The Pegasus Aviation Group, a leading purchaser and lessor of commercial aircraft, said it is currently at work on an asset securitization that it hopes to bring to market later this year.

A company official said the Pegasus Aviation Inc. unit is presently working with PaineWebber Inc. on structuring the next transaction that will likely be in the $800 million range and would most likely be brought to market sometime in the fourth quarter.

In a first for Pegasus, the next transaction would include some Airbus Industrie planes in the portfolio, according to the official. In the past the company's securitizations were limited to Boeing and McDonnell Douglas aircraft.

Earlier, Pegasus reported that revenues and expenses on its PALS 97-A securitization, originated in May 1997, have outperformed plan, resulting in greater principal repayment on the Class A and B bonds. The company said lease revenues are 6% above target and expenses have been reduced by 41% since the debt issue was placed. It did not release any progress report on its 1998 securitization.

- David Feldheim

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