India’s national carrier Air India and Germany-based Lufthansa Group on Tuesday, 17 February, signed a landmark Memorandum of Understanding (MoU) to deepen cooperation on passenger services between India and Europe, seeking to capitalise on growth opportunities unlocked by the recently concluded India–European Union Free Trade Agreement.
The MoU establishes the framework for a future comprehensive Joint Business Agreement (JBA) between Air India, Air India Express and Lufthansa Group airlines, subject to regulatory and antitrust approvals. The partnership aims to expand passenger traffic, improve connectivity and deliver more seamless travel experiences across some of the busiest long-haul aviation corridors between India and Europe.
Focus on Germany and Lufthansa Group’s European home markets
Under the agreement, the airlines will initially focus on strengthening passenger flows between India and Lufthansa Group’s European home markets — Germany, Austria, Switzerland, Belgium and Italy. A second phase of the cooperation envisages extending the partnership to cover the remaining EU countries and the wider Indian subcontinent.
The precise scope of the joint business, including specific routes and markets, will be finalised following the conclusion of the commercial agreement and receipt of regulatory clearances.
Expanded codeshare network and route-level cooperation
Air India and Lufthansa Group carriers currently operate codeshare flights across nearly 150 routes, covering more than 20 countries. The joint network spans around 15 Indian and over two dozen European destinations.
Lufthansa currently offers its widest India connectivity from Frankfurt, serving Delhi, Mumbai, Chennai, Bengaluru and Hyderabad, while Munich connects Delhi, Mumbai and Bengaluru. SWISS operates services from Zurich to Delhi and Mumbai, while ITA Airways links Rome with Delhi. Air India complements this network with long-haul services from Delhi to Frankfurt, Zurich, Vienna and Milan, and from Mumbai to Frankfurt.
The MoU formally brings Lufthansa Group’s newest airline, ITA Airways, into the scope of cooperation with Air India.
Route coordination, sales alignment and customer experience upgrades
Subject to regulatory approvals, the two airline groups intend to collaborate across coordinated route planning and flight schedules in selected markets to offer better connections and shorter transfer times. The partnership also includes plans for joint sales, marketing and distribution initiatives for flights between India and Lufthansa Group’s European home markets.
Further cooperation will focus on enhancing the end-to-end customer journey, including better integration of frequent flyer programmes, coordinated IT infrastructure, optimised airport processes, and quality assurance measures to ensure a more consistent travel experience across partner airlines.
The MoU builds on the airlines’ long-standing cooperation through existing codeshare agreements and their shared membership in the Star Alliance.
Airlines cite momentum from India–EU free trade agreement
The MoU was signed by Carsten Spohr, Chairman of the Executive Board and Chief Executive Officer of the Lufthansa Group, and Campbell Wilson, Chief Executive Officer and Managing Director of Air India.
Spohr described the agreement as a strategic response to shifting global trade and mobility patterns. “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,” he said.
He noted that routes between Europe and India have become Lufthansa Group’s second-most important premium long-haul market after the United States, driven by rapid growth in India’s aviation sector and an expanding middle class. Spohr added that the group would continue to deepen economic and cultural links between India and Europe through expanded connectivity and upgraded onboard offerings, including new long-haul aircraft and premium cabin products.
Air India highlights global expansion strategy
Wilson said the MoU marked a significant milestone in Air India’s European growth plans. “This milestone in our deepening relationship with the Lufthansa Group is great news for travellers and enterprises alike between India and Europe,” he said.
As Air India continues to modernise its fleet and transform its product and service offerings, Wilson said the framework would enable closer cooperation to support rising trade, commerce and people-to-people ties.
“This would unlock greater value for our common customers and respective shareholders, and we look forward to progressing these initiatives together,” he added.
Built on decades of India–Germany aviation ties
Lufthansa’s relationship with India dates back more than six decades, with the airline first landing in Delhi in 1959. A codeshare partnership with Air India has been in place since 2004, followed by Air India’s entry into the Star Alliance in 2014. In February 2025, the two airline groups announced an expansion of their existing codeshare arrangements involving Lufthansa, SWISS, Austrian Airlines and Air India.
The latest MoU also builds on Air India’s broader international partnerships following its privatisation in 2022 by the Tata Group, including its cooperation framework with Singapore Airlines, which holds a 25% stake in the Indian carrier.
Trade backdrop underpins aviation push
India and the European Union together account for roughly a quarter of global GDP and global population. The EU remains India’s largest trading partner for goods, with annual bilateral trade running into hundreds of billions of euros. Against this backdrop, the Air India–Lufthansa MoU underscores the growing role of aviation partnerships in supporting deeper economic integration, business mobility and people-to-people links between India, Germany and the wider European region.
