‍FRANKFURT — Lufthansa Group (LH) and Air India (AI) have entered into a Memorandum of Understanding (MoU) to further cooperation by signing a future Joint Business Agreement, with a view to increased access to the European market, one of the fastest-growing aviation markets in the world. 

The deal targets greater connectivity, shared promotional campaigns, and improved customer experience as demand between India and Europe continues to grow at the same pace as strengthening economic relationships.

Increasing Network, Market Penetration

The alliance expands on an already existing system of codesharing on 146 routes in 22 countries. LH and AI already serve several cities in India, with the major hubs in Frankfurt (FRA), Munich (MUC), Zurich (ZRH), and Rome (FCO), such as the cities of Delhi (DEL), Mumbai (BOM), Bengaluru (BLR), Chennai (MAA), and Hyderabad (HYD).

The new structure will ensure that both carriers coordinate schedules and networks more closely to reduce transfer times and enhance overall connectivity.

The Indian Market Is Important Strategically

India is now the second-largest long-haul premium market for LH after the United States, reflecting strong growth driven by trade, tourism, and an ever-growing middle class. The intended partnership is also associated with the further economic integration of India and the European Union to facilitate the growth of passenger and cargo traffic.

Improvement of Customer Experience

Further plans include further integration with the frequent flyer program, coordinated airport operations, and joint commercial plans, pending regulatory acceptance, which position LH and AI to capture long-term demand across major intercontinental routes.