The present paper has focused on the corporate strategy adopted by the public sector airlines, which basically has been considered as air transport infrastructure. Air transportation plays a vital role on the development of the national economy. It provides employment generation on a large scale, contributes for national integration, development of cross culture at international level, contributes for foreign exchange reserves, and contributes for the development of the other organizations like hotel industry, car rentals, travel and tourism etc. The history of airlines has revealed that the Pre-1953 period consisted of a large number of airline operators, un- healthy competition, lack of adequate standards, compromise on safety and the other factors resulted in severe operational loss to the airline operators. In 1953, the Government enacted the Air Corporations Act by merger of the eight private airlines; and established The Indian Airlines and Air India.  In the year 1981, the Vayudoot Limited was established. The Government has taken the decision to implement the economic reforms in the area of civil aviation. Consequently, many private operators have entered into the airline market. The corporate management of public sector airlines has taken the decision to merge both domestic and international airlines. The merger has taken in various forms like HR merger, Financial Merger etc. The aim of the study was to assess the impact of the merger decision on employee job security because both the airlines have different organizational cultures, different HR career development and welfare schemes. The methodology adopted was exploratory, descriptive, and diagnostic. The sample size was 100 respondents. The structured questionnaires were administered to the identified respondents. The simple statistical technique like percentage was applied to elicit the perceptions.   The overall data analysis has indicated that the vast majority of the employees of the domestic airline felt unhappy because their career planning was upset. The two public sector airlines had the best social security schemes. The observations and findings have resulted that these two public sector airlines should have been given the autonomy to function independently, so that the employees at both the airlines perform well which finally resulted  in overall Organizational Development.

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Keywords: Corporate Strategy, Social Security, Welfare, HR Merger and Organizational Development