Air India, Lufthansa Group sign MoU to establish joint business agreement

Mumbai: In a landmark deal, national carrier Air India and Lufthansa Group signed a MoU establishing the framework for a joint business agreement between Air India's and Lufthansa Group’s carriers and subsidiaries, including Air India Express, Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa, Swiss International Air Lines (SWISS), and other affiliated airlines.

The MoU is intended to leverage opportunities unlocked by the recent conclusion of the landmark India-European Union Free Trade Agreement.

Building on their existing codeshare agreements and shared membership in Star Alliance, this MoU enables the carriers to mutually explore ways to boost connectivity between India and major European markets with the goal of offering travellers more connected and consistent experiences across some of the world’s busiest routes on a single ticket.

The MoU was signed by Air India Chief Executive Officer and Managing Director, Campbell Wilson, and Lufthansa Group Chairman and Chief Executive Officer, Carsten Spohr.

Subject to requisite regulatory and anti-trust approvals, the carriers intend to collaborate across multiple strategic areas, including coordinated route planning and flight schedules in specific markets for greater customer convenience and enhanced connectivity as well as joint sales, marketing and distribution initiatives.

Further cooperation would encompass the joint development and coordination for improved customer experiences in areas such as frequent flyer programmes, IT infrastructure, - customer journey, quality assurance, and other mutually beneficial initiatives - to enhance the ease of travel for our customers.

The MoU initially focuses on increasing passenger traffic flows between Air India’s home market of India and Lufthansa Group’s core Home Market region, encompassing Germany, Austria, Belgium, Italy and Switzerland.

It also proposes to include the rest of Europe and the Indian subcontinent, creating opportunities for future expansion. The precise scope, including specific routes and markets, will be finalised upon the formation of a comprehensive joint business agreement, subject to regulatory approvals.

Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG and Chief Executive Officer of the Lufthansa Group said, "Today's agreement with our long-standing Star Alliance partner Air India is a strong signal of our mutual determination to open a new chapter in aviation between the EU and India following the landmark trade agreement between both economic regions. Together with Air India, we will strengthen our access to the aviation market with the highest growth rates worldwide. The Lufthansa Group is already the most successful and most popular European airline group among customers in India.”

Campbell Wilson, Chief Executive Officer and Managing Director, Air India, said, “This milestone in our deepening relationship with the Lufthansa Group is great news for travellers and enterprises alike between India and Europe. As Air India continues to expand its global footprint with a fast-modernising fleet and transformed product and service offerings, this framework enables us to explore closer cooperation on multiple fronts to meet the growing trade, commerce, and people-to-people ties between our respective regions. This would unlock greater value for our common customers and respective shareholders, and we look forward to progressing these initiatives together with the Lufthansa Group.”

Air India and Lufthansa Group carriers currently codeshare on 145 routes across 15 Indian and 29 European cities and 20 countries.

In February 2025, Air India and Lufthansa Group announced the expansion of the codeshare agreements between Air India, Lufthansa, SWISS, and Austrian Airlines.