EXHIBIT 13

                                 JetStream, L.P.
                               1999 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
       $18.16 per $20.00 Unit. The following table provides the
       quarterly cash distributions per Unit paid by the Partnership for
       the years ended December 31, 1999 and 1998.

<TABLE>
<CAPTION>
                  Quarter Declared            1999        1998
                  --------------------------------------------
                  <S>                       <C>         <C>
                  First Quarter             $ .299      $ .212
                  Second Quarter              .576        .222
                  Third Quarter               .108        .144
                  Fourth Quarter              .131        .151
                                            ------      ------
                  Total                     $1.114      $ .729
                  ============================================
</TABLE>



                                    Contents

                   1  Message to Investors

                   3  Financial Statements

                   6  Notes to the Financial Statements

                  11  Report of Independent Public Accountants
<PAGE>


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


Presented for your review is the 1999 Annual Report for JetStream, L.P. (the
"Partnership"). This report includes an update on the status of the
Partnership's aircraft portfolio, including efforts to market the Partnership's
remaining planes, and highlights of the Partnership's financial results. Also
included are the Partnership's audited financial statements for the year ended
December 31, 1999.

Sales Update
As discussed in prior reports, in November 1999, the Partnership received the
required approval of more that 50% of the outstanding limited partner units to
proceed with the plan of liquidation and dissolution, pursuant to which the
remaining aircraft will be sold and the Partnership terminated (the "Liquidation
Plan"). In accordance with the Liquidation Plan, we began actively marketing the
aircraft for sale in January 2000. Bids have been received for several of the
planes, and we are pleased to report that a letter of intent for the sale of the
Partnership's 737-200 advanced aircraft was recently signed. A contract is
currently being negotiated with the prospective purchaser, and it is anticipated
that the plane will be sold during the second quarter of this year. However,
there can be no assurance that the sale will close within this time frame or
that the Partnership will be able to obtain the aircraft's appraised value in a
sale. In addition, we are continuing to market the remaining aircraft. Once the
planes are sold, the Partnership's liabilities will be paid, the sales proceeds
will be distributed to the Limited Partners, and the Partnership will be
terminated.

Portfolio Update
Following is an update on the status of the Partnership's remaining aircraft:

MD-80 Series Aircraft - Continental Airlines ("Continental") has exercised it
option to renew the lease for the Partnership's MD-80 Series aircraft through
September 2000. The lease requires Continental to make monthly payments of
$180,000.

737-200 Advanced Aircraft - The lease with Delta Air Lines ("Delta") for the
Partnership's 737-200 advanced aircraft has been extended through September
2001. The lease requires Delta to make monthly payments of $65,000. Delta was
also required to hushkit the plane, which was completed prior to year-end 1999.

727-200 Non-advanced Aircraft - As discussed in prior reports, in September
1998, the Partnership entered into two lease agreements with Sun Pacific for the
Partnership's two 727-200 non-advanced aircraft. One of the aircraft was sold on
April 2, 1999, and the lease with Sun Pacific for this plane was terminated. Sun
Pacific subsequently ceased commercial operations in mid-April 1999. The
Partnership notified Sun Pacific that they are in default of their lease
agreement with respect to the second plane due to their failure to make the
required rental payments to the Partnership. In addition, the Partnership has
reserved approximately $200,000 to complete C-checks and corrosion repair on
this aircraft. We will attempt to sell the plane to another carrier once the
maintenance work is completed.

737-200 Non-advanced Aircraft - In late August 1999, the Partnership was
notified that Eastwind Airlines ("Eastwind"), which leased the Partnership's two
737-200 non-advanced aircraft, had voluntarily ceased commercial operations. The
Partnership took possession of the aircraft and in October 1999 sold the
aircrafts' engines to an unaffiliated entity for $175,000. As discussed in
previous reports, Eastwind made its last payment to the Partnership in June 1999
and is delinquent on rental payments and maintenance reserves totaling
$1,200,284 as of December 31, 1999.

On September 29, 1999, an affiliate of the Managing General Partner, along with
two other creditors, filed an involuntary petition for bankruptcy relief against
Eastwind in the United States Bankruptcy Court for the District of Delaware. The
General Partners intend to pursue viable remedies available to the Partnership
with respect to the collection of these delinquent payments, subject to the
applicable provisions of the U.S. Bankruptcy Code.

                                                                              1
<PAGE>


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

<TABLE>
<CAPTION>
                                                       1999         1998
------------------------------------------------------------------------
<S>                                              <C>          <C>
Rental income                                    $4,021,832   $4,813,390
Total expenses                                    4,465,612    4,473,009
Net income                                        1,823,468      444,902
Net cash provided by operating activities         2,727,602    4,012,891
------------------------------------------------------------------------
</TABLE>

o   Rental income decreased primarily as a result of the Partnership not
    receiving any rental income from the two 727-200 aircraft previously leased
    to Sun Pacific and a decline in rental income from Eastwind.

o   Overall, total expenses in 1999 were relatively unchanged from 1998.
    However, operating expenses increased approximately $320,000 as a result of
    C-checks and corrosion repairs on the aircraft previously leased to Sun
    Pacific. The increase in operating expenses was offset by a decrease in
    depreciation expense.

o   Net income in 1999 includes the $2,140,217 gain on the sale of one of the
    Partnership's 727-200 aircraft. Excluding this gain, the Partnership had a
    net loss of $316,749 for 1999 primarily due to the decline in rental income.

o   The decline in net cash provided by operating activities is primarily
    attributable to the decrease in rental income.

Summary
We will update you on the status of our efforts to sell the Partnership's
aircraft 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.
General Partner                         General Partner



Michael T. Marron                       Michael L. Rosen
President                               President

March 31, 2000

                                                                              2
<PAGE>


JETSTREAM, L.P.


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
BALANCE SHEETS
                                                     At December 31,   At December 31,
                                                               1999              1998
-------------------------------------------------------------------------------------
<S>                                                    <C>               <C>
Assets
  Aircraft, at cost:                                   $         --      $ 25,987,000
  Less accumulated depreciation                                  --       (19,901,456)
                                                       ------------------------------
                                                                 --         6,085,544

  Aircraft held for sale                                  3,272,489                --
  Cash and cash equivalents                               1,405,675         1,853,981
  Rent receivable (net of allowance for doubtful
    accounts of $1,150,284 in 1999)                          50,000            50,000
-------------------------------------------------------------------------------------
      Total Assets                                     $  4,728,164      $  7,989,525
=====================================================================================
Liabilities and Partners' Capital
Liabilities:
  Accounts payable and accrued expenses                $  1,145,297      $    635,127
  Distribution payable                                      645,925           748,094
  Deferred revenue                                           90,000            90,000
  Security deposit                                           50,000            50,000
                                                       ------------------------------
      Total Liabilities                                   1,931,222         1,523,221
                                                       ------------------------------
Partners' Capital (Deficit):
  General Partners                                          (56,357)         (912,047)
  Limited Partners (4,895,005 units outstanding)          2,853,299         7,378,351
                                                       ------------------------------
      Total Partners' Capital                             2,796,942         6,466,304
-------------------------------------------------------------------------------------
      Total Liabilities and Partners' Capital          $  4,728,164      $  7,989,525
=====================================================================================
</TABLE>


<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
For the years ended December 31, 1999, 1998, and 1997

                                              General         Limited
                                             Partners        Partners           Total
-------------------------------------------------------------------------------------
<S>                                         <C>           <C>             <C>
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
Net income                                    897,984         925,484       1,823,468
Distributions                                 (42,294)     (5,450,536)     (5,492,830)
-------------------------------------------------------------------------------------
Balance at December 31, 1999                $ (56,357)    $ 2,853,299       $2,796,942
=====================================================================================
</TABLE>

See accompanying notes to the financial statements                            3
<PAGE>


JETSTREAM, L.P.


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the years ended December 31,
                                                          1999            1998            1997
----------------------------------------------------------------------------------------------
<S>                                                <C>             <C>             <C>
Income
Rental                                             $ 4,021,832     $ 4,813,390     $ 5,037,980
Interest                                               127,031         104,393         129,090
Other                                                       --             128          99,722
                                                   -------------------------------------------
      Total Income                                   4,148,863       4,917,911       5,266,792
----------------------------------------------------------------------------------------------
Expenses
Depreciation                                         2,613,055       3,211,640       3,211,650
Management fees (Note 6)                               291,204         387,675         447,868
General and administrative                             614,966         334,335         230,295
Operating                                              329,555           5,906         227,905
Bad debts                                              616,832         533,453              --
                                                   -------------------------------------------
      Total Expenses                                 4,465,612        4,473,009      4,117,718
----------------------------------------------------------------------------------------------
(Loss) Income from Operations                         (316,749)        444,902       1,149,074
----------------------------------------------------------------------------------------------
Other Income
Gain on sale of aircraft and engine (Note 4)         2,140,217              --              --
----------------------------------------------------------------------------------------------
      Net Income                                   $ 1,823,468     $   444,902     $ 1,149,074
==============================================================================================
Net Income Allocated:
To the General Partners                            $   897,984     $     4,449     $    11,491
To the Limited Partners                                925,484         440,453       1,137,583
----------------------------------------------------------------------------------------------
                                                   $ 1,823,468     $   444,902     $ 1,149,074
==============================================================================================
Per limited partnership unit
(4,895,005 outstanding)                                 $ 0.19          $ 0.09          $ 0.23
----------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to the financial statements                            4
<PAGE>


JETSTREAM, L.P.


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
STATEMENTS OF CASH FLOWS
For the years ended December 31,
                                                          1999            1998            1997
----------------------------------------------------------------------------------------------
<S>                                                <C>             <C>             <C>
Cash Flows From Operating Activities
Net Income                                         $ 1,823,468     $   444,902     $ 1,149,074
Adjustments to reconcile net income to net
cash provided by operating activities:
  Depreciation                                       2,613,055       3,211,640       3,211,650
  Bad debts                                            616,832         533,453              --
  Gain on sale of aircraft and engine               (2,140,217)             --              --
  Increase (decrease) in cash arising from
  changes in operating assets and liabilities:
    Restricted cash                                         --              --         321,797
    Rent receivable                                   (616,832)       (504,400)        524,258
    Interest receivable                                     --              --             327
    Accounts payable and accrued expenses              431,296         327,296           5,756
                                                   -------------------------------------------
Net cash provided by operating activities            2,727,602       4,012,891       5,212,862
----------------------------------------------------------------------------------------------
Cash Flows From Investing Activities
Loan receivable                                             --              --          99,688
Proceeds from sale of aircraft and engine            2,419,091              --              --
                                                   -------------------------------------------
Net cash provided by investing activities            2,419,091              --          99,688
----------------------------------------------------------------------------------------------
Cash Flows From Financing Activities
Cash distributions                                  (5,594,999)     (4,290,245)     (4,754,809)
                                                   -------------------------------------------
Net cash used for financing activities              (5,594,999)     (4,290,245)     (4,754,809)
----------------------------------------------------------------------------------------------
Net (decrease) increase in cash and cash equivalents  (448,306)       (277,354)        557,741
Cash and cash equivalents, beginning of year         1,853,981       2,131,335       1,573,594
                                                   -------------------------------------------
Cash and cash equivalents, end of year             $ 1,405,675     $ 1,853,981     $ 2,131,335
==============================================================================================
Supplemental Disclosure of Noncash Operating Activities
In connection with the sale of the aircraft, accrued resale fees in the amount of $78,874 has
reduced the gain on the sale of the aircraft
----------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to the financial statements                            5
<PAGE>


JETSTREAM, L.P.


NOTES TO THE FINANCIAL STATEMENTS
December 31, 1999, 1998 and 1997

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 General Partners are implementing, and the Limited Partners have approved, a
plan to sell the Partnership's remaining aircraft and subsequently terminate the
Partnership pursuant to a Plan of Liquidation and Dissolution dated November 20,
1999 (the "Liquidation Plan"). The Liquidation Plan consists of: (1) the sale of
all of the Partnership's assets and the dissolution of the Partnership pursuant
to the proposed Liquidation Plan; (2) the amendment of the Partnership Agreement
to permit the engagement of the General Partners to market and sell the assets
of the Partnership for a fee pursuant to the terms of the Joint Marketing
Agreement, dated July 13, 1999, among each of the General Partners and the
Partnership and (3) the grant of authority to the General Partners to take any
action necessary or incidental and consistent with the Partnership Agreement,
the Liquidation Plan and the Joint Marketing Agreement to complete the
foregoing. The Liquidation Plan required the approval of more than 50% of the
limited partner units entitled to vote. A consent solicitation statement
requesting such approval was forwarded to investors on October 15, 1999. On
November 19, 1999, the Partnership received the required approval from the
unitholders, and the General Partners have begun to implement the Liquidation
Plan by actively marketing the aircraft for sale during the first quarter 2000,
on the terms described in the consent solicitation statement. Once the aircraft
are sold and the Partnership's actual and contingent liabilities have been paid
or reserved for, the sales proceeds will be distributed to the Limited Partners
and the Partnership will be terminated. If the unitholders had not approved the
Liquidation Plan, according to the Partnership's Amended and Restated
Partnership Agreement dated September 10, 1987, the Partnership would be
required to dissolve and distribute all of its assets no later than December 31,
2027.

As a result of the approval of the Liquidation Plan, the Partnership has
designated its aircraft as assets held-for-sale. In accordance with Statement of
Financial Accounting Standards ("SFAS") No. 121, Accounting for the Impairment
of Long-Lived Assets and Assets to be Disposed Of, all of the Partnership's
aircraft are reported at the lower of carrying amount or fair value less costs
to sell. No charge was recorded as a result of the designation of the aircraft
as assets held-for-sale. In addition, the Partnership has ceased to record
depreciation related to those assets as of November 19, 1999.

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.

                                                                              6
<PAGE>


JETSTREAM, L.P.


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.

In accordance with SFAS No. 121, Accounting for the Impairment of Long-Lived
Assets and Assets to be Disposed Of, the Partnership has ceased to record
depreciation related to those assets as of November 19, 1999.

Accounting for Impairment  It is the Partnership's policy to review the carrying
value of its long-lived assets for impairment whenever events or changes in
circumstances indicate that the carrying value of such assets may not be
recoverable. For long-lived assets used in operations, measurement of impairment
loss is based on undiscounted cash flows. For assets held for sale, measurement
of the impairment loss is based on the fair value of the asset. Generally fair
value will be determined through independent appraisals of such assets. No
impairment adjustments have been made as a result of this review process during
1999 and 1998.

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.

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")
substantially provides for the following:

                                                                              7
<PAGE>


JETSTREAM, L.P.


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, with 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
Certain of 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:

737-200 Advanced Aircraft  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. During the second quarter of 1999, Delta extended its lease for two
years through September 2001. This lease extension requires Delta to pay the
Partnership a monthly lease rate of $65,000 and to hushkit the plane, which was
completed prior to year end 1999.

MD-80 Series Aircraft  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,
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. The lease 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. During the third quarter of 1999, Continental
extended its lease through September 30, 2000, with the remaining terms of the
lease unchanged.

737-200 Non-Advanced Aircraft  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
provided for Eastwind to lease the aircraft for a term of four years. Effective
November 15, 1995, Eastwind was required to pay $35,000 per aircraft per month
in advance. In addition, Eastwind was required to pay maintenance charges
effective August 1, 1995 based on flight hours or flight cycles. Maintenance
charges were $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. In late August 1999, the
Partnership was notified that Eastwind had voluntarily ceased commercial
operations. The Partnership took possession of the aircraft and in October 1999
sold the aircrafts' engines to an unaffiliated entity for $175,000. The
Partnership recognized a loss of $25,000 on this sale in 1999. After several
months of partial payments, Eastwind made its last payment to the Partnership in
June 1999 and is delinquent on rental payments and maintenance reserves totaling
$1,200,284 as of December 31, 1999.

                                                                              8
<PAGE>


JETSTREAM, L.P.


On September 29, 1999, an affiliate of the Managing General Partner, along with
two other creditors, filed an involuntary petition for bankruptcy relief against
Eastwind in the United States Bankruptcy Court for the District of Delaware. As
of the date of this document, the Bankruptcy Court had not yet issued an order
for relief adjudicating Eastwind as a debtor under Title 11 of the United States
Code. The General Partners intend to pursue all viable remedies available to the
Partnership with respect to the collection of these delinquent payments subject
to the decisions of the Bankruptcy Court and the applicable provisions of the
U.S. Bankruptcy Code.

727-200 Non-Advanced Aircraft  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"). One of the aircraft was returned to the Partnership in
December 1994 and sold in June 1995. After the original lease expiration in
April 1995, TWA leased the other 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.

In September 1998, the Partnership entered into two lease agreements with Sun
Pacific for the two aircraft which were previously leased to TWA. On April 2,
1999, the Partnership sold one of the aircraft to an unaffiliated entity, Sport
Hawk Chicago, Inc. (the "Buyer"), for a selling price of approximately
$2,629,000 and the lease with Sun Pacific for this plane was terminated. The
selling price was determined by arm's-length negotiations between the
Partnership and the Buyer. On April 16, 1999, Sun Pacific ceased commercial
operations. The Partnership has notified Sun Pacific that they are in default of
their lease agreement with respect to the second plane due to their failure to
make the required rental payments to the Partnership. In addition, the remaining
plane requires C-checks and corrosion repair, for which $201,979 has been
reserved at December 31, 1999. Once the required maintenance of the remaining
aircraft is complete, the General Partners will attempt to sell the aircraft to
another carrier pursuant to the Liquidation Plan.

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                  1999       1998       1997
               ---------------------------------------------------
               <S>                      <C>        <C>        <C>
               Eastwind                 17.0%      25.6%      15.5%
               Delta                    24.7       19.9       20.8
               TWA                        --        9.6       16.9
               Continental              58.3       44.9       46.8
               ---------------------------------------------------
</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>
               2000                                     $2,400,000
               2001                                        585,000
               ---------------------------------------------------
               Total                                    $2,985,000
               ===================================================
</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.

                                                                              9
<PAGE>


JETSTREAM, L.P.


5.  Distributions
Distributions declared aggregated $5,492,830 (approximately $1.11 per Unit),
$3,604,449 (approximately $.73 per Unit) and $4,839,971 (approximately $.98 per
Unit) for the years ended December 31, 1999, 1998 and 1997, respectively. As of
December 31, 1999, the Partnership had declared a distribution of $645,925, of
which $639,466 (approximately $.13 per Unit) was paid to the Limited Partners
and $6,459 was paid to the General Partners on March 6, 2000.

6.  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 paid during 1999, 1998 and 1997.

Non-Subordinated Aircraft Marketing and Sale Fee  Pursuant to the Liquidation
Plan, an Amendment to the Partnership Agreement and the Joint Marketing
Agreement, CAP will receive a fee of 2% and JAL will receive a fee of 1% on the
contract sales price of each aircraft.

During 1999 the unitholders 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, 1999, 1998 and 1997.

<TABLE>
<CAPTION>
                                 Unpaid at                Earned
                               December 31,  ------------------------------
                                      1999       1999       1998       1997
     ----------------------------------------------------------------------
     <S>                          <C>        <C>        <C>        <C>
     Base Management Fee          $109,013   $ 49,287   $ 59,725   $ 62,872
     Incentive Management Fee      306,276    122,742    183,534    232,684
     Re-lease Fee                  263,591    119,175    144,416    152,312
     Resale Fee                    132,432     78,874         --         --
     ----------------------------------------------------------------------
                                  $811,312   $370,078   $387,675   $447,868
                                  =========================================
</TABLE>

                                                                              10
<PAGE>


JETSTREAM, L.P.


7.  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>
                                                          1999            1998            1997
----------------------------------------------------------------------------------------------
<S>                                                 <C>             <C>             <C>
Net income, as reported                             $1,823,468      $  444,902      $1,149,074
Adjustments--
  Gain on sale of asset                                103,874              --              --
  Allowance for doubtful accounts                      616,831         533,453         (70,000)
  Depreciation differential between the Modified
    Accelerated Cost Recovery System and
    depreciation for financial reporting
    purposes                                         2,294,305       2,635,913       1,856,804
  Amortization                                              --              --          (6,361)
                                                    ------------------------------------------
Total adjustments                                    3,015,010       3,169,366       1,780,443
----------------------------------------------------------------------------------------------

Net income, per Partnership's tax return            $4,838,478      $3,614,268      $2,929,517
                                                    -----------------------------------------
The net income determined on the income tax
basis is allocated to the partners as follows:
  Limited partners (4,895,005 units)                $3,944,433      $3,578,125      $2,900,222
  General partners                                     894,045          36,143          29,295
                                                    ------------------------------------------
                                                     4,838,478      $3,614,268      $2,929,517
                                                    ------------------------------------------
Taxable income per limited partner unit                 $ 0.81          $ 0.73          $ 0.59
----------------------------------------------------------------------------------------------
</TABLE>

As of December 31, 1999, the tax basis of total assets and total liabilities was
$13,630,221 and $2,033,842, respectively.

8.  Contingencies

There may be costs associated with the process of marketing and selling the
remaining aircraft owned by the Partnership and winding up the Partnership. In
negotiating the sale of the aircraft now owned by the Partnership, the
Partnership may be required to bear some or all of the costs of compliance with
future Airworthiness Directives ("ADs") or ADs that have been issued but which
did not mandate action during the previous lessee's lease term or in respect of
which the previous lessee failed to comply. ADs are Federal Aviation
Administration mandates requiring the airline to perform a specific maintenance
task within a specified period of time. The aggregate effect on the Partnership
of compliance with these standards is not determinable at this time and will
depend upon a variety of factors including, but not limited to, the state of the
commercial aircraft market, the extent of the AD, the availability of capable
repair facilities and the effect, if any, that such compliance may have on the
service lives of the affected aircraft. As described above, the cost to the
Partnership of such compliance may be reduced to the extent that current or
future lessees of the Partnership's aircraft effect such modifications under the
terms of the current or future operating leases.

9.  Subsequent Event

In accordance with the Partnership's Liquidation Plan, the General Partners
began marketing the aircraft for sale during the first quarter of 2000. Bids
were received for several of the planes and on February 28, 2000 the Managing
General Partner signed a letter of intent for the sale of the Partnership's
737-200 advanced aircraft. A contract is currently being negotiated with the
prospective purchaser and it is anticipated that the plane will be sold during
the second quarter of this year. However, there can be no assurance that the
sale will close within this timeframe. In addition, the General Partners
continue to market the remaining aircraft. Once the aircraft are sold and the
Partnership's actual and contingent liabilities have been paid or reserved for,
the sales proceeds will be distributed to the Limited Partners and the
Partnership will be terminated.

                                                                            11
<PAGE>


JETSTREAM, L.P.


Schedule II  Valuation and Qualifying Accounts

<TABLE>
<CAPTION>
                                                    Balance at      Charged to      Balance at
                                                     Beginning       Costs and          End of
                                                       of Year        Expenses            Year
----------------------------------------------------------------------------------------------
<S>                 <C> <C>                           <C>             <C>           <C>
Allowance for doubtful accounts:
Year ended December 31, 1998                          $     --        $533,452      $  533,452
Year ended December 31, 1999                           533,452         616,832       1,150,284
----------------------------------------------------------------------------------------------
</TABLE>

                                                                            12
<PAGE>


--------------------------------------------------------------------------------
                    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, 1999 and 1998 and the related statements
of income, partners' capital (deficit) and cash flows for each of the three
years in the period ended December 31, 1999. 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.

The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As described in Note 1 to the
financial statements, a qualifying majority of the limited partner units have
voted to approve a plan to liquidate the Partnership. As a result, the General
Partners commenced implementation of the plan to sell the Partnership's
remaining aircraft and subsequently terminate the Partnership.

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, 1999 and 1998 and the results of its operations and its cash flows for each
of the three years in the period ended December 31, 1999 in conformity with
generally accepted accounting principles.

Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The schedule listed in Item 14 is presented for
purposes of complying with the Securities and Exchange Commission's rules and is
not part of the basic financial statements. This schedule has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, fairly states in all material respects the financial data
required to be set forth therein in relation to the basic financial statements
taken as a whole.

                                    ARTHUR ANDERSEN LLP

Boston, Massachusetts
February 18, 2000, except with respect
  to the matter discussed in Note 9, as
  to which the date is February 28, 2000

                                                                              13