New delhi: Germany's flag carrier Lufthansa Group and India's Air India have signed a memorandum of understanding (MoU) to expand their strategic partnership. This agreement sets the framework for a joint business arrangement that will cover flight schedules, route networks, sales activities, and loyalty programs.
According to Anadolu Agency, the agreement aims to capitalize on growth opportunities from the recently concluded free trade agreement between India and the European Union (EU). The EU is India's largest trading partner for goods. The expanded cooperation will focus on coordinating flight schedules and route networks in select markets, thereby offering passengers improved connections and shorter layover times.
The collaboration will also involve partial integration of sales and marketing activities and linking of their loyalty and mileage programs. Additionally, the cooperation seeks to streamline airport processes. The partnership will include Lufthansa and its subsidiaries, such as Swiss, Austrian Airlines, and ITA Airways.
India stands as the second most important long-haul market for the Lufthansa Group, following the United States. Currently, Lufthansa Group airlines and Air India operate 146 routes across 22 countries under code-sharing arrangements. These arrangements allow flights operated by one airline to be marketed by partner carriers using their own flight numbers.
Lufthansa CEO Carsten Spohr emphasized the significance of this partnership by stating, "Together with Air India, we will strengthen our access to the aviation market with the highest growth rates worldwide. The Lufthansa Group is already the most successful and most popular European airline group among customers in India. In the future, we will contribute to deepening economic and cultural relations between India and Europe with even more connections."
Air India CEO Campbell Wilson expressed optimism about this development, highlighting it as a "milestone in our deepening relationship with the Lufthansa Group," which he believes will benefit travelers and enterprises between India and Europe.