UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549-1004

                                    Form 10-Q


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

                  For the Quarterly Period Ended June 30, 2002

                          Commission file number 1-9259


                 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP
             ______________________________________________________
             (Exact name of registrant as specified in its charter)


            California                             94-3008908
     _______________________          ____________________________________
     (State of Organization)          (I.R.S. Employer Identification No.)


    555 California Street, 4th floor, San Francisco, CA.              94104
    ____________________________________________________            __________
          (Address of principal executive offices)                  (Zip Code)


                                 (415) 765-1814
              ____________________________________________________
              (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  [ ]





                 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP








                                    I N D E X


                                                                        Page No.

Part I - Financial Information:

         Item 1.  Financial Statements

                  Balance Sheets --
                    June 30, 2002 and December 31, 2001.....................3

                  Statements of Operations --
                    Three and six months ended June 30, 2002 and 2001.......4

                  Statements of Cash Flows
                    Six months ended June 30, 2002 and 2001.................5

                  Notes to Financial Statements.............................6

         Item 2.  Management's Discussion and Analysis of
                  Financial Condition and Results of Operations.............7

         Item 3.  Quantitative and Qualitative Disclosures about
                    Market Risk.............................................8

Part II - Other Information:

         Item 6.  Exhibits and Reports on Form 8-K..........................9
                  Signatures...............................................10








                 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP


                                 BALANCE SHEETS


                                                      June 30,
                                                        2002        December 31,
(In thousands except unit data)                      (Unaudited)        2001
________________________________________________________________________________

ASSETS

Cash and cash equivalents                              $ 2,485        $ 9,432
Finance leases - net                                     6,449          6,949
Operating leases - net                                  13,533         14,218
Aircraft held for lease                                 20,299         21,326
Notes receivable                                           544            544
Prepaid expenses and other assets                           85             60
                                                       _______        _______

          Total assets                                 $43,395        $52,529
                                                       =======        =======


LIABILITIES AND PARTNERS' EQUITY

LIABILITIES

Distribution payable to partners                       $   514        $ 7,521
Deferred income                                            509            509
Accounts payable and accrued liabilities                   725            602
Taxes Payable                                               84            223
Long-term notes payable                                  3,065          3,389
                                                       _______        _______

          Total liabilities                              4,897         12,244
                                                       _______        _______


COMMITMENTS AND CONTINGENCIES

PARTNERS' EQUITY

Limited partners (4,625,000 units outstanding)          38,113         39,882
General partner                                            385            403
                                                       _______        _______

          Total partners' equity                        38,498         40,285
                                                       _______        _______

          Total liabilities and partners' equity       $43,395        $52,529
                                                       =======        =======


_____________________________________________________
See NOTES TO CONDENSED FINANCIAL STATEMENTS


                                       3








                 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP


                            STATEMENTS OF OPERATIONS


                                           Three Months Ended     Six Months Ended
(Unaudited; in thousands                        June 30,              June 30,
except per unit amounts)                    2002         2001       2002       2001
______________________________________________________________________________________
                                                                 

REVENUES

Finance lease income                      $   75       $1,235     $  155     $2,771
Operating lease rentals                      750          246      1,500        246
Other income                                   8            9         37         23
                                          ______       ______     ______     ______

          Total revenues                     833        1,490      1,692      3,040
                                          ______       ______     ______     ______


EXPENSES

Interest                                      60          149        115        323
Depreciation                                 856          145      1,712        145
Management fee - general partner              96          142        193        288
Investor reporting                            86           87        197        193
General and administrative                    55           37         84         53
Tax on gross income                           23          184         65        369
Aircraft maintenance and refurbishing         (6)           0         85          0
                                          ______       ______     ______     ______

          Total expenses                   1,170          744      2,451      1,371
                                          ______       ______     ______     ______


Net (Loss)/Income                         $ (337)      $  746     $ (758)    $1,669
                                          ======       ======     ======     ======

Net (Loss)/Income Allocated To:

General Partner                           $   (3)      $    7     $   (8)    $   17
                                          ======       ======     ======     ======

Limited Partners                          $ (333)      $  739     $ (751)    $1,652
                                          ======       ======     ======     ======

Net (Loss)/Income Per Limited
 Partnership Unit                         $(0.07)      $ 0.16     $(0.16)    $ 0.36
                                          ======       ======     ======     ======


_____________________________________________________
See NOTES TO CONDENSED FINANCIAL STATEMENTS





                                       4








                 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP


                            STATEMENTS OF CASH FLOWS


                                                                      Six Months Ended
                                                                          June 30,
(Unaudited; in thousands)                                             2002         2001
________________________________________________________________________________________
                                                                           

CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss)/Income                                                   $  (758)     $ 1,669
Adjustments to reconcile net (loss)/income to net cash provided
by operating activities:
Depreciation                                                          1,712          145
Increase in accounts payable and accrued liabilities                    123          334
Decrease in taxes payable                                              (139)        (136)
Decrease/(Increase) in prepaid expenses and other assets                (26)          57
Increase in accounts receivable                                           0          (90)
                                                                    _______      _______
  Net cash provided by operating activities                             912        1,979
                                                                    _______      _______

CASH FLOWS FROM INVESTING ACTIVITIES

Rental receipts in excess of earned finance lease income                500        4,522
                                                                    _______      _______

  Net cash provided by investing activities                             500        4,522
                                                                    _______      _______


CASH FLOWS FROM FINANCING ACTIVITIES

Repayments under lines of credit, net                                     0       (1,765)
Repayment of long-term notes payable                                   (324)        (791)
Distributions paid to partners                                       (8,035)      (3,877)
                                                                    _______      _______

  Net cash used by financing activities                              (8,359)      (6,433)
                                                                    _______      _______

Increase (decrease) in cash and cash equivalents                     (6,947)          68
Cash and cash equivalents at beginning of period                      9,432           17
                                                                    _______      _______

  Cash and cash equivalents at end of period                        $ 2,485      $    85
                                                                    =======      =======


ADDITIONAL INFORMATION

Interest paid                                                       $     1      $   310
                                                                    =======      =======


_____________________________________________________
See NOTES TO CONDENSED FINANCIAL STATEMENTS





                                       5







                 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP


                          NOTES TO FINANCIAL STATEMENTS



SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION - The accompanying unaudited condensed financial
statements reflect all adjustments (consisting only of normal recurring
adjustments) which are, in the opinion of the Partnership, necessary to fairly
state the results for the interim periods. The results of operations for such
interim periods are not necessarily indicative of results of operations for a
full year. The December 31, 2001 balance sheet included herein is derived from
the audited financial statements included in the Partnership's Annual Report and
incorporated by reference in the Form 10-K for the year ended December 31, 2001,
but does not include all disclosures required by generally accepted accounting
principles. The statements should be read in conjunction with the Organization
and Significant Accounting Policies and other notes to financial statements
included in the Partnership's Annual Report for the year ended December 31,
2001.

CASH EQUIVALENTS - The Partnership considers all highly liquid investments with
a maturity of three months or less when purchased to be cash equivalents.

FINANCE LEASES - Lease agreements, under which the partnership recovers
substantially all its investment from the minimum lease payments are accounted
for as finance leases. At lease commencement, the partnership records the lease
receivable, estimated residual value of the leased aircraft, and unearned lease
income. The original unearned income is equal to the receivable plus the
residual value less the cost of the aircraft (including the acquisition fee paid
to an affiliate of the general partner). The remaining unearned income is
recognized as revenue over the lease term so as to approximate a level rate of
return on the investment.

OPERATING LEASES - Leases that do not meet the criteria for finance leases are
accounted for as operating leases. The partnership's undivided interests in
aircraft subject to operating leases are recorded at carrying value of the
aircraft at lease inception. Aircraft are depreciated over the related lease
terms, generally five to nine years on a straight-line basis to an estimated
salvage value, or over their estimated useful lives for aircraft held for lease,
on a straight-line basis to an estimated salvage value.

NET INCOME PER LIMITED PARTNERSHIP UNIT - Net Income Per Limited Partnership
Unit is computed by dividing the net income allocated to the Limited Partners by
the weighted average units outstanding (4,625,000).


                                       6





                 AIRLEASE LTD., A CALIFORNIA LIMITED PARTNERSHIP


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


LIQUIDITY AND CAPITAL RESOURCES

The Partnership presently has one long-term debt facility. At June 30, 2002, the
7.4% non-recourse note collateralized by one aircraft leased to FedEx had an
outstanding balance of $3.1 million. The facility matures in April 2006.

At June 30, 2002, long-term borrowings of $3.1 million represented 2.9% of the
original cost of the aircraft presently owned by the partnership, including
capital expenditures for upgrades. The terms of the Limited Partnership
Agreement permit debt to be at a level not exceeding 50% of such cost.

Cash distributions paid in the first six months of 2002 were $1.72 per limited
partnership unit, representing the regular first-quarter 2002 distribution of
$0.11 per unit, the regular 2001 fourth-quarter cash distribution of $0.11 per
unit, and a special distribution of $1.50 per unit as a result of the sale of
one MD-82 aircraft in December 2001.

In June 2002, the Partnership declared a second-quarter 2002 cash distribution
of $0.11 per unit totaling $513,889 payable on August 15, 2002 to unitholders of
record on June 28, 2002. As a result of this distribution and the first-quarter
2001 distribution, and the Partnership loss for the first six months of 2002,
Partnership equity declined to $38.5 million at June 30, 2002 from $40.3 million
at December 31, 2001, and limited partner equity per unit declined to $8.24. The
second quarter cash distribution constitutes a return of capital. The 2001
second-quarter cash distribution was $0.38 per unit.

RESULTS OF OPERATIONS

The Partnership reported a loss of $337,000 in the second quarter ended June 30,
2002, compared with last year's second quarter earnings of $746,000. Revenues
for the 2002 second-quarter were $833,000, compared with last year's second
quarter revenues of $1,490,000. Net loss for the first six months of 2002 was
$758,000, compared with a net income of $1,669,000 for the first six months of
2001. Revenues for the six-month period were $1,692,000, compared with
$3,040,000 for the first six months of 2001.

The revenue reductions are primarily due to the expiration of the lease with US
Airways for five aircraft in the fourth quarter of 2001, three of which remain
off lease; the sale of one aircraft in December 2001; and the scheduled decline
in finance lease income in 2002 associated with the aircraft leased to FedEx.
The decline in earnings results from the reduced revenues, together with an
increase in expenses primarily due to an increase in depreciation expense.

Expenses for the first six months of 2002 were $2,451,000, an increase of
$1,080,000 from $1,371,000 for the comparable 2001 period. The increase in
expenses is primarily due to depreciation expense of $1,712,000 for the first
six months of 2002 related to aircraft subject to operating leases and to
aircraft available for lease. Depreciation expense in the first half of 2001 was
$145,000. The increase in expenses due to depreciation expense was partially
offset by lower interest expense in the first six months of 2002 as a result of
the reduction in the Partnership's debt balances, and by lower management fees
and taxes due to a smaller asset base and lower revenues.


                                       7





PORTFOLIO MATTERS

At June 30, 2002, the Partnership's portfolio consisted of six Stage-III
commercial aircraft. Two are leased to CSI Aviation Services, Inc., one to
FedEx, and three are off lease.

In June 2002, the Partnership commenced litigation against US Airways seeking to
recover damages for US Airways' failure to return three MD-82 aircraft leased to
US Airways following lease expiration on September 30, 2001 and to pay rent due
on the aircraft. The lawsuit was filed in California court by First Union
National Bank, as trustee for the Partnership, the beneficial owner of the
aircraft. The Partnership commenced the litigation after negotiations with US
Airways failed to result in return of the aircraft.

In the lawsuit, the Partnership asserts that US Airways breached its obligations
under the lease by failing to return the three aircraft by the date specified in
the lease and in the condition prescribed by the lease, and by failing to pay
rent due on the aircraft. The Partnership is seeking damages from US Airways
including past due rent, rent that may accrue after the filing of the lawsuit,
and the cost of restoring the aircraft to the condition prescribed by the lease.

OUTLOOK

The market conditions for aircraft leasing declined in 2001 in particular after
September 11, 2001 and during the first half of 2002, when reduction in
air-traffic demand, caused the supply of aircraft to exceed demand. While there
are signs of increases in air traffic from September 2001 levels, which could
lead to increased demand, it is widely believed that it will take time before
the industry recovers fully. Consequently, the Partnership continues to
experience significant competitive pressure in marketing the three aircraft
currently off lease, and management is not able to predict when these aircraft
may be leased again or the terms of any such future leasing.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995:

The Partnership has included in this quarterly report certain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 concerning the Partnership's business, operations and financial
condition. The words or phrases "can be", "may affect", "may depend", "expect",
"believe", "anticipate", "intend", "will", "estimate", "project" and similar
words and phrases are intended to identify such forward-looking statements. Such
forward-looking statements are subject to various known and unknown risks and
uncertainties and the Partnership cautions you that any forward-looking
information provided by or on behalf of the Partnership is not a guarantee of
future performance. Actual results could differ materially from those
anticipated in such forward-looking statements due to a number of factors, some
of which are beyond the Partnership's control, in addition to those discussed in
the Partnership's other press releases and public filings, including (i) changes
in the aircraft or aircraft leasing market, (ii) economic downturn in the
airline industry, (iii) default by lessees under leases causing the Partnership
to incur uncontemplated expenses or not to receive rental income as and when
expected, (iv) the impact of the events of September 11, 2001 on the aircraft or
aircraft leasing market and on the airline industry, (v) changes in interest
rates and (vi) legislative or regulatory changes that adversely affect the value
of aircraft. All such forward-looking statements are current only as of the date
on which such statements were made. The Partnership does not undertake any
obligation to publicly update any forward-looking statement to reflect events or
circumstances after the date on which any such statement is made or to reflect
the occurrence of unanticipated events.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The General Partner believes there has been no material change in the
Partnership's exposure to market risk from that discussed in the Partnership's
Annual Report on Form 10-K for the year ended December 31, 2001.


                                       8





                           PART II. OTHER INFORMATION


Item 6.    EXHIBITS AND REPORTS ON FORM 8-K

           (b) On June 25, 2002, the Partnership filed a report on Form 8-k
dated June 25, 2002, disclosing under Item 5 the commencement of litigation
against US Airways seeking to recover damages for US Airways' failure to return
three MD-82 aircraft leased to US Airways in the condition prescribed in the
lease following lease expiration on September 30, 2001 and to pay rent due on
the aircraft.









                                       9





                                   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.



                                         AIRLEASE LTD., A CALIFORNIA LIMITED
                                         PARTNERSHIP



                                         By:  Airlease Management Services, Inc.
                                              General Partner



July 30, 2002                            By:  /s/ DAVID B. GEBLER
___________________                         ____________________________________
Date                                          David B. Gebler
                                              Chairman, Chief Executive Officer
                                              and President



July 30, 2002                            By:  /s/ ROBERT A. KEYES
___________________                         ____________________________________
Date                                          Robert A. Keyes
                                              Chief Financial Officer











                                       10