<PAGE>

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

                                    FORM 10-Q


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

       For the quarterly period ended March 31, 2000

                                       OR

  [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
       THE SECURITIES EXCHANGE ACT OF 1934

       For the transition period from _______________ to _______________.

                         Commission File Number: 0-29490


                            HAWKER PACIFIC AEROSPACE
             (Exact name of registrant as specified in its charter)

                California                         95-3528840
     (State or other jurisdiction of            (I.R.S. Employer
      incorporation or organization)           Identification No.)


   11240 Sherman Way, Sun Valley, California         91352
   (Address of principal executive offices)        (Zip Code)


                                 (818) 765-6201
              (Registrant's Telephone Number, Including Area Code)


  Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  YES      X        NO
                                                  -----         -----

The number of shares of the registrant's common stock outstanding on May 12,
2000, was 5,822,722 shares.
<PAGE>

                            HAWKER PACIFIC AEROSPACE

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                               March 31,     December 31,
            ASSETS                                               2000            1999
                                                             ------------    ------------
<S>                                                          <C>             <C>
Current assets
 Cash                                                        $  2,052,000    $  2,227,000
 Trade accounts receivable, net                                14,923,000      18,246,000
 Other receivables                                                208,000         260,000
 Inventories                                                   28,253,000      24,680,000
 Prepaid expenses                                               1,208,000         550,000
                                                             ------------    ------------
   Total current assets                                        46,644,000      45,963,000

Equipment and leasehold improvements, net                      16,100,000      13,822,000
Exchange assets, net                                           36,605,000      37,613,000
                                                             ------------    ------------
   Total fixed assets                                          52,705,000      51,435,000

Deferred taxes                                                  2,636,000       2,412,000
Other assets                                                    2,057,000       3,353,000
                                                             ------------    ------------
   Total assets                                              $104,042,000    $103,163,000
                                                             ============    ============

 LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
 Line of credit                                                53,785,000    $ 52,617,000
 Accounts payable                                            $ 13,098,000      13,402,000
 Accrued liabilities                                            4,979,000       3,397,000
 Accrued payroll and employee benefits                          1,949,000       1,495,000
 Accrued expenses and other liabilities                         4,267,000       4,186,000
 Current portion of notes payable                                 621,000         623,000
 Preferred stock dividends payable                                 74,000              --
                                                             ------------    ------------
   Total current liabilities                                   78,773,000      75,720,000

Long-term debt
 Bank note                                                      4,082,000       5,617,000
 Related party                                                  2,500,000       2,500,000
                                                             ------------    ------------
   Total long term debt                                         6,582,000       8,117,000

Redeemable convertible preferred stock:
   5,000,000 shares authorized; issued and outstanding:
   300 shares; $3,750,000 redemption amount                     2,920,000       1,792,000

Shareholders' equity
 Common stock:  20,000,000 shares authorized;
   issued and outstanding:  5,822,722 and 5,822,222 at
   March 31, 2000, and December 31, 1999, respectively         22,386,000      22,384,000
 Retained earnings (deficit)                                   (5,026,000)     (3,474,000)
 Accumulated other comprehensive income                        (1,593,000)     (1,376,000)
                                                             ------------    ------------
   Total shareholders' equity                                  15,767,000      17,534,000

Total liabilities and shareholders' equity                   $104,042,000    $103,163,000
                                                             ============    ============
</TABLE>

     See accompanying Notes to Condensed Consolidated Financial Statements

                                      -2-
<PAGE>

                            HAWKER PACIFIC AEROSPACE


                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)
<TABLE>
<CAPTION>

                                                         Three months ended
                                                              March 31
                                                              --------
                                                       2000            1999
                                                  -------------     -----------
<S>                                               <C>               <C>

Revenue                                           $  21,488,000     $16,195,000
Cost of revenue                                      17,422,000      12,796,000
                                                  -------------     -----------
Gross margin                                          4,066,000       3,399,000

Selling, general and administrative expense           2,883,000       2,193,000
                                                  -------------     -----------
Income from operations                                1,183,000       1,206,000

Interest income (expense), net                       (1,702,000)     (1,142,000)
Miscellaneous expense                                   (66,000)             --
                                                  -------------     -----------
Income (loss) before income taxes                      (585,000)         64,000

Provision (benefit) for income taxes                   (234,000)         24,000
                                                  -------------     -----------
Net income (loss)                                      (351,000)         40,000

Accretion of discount and redemption premium
    on preferred stock                               (1,127,000)             --
Preferred stock dividend                                (74,000)             --
                                                  -------------     -----------
Net income (loss) available to common
    shareholders                                   ($ 1,552,000)    $    40,000
                                                  =============     ===========

Earnings (loss) common share: basic and diluted         ($ 0.27)    $      0.01


Number of shares - basic                              5,822,392       5,822,222
Number of shares - diluted                            5,822,392       5,829,728
</TABLE>

     See accompanying Notes to Condensed Consolidated Financial Statements

                                      -3-
<PAGE>

                            HAWKER PACIFIC AEROSPACE

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
<TABLE>
<CAPTION>

                                                                         Three months ended
                                                                              March 31
                                                                              --------
                                                                         2000           1999
                                                                    -----------    -----------
<S>                                                                 <C>            <C>
Operating Activities
Net income                                                           ($ 351,000)   $    40,000
Adjustments to reconcile net income to net cash
   provided by (used in) operating activities:
  Deferred income taxes                                                (244,000)        42,000
  Depreciation                                                          470,000        408,000
  Amortization                                                          649,000        633,000
  Changes in operating assets and liabilities:
    Accounts receivable and other receivables                         3,235,000       (202,000)
    Inventory                                                        (3,703,000)    (7,043,000)
    Other assets                                                        (59,000)      (378,000)
    Prepaid expenses                                                    660,000       (111,000)
    Accounts payable                                                    131,000      4,528,000
    Deferred revenue                                                  1,581,000      1,077,000
    Accrued liabilities                                                 682,000     (1,131,000)
                                                                    -----------    -----------
  Cash provided by (used in) operating activities                     3,051,000     (2,137,000)

Investing Activities
Purchase of equipment, leasehold improvements and landing gear       (2,863,000)    (2,384,000)
                                                                    -----------    -----------
  Cash used in investing activities                                  (2,863,000)    (2,384,000)

Financing Activities
Principal payments on bank notes                                     (1,533,000)      (503,000)
Borrowings on line of credit                                          1,168,000      6,582,000
Payments on line of credit                                                   --       (582,000)
Issuance of common stock                                                  2,000             --
                                                                    -----------    -----------
  Cash provided by (used in) financing activities                      (363,000)     5,497,000
                                                                    -----------    -----------

Increase in cash                                                       (175,000)       976,000
Cash, beginning of period                                             2,227,000        560,000
                                                                    -----------    -----------
Cash, end of period                                                 $ 2,052,000    $ 1,536,000
                                                                    ===========    ===========

Supplemental disclosure of cash flow information
 Cash paid during the period for:
   Interest                                                         $ 1,645,000    $ 1,143,000
   Income taxes                                                          10,000          3,000

</TABLE>
     See accompanying Notes to Condensed Consolidated Financial Statements

                                      -4-
<PAGE>

                            HAWKER PACIFIC AEROSPACE

            CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                                   (unaudited)
<TABLE>
<CAPTION>


                                                                                Other
                                      Common Stock             Retained      Comprehensive
                               # of Shares       Amount        Earnings         Income          Total
                               ------------   ------------   -------------   ------------   -------------
<S>                            <C>            <C>            <C>             <C>            <C>
Balances at
  December 31, 1999              5,822,222    $22,384,000     ($3,474,000)   ($1,376,000)     $17,534,000


Net income (loss)                                                (351,000)                       (351,000)

Foreign currency
 translation                                                                    (217,000)        (217,000)
                                                                                              -----------
Comprehensive loss                                                                               (568,000)

Issuance of common stock               500          2,000                                           2,000

Preferred stock dividend                                          (74,000)                        (74,000)

Accretion of discount and
 redemption premium on
 preferred stock                                               (1,127,000)                     (1,127,000)
----------------------------    ----------    -----------     -----------    -----------      -----------
Balances at
   March 31, 2000                5,822,722    $22,386,000     ($5,026,000)   ($1,593,000)     $15,767,000
                                ==========    ===========     ===========    ===========      ===========
</TABLE>

     See accompanying Notes to Consolidated Condensed Financial Statements

                                      -5-
<PAGE>

                            HAWKER PACIFIC AEROSPACE


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

1.  BASIS OF PRESENTATION

Interim Condensed Financial Statements

     During interim periods, Hawker Pacific Aerospace (the "Company") follows
the accounting policies set forth in its Annual Report to Shareholders and
applies appropriate interim financial reporting standards, as indicated below.
Users of financial information produced for interim periods are encouraged to
refer to the notes contained in the Annual Report to Shareholders when reviewing
interim financial results.

Interim financial reporting standards require management to make estimates that
are based on assumptions regarding the outcome of future events and
circumstances not known at the present time, including the use of estimated
effective tax rates.  Inevitably, some assumptions may not materialize and
unanticipated events and circumstances may occur which vary from those estimates
and such variations may significantly affect the Company's future results.

In the opinion of management, the accompanying unaudited condensed consolidated
financial statements of the Company have been prepared in accordance with the
Securities and Exchange Commission's requirements of Form 10-Q and contain all
adjustments of a normal and recurring nature which are necessary to present
fairly the financial position of the Company as of March 31, 2000, and December
31, 1999, and the results of its operations and cash flows for the three month
periods ended March 31, 2000 and 1999.

Contingencies

The Company is party to various legal and environmental proceedings incidental
to its business.  Certain claims, suits and complaints arising in the ordinary
course of business have been filed or are pending against the Company.  Based on
facts now known to the Company, management believes all such matters are
adequately provided for, covered by insurance or, if not so covered or provided
for, are without merit, or involve such amounts that would not materially
adversely affect the consolidated results of operations and cash flows or
financial position of the Company.

Earnings per Share

Basic and diluted earnings (loss) per common share is computed based upon the
weighted average number of common shares outstanding for the period. Diluted
earnings (loss) per common share reflects the potential dilution that could
occur if certain securities were exercised or converted into common stock.
Basic earnings (loss) per share is the same as diluted earnings (loss) per share
for all periods presented. The number of shares used in the calculation of basic
and diluted earnings per share for the three months ended March 31, 2000, is
5,822,392. The number of shares used in the calculation of basic and diluted
earnings per share for the three months ended March 31, 1999, is 5,822,222
and 5,829,728, respectively. Net income (loss) used in the calculation of basic
and diluted earnings (loss) per share has been adjusted for the accretion of the
discount and redemption premium on the preferred stock in order to derive net
income (loss) available for common shareholders.

Options to purchase 658,107 shares of common stock at exercise prices between
$2.85 and $9.88 were outstanding during the first quarter of 2000.  None of
these were included in the computation of diluted earnings (loss) per share
because the exercise price was greater than the average market price of the
common shares and/or the Company incurred a loss for the period, therefore, the
effect would be antidilutive.
<TABLE>
<CAPTION>

Inventories

Inventories are comprised of the following:
                                                    March 31,   December 31,
                                                      2000         1999
                                                  -----------   -----------
<S>                                               <C>           <C>
 Purchased parts and assemblies                   $20,216,000   $20,246,000
 Work in process                                    8,037,000     4,434,000
                                                  -----------   -----------
                                                  $28,253,000   $24,680,000
                                                  ===========   ===========

</TABLE>

                                      -6-
<PAGE>

2.  LINE OF CREDIT AND NOTES PAYABLE

On December 22, 1998, the Company secured a $66.3 million senior credit facility
from Heller Financial, Inc., and NMB-Heller Limited (collectively, "Heller").
The Loan and Security Agreement (the "Heller Agreement") provides a $55 million
revolving line of credit, a Term Loan A in the amount of $4.3 million, and a
Term Loan B in the amount of $7.0 million. The revolver and both term loans
expire in five years. At April 30, 2000, the interest rate for all three loans
was 11.5%.

Availability for the $55 million revolving line of credit may be limited by
borrowing base criteria related to levels of accounts receivable, inventory and
exchange assets.  At April 30, 2000, the Company's borrowing base was $55
million, of which $53.9 million had been advanced, leaving remaining
availability of $1.1 million.

On April 5, 2000, the Company and Heller executed an amendment to the Heller
Agreement. This amendment extends certain covenant provisions of the Heller
Agreement until August 31, 2000, and provides for an escalation of certain fees
to Heller. The Company is actively working to secure a new senior credit
facility, and upon doing so, these additional  fees to Heller will cease
accruing. The Company believes the additional fees to Heller will be
approximately $0.4 million, but they may amount to as much as $1.6 million by
August 31, 2000.

3.  REDEEMABLE PREFERRED STOCK

In December 1999, the Company issued 300 shares of 8% Series C Convertible
Preferred Stock ("Series C") for $3,000,000. In connection with the issuance of
preferred stock, the Company issued a warrant to the broker to purchase 50,000
shares of common stock at $2.85 per share. The warrant was valued at $240,000
and is included in the costs associated with the issuance. The Company incurred
an additional $205,000 in costs associated with the issuance of preferred stock.

In connection with the issuance of preferred stock, the Company issued a warrant
to the preferred stock holder to purchase 125,000 shares of common stock at
$7.37 per share.  The warrant was valued at $286,000.  Series C also contains a
redemption feature that calls for the preferred stock to be redeemed, under
certain circumstances, for 125% of the stated value ($3,750,000) and as such the
preferred stock is being accreted to $3,750,000 over a 180 day period which
extends from December 1999 until June 2000. This accretion is charged to
retained earnings, similar to a preferred dividend, as a reduction of earnings
(loss) to common shares.

Series C provides for a multiple-step beneficial conversion feature, which has
been valued for financial statement purposes at $750,000.  The resulting
discount on the Series C will be amortized over a 180 day period which extends
from December 1999 until June 2000, and charged to retained earnings, similar to
a preferred dividend, as a reduction of earnings (loss) to common shares. The
amount of accretion related to the redemption premium, conversion discount,
associated warrants, and costs of issuance which are included in the calculation
of the loss per share for the three months ended March 31, was $1,127,000. The
Company also accrued $74,000 of dividends payable on Series C during the first
quarter.

4.  SEGMENT INFORMATION

On December 31, 1998, the Company adopted Statement of Financial Accounting
Standards No. 131, "Disclosures about Segments of an Enterprise and Related
Information".  The new rules establish revised standards for public companies
relating to the reporting of financial and descriptive information about
business segments and enterprise-wide operations.  The Company operates in one
segment.  The following table sets forth certain geographic information related
to the Company's operations.
<TABLE>
<CAPTION>

                                              United States                United Kingdom                 Consolidated
As of March 31                            2000            1999          2000           1999            2000            1999
--------------                         -----------     -----------   -----------    -----------    ------------     -----------
<S>                                    <C>           <C>             <C>            <C>            <C>             <C>
Total assets                           $53,383,000     $52,733,000   $50,659,000    $43,829,000    $104,042,000     $96,562,000
Total long-lived assets (net of
   depreciation and amortization)       19,347,000      18,953,000    33,358,000     29,442,000      52,705,000      48,395,000

For the quarter ended March 31
------------------------------
Revenue by location of operations       15,362,000      10,595,000     6,126,000      5,600,000      21,488,000      16,195,000
Income before income tax expense           274,000         847,000      (859,000)      (783,000)       (585,000)         64,000
</TABLE>

The Company generated revenue from customers located outside of the United
States of $8,418,000 and $7,726,000 for the quarters ended March 31, 2000 and
1999, respectively.

                                      -7-
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

Results of Operations

The following analysis compares the Company's results of operations for the
quarter ended March 31, 2000, with the quarter ended March 31, 1999.

Revenue for the quarter increased by 33% to $21,488,000 from $16,195,000 for the
comparable period in 1999. Most of the revenue growth occurred in landing gear
sales.

Cost of revenue increased by 36% to $17,422,000 from $12,796,000 in the first
quarter of 1999. The UK unit recorded its highest level of unadjusted gross
margin since inception. The Sun Valley division had lower than normal gross
margin principally as a result of extra costs incurred to lease or acquire
additional landing gear shipsets to meet tight customer schedules. Certain of
these additional lease costs will run through the end of the second quarter.

Selling, general and administrative expense for the first quarter increased by
$690,000 from $2,193,000 in 1999 to $2,883,000 in 2000. This increase was
primarily attributable to higher legal and professional fees, additional costs
related to the Company's senior credit facility, and increased sales
commissions.

Interest expense for the quarter increased by $560,000 as a result of increased
borrowings on the line of credit, and an increased rate of interest. The Company
estimates it is currently paying interest at a rate 1.25% higher than market.
The Company is currently in negotiations to secure a new senior credit facility,
and expects to reduce these excess interest charges and administrative costs
within the next few months.

The Company recorded a net loss for the quarter of ($351,000), as compared with
net income of $40,000 in the first quarter of 1999. In addition, the Company
posted a $0.21 per share charge to record accretion of a discount and redemption
premium on preferred stock issued in December 1999, along with the issue's
quarterly dividend. The accretion charge represents a pro rata share of the
maximum possible benefit that the preferred shareholders might receive through
both conversion and redemption, as well as other costs and discounts associated
with the issue of the preferred stock. With the exception of $205,000 of costs
recorded at the time of issuance, the remaining $2,025,000 to be accreted
remains a non-cash charge (until such time as the preferred shares are converted
or redeemed).

The total amount to be accreted, $2,230,000, will be charged over the 180-day
period commencing December 10, 1999. $273,000 ($0.05 per share) of this amount
was recorded in December, $1,127,000 ($0.19 per share) was accreted in the first
quarter, and the remaining balance of $830,000 ($0.14 per share) will be
accreted in the second quarter. In addition to these amounts, 8% cumulative
preferred stock dividends ($0.01 per share) will be recorded in each period.

The accretion and dividend amounts are recorded on the Company's Statement of
Operations below net income (loss). The total of net income (loss), less these
additional amounts, represents net income (loss) available to common
shareholders. The net income (loss) available to common shareholders decreased
to ($1,552,000), or ($0.27) per basic and diluted share, as compared with
$40,000, or  $0.01 per basic and diluted share.

Liquidity and Capital Resources

The following analysis compares material changes in the Company's financial
position from December 31, 1999, to March 31, 2000.

Accounts receivable decreased by $3.3 million from the end of 1999 as a result
of the $4.2 Qantas receivable from the sale of a landing gear shipset. This
amount was collected in January 2000.

Inventories increased by $3.6 million during the first quarter of 1999. This
increase resulted primarily from increased purchasing to meet a higher sales
volume, and a higher level of work in process at the end of the quarter.

During 2000 the Company has been providing cash from operations, and it is
expected that the Company will continue to generate surplus cash flow throughout
2000 and beyond. The Company remains, however, cash tight currently because the
UK subsidiary is still paying off large capital expenditures incurred during
1999. The monthly surplus cash flow from operations is expected to reduce this
tightness gradually during the next few months.

                                      -8-
<PAGE>

On April 5, 2000, the Company and Heller executed an amendment to the Heller
Agreement. This amendment extends certain covenant provisions of the Heller
Agreement until August 31, 2000, and provides for an escalation of certain fees
to Heller. The Company is actively working to secure a new senior credit
facility, and upon doing so, these additional  fees to Heller will cease
accruing. The Company believes the additional fees to Heller will be
approximately $0.4 million, but they may amount to as much as $1.6 million by
August 31, 2000.

The Company believes that cash provided from operations, along with savings from
deferring discretionary capital expenditures, will continue to provide
sufficient liquidity to meet the Company's cash requirements for the next twelve
months.

Forward Looking Statements

This Quarterly Report contains forward-looking statements within the meaning of
the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of
1995, such as statements of the Company's plans, objectives, expectations and
intentions, that involve risks and uncertainties that could cause actual results
to differ materially from those discussed in such forward-looking statements.
Factors that could cause or contribute to such differences include, but are not
limited to, those discussed in this Quarterly Report and in the Company's
various filings with the Securities and Exchange Commission, including without
limitation the Company's Annual Report on Form 10-K/A for the year ended
December 31, 1999.

This discussion and analysis should be read in conjunction with the Company's
financial statements and related notes thereto included herein, and with the
information set forth under Management's Discussion and Analysis of Financial
Condition and Results of Operations in the Company's Annual Report on Form 10-
K/A for the year ended December 31, 1999.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk refers to the potential effects of unfavorable changes in certain
prices and rates on the Company's financial results and condition, primarily
foreign currency exchange rates and interest rates on borrowings. The Company
does not utilize derivative instruments in managing its exposure to such
changes.

Foreign Currency Risk.  The Company has operations in the United Kingdom and the
Netherlands. The currencies of these two countries have been relatively stable
as compared with the U.S. dollar.  The Company manages foreign currency risk, in
part, by generally requiring that customers pay for the services of the
Company's foreign operating units in the currency of the country where the
operating unit is located. The Company also does not routinely exchange material
sums of money between the operating units. The Company has not to date seen the
need for currency hedging transactions in the ordinary course of business.

Interest Rate Risk.  The Company's senior credit facility is comprised of two
notes payable and a revolving line of credit, each of which currently carries an
interest rate which varies in accordance with a Base Rate equal to the higher of
the Federal Reserve prime rate, or the Federal Funds Effective Rate. The Company
is presently subject to potentially material fluctuations in its debt service as
the Base Rate changes.


                          PART II - OTHER INFORMATION

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

    10.46   Management Incentive Program Agreements, dated February 4, 2000

    11      Statement re: Computation of Per Share Earnings

    27      Financial Data Schedule

(b) Form 8-K

   No reports were filed on Form 8-K during the quarter ended March 31, 2000.

                                      -9-
<PAGE>

                                 SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                 HAWKER PACIFIC AEROSPACE


Date:  May 15, 2000              By /s/  Philip M. Panzera
                                   -----------------------------
                                   Philip M. Panzera
                                   Executive Vice President
                                   (Principal Financial and Accounting Officer)

                                      -10-