Air India and Lufthansa have signed a far-reaching, multiple strategic deal, spurred on by the recently announced free trade agreement between India and the European Union (EU).
On February 17, 2026, executives from both carriers signed a Memorandum of Understanding (MoU) that establishes the framework for a future Joint Business Agreement.
The agreement will also include Air India’s and Lufthansa Group’s subsidiaries, including Air India Express, Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa, Swiss International Air Lines (SWISS), and other affiliated airlines.
Central to their plan is an ambition to work even more closely together in the future, with the aim of capitalizing on new growth opportunities created by the India-EU agreement, solidified on January 27, 2026.
As a first step, the airlines plan to expand and jointly market flight offerings, providing customers with a more connected and seamless travel experience between the Lufthansa Group’s home markets of Germany, Austria, Switzerland, Belgium, Italy and India.
Although specific routes and markets still need to be agreed, a second step envisions incorporating the remaining EU countries and the Indian subcontinent.
The partners also cited the prospect of more integrated frequent flyer programs, coordination of flight schedules, shorter transfer times and joint sales, marketing and distribution initiatives
Airline CEOs praise agreement
The MoU was signed by Air India CEO and Managing Director, Campbell Wilson, and Lufthansa Group Chairman and CEO, Carsten Spohr.
Spohr described the proposed Joint Business Agreement as a “new chapter in aviation between India and the EU”.
“Together with Air India, we will strengthen our access to the aviation market with the highest growth rates worldwide,” Spohr said. “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.”
According to Lufthansa, the agreement would give the airline group access to the world’s most populous country, with the fastest-growing demand for aviation.
Wilson said that the collaboration would “unlock greater value for our common customers and respective shareholders”.
“As Air India continues to expand its global footprint with a fast-modernizing fleet and transformed product and service offerings, this framework enables us to explore closer cooperation on multiple fronts to meet the growing trade, commerce, and people-to-people ties between our respective regions,” Wilson added.
Currently, the Lufthansa Group airlines and its Star Alliance partner offer codeshare flights on 146 routes to 22 countries.
Completion of the commercial Joint Business Agreement is subject to required regulatory and antitrust approvals.