================================================================================
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

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

                  For the quarterly period ended June 30, 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 0-17785
                                                -------

                         AIRCRAFT INCOME PARTNERS L.P.
                         -----------------------------
             (Exact name of Registrant as specified in its charter)


                 Delaware                             13-3430508
         -------------------------------          ------------------
         (State or other jurisdiction of           (I.R.S. Employer
          incorporation or organization)          Identification No.)

         Five Cambridge Center, Cambridge, MA         02142-1493
        ---------------------------------------   ------------------
        (Address of principal executive office)       (Zip Code)

     Registrant's telephone number, including area code (617) 234-3000
                                                         -------------


Indicate by check mark whether 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
                                         -----       -----


<PAGE>

                          AIRCRAFT INCOME PARTNERS L.P.

                             FORM 10-Q JUNE 30, 2000
                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

BALANCE SHEETS (UNAUDITED)

                                                     JUNE 30,    DECEMBER 31,
                                                       2000          1999
                                                    ----------   -----------

ASSETS

Equipment held for sale, net ....................   $     --     $  573,982
Cash and cash equivalents .......................    3,866,848    7,411,200
Other receivables ...............................         --         34,560
                                                    ----------   ----------

      Total Assets ..............................   $3,866,848   $8,019,742
                                                    ==========   ==========

LIABILITIES AND PARTNERS' EQUITY

Liabilities:

Accounts payable and accrued expenses ...........   $   64,898   $  115,253
                                                    ----------   ----------

         Total Liabilities ......................       64,898      115,253
                                                    ----------   ----------

Commitments and Contingencies

Partners' Equity:

Limited partners' equity (385,805 units
   issued and outstanding) ......................    3,412,800    7,105,085
General partner's equity ........................      389,150      799,404
                                                    ----------   ----------

         Total Partners' Equity .................    3,801,950    7,904,489
                                                    ----------   ----------

         Total Liabilities and Partners' Equity .   $3,866,848   $8,019,742
                                                    ==========   ==========


                       See notes to financial statements.

                                     2 of 14

<PAGE>


                       AIRCRAFT INCOME PARTNERS L.P.
                       -----------------------------

                          FORM 10-Q JUNE 30, 2000
                          -----------------------



STATEMENTS OF OPERATIONS (UNAUDITED)             FOR THE SIX MONTHS ENDED
                                                   JUNE 30,      JUNE 30,
                                                     2000          1999
                                                -----------    -----------

Revenues:

      Interest ..............................   $   140,544    $    84,824
      Other income ..........................          --           98,672
                                                -----------    -----------

         Total revenues .....................       140,544        183,496
                                                -----------    -----------

Costs and Expenses:

      Provision for equipment impairment ....          --        2,071,000
      General and administrative ............       234,593        334,637
      Operating .............................         8,490        191,087
      Other expenses ........................          --           38,000
                                                -----------    -----------

         Total costs and expenses ...........       243,083      2,634,724
                                                -----------    -----------

      Net loss ..............................   $  (102,539)   $(2,451,228)
                                                ===========    ===========

Net loss attributable to:

      Limited partners ......................   $   (92,285)   $(2,206,105)

      General partner .......................       (10,254)      (245,123)
                                                -----------    -----------

                                                $  (102,539)   $(2,451,228)
                                                ===========    ===========

Net loss per unit of limited partnership
      interest (385,805 units outstanding) ..   $     (0.24)   $     (5.72)
                                                ===========    ===========



                       See notes to financial statements.

                                     3 of 14


<PAGE>


                                               AIRCRAFT INCOME PARTNERS L.P.

                                                  FORM 10-Q JUNE 30, 2000


STATEMENTS OF OPERATIONS (UNAUDITED)

                                                 FOR THE THREE MONTHS ENDED
                                                   JUNE 30,       JUNE 30,
                                                     2000           1999
                                                   ---------     ---------
Revenues:

      Interest ................................    $  56,281     $  42,201
      Other income ............................         --          32,661
                                                   ---------     ---------

         Total revenues .......................       56,281        74,862
                                                   ---------     ---------

Costs and Expenses:

      Provision for equipment impairment ......         --         180,000
      General and administrative ..............      173,119       187,439
      Operating ...............................         --          67,367
                                                   ---------     ---------

         Total costs and expenses .............      173,119       434,806
                                                   ---------     ---------

      Net loss ................................    $(116,838)    $(359,944)
                                                   =========     =========

Net loss attributable to:

      Limited partners ........................    $(105,154)    $(323,950)

      General partner .........................      (11,684)      (35,994)
                                                   ---------     ---------

                                                   $(116,838)    $(359,944)
                                                   =========     =========

Net loss per unit of limited partnership
      interest (385,805 units outstanding) ....    $   (0.27)    $   (0.84)
                                                   =========     =========







                       See notes to financial statements.

                                     4 of 14

<PAGE>
                          AIRCRAFT INCOME PARTNERS L.P.

                             FORM 10-Q JUNE 30, 2000


STATEMENT OF PARTNERS' EQUITY (UNAUDITED)



<TABLE>
<CAPTION>

                                            LIMITED        GENERAL         TOTAL
                                            PARTNERS'      PARTNER'S      PARTNERS'
                                             EQUITY         EQUITY         EQUITY
                                          -----------    -----------    -----------
<S>                                       <C>            <C>            <C>
Balance - January 1, 2000 .............   $ 7,105,085    $   799,404    $ 7,904,489

 Net loss .............................       (92,285)       (10,254)      (102,539)

 Distribution to partners ($9.33 per
  limited partnership unit) ...........    (3,600,000)      (400,000)    (4,000,000)
                                          -----------    -----------    -----------

Balance - June 30, 2000 ...............   $ 3,412,800    $   389,150    $ 3,801,950
                                          ===========    ===========    ===========
</TABLE>

                       See notes to financial statements.

                                    5 of 14
<PAGE>

                               AIRCRAFT INCOME PARTNERS L.P.

                                  FORM 10-Q JUNE 30, 2000
<TABLE>
<CAPTION>


STATEMENTS OF CASH FLOWS (UNAUDITED)

                                                                 FOR THE SIX MONTHS ENDED
                                                                  JUNE 30,       JUNE 30,
                                                                    2000           1999
                                                                 -----------    ------------

CASH FLOWS FROM OPERATING ACTIVITIES:

<S>                                                              <C>            <C>
Net loss .....................................................   $  (102,539)   $(2,451,228)

Adjustments to reconcile net loss to net cash used in
  operating activities:
      Provision for equipment impairment .....................          --        2,071,000
      Changes in assets and liabilities:
         Deferred costs ......................................          --            5,132
         Prepaid expenses ....................................          --          (14,703)
         Other receivables ...................................        34,560         29,895
         Accounts payable and accrued expenses ...............       (50,355)      (357,779)
                                                                 -----------    -----------

Net cash used in operating activities ........................      (118,334)      (717,683)
                                                                 -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

      Proceeds from sale of aircraft, net ....................       573,982      1,824,427
                                                                 -----------    -----------

Cash provided by investing activities ........................       573,982      1,824,427
                                                                 -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

      Distribution to Partners ...............................    (4,000,000)          --
                                                                 -----------    -----------

Cash used in financing activities ............................    (4,000,000)          --
                                                                 -----------    -----------

Net (decrease) increase in cash and cash equivalents .........    (3,544,352)     1,106,744

Cash and cash equivalents, beginning of period ...............     7,411,200      4,199,804
                                                                 -----------    -----------

Cash and cash equivalents, end of period .....................   $ 3,866,848    $ 5,306,548
                                                                 ===========    ===========
</TABLE>

                       See notes to financial statements.

                                     6 of 14

<PAGE>







                          AIRCRAFT INCOME PARTNERS L.P.

                             FORM 10-Q JUNE 30, 2000

                          NOTES TO FINANCIAL STATEMENTS


1.   INTERIM FINANCIAL INFORMATION

     The summarized financial information of Aircraft Income Partners L.P. (the
     "Partnership") contained herein is unaudited; however, in the opinion of
     management, all adjustments (consisting only of normal recurring accruals)
     necessary for a fair presentation of such financial information have been
     included. The accompanying financial statements, footnotes and discussions
     should be read in conjunction with the financial statements, footnotes and
     discussions contained in the Partnership's annual report on Form 10-K for
     the year ended December 31, 1999. The accounting policies used in preparing
     these financial statements are consistent with those described in the
     December 31, 1999 financial statements. The results of operations for the
     six months ended June 30, 2000, are not necessarily indicative of the
     results to be expected for the year ending December 31, 2000.

2.   CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

     The general partner of the Partnership, Integrated Aircraft Fund Management
     Corp. ("IAFM"), is a wholly owned subsidiary of Presidio Capital Corp.
     ("Presidio").

     Subject to the rights of the Partnership's agreement of the Limited
     Partner's ("Partnership Agreement"), Presidio controls the Partnership
     through its indirect ownership of all of the shares of IAFM. On August 28,
     1997, an affiliate of NorthStar Capital Partners acquired all of the Class
     B shares of Presidio, the corporate parent of IAFM. This acquisition, when
     aggregated with previous acquisitions, caused NorthStar Capital Partners to
     acquire indirect control of IAFM. Effective July 31, 1998, Presidio is
     indirectly owned by NorthStar Capital Investment Corp. ("NorthStar"), a
     Maryland corporation.

     In August 1997, Presidio entered into a management agreement with NorthStar
     Presidio Management Company, LLC ("NorthStar Presidio"), an affiliate of
     NorthStar. Under the terms of the management agreement, NorthStar Presidio
     provided until October 21, 1999 the day-to-day management of Presidio and
     its direct and indirect subsidiaries and affiliates. For the six months
     ended June 30, 2000 and 1999, reimbursable expense paid to NorthStar
     Presidio amounted to $0 and $23,522, respectively.

     On October 21, 1999, Presidio entered into a new Services Agreement with
     AP-PCC III, L.P (the "Agent") pursuant to which the Agent was retained to
     provide asset management and investor relation services to the Partnership
     and other entities affiliated with the Partnership.

     As a result of this agreement, the Agent has the duty to direct the day to
     day affairs of the Partnership, including, without limitation, reviewing
     and analyzing potential sale, financing or restructuring proposals
     regarding the Partnership's assets, preparation of all Partnership reports,
     maintaining Partnership records and maintaining bank accounts of the
     Partnership. The Agent is not permitted, however, without the consent of
     Presidio, or as otherwise required under the terms of the Partnership
     Agreement to, among other things, cause the Partnership to acquire an asset
     or file for bankruptcy.


                                     7 of 14


<PAGE>


                          AIRCRAFT INCOME PARTNERS L.P.
                          -----------------------------

                             FORM 10-Q JUNE 30, 2000
                             -----------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------


2.   CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)

     In order to facilitate the provision by the Agent of the asset management
     services and the investor relation services, effective October 25, 1999,
     the officers and directors of the General Partner resigned and nominees of
     the Agent were elected as the officers and directors of the General
     Partner.

     The Agent is an affiliate of Winthrop Financial Associates, a Boston based
     company that provides asset management services, investor relation services
     and property management services to over 150 limited partnerships which own
     commercial property and other assets. The General Partner does not believe
     that this transaction will have a material effect on the operations of the
     Partnership.

     IAFM is entitled to a 10 percent interest in the net income, loss and
     distributions from operations and cash from sales. IAFM received $400,000
     in distributions for the six months ended June 30, 2000. No distributions
     were paid with respect to the six months ended June 30,1999.

     In addition, IAFM receives the management fee provided for in the
     Partnership Agreement which is equal to 4% of Distributions of Cash from
     Operations from Operating Leases and 2% of Distributions of Cash from
     Operations from Full Payout Leases, as such terms are defined in the
     Limited Partnership Agreement. In conjunction with such services, IAFM did
     not earn any management fees for the six months ended June 30, 2000 and
     1999.

3.   AIRCRAFT SALES

     On January 19, 2000, the Partnership sold to an unaffiliated third party
     its sole remaining aircraft, a McDonnell Douglas DC9-30, for gross proceeds
     of $650,000. Costs associated with the sale amounted to approximately
     $77,000. At the time of the sale, the aircraft had a net carrying value of
     approximately $574,000.

4.   DISTRIBUTION TO PARTNERS

     During February 2000, the Partnership declared and paid a $4,000,000
     distribution to partners of record as of January 1, 2000. Of this amount,
     the limited partners collectively received $3,600,000 or $9.33 per Unit.

5.   COMMITMENTS AND CONTINGENCIES

     TAX ASSESSMENT

     In September 1996, the Partnership received proposed notices of assessment
     from the State of Hawaii with respect to general excise tax ("GET")
     aggregating approximately $1,338,000 (including interest and penalties) for
     the years 1991, 1992, 1993 and 1994. In July 1998, the Partnership received
     additional proposed notices of assessment for GET aggregating approximately
     $585,000 for the years 1995, 1996 and 1997. The state is alleging that GET
     is owed by the Partnership with respect to rents received from Aloha
     Airlines, Inc. ("Aloha") and Hawaiian Airlines, Inc. ("Hawaiian") under the
     leases between the Partnership and each of the airlines.


                                    8 of 14


<PAGE>


                         AIRCRAFT INCOME PARTNERS L.P.
                          -----------------------------

                             FORM 10-Q JUNE 30, 2000
                             -----------------------

                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------


5.   COMMITMENTS AND CONTINGENCIES (CONTINUED)

     TAX ASSESSMENT (CONTINUED)

     The leases with both Aloha and Hawaiian provided for full indemnification
     of the Partnership for such taxes, but the bankruptcy of Hawaiian may
     relieve Hawaiian of its indemnification obligation for any periods prior to
     September 21, 1993, when Hawaiian and its affiliates sought bankruptcy
     protection. In any event, it is the Partnership, as taxpayer, which is
     ultimately liable for the GET, if it is applicable.

     The State of Hawaii has never previously applied the GET to rentals
     received by a lessor of aircraft where the lessor's only contact with the
     State of Hawaii is that it has leased its aircraft to airlines which are
     based in the state. Aloha and Hawaiian, as well as the Partnership, have
     separately engaged tax counsel and both airlines are cooperating with the
     Partnership in vigorously contesting the proposed assessments.

     The Partnership recently reached a settlement with Aloha pursuant to which
     Aloha agreed to indemnify the Partnership for any costs it may ultimately
     incur. The Partnership has further been advised that Hawaiian is pursuing a
     legislative remedy. The Partnership believes that the state's position on
     the applicability of GET in this instance is without merit. The Partnership
     has not recorded any provision or liability as a result of the proposed
     notices of assessment.

     CONTINENTAL AIRLINES, INC.

     During 1997, the leases of three McDonnell Douglas Model DC9-32 aircraft
     owned by the Partnership and leased to Continental Airlines, Inc.
     ("Continental") were extended to September 1998 (2 aircraft) and December
     1998 (1 aircraft) at a rental of $52,500 per month, per aircraft. Two of
     the aircraft were returned in September 1998 and the third aircraft was
     returned in December 1998.

     Upon return, the Partnership conducted inspections of the aircraft to
     ascertain whether the return conditions of the lease were satisfied. On May
     5, 1999, First Security Bank, N.A., acting not in its individual capacity,
     but solely as trustee under a trust agreement in which the Partnership is
     beneficiary, filed a complaint in the United States District Court,
     Southern District of New York. The complaint seeks damages in an amount to
     be determined at trial, but believed to be in excess of $3,000,000, arising
     out of Continental's i) failure to return the three DC9-32 aircraft in the
     return condition required by the lease and ii) failure to make a rent
     payment provided for in the lease. Continental has filed an answer denying
     the allegations in the complaint.

     Two of the Partnership's DC9-32 aircraft were sold during 1999 and the
     remaining aircraft was sold on January 19, 2000.


                                     9 of 14

<PAGE>

                          AIRCRAFT INCOME PARTNERS L.P.

                             FORM 10-Q JUNE 30, 2000

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

     The matters discussed in this Form 10-Q contain certain forward-looking
     statements and involve risks and uncertainties (including changing market
     conditions, competitive and regulatory matters, etc.) detailed in the
     disclosure contained in this Form 10-Q and the other filings with the
     Securities and Exchange Commission made by the Partnership from time to
     time. The discussion of the Partnership's liquidity, capital resources and
     results of operations, including forward-looking statements pertaining to
     such matters, does not take into account the effects of any changes to the
     Partnership's operations. Accordingly, actual results could differ
     materially from those projected in the forward-looking statements as a
     result of a number of factors, including those identified herein.

     This item should be read in conjunction with the financial statements and
     other items contained elsewhere in the report.

     LIQUIDITY AND CAPITAL RESOURCES

     The Partnership's level of liquidity based upon cash and cash equivalents
     decrease by $3,544,352 during the six months ended June 30, 2000, as
     compared to December 31, 1999. The decrease is due to $4,000,000 of cash
     used for partner distributions (financing activities) and $118,334 of cash
     used in operations, which was partially offset by $573,982 of cash from the
     sale of the McDonnell Douglas DC-9-30 Aircraft (investing activities). At
     June 30, 2000, the Partnership had $3,866,848 in cash and cash equivalents
     which had been invested primarily in money market mutual funds.

     During February 2000, the Partnership declared and paid a $4,000,000
     distribution to the Unitholders of records as of January 1, 2000. Of this
     amount, the limited partners collectively received $3,600,000 or $9.33 per
     Unit. It is not anticipated at this time that any further distributions
     will be made to partners until the resolution of the Hawaiian GET matter
     (see below).

     In November 1991, in connection with its reorganization under the United
     States Bankruptcy Code, Continental Airlines, Inc. ("Continental") rejected
     the leases of the three Boeing 727-100 aircraft owned by the Partnership,
     which had been out of service since 1991. Due to the condition and the
     related market for such aircraft, the Partnership provided aggregate
     allowances for equipment impairment of approximately $6,483,000. During
     1993, the Partnership sold all three Boeing 727-100 aircraft. The
     Partnership had retained its rights pursuant to a proof of claim and an
     administrative claim filed in the Continental Bankruptcy case with respect
     to such aircraft.

     In June 1999, the Partnership and Continental agreed to settle the
     foregoing claims. Pursuant to the settlement, the Partnership received
     $780,000 on August 24, 1999 as well as 8,684 shares of Continental's Class
     A stock and 24,179 shares of Continental's Class B stock and an additional
     $90,861 on September 22, 1999. On October 6, 1999, the Partnership sold all
     shares of stock for net proceeds aggregating approximately $1,213,000,
     which equaled the Partnership's cost basis in the stock. Subject to the
     resolution of third party claims against additional stock reserved under
     Continental's Plan of Reorganization, the Partnership may receive
     additional shares of Class A and Class B stock.


                                    10 of 14


<PAGE>


                          AIRCRAFT INCOME PARTNERS L.P.

                             FORM 10-Q JUNE 30, 2000

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

     LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)

     During 1997, the leases of three McDonnell Douglas Model DC9-32 aircraft
     owned by the Partnership and leased to Continental Airlines, Inc.
     ("Continental") were extended to September 1998 (2 aircraft) and December
     1998 (1 aircraft) at a rental of $52,500 per month, per aircraft. Two of
     the aircraft were returned in September 1998 and the third aircraft was
     returned in December 1998.

     Upon return, the Partnership conducted inspections of the aircraft to
     ascertain whether the return conditions of the lease were satisfied. On May
     5, 1999, First Security Bank, N.A., acting not in its individual capacity,
     but solely as trustee under a trust agreement in which the Partnership is
     beneficiary, filed a complaint in the United States District Court,
     Southern District of New York. The complaint seeks damages in an amount to
     be determined at trial, but believed to be in excess of $3,000,000, arising
     out of Continental's i) failure to return the three DC9-32 aircraft in the
     return condition required by the lease and ii) failure to make a rent
     payment provided for in the lease. Continental has filed an answer denying
     the allegations in the complaint.

     Two of the Partnership's Dc9-32 aircraft were sold during 1999 and the
     remaining aircraft was sold on January 19, 2000.

     In September 1996 and July 1998, the Partnership received proposed notices
     of assessment from the State of Hawaii with respect to general excise tax
     of approximately $1,923,000 (including interest and penalties) for the
     years 1991 through 1997. The state is alleging that GET is owed by the
     Partnership with respect to rents received from Aloha Airlines, Inc.
     ("Aloha") and Hawaiian Airlines, Inc. ("Hawaiian") under the leases between
     the Partnership and each of the airlines.

     The leases with both Aloha and Hawaiian provide for full indemnification of
     the Partnership for such taxes, but the bankruptcy of Hawaiian may relieve
     Hawaiian of its indemnification obligation for any periods prior to
     September 21, 1993, when Hawaiian and its affiliates sought bankruptcy
     protection. In any event, it is the Partnership, as taxpayer, which is
     ultimately liable for the GET, if it is applicable.

     The State of Hawaii has never previously applied the GET to rentals
     received by a lessor of aircraft where the lessors only contact with the
     State of Hawaii is the fact that it has leased its aircraft to airlines
     which are based in the state. Aloha and Hawaiian, as well as the
     Partnership, have separately engaged tax counsel and both airlines are
     cooperating with the Partnership in vigorously contesting the proposed
     assessments.

     The Partnership recently reached a settlement with Aloha pursuant to which
     Aloha agreed to indemnify the Partnership for any costs it may ultimately
     incur. The Partnership has further been advised that Hawaiian is pursuing a
     legislative remedy. The Partnership believes that the state's position on
     the applicability of GET in this instance is without merit. The Partnership
     has not recorded any liability as a result of the proposed notices of
     assessment.


                                    11 of 14


<PAGE>


                          AIRCRAFT INCOME PARTNERS L.P.

                             FORM 10-Q JUNE 30, 2000


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

     LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)

     Upon resolution of the tax examination relating to the GET, the managing
     general partner will then prepare a final accounting of the Partnership's
     assets and liabilities, commence the dissolution and termination of the
     Partnership and make a final distribution to partners.

     RESULTS OF OPERATIONS

     Net loss decreased for the three and six month periods ended June 30, 2000
     compared to the three and six month periods ended June 30, 1999,
     principally due to no operating Aircraft expenses or impairment provision.

     Revenues decreased for the three and six month periods ended June 30, 2000
     compared to the corresponding periods of the prior year principally due to
     decrease on other income (investor transfer fees) partially offset by
     increased interest income due to higher invested cash balances.

     Costs and expenses decreased for the three and six month periods ended June
     30, 2000 compared to the corresponding periods of the prior year
     principally due to no Aircraft operations as all equipment has been sold as
     of February 2000. The decrease in general and administrative expenses is
     the result of lower professional fees.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

     The Partnership is not subject to market risk as its cash and cash
     equivalents are invested in short term money market mutual funds. The
     Partnership has no loans outstanding.

                                    12 of 14


<PAGE>


                          AIRCRAFT INCOME PARTNERS L.P.

                             FORM 10-Q JUNE 30, 2000



PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

        A.   None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

        A.   Exhibits: 27 Financial Data Schedule.

        B.   Reports on Form 8-K: None.


                                    13 of 14


<PAGE>


                          AIRCRAFT INCOME PARTNERS L.P.
                          -----------------------------

                             FORM 10-Q JUNE 30, 2000
                             -----------------------


                                   SIGNATURES
                                   ----------


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


                               AIRCRAFT INCOME PARTNERS L.P.
                               -----------------------------


                               BY:  Integrated Aircraft Fund Management Corp.
                                    ----------------------------------------
                                    General Partner



                               BY:  /s/ MICHAEL L. ASHNER
                                    ----------------------------------------
                                        Michael L. Ashner
                                        President and Director
                                        (Principal Executive Officer)


                               BY:  /s/ CAROLYN B. TIFFANY
                                    ----------------------------------------
                                        Carolyn B. Tiffany
                                        Vice President and Treasurer
                                        (Principal Financial and
                                        Accounting Officer)






                             Dated: August 14, 2000




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