Air India and the Lufthansa Group signed a Memorandum of Understanding (MoU) to explore closer cooperation aimed at increasing connectivity and travel experiences between India and the European Union (EU). The MoU establishes a framework for a joint business agreement covering the carriers and subsidiaries, including Air India Express, Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa and Swiss International Air Lines (SWISS). The parties intend to partner across strategic areas such as coordinated route planning, flight schedules and joint sales, marketing and distribution initiatives.

The initial focus of the agreement is to increase passenger traffic flows between Air India's home market of India and the Lufthansa Group's core home market region covering Germany, Austria, Belgium, Italy and Switzerland, with proposals to extend the scope to the rest of Europe and the Indian subcontinent. The precise scope, including specific routes and markets, will be finalised when a comprehensive joint business agreement is formed and is subject to regulatory approvals. The framework is designed to create opportunities for future expansion while aligning commercial and operational plans.

Planned cooperation also covers customer experience areas such as frequent flyer programmes, information technology infrastructure, customer journey and quality assurance, and seeks mutually beneficial initiatives across affiliates. The two groups already codeshare on 145 routes across 15 Indian and 29 European cities in 20 countries, and intend to build on existing commercial ties. Company leaders indicated that the MoU reflects a determination to open a new chapter in aviation between the EU and India and to strengthen access to markets with high growth rates.

The partnership comes as India and the European Union together represent nearly 25 per cent of global GDP, and the EU is India’s largest trading partner for goods, with bilateral trade exceeding €120 bn in 2024 and accounting for 2.4 per cent of the EU's goods trade. The airlines said cooperation would be explored as Air India expands its global footprint with a modernising fleet and enhanced offerings. The parties will finalise commercial details following regulatory review and further negotiations.