The management of Air India has committed to posting an operating profit in the next fiscal year and a cash profit by 2018—preconditions set by bureaucrats overseeing the airline’s debt recast plan along with SBI Capital Markets Ltd (SBI Caps) for it to qualify for government funding until 2021, two Air India executives said.

Operating profit is earnings before interest and taxes, while cash profit is earnings after tax and depreciation. The national carrier had earlier planned to turn in an operating as well as cash profit by 2013.

Though aviation analysts are cynical about these projections, AI executives said these are based on savings on interest cost, phased equity infusion by the government, and adherence to milestones set by government officials led by special secretary (expenditure) Vilasini Ramachandran in the finance ministry.

The Reserve Bank of India (RBI) is examining the financial restructuring plan and is expected to give its approval by the end of the month, said one of the AI executives mentioned above, asking not to be identified.

Mint