Air India and Lufthansa Group Deepen Partnership with Joint Business Agreement

Air India and the Lufthansa Group have signed a Memorandum of Understanding (MoU) to establish a joint business agreement, expanding their decades-long partnership. The agreement encompasses Air India’s subsidiaries, Air India Express, and the Lufthansa Group’s airlines including Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa, and Swiss International Air Lines, among others. This collaboration aims to enhance connectivity between India and Europe, offering passengers more seamless travel experiences.

Expanding a Long-Standing Relationship

The MoU builds upon existing codeshare agreements between the airlines, which date back to 2004, and Air India’s membership in the Star Alliance, co-founded by Lufthansa in 1997 Star Alliance. The agreement seeks to leverage the recent India-European Union Free Trade Agreement to unlock new opportunities for growth and improved service.

Key Areas of Collaboration

The airlines intend to collaborate on several strategic areas, including:

• Route Planning and Flight Schedules: Coordinated planning to improve customer convenience and connectivity.
• Sales and Marketing: Joint initiatives to promote travel between India and Europe.
• Customer Experience: Enhanced frequent flyer program integration, IT infrastructure improvements, and a focus on overall customer journey quality.

Focus on Key Markets

Initially, the MoU focuses on increasing passenger traffic between India and the Lufthansa Group’s core European markets: Germany, Austria, Belgium, Italy, and Switzerland. Future expansion to other European destinations and the Indian subcontinent is likewise envisioned. The specific routes and markets will be finalized as part of a comprehensive joint business agreement, pending regulatory approvals.

Executive Perspectives

Carsten Spohr, Chairman and CEO of the Lufthansa Group, stated that the agreement signifies a commitment to strengthening aviation ties between the EU and India following the recent trade agreement. He emphasized the Lufthansa Group’s existing success in the Indian market and its intention to further enhance economic and cultural relations through increased connectivity Air India and Lufthansa Group.

Campbell Wilson, CEO and Managing Director of Air India, highlighted the benefits for both travelers and businesses, noting that the partnership will support Air India’s expansion and modernization efforts. He expressed optimism about unlocking greater value for customers and shareholders Air India and Lufthansa Group.

Current Codeshare Network

Currently, Air India and Lufthansa Group carriers codeshare on 145 routes, connecting 15 Indian cities and 29 European cities across 20 countries. The airlines expanded their codeshare agreements in February 2025, including Lufthansa, SWISS, and Austrian Airlines Air India on X.

Economic Significance

India and the European Union represent a significant economic force, accounting for nearly 25% of global GDP. Bilateral trade between the EU and India exceeded €120 billion in 2024, with the EU being India’s largest trading partner for goods.

Air India’s Expansion

Since its privatization in 2022, Air India has been actively expanding its global network, establishing 24 codeshare partnerships and nearly 100 interline agreements, providing access to over 800 destinations worldwide.

Lufthansa Group’s Global Reach

The Lufthansa Group is one of the world’s largest airline groups, carrying over 131 million passengers in 2024 and offering access to the largest network in Europe. It operates five national airlines and numerous subsidiaries.