Photo: Lufthansa Lufthansa Group and Air India have announced the expansion of their strategic cooperation, signing a Memorandum of Understanding (MoU) that lays the foundation for a future Joint Business Agreement between the group companies and Air India and Air India Express.
The agreement was signed by Carsten Spohr, CEO and Chairman of the Executive Board of the Lufthansa Group, and Campbell Wilson, CEO of Air India.
The move comes against the backdrop of the recently signed free trade agreement between India and the European Union, an agreement that establishes the world's largest free trade area, and reflects the strength of economic ties between the two regions.
Photo: ShutterstockAccording to the Lufthansa Group, India has become the second-largest premium market for long-haul flights after the United States. The growing demand, coupled with the growth of India's middle class and the expansion of aviation in the world's most populous country, presents significant growth potential for both companies.
Carsten Spohr noted that this is a "strong signal of our mutual determination to open a new chapter in aviation between the EU and India," and emphasized that Lufthansa is already the leading European airline group among passengers from India. He said that the agreement will strengthen economic and cultural ties between Europe and India and enable an upgraded premium experience on long-haul flights.
CEO Wilson added that the agreement will enable deeper collaborations in the areas of sales, marketing, schedules and customer experience, and will provide a response to growth in business and civic ties between the regions.
Today, the Lufthansa Group and Air India operate codeshare flights on 146 routes to 22 countries. The joint network includes 15 destinations in India and 27 in Europe.
Lufthansa operates flights from Frankfurt to Delhi, Mumbai, Chennai, Bangalore and Hyderabad, and from Munich to Delhi, Mumbai and Bangalore. SWISS connects Zurich to Delhi and Mumbai, and ITA Airways operates a route between Rome and Delhi.
Plus, Air India also operates flights from Delhi to Frankfurt, Zurich, Vienna and Milan, and Mumbai to Frankfurt.
In the first phase, the collaboration will focus on expanding and coordinating schedules, joint marketing, and improving the passenger experience between Germany, Austria, Switzerland, Belgium, Italy, and India. In the second phase, expansion to the rest of the European Union and the Indian subcontinent is planned, subject to regulatory and antitrust approvals.
In addition, deeper integration of frequent flyer clubs and improved airport service processes are expected, with the aim of creating a more seamless flight experience.
Lufthansa has a long history in India: the company began operations in Delhi as early as 1959, and a codeshare agreement with Air India has existed since 2004. In 2014, Air India joined the Star Alliance, which was founded, among others, by Lufthansa.
The current move marks a significant deepening of the relationship and an attempt to position both companies at the forefront of the fastest-growing market in the aviation world.