NEW DELHI, 26 September 2005 — Air-India and its domestic counterpart, Indian Airlines, are buying more than 100 planes to revamp aging fleets but still face a bruising battle to win back market share, analysts say. To reclaim India’s crowded skies, the state-run carriers must jettison their bureaucratic management style and prune bloated workforces in order to outwit rivals who are driving down ticket prices, they say. Industry watchers also say that the Indian state airlines boast some of the region’s top managerial talent but are unable to achieve their potential because of rigid government control. “Restructuring of both carriers is long overdue,” said Kapil Kaul, chief executive officer of the India office of the Center for Asia Pacific Aviation, a consultancy.
