be expended by the Partnership to comply
with maintenance requirements, as well as security deposits held
by the Partnership.  As of December 31, 1997, restricted cash is
no longer required due to the completion of all maintenance
requirements permitted under the Participation Agreement dated
February 9, 1994, Sect. 7, with Continental Airlines.

Concentration of Credit Risk - Financial instruments which
potentially subject the Partnership to a concentration of credit
risk principally consist of cash in excess of the financial
institutions' insurance limits.  The Partnership invests
available cash with high credit quality financial institutions.

Operating Leases - The aircraft leases are accounted for as
operating leases.  Lease revenues, including payments for
maintenance and power-by-the-hour charges, are recognized over
the terms of the related leases.  Some of the Partnership's
operating leases require rental payments to be paid in advance.
Rental payments received in advance are deferred and then
recognized as income when earned.

Income Taxes - No provision for income taxes has been made in the
accompanying financial statements since such taxes are the
responsibility of individual partners rather than the Partnership
(Note 8).

Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from
those estimates.

3. Partnership Allocations

The Amended and Restated Limited Partnership Agreement
("Agreement") executed on September 10, 1987 substantially
provides for the following:

Cash Distributions - Cash flow from operations as defined in the
Agreement, at the discretion of the General Partners, will be
distributed on a quarterly basis, 99% to the Limited Partners and
1% to the General Partners.  Distributable proceeds from sales of
aircraft in liquidation of the Partnership will be distributed in
accordance with the partners' capital accounts after all
allocations of income and losses.

Allocation of Income and Losses - Generally, income and losses for
any year are allocated 99% to the Limited Partners and 1% to the
General Partners.  Gains on sale of aircraft shall first be
allocated to the General Partners until they have been allocated
an amount of gain equal to the lesser of their respective deficit
account balances or 1.01% of all capital contributions by Limited
Partners.  Any additional gain recognized by the Partnership upon
the sale of aircraft shall be allocated 99% to the Limited
Partners and 1% to the General Partners.

Dissolution of Partnership - If, upon dissolution of the
Partnership, the General Partners have a negative capital
account, they shall contribute capital equal to the lesser of
their respective capital deficit account balances or 1.01% of all
capital contributed by the Limited Partners.

4. Aircraft under Operating Leases

The Partnerships' aircraft leases are triple net operating
leases, requiring the lessees to pay substantially all expenses
associated with the aircraft during the term of the leases,
except as described below:

USAir, Inc. - On October 30, 1987, the Partnership acquired three
Boeing 737-200 non-advanced aircraft for a total purchase price
of $22,805,997.  These aircraft were subject to an operating
lease with USAir.  The first lease expired in July 1990, and the
aircraft was returned to the Partnership.  The aircraft was
subsequently re-leased to Carnival Airlines ("Carnival") in May
1991.  The lease with Carnival was terminated in December 1993
and the aircraft was subsequently sold in February 1994.  On
December 15, 1991, the lease terms for the second and third
aircraft were extended from May 1992 to May 1997, with the lessee
having the option to terminate the lease on or after May 1, 1995.
Effective May 15, 1992, the quarterly rental for each aircraft
was reduced to $105,000.  The lessee exercised its option to
terminate its lease on May 1, 1995.

Eastwind Airlines  - On July 12, 1995, the Partnership entered into two lease
agreements ("Agreements") with Eastwind Airlines,  Inc. ("Eastwind").  The
Agreements provide for Eastwind to lease two Boeing 737-200 non-advanced
aircraft, previously on lease with USAir, for a term of four years.  Effective
November 15, 1995, Eastwind is required to pay $35,000 per aircraft per month
in advance.  In addition, Eastwind is also required to pay maintenance charges
effective August 1, 1995 based on flight hours or flight cycles.  Maintenance
charges shall be $80 per airframe flight hour for scheduled "Q" checks and
$7.50 per flight hour for scheduled landing gear overhaul.  Eastwind paid to
the Partnership a security deposit of $25,000 per aircraft.  At December 31,
1996, Eastwind owed the Partnership base rent and maintenance reserve payments
totalling $603,311, which amounts were received by the Partnership in January
1997.

The Partnership paid $850,000 per aircraft for an FAA mandated
heavy maintenance check ("Q" Check) for each of the aircraft
leased to Eastwind.  The cost of the "Q" Check has been
capitalized and is being amortized over a four year period.
Maintenance charges have been increased to the greater of $81 per
flight hour or $20,240 per month.

Delta Air Lines, Inc. - On November 2, 1987, the Partnership
acquired a Boeing 737-200 advanced aircraft for a total purchase
price of $15,222,609.  This aircraft is subject to an operating
lease with Delta Air Lines, Inc. ("Delta").  In June 1992, the
General Partners and Delta agreed to amend the original lease
agreement.  The amendment provided for rent of $95,000 per month
through the new expiration date in December 1994.  In May 1994,
Delta exercised its option to extend the lease for a term of two
years from the previous expiration date.  The remaining terms of
the lease were unchanged.

In November 1995, an agreement was reached with Delta to amend
and extend the current lease until September 30, 1999 at a
monthly lease rate of $80,000.

Trans World Airlines, Inc. - On November 2, 1987, the Partnership
acquired three Boeing 727-200 non-advanced aircraft for a total
purchase price of $16,345,497.  These aircraft were subject to
operating leases with Trans World Airlines, Inc. ("TWA"), the
terms of which are described below.

In August 1993, the General Partners and TWA agreed to amend the
original leases.  As a result, TWA paid the Partnership rent of
$40,000 per month per aircraft in advance quarterly commencing
September 1, 1993 and continuing through October 31, 1994 for one
aircraft and November 30, 1994 for the other two aircraft.

On September 30, 1994, TWA agreed to extend the leases on two of
the aircraft to April 30, 1995.  Thereafter, TWA has continued to
lease the two aircraft on a month-to-month basis at $32,500 per
month per aircraft paid in advance.  The third aircraft was
returned to the Partnership in December 1994 and sold in June
1995.

Continental Airlines, Inc. - On October 29, 1987, the Partnership
acquired a McDonnell Douglas MD-80 Series aircraft for a total
purchase price of $27,396,997.  This aircraft was subject to an
operating lease with Continental Airlines, Inc., the term of
which expired on April 28, 1993.  Subsequent to the expiration
date of April 28, 1993, Continental returned the aircraft to the
Partnership.

On February 9, 1994, the Partnership entered into a new lease
agreement with Continental.  The agreement  provided for
Continental to lease the plane for a term of four years, and pay
$180,000 per month in advance effective March 15, 1994.  In
addition, the Partnership made a one-time payment of $750,000
from the maintenance reserve funds in March 1994 to perform
various maintenance work on the plane.  Also, the Partnership has
agreed to provide up to $600,000 of financing to Continental to
perform modification work on the aircraft, including advanced
avionics, interior furnishings and exterior paint.  The
modification financing is repayable over the life of the lease at
an interest rate of 8% per annum for advances made before
February 1, 1996, and with respect to advances made after
February 1, 1996, a rate per annum equal to the yield to maturity
of United States Treasury Notes having a maturity closest to the
remaining term of the lease, plus 4.25 percent.  On June 7, 1994,
the Partnership made its first advance to Continental in the
amount of $278,203.  The notes were prepaid in full in September
1997.  Having made all of the modifications permitted under the
Participation Agreement, Continental no longer can borrow any
funds and the Partnership is released from its obligation to
lend.

The lease with Continental Airlines for the Partnership's MD-80
series aircraft was previously scheduled to expire in March 1998.
However, in September 1997, the Partnership reached an agreement
with Continental to extend the lease through March 1999, with the
remaining terms of the lease unchanged.

Revenues from each of the airlines as a percentage of the
Partnership's total rental revenues are as follows:

                               Percent of Rental Revenues
               Airline          1997      1996      1995

               USAir              0%        0%      8.7%
               Eastwind        15.5      25.7       7.3
               Delta           20.8      18.3      23.2
               TWA             16.9      14.9      16.1
               Continental     46.8      41.1      44.7

The following is a schedule, by year, of future minimum rental
income under the leases as of December 31, 1997.

                Year                     Amount

                1998                 $3,960,000
                1999                  1,940,000
               Total                 $5,900,000

The above schedule of future minimum rental income is based on
the existing terms of the leases and does not include the rental
income that may result from the renewal of existing leases or the
re-leasing of the aircraft, if any.

5. Sale of Engine

In August 1996, the Partnership sold an engine that was
previously on one of the Partnership's 737-200 aircraft currently
on-lease to Eastwind for a $130,000 gain.

In June 1995, the Partnership sold aircraft N44316 formerly on
lease with TWA for net sale proceeds of $751,750.  The aircraft
had a carrying value of $305,375 on the date of sale resulting in
a gain on sale of $446,375.

6. Distributions

Distributions declared aggregated $4,839,971 (approximately $.98
per unit), $4,864,063 (approximately $.98 per unit) and
$4,276,310 (approximately $.86 per unit) for the years ended
December 31, 1997, 1996 and 1995, respectively, of which $130,000
in 1996 represented proceeds from the sale of an engine, and was
a return of capital to the Limited Partners.  As of December 31,
1997, the Partnership had declared a distribution of $1,433,890,
of which $1,419,551 (approximately $.29 per unit) was paid to the
Limited Partners and $14,339 was paid to the General Partners on
February 2, 1998.

7. Transactions with Affiliates

Base Management Fee - The General Partners receive a quarterly fee
subordinated to the Limited Partners receiving their Preferred
Return as defined in the Agreement in an amount equal to 1.5% of
gross aircraft rentals.  Of this amount, 1.0% is payable to CAP
and .5% is payable to JAL.

Incentive Management Fee - CAP receives a quarterly fee of 4.5% of
quarterly cash flow subordinated to the Limited Partners
receiving their Preferred Return.

Re-lease Fee - The General Partners receive a quarterly fee
subordinated to the Limited Partners receiving their Preferred
Return, for re-leasing aircraft or renewing a lease in an amount
equal to 3.5% of the gross rentals from such re-lease or renewal
for each quarter for which such payment is made.  Of this amount,
2.5% is payable to CAP and 1.0% is payable to JAL.

Resale Fee - CAP receives a subordinated fee with respect to each
aircraft sold by the Partnership in an amount equal to the lesser
of (i) 3% of the contract sales price of the aircraft or (ii) an
amount that is competitive with fees charged by nonaffiliates
rendering comparable services.  Such fees will be reduced (but
not below zero) for any resale fees or commissions payable to
third parties.  No resale fees were earned during 1997 and 1996.
During 1995, $23,250  was accrued based on 3% of the gross sale
proceeds totalling $775,000 from the sale of one Boeing 727-200.
The resale fee is subordinate to the Limited Partners receiving a
priority return equal to their original capital contribution plus
their preferred return.

The following is a summary of amounts earned by the General
Partners and their affiliates during the years ended December 31,
1997, 1996 and 1995.
                            Unpaid at
                          December 31,                 Earned
                                 1997        1997        1996       1995

Base Management Fee          $ 15,506    $ 62,872    $ 67,228   $ 70,022
Incentive Management Fee       65,628     232,684     191,968    199,299
Re-lease Fee                   37,494     152,312     162,555    169,310
Resale Fee                     53,558           _           _     23,250
                             $172,186    $447,868    $421,751   $461,881

8. Reconciliation of Difference between Net Income (Loss) in the
Financial Statements (Accrual Basis - Generally Accepted
Accounting Principles) and Net Income in the Partnership's Tax Return

                                         1997          1996          1995

Net income (loss), as reported    $ 1,149,074   $   687,834   $  (170,290)
 Adjustments-
     Prepaid insurance                      _         3,125        (3,125)
     Bad debt reserve                 (70,000)            _             _
     Loss on sale of asset                  _      (130,000)     (547,529)
     Allowance for doubtful accounts        _             _        70,000
     Depreciation differential
      between the Modified Accelerated
      Cost Recovery System and
      depreciation for financial
      reporting purposes            1,856,804      139,871        823,052
     Amortization                      (6,361)           _              _
     Legal fees, net of amortization        _       (7,476)        20,982
 Total adjustments                  1,780,443        5,520        363,380

 Net income, per Partnership's
  tax return                       $2,929,517   $  693,354     $  193,090

 The net income (loss) determined
 on the income tax basis is
 allocated to the partners as
 follows:

      Limited partners
      (4,895,005 units)           $ 2,900,222   $  686,421     $  191,159
      General partners                 29,295        6,933          1,931
                                  $ 2,929,517   $  693,354     $  193,090

 Taxable income per limited
 partner unit                           $0.59        $0.14          $0.04

As of December 31, 1997, the tax basis of total assets and total
liabilities is $13,999,126 and $1,758,215, respectively.


            Report of Independent Public Accountants


To the Partners of
JetStream, L.P.:

We have audited the accompanying balance sheets of JetStream,
L.P. (a Delaware limited partnership) as of December 31, 1997 and
1996, and the related statements of operations, partners' capital
(deficit) and cash flows for each of the three years in the
period ended December 31, 1997.  These financial statements are
the responsibility of the Partnership's management.  Our
responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of JetStream, L.P. as of December 31, 1997 and 1996, and the
results of its operations and its cash flows for each of the
three years in the period ended December 31, 1997, in conformity
with generally accepted accounting principles.

ARTHUR ANDERSEN LLP

Boston, Massachusetts
January 26, 1998