Lufthansa Group and Air India Sign MoU for Joint Business Agreement Following EU-India Free Trade Deal
Lufthansa Group and Air India have taken a decisive step in their strategic relationship by signing a Memorandum of Understanding (MoU). This document establishes the framework for a future Joint Business Agreement (JBA) between the German group’s airlines and Air India, including Air India Express.
The agreement was signed by Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG and CEO of the Lufthansa Group, and Campbell Wilson, CEO and Managing Director of Air India. This initiative follows the recent free trade agreement between India and the European Union (EU), which creates the world’s largest free trade area.
A High-Impact Economic Context
The new bilateral framework is supported by compelling figures:
- The EU is India’s largest trading partner in goods.
- Bilateral trade in goods currently reaches €180 billion annually.
- Together, both regions represent one-quarter of the global population and one-quarter of global GDP.
According to both companies, this new economic environment generates direct growth opportunities in air connectivity, particularly within the corporate and premium segments. Carsten Spohr emphasized that the agreement signals a clear intention to open “a new chapter in aviation between the EU and India,” strengthening access to what he described as the highest-growth aviation market in the world.
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India: Lufthansa’s Second-Largest Long-Haul Premium Market
The Indian market is notable not only for its demographic growth and the expansion of a middle class with higher purchasing power. For the Lufthansa Group, routes between its European markets and India have already become:
The second most important premium long-haul market after the United States.
Deepening cooperation with Air India—the largest Indian long-haul carrier and a historical partner of the German group—unlocks additional expansion potential as corporate and high-value demand continues to consolidate.
Current Joint Network: 146 Routes Across 22 Countries
Currently, the Lufthansa Group and Air India operate codeshare flights across:
- 146 routes
- 22 countries
- 15 destinations in India
- 27 destinations in Europe
Connectivity from Germany and Europe
From Frankfurt, Lufthansa offers connections to Delhi, Mumbai, Chennai, Bangalore, and Hyderabad. From its 5-star Munich hub, it operates to Delhi, Mumbai, and Bangalore. SWISS connects Zurich with Delhi and Mumbai , while ITA Airways, the newest member of the Lufthansa Group, links Rome and Delhi.
For its part, Air India complements the network with long-haul flights from:
- Delhi to Frankfurt, Zurich, Vienna, and Milan.
- Mumbai to Frankfurt.
Future Joint Business Agreement Roadmap
The signed MoU outlines a two-phase roadmap:
Phase One: Joint Expansion and Marketing
- Jointly expanding and marketing flight offerings.
- Improving connectivity between India and the Lufthansa Group’s home markets (Germany, Austria, Switzerland, Belgium, and Italy).
- Providing a more seamless and connected travel experience.
Phase Two: Geographic Expansion
- Potentially extending the scope to other EU countries and the Indian subcontinent.
The final scope, including specific routes and markets, will be defined following the formalization of the commercial JBA, subject to relevant regulatory and antitrust approvals.
Operational Integration and Customer Experience
Beyond commercial expansion, the cooperation aims for deeper operational integration:
- Closer coordination of schedules and networks in selected markets.
- Improved connections and reduced transit times.
- Deeper integration of loyalty programs.
- Optimization of airport processes.
- Coordination of sales and marketing in key European markets.
In parallel, Lufthansa highlighted the introduction of its new long-haul cabin products, such as Lufthansa Allegris and SWISS Senses, which are being progressively deployed on routes to India to reinforce the premium value proposition.
A Relationship Spanning Over Six Decades
Lufthansa’s cooperation with India dates back to 1959, when the airline first landed in Delhi. Since then:
- A codeshare agreement with Air India has existed since 2004.
- Air India joined Star Alliance in 2014.
- In February 2025, the parties announced an expansion of codeshare agreements between Lufthansa, SWISS, Austrian Airlines, and Air India.
With the free trade agreement as a backdrop, the Lufthansa Group and Air India seek to position themselves as central players in traffic between two economic blocs that concentrate a quarter of the world’s population and GDP.
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