EXHIBIT 13

                                 JetStream, L.P.
                               1998 Annual Report
<PAGE>

--------------------------------------------------------------------------------
                                 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 totaling approximately
        $17.05 per $20.00 Unit. The following table provides the
        quarterly cash distributions per Unit paid by the Partnership for
        the years ended December 31, 1998 and 1997.



<TABLE>
<CAPTION>
                  Quarter Declared            1998        1997
                  --------------------------------------------
                  <S>                       <C>         <C>   
                  First Quarter             $ .212      $ .244
                  Second Quarter              .222        .169
                  Third Quarter               .144        .275
                  Fourth Quarter              .151        .290
                                            ------      ------
                  Total                     $ .729      $ .978
                  ============================================
</TABLE>



                                    Contents

                   1  Message to Investors

                   3  Financial Statements

                   6  Notes to the Financial Statements

                  11  Report of Independent Public Accountants
<PAGE>
1

--------------------------------------------------------------------------------
                              MESSAGE TO INVESTORS
--------------------------------------------------------------------------------


Presented for your review is the 1998 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, 1998.

Industry Overview
The United States airline industry continued to perform well in 1998 as the
economy continued its strong growth this past year. The number of passengers
traveling within the United States increased by approximately 5%, which in turn
led to an increase in revenues. This increase was tempered somewhat by recent
fare reductions, but overall, net income for most airlines increased in 1998.
Forecasts are for continued growth in this industry.

However, future opportunities for leasing Stage 2 aircraft, such as the
Partnership's, 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. An update on the status of hushkitting the Partnership's Stage
2 planes is discussed below.

Portfolio Update
Information on the lease status of each aircraft follows:

MD-80 Series Aircraft - The lease agreement with Continental Airlines
("Continental") for the Partnership's MD-80 Series aircraft was scheduled to
expire in March 1999. In October 1998, Continental exercised its option to renew
this lease through March 2000 with the remaining lease terms unchanged. The
lease requires Continental to make monthly payments of $180,000. This is a Stage
3 aircraft which meets the noise compliance guidelines set by the Federal
Aviation Administration (the "FAA").

737-200 Advanced Aircraft - The lease with Delta Air Lines ("Delta") for the
Partnership's 737-200 advanced aircraft expires in September 1999. Pursuant to
the lease terms, Delta makes monthly payments of $80,000. We are currently
negotiating an extension of this lease with Delta which would also require Delta
to hushkit the plane.

737-200 Non-advanced Aircraft - The Partnership's two 737-200 non-advanced
aircraft are currently on-lease to Eastwind. Under the terms of the lease
agreements which expire on November 30, 1999, Eastwind is required to pay the
Partnership monthly $35,000 per aircraft. In addition, the airline is required
to pay the Partnership an airframe maintenance charge based on usage. As
discussed in previous reports, Eastwind is delinquent on rental payments and
maintenance reserves totaling $583,453 and has contacted the General Partners to
renegotiate the lease terms. In light of this development, the Partnership
established a reserve in 1998 for bad debts in the amount of $533,453. The
General Partners will aggressively pursue all appropriate remedies available to
the Partnership with respect to the collection of these rental payments. One of
the Eastwind aircraft has been hushkitted and now meets the FAA's noise
compliance guidelines. The other aircraft will not be hushkitted prior to the
expiration of its lease. We will attempt to either re-lease the aircraft to an
operator who will hushkit it or sell the aircraft.
<PAGE>
2

727-200 Non-advanced Aircraft - In September 1998, the Partnership entered into
two lease agreements with Sun Pacific for the two 727-200 non-advanced aircraft
which were previously leased to TWA. Pursuant to the lease terms, Sun Pacific is
required to pay the Partnership monthly $64,042 per aircraft and a maintenance
charge based on usage commencing upon the completion of certain required
maintenance on the aircraft to be funded by TWA. The aircraft were delivered to
Sun Pacific with an assignment of the maintenance payments of $360,656 and
$360,792, respectively, received from TWA. The Partnership agreed to assign
these funds in order for Sun Pacific to perform the required maintenance on the
aircraft. As of December 31, 1998, the maintenance on the aircraft had not been
completed, and no funds had been collected pursuant to the terms of the leases.
Sun Pacific is required to hushkit the aircraft prior to December 31, 1999.

Financial Highlights
Provided below is a review of Partnership operations for the year ended
December 31,

<TABLE>
<CAPTION>
                                                       1998         1997
------------------------------------------------------------------------
<S>                                              <C>          <C>       
Rental Income                                    $4,813,390   $5,037,980
Total Expenses                                    4,473,009    4,117,718
Net Income                                          444,902    1,149,074
Net Cash provided by Operating Activities         4,012,891    5,212,862
------------------------------------------------------------------------
</TABLE>

o  Rental income decreased primarily as a result of the Partnership's two
   727-200 aircraft being off-lease following expiration of the leases with
   TWA.

o  The increase in total expenses is primarily due to the establishment of a
   reserve in 1998 for the amounts due from Eastwind.

o  The decreases in net income and net cash provided by operating activities
   are attributable primarily to the establishment of a reserve for the amounts
   due from Eastwind and the decrease in rental income.

General Information
As you are probably aware, several unaffiliated third parties have commenced
tender offers to purchase Units of the Partnership at prices that are below the
Partnership's estimate of the net asset value per Unit. In response, we have
recommended that Limited Partners reject these offers since we believe that they
do not reflect the underlying value of the Partnership's assets.

Summary
We will continue our efforts to effectively manage the Partnership's aircraft.
It should 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 impacted your investment. We will update
you on the status of the Partnership's operations in future correspondence. In
the interim, questions regarding the Partnership should be directed to your
Financial Consultant or Partnership Investor Services. All requests for a change
of address should be submitted in writing to the Partnership's administrative
agent at P.O. Box 7090, Troy, MI 48007-7090. Partnership Investor Services can
be reached at 617-342-4225, and the Partnership's administrative agent can be
reached at 248-637-7900.

Very truly yours,

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


Michael T. Marron                              Thomas J. Prinzing
President                                      President

March 29, 1999
<PAGE>
3

JETSTREAM, L.P.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
BALANCE SHEETS
                                                     At December 31,   At December 31,
                                                               1998              1997
-------------------------------------------------------------------------------------
<S>                                                    <C>               <C>         
Assets
  Aircraft, at cost:                                   $ 25,987,000      $ 25,987,000
  Less accumulated depreciation                         (19,901,456)      (16,689,816)
                                                       ------------------------------
                                                          6,085,544         9,297,184

  Cash and cash equivalents                               1,853,981         2,131,335
  Rent receivable (net of allowance for doubtful
    accounts of $533,453 in 1998)                            50,000            79,053
-------------------------------------------------------------------------------------
      Total Assets                                     $  7,989,525      $ 11,507,572
=====================================================================================
Liabilities and Partners' Capital
Liabilities:
  Accounts payable and accrued expenses                $    635,127      $    307,831
  Distribution payable                                      748,094         1,433,890
  Deferred revenue                                           90,000            90,000
  Security deposit                                           50,000            50,000
                                                       ------------------------------
      Total Liabilities                                   1,523,221         1,881,721
                                                       ------------------------------
Partners' Capital (Deficit):
  General Partners                                         (912,047)         (880,452)
  Limited Partners (4,895,005 units outstanding)          7,378,351        10,506,303
                                                       ------------------------------
      Total Partners' Capital                             6,466,304         9,625,851
-------------------------------------------------------------------------------------
      Total Liabilities and Partners' Capital          $  7,989,525      $ 11,507,572
=====================================================================================
</TABLE>



<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
For the years ended December 31, 1998, 1997, and 1996
                                              General         Limited
                                             Partners        Partners           Total
-------------------------------------------------------------------------------------
<S>                                         <C>           <C>             <C>        
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
Net income                                      4,449         440,453         444,902
Distributions                                 (36,044)     (3,568,405)     (3,604,449)
-------------------------------------------------------------------------------------
Balance at December 31, 1998                $(912,047)    $ 7,378,351     $ 6,466,304
=====================================================================================
</TABLE>

See accompanying notes to the financial statements.
<PAGE>
4

JETSTREAM, L.P.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the years ended December 31,
                                                 1998            1997            1996
-------------------------------------------------------------------------------------
<S>                                        <C>             <C>             <C>       
Income
Rental                                     $4,813,390      $5,037,980      $5,248,593
Interest                                      104,393         129,090         150,740
Other                                             128          99,722          43,353
                                           ------------------------------------------
      Total Income                          4,917,911       5,266,792       5,442,686
-------------------------------------------------------------------------------------
Expenses
Depreciation                                3,211,640       3,211,650       4,076,214
Management fees (Note 7)                      387,675         447,868         421,751
General and administrative                    334,335         230,295         192,656
Operating                                       5,906         227,905         194,231
Bad debts                                     533,453              --              --
                                           ------------------------------------------
      Total Expenses                        4,473,009       4,117,718       4,884,852
-------------------------------------------------------------------------------------
Income from Operations                        444,902       1,149,074         557,834
-------------------------------------------------------------------------------------
Other Income
Gain on sale of aircraft and
engine (Note 5)                                    --              --         130,000
-------------------------------------------------------------------------------------
      Net Income                           $  444,902      $1,149,074      $  687,834
=====================================================================================
Net Income Allocated:
To the General Partners                    $    4,449      $   11,491      $    6,878
To the Limited Partners                       440,453       1,137,583         680,956
-------------------------------------------------------------------------------------
                                           $  444,902      $1,149,074      $  687,834
=====================================================================================
Per limited partnership unit
(4,895,005 outstanding)                        $ 0.09          $ 0.23          $ 0.14
-------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to the financial statements.
<PAGE>
5

JETSTREAM, L.P.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
STATEMENTS OF CASH FLOWS
For the years ended December 31,
                                                 1998            1997            1996
-------------------------------------------------------------------------------------
<S>                                       <C>             <C>             <C>        
Cash Flows From Operating Activities
Net Income                                $   444,902     $ 1,149,074     $   687,834
Adjustments to reconcile net income
to net cash provided by operating
activities:
  Depreciation                              3,211,640       3,211,650       4,076,214
  Bad debts                                   533,453              --              --
  Gain on sale of aircraft and engine              --              --        (130,000)
  Increase (decrease) in cash arising
  from changes in operating assets
  and liabilities:
    Restricted cash                                --         321,797              --
    Rent receivable                          (504,400)        524,258        (544,553)
    Interest receivable                            --             327             278
    Prepaid expenses                               --              --           3,125
    Accounts payable and accrued
    expenses                                  327,296           5,756          57,428
                                          -----------     -----------     -----------
Net cash provided by operating
activities                                  4,012,891       5,212,862       4,150,326
-------------------------------------------------------------------------------------
Cash Flows From Investing Activities
Additions to aircraft                              --              --      (1,700,000)
Loan receivable                                    --          99,688          72,948
Proceeds from sale of aircraft and
engine-net                                         --              --         130,000
                                          -----------     -----------     -----------
Net cash provided by (used for)
investing activities                               --          99,688      (1,497,052)
-------------------------------------------------------------------------------------
Cash Flows From Financing Activities
Cash distributions                         (4,290,245)     (4,754,809)     (4,574,113)
                                          -----------     -----------     -----------
Net cash used for financing activities     (4,290,245)     (4,754,809)     (4,574,113)
-------------------------------------------------------------------------------------
Net increase (decrease) in cash and
cash equivalents                             (277,354)        557,741      (1,920,839)
Cash and cash equivalents,
beginning of period                         2,131,335       1,573,594       3,494,433
                                          -----------     -----------     -----------
Cash and cash equivalents,
end of period                             $ 1,853,981     $ 2,131,335     $ 1,573,594
=====================================================================================
</TABLE>

See accompanying notes to the financial statements.
<PAGE>
6

JETSTREAM, L.P.

NOTES TO THE FINANCIAL STATEMENTS
December 31, 1998, 1997 and 1996

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 November 4, 1998. Thereafter, net proceeds
from any sales of aircraft will be distributed to the partners, after deductions
of amounts necessary for working capital and certain reserves.

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.

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.
<PAGE>
7

JETSTREAM, L.P.

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, as described below:

Eastwind Airlines  On October 30, 1987, the Partnership acquired three Boeing
737-200 non-advanced aircraft for a total purchase price of $22,805,997. One of
the aircraft was sold in February 1994. The remaining two aircraft are subject
to lease agreements ("Agreements") with Eastwind Airlines, Inc. ("Eastwind"),
which were entered into on July 12, 1995. The Agreements provide for Eastwind to
lease two Boeing 737-200 non-advanced aircraft 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, 1998, Eastwind owed the Partnership base rent and maintenance reserve
payments totaling $583,453, and has contacted the General Partners to
renegotiate the terms of its leases. In light of this development, the
Partnership established an allowance of $533,453 at December 31, 1998 against
this receivable.

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.
<PAGE>
8

JETSTREAM, L.P.

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 and extend the
original lease agreement. In November 1995, another agreement was reached to
amend and extend the lease until September 30, 1999 at a monthly lease rate of
$80,000. The remaining terms of the lease were unchanged.

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"), which leases were amended and extended to the fourth quarter of 1994.
One of the aircraft was returned to the Partnership in December 1994 and sold in
June 1995. TWA extended the leases on the remaining two aircraft to April 30,
1995. Thereafter, TWA leased the two aircraft on a month-to-month basis at
$32,500 per month per aircraft paid in advance. TWA terminated its leases on
these aircraft and returned one plane in July 1998 and another in September
1998. In accordance with the lease agreement, TWA was to have performed certain
required maintenance prior to returning the aircraft. In lieu of having TWA
perform this maintenance, the Partnership agreed to receive payments of $360,656
and $360,792 for each respective aircraft from TWA, plus a commitment from TWA
for up to an additional $200,000 per aircraft, if supported by legitimate
maintenance costs.

Sun Pacific International, Inc.  In September 1998, the Partnership entered into
two lease agreements with Sun Pacific International, Inc. ("Sun Pacific") for
the two 727-200 non-advanced aircraft which were previously leased to TWA.
Pursuant to the terms of the lease agreements, Sun Pacific is required to pay
the Partnership a monthly lease rate of $64,042 per aircraft commencing upon the
completion of certain required maintenance on the aircraft. In addition, the
airline is required to pay the Partnership a maintenance charge based on usage.
The aircraft were delivered to Sun Pacific with an assignment of the above
described maintenance payments of $360,656 and $360,792 received from TWA. The
Partnership agreed to assign these funds in order for Sun Pacific to perform
required maintenance on the aircraft. As of December 31, 1998, the maintenance
on the aircraft had not been completed, and no funds had been collected pursuant
to the terms of the leases.

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 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 was repayable over the life of the lease at an
interest rate of 8% per annum for advances made before February 1, 1996. On June
7, 1994, the Partnership made its only 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 has been 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, and in October 1998, Continental exercised its second option
to renew this lease through March 2000, with the remaining terms of the lease
unchanged.
<PAGE>
9

JETSTREAM, L.P.

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

<TABLE>
<CAPTION>
                                        Percent of Rental Revenues
               ---------------------------------------------------
               Airline                  1998       1997       1996
               ---------------------------------------------------
               <S>                      <C>        <C>        <C>  
               Eastwind                 25.6%      15.5%      25.7%
               Delta                    19.9       20.8       18.3
               TWA                       9.6       16.9       14.9
               Continental              44.9       46.8       41.1
               ---------------------------------------------------
</TABLE>

The following is a schedule, by year, of future minimum rental income under all
leases as of December 31, 1998.

<TABLE>
<CAPTION>
               Year                                         Amount
               ---------------------------------------------------
               <S>                                      <C>       
               1999                                     $5,187,008
               2000                                      1,730,840
               ---------------------------------------------------
               Total                                    $6,917,848
               ===================================================
</TABLE>

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.

6.  Distributions
Distributions declared aggregated $3,604,449 (approximately $.73 per unit),
$4,839,971 (approximately $.98 per unit) and $4,864,063 (approximately $.98 per
unit) for the years ended December 31, 1998, 1997 and 1996, 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, 1998, the
Partnership had declared a distribution of $748,094, of which $740,613
(approximately $.15 per unit) was paid to the Limited Partners and $7,481 was
paid to the General Partners on March 4, 1999.

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. The resale fee is subordinate to the Limited Partners receiving a
priority return equal to their original capital contribution plus their
preferred return. No resale fees were earned during 1998, 1997 and 1996.
<PAGE>
10

JETSTREAM, L.P.

During 1998 the Limited Partners did not receive their Preferred Returns.
Therefore these management fees have not been paid. The following is a summary
of amounts earned by the General Partners and their affiliates during the years
ended December 31, 1998, 1997, and 1996.

<TABLE>
<CAPTION>
                                 Unpaid at                Earned
                               December 31,  ------------------------------
                                      1998       1998       1997       1996
     ----------------------------------------------------------------------
     <S>                          <C>        <C>        <C>        <C>     
     Base Management Fee          $ 59,725   $ 59,725   $ 62,872   $ 67,228
     Incentive Management Fee      183,534    183,534    232,684    191,968
     Re-lease Fee                  144,416    144,416    152,312    162,555
     ----------------------------------------------------------------------
                                  $387,675   $387,675   $447,868   $421,751
                                  =========================================
</TABLE>

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

<TABLE>
<CAPTION>
                                                 1998            1997            1996
-------------------------------------------------------------------------------------
<S>                                        <C>             <C>              <C>       
Net income, as reported                    $  444,902      $1,149,074       $ 687,834
Adjustments--
  Prepaid insurance                                --              --           3,125
  Loss on sale of asset                            --              --        (130,000)
  Allowance for doubtful accounts             533,453         (70,000)             --
  Depreciation differential between
    the Modified Accelerated Cost
    Recovery System and depreciation
    for financial reporting purposes        2,635,913       1,856,804         139,871
  Amortization                                     --          (6,361)             --
  Legal fees, net of amortization                  --              --          (7,476)
                                           ------------------------------------------
Total adjustments                           3,169,366       1,780,443           5,520
-------------------------------------------------------------------------------------

Net income, per Partnership's tax return   $3,614,268      $2,929,517        $693,354
                                           ------------------------------------------
The net income determined on the
income tax basis is allocated to
the partners as follows:
  Limited partners (4,895,005 units)       $3,578,125      $2,900,222        $686,421
  General partners                             36,143          29,295           6,933
                                           ------------------------------------------
                                           $3,614,268      $2,929,517        $693,354
                                           ------------------------------------------
Taxable income per limited partner unit        $ 0.73          $ 0.59          $ 0.14
-------------------------------------------------------------------------------------
</TABLE>

As of December 31, 1998, the tax basis of total assets and total liabilities was
$13,650,447 and $1,399,716, respectively.

Schedule II Valuation and Qualifying Accounts

<TABLE>
<CAPTION>
                                           Balance at      Charged to      Balance at
                                            Beginning       Costs and          End of
                                            of Period        Expenses          Period
-------------------------------------------------------------------------------------
Allowance for doubtful accounts:
<S>                                          <C>             <C>             <C>     
Year ended December 31, 1998:                $    -0-        $533,453        $533,453
-------------------------------------------------------------------------------------
</TABLE>
<PAGE>
11

--------------------------------------------------------------------------------
                    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, 1998 and 1997, and the related
statements of operations, partners' capital (deficit) and cash flows for each of
the three years in the period ended December 31, 1998. 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, 1998 and 1997, and the results of its operations and its cash flows for each
of the three years in the period ended December 31, 1998, in conformity with
generally accepted accounting principles.


                                          ARTHUR ANDERSEN LLP

Boston, Massachusetts
March 12, 1999