Air India and Lufthansa Group have signed a landmark Memorandum of Understanding (MoU), creating a formal framework to explore a joint business partnership between the two airline groups. The agreement covers 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 existing codeshare agreements and their shared membership in Star Alliance, the MoU allows both groups to jointly explore ways to strengthen connectivity between India and major European markets. The aim is to offer travellers more connected and consistent travel experiences across some of the world’s busiest routes, with seamless journeys on a single ticket.

The MoU was signed by Campbell Wilson, Chief Executive Officer and Managing Director of Air India, and Carsten Spohr, Chairman and Chief Executive Officer of Lufthansa Group. The agreement also seeks to leverage opportunities created by the recent conclusion of the landmark India–European Union Free Trade Agreement.

Subject to regulatory and anti-trust approvals, the partnership will explore collaboration across several strategic areas. These include coordinated route planning and aligned flight schedules in select markets to improve customer convenience and connectivity. The airlines also plan to work together on joint sales, marketing, and distribution initiatives.

Further cooperation would extend to enhancing customer experience through closer coordination in areas such as frequent flyer programmes, IT infrastructure, customer journey design, quality assurance, and other mutually beneficial initiatives aimed at making travel easier and more consistent for passengers.

Initially, the MoU focuses on increasing passenger traffic between Air India’s home market of India and Lufthansa Group’s core home market region, which includes Germany, Austria, Belgium, Italy, and Switzerland. The framework also proposes future expansion to cover the rest of Europe and the Indian subcontinent. The exact scope, including specific routes and markets, will be finalised once a comprehensive joint business agreement is established, 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. 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 in 20 countries. In February 2025, both groups announced an expansion of their codeshare agreements involving Air India, Lufthansa, SWISS, and Austrian Airlines.

India and the European Union are among the world’s strongest economies, together accounting for nearly 25% 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. India is also the EU’s ninth-largest trading partner, representing 2.4% of total EU goods trade in the same year.

Since its privatisation in 2022, Air India has significantly expanded its global alliance network. The airline now maintains 24 codeshare partnerships and nearly 100 interline agreements, providing access to over 800 destinations worldwide.

The Lufthansa Group is the fourth-largest airline group globally by revenue and fleet size. It operates five national airlines across key European markets, along with other travel-focused airlines, Lufthansa Cargo, Lufthansa Technik, and more than 300 subsidiaries and affiliated companies. In 2024, the group carried over 131 million passengers, offering access to the largest airline network in Europe.