The MoU seeks to capitalise on opportunities opened by the landmark India‑EU Free Trade Agreement.
Air India and the Lufthansa Group on Tuesday signed a memorandum of understanding (MoU), establishing the framework for a joint business agreement between their carriers and subsidiaries. The comprehensive alliance encompasses Air India Express, Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa, Swiss International Air Lines (SWISS), and other affiliated airlines.
Building on their existing codeshare agreements and shared membership in Star Alliance, this MoU enables the carriers to explore ways to strengthen connectivity between India and major European markets, offering travellers more seamless experiences across some of the world’s busiest routes on a single ticket.
The MoU also seeks to leverage opportunities unlocked by the recent conclusion of the India‑European Union Free Trade Agreement.
Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG & CEO 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.”
Campbell Wilson, CEO & Managing Director, Air India, observed, “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.”
Subject to regulatory and antitrust 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 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.
Expanding Route Access
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.
Air India and Lufthansa Group carriers currently codeshare on 145 routes across 15 Indian and 29 European cities in 20 countries. In February 2025, Air India and Lufthansa Group announced the expansion of codeshare agreements between Air India, Lufthansa, SWISS, and Austrian Airlines.
India and the European Union together represent nearly 25 per cent of global GDP. According to the European Commission, the EU is India’s largest trading partner for goods, with bilateral trade exceeding €120 billion in 2024, while the EU ranks India as its ninth‑largest trading partner, accounting for 2.4 per cent of the EU’s total trade in goods.
Since its privatisation in 2022, Air India has significantly expanded its global alliance network. Today, the airline maintains 24 codeshare partnerships and nearly 100 interline agreements with leading carriers worldwide, providing seamless access for Air India customers to over 800 destinations globally.
The Lufthansa Group, the world’s fourth‑largest airline group by revenue and fleet size, operates five national airlines in key European markets, other private travel‑oriented airlines, Lufthansa Cargo, Lufthansa Technik, and over 300 subsidiaries and affiliated companies under the Lufthansa Group brand.