Commercial cooperation framework to explore
boosting connectivity and more consistent travel experiences between India and
Europe
MUMBAI :
Air India and Lufthansa Group today signed a landmark Memorandum of
Understanding (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.
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 – signed by Air India Chief Executive Officer and Managing Director,
Campbell Wilson, and Lufthansa Group Chairman and Chief Executive Officer,
Carsten Spohr – is intended to leverage opportunities unlocked by the recent
conclusion of the landmark India-European Union Free Trade Agreement.
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: "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. In the future, we will contribute to
deepening economic and cultural relations between India and Europe with even
more connections. With our new long-haul aircraft and Lufthansa Allegris and
SWISS Senses on board, we are offering a significantly improved premium travel
experience in all classes on more and more routes, including to 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.
India
and the European Union are two of the world’s strongest economies, together
representing nearly 25% of global GDP. According to the European Commission, the EU is India’s
largest trading partner for goods, with bilateral trade in goods exceeding €120
billion in 2024, while the EU ranks India as its ninth-largest trading partner,
accounting for 2.4% of the EU's total trade in goods in 2024.
Since
its privatization in 2022, Air India has significantly expanded its global
alliance network. Today, the airline maintains 24 codeshare partnerships and
nearly100 interline agreements with leading carriers worldwide, providing
seamless access for Air India customers to over 800 destinations globally.
The
Lufthansa Group is the fourth-largest airline group in the world in terms of
revenue and fleet size. It 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. Carrying 131+ million passengers in 2024, it offers its customers
access to the largest network on the continent.