Air TransportLufthansa Group and Air India move toward joint business agreement
Lufthansa Group and Air India have signed a memorandum of understanding that lays the groundwork for a future joint business agreement covering services between India and Europe. The framework, signed by Lufthansa Group CEO Carsten Spohr and Air India CEO Campbell Wilson, foresees closer coordination on routes, scheduling and commercial activities, pending antitrust and regulatory clearance.
The planned agreement would expand cooperation beyond existing codeshare arrangements and allow the airlines to jointly market flights, align schedules and improve connectivity between India and Lufthansa Group’s core European markets, including Germany, Austria, Switzerland, Belgium and Italy. A second phase could extend cooperation to additional European Union countries and the wider Indian subcontinent.
India has become one of Lufthansa Group’s most significant long-haul markets after the United States. The group currently serves multiple Indian cities from Frankfurt and Munich, while SWISS operates from Zurich and ITA Airways connects Rome with Delhi. Air India, in turn, flies from Delhi and Mumbai to several European destinations including Frankfurt, Zurich, Vienna and Milan. Together, the carriers already offer codeshare services across more than 140 routes.
The timing of the agreement coincides with the conclusion of a free trade pact between India and the European Union, which both sides see as supportive of growing travel demand linked to trade and investment flows. India is one of the fastest-growing aviation markets globally, driven by a rising middle class and expanding international business ties.
For Air India, the deeper partnership forms part of a wider restructuring effort under Tata Group ownership. The former state carrier is overhauling its fleet and network strategy as it seeks to compete more effectively with domestic rival IndiGo and to rebuild its international presence. The airline faced renewed scrutiny in 2025 after the crash of a Boeing 787-8 in June that killed all occupants and people on the ground, intensifying pressure to modernize operations and oversight.
Lufthansa and Air India have cooperated for decades. Lufthansa first began serving India in 1959, entered a codeshare agreement with Air India in 2004, and welcomed the Indian carrier into Star Alliance in 2014. The proposed joint business agreement would represent the most extensive commercial coordination between the two groups to date.
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