Expressing deep concern over the declining profitability and market share of Indian Airlines and Air-India, the government on Wednesday said there was an urgent need to augment the aircraft fleet to turnaround the two companies.

"I have a responsibility to see to it that there is a turnaround. I take the Indian Airlines' loss of Rs 300 crore (Rs 3 billion) and steep decline in market share from 64 per cent to 40 per cent as a challenge," Minister of State for Civil Aviation Rajiv Pratap Rudy said in New Delhi.

Talking to reporters on the sidelines of a CII-organised marketing summit, he said professional management with greater autonomy has to be brought in with least bureaucratic approach for the survival of the two air carriers.

"The board of IA and A-I will have to take responsibility and management has to be professional to survive and compete," he said.

Asked whether any fare hike was imminent, the minister said, "The increase in fare does not add to profitability."

The Naresh Chandra committee on civil aviation would submit its report in October, he said, adding, "We all are working towards the aim of making airlines more friendly as has already been announced by the prime minister."

Emphasing the need to make the procedures quick and less bureaucratic, Rudy said, "If Jet Airways needs to buy aircraft, its board clears the proposal within 15 days, while the whole process gets over in 15 months; but the same thing for Indian Airlines takes much longer."

"The Centaur Hotel at the Mumbai airport was incurring losses for the past many years and has been divested. But it is interesting to note that during 2001-02, five private hotels were constructed just outside the Mumbai airport, while Centaur Hotel, in spite of being located right at the heart of the airport, kept making losses," he said.

The government has to compete with the private players while ensuring a level playing field and fair play, he said, adding that air travel within India was relatively more expensive than travelling abroad, he said.