Lufthansa Group and Air India plan joint business

Lufthansa Group and Air India have signed a memorandum of understanding to establish a “joint business agreement”, as they seek to take advantage of a new trade deal between the EU and India.

The agreement would cover the companies’ carriers and subsidiaries, which include Lufthansa, Austrian Airlines, Brussels Airlines, ITA Airways and Swiss, as well as Air India and Air India Express.

The companies already have a codeshare agreement in place and are both members of the Star Alliance grouping of airlines.

The new joint venture would enable Lufthansa and Air India to “further co-ordinate flight schedules and route networks,” as well as creating “joint sales, marketing and distribution initiatives”, and offering “better integrated” loyalty programmes, according to the companies.  

The initial agreement focuses on India and Lufthansa’s “home market region” of Germany, Austria, Belgium, Italy and Switzerland, but the two companies propose to include the remaining EU countries. 

Carsten Spohr, Lufthansa Group’s CEO, said the deal would “open a new chapter in aviation between the EU and India”. It follows the signing of the EU-India trade deal in January, which is expected to double EU exports to India by 2032, according to an EU statement.

“Together with Air India, we will strengthen our access to the aviation market with the highest growth rates worldwide,” added Spohr. “In the future, we will contribute to deepening economic and cultural relations between India and Europe with even more connections.”

Campbell Wilson, CEO of Air India, said the joint business would be “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,” added Wilson.

The airline groups said the “scope” of the partnership, including the specific routes and markets that it will cover, would be determined following the completion of a joint business agreement, which would be subject to regulatory and competition approvals.

In February 2025, the companies expanded their codeshare agreement to include Austrian Airlines and additional routes on Air India, Lufthansa and Swiss airlines. The current codeshare covers 146 routes to 22 countries, including 27 European destinations and 15 airports in India.