Ayush Agrawal, Third-year student at the National Law Institute University, Bhopal
Animesh Chaturvedi, Third-year student at the National Law Institute University, Bhopal
Rishabh Sisodiya, Third-year student at the National Law Institute University, Bhopal
ABSTRACT
The merger of Air India and Vistara marks a transformative shift in the Indian aviation industry, bringing forth significant legal, economic, and regulatory implications. This article critically examines the multifaceted consequences of the merger, particularly within the frameworks of competition law, employment regulations, foreign investment, and corporate social responsibility (CSR) obligations. The consolidation raises concerns about market concentration, potential monopolistic practices, and the resultant impact on consumer welfare, necessitating scrutiny under the Competition Act, 2002. Additionally, labor law challenges emerge as workforce integration, potential redundancies, and restructuring raise questions about compliance with India’s Industrial Disputes Act, 1947, and associated employment protections.
From a foreign investment perspective, the merger redefines India’s aviation market attractiveness, balancing the increased financial muscle of the entity against regulatory restrictions on foreign ownership and international competition concerns. The article further delves into CSR obligations post- merger, analyzing how the combined entity must navigate compliance under the Companies Act, 2013, particularly in aligning diverse pre-merger CSR initiatives while addressing sustainability challenges in aviation. Moreover, the merger’s implications under international trade law, including bilateral air service agreements and cross-border regulatory alignment, are explored.
By integrating case law analysis, regulatory insights, and economic perspectives, this article presents a comprehensive evaluation of the Air India-Vistara merger, providing a nuanced understanding of its broader industry-wide ramifications. The findings emphasize the need for a well- structured regulatory and compliance framework to ensure that the merger not only strengthens the aviation sector but also adheres to legal mandates, fosters competitive markets, and upholds social and labor responsibilities.
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