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Air India and the Lufthansa Group recently signed a Memorandum of Understanding (MoU) to create a joint business partnership. This agreement establishes a framework for cooperation between Air India, its subsidiaries like Air India Express, and Lufthansa Group carriers, including Austrian Airlines, Brussels Airlines, ITA Airways, Lufthansa, and SWISS.
With this agreement, the two companies aim to improve flight connections and travel experiences between India and Europe on a single ticket. The partnership follows the recent completion of the India-European Union Free Trade Agreement. The airlines plan to work together on route planning, flight schedules, and marketing to make travel more convenient. They also intend to coordinate frequent flyer programs and IT systems. Carsten Spohr, Chairman and CEO of the Lufthansa Group, stated that the agreement marks a new phase for aviation between the two regions. Spohr said, "Together with Air India, we will strengthen our access to the aviation market with the highest growth rates worldwide." The statement shared by Air India stated that it is currently expanding its fleet and service offerings following its privatisation in 2022. The airline sees this cooperation as a way to support increasing trade and travel ties. Campbell Wilson, CEO and Managing Director of Air India, noted that the framework allows the companies to explore closer cooperation on many levels. Wilson said, "This would unlock greater value for our common customers and respective shareholders, and we look forward to progressing these initiatives together with the Lufthansa Group." The two airline groups already have a relationship through the Star Alliance and existing codeshare agreements. Currently, they share 145 routes connecting 15 cities in India with 29 cities in Europe. The new agreement will initially focus on traffic between India and the Lufthansa Group's home markets of Germany, Austria, Belgium, Italy, and Switzerland, with plans to expand to the rest of Europe and the Indian subcontinent later. Economic data shows that the EU is India's largest trading partner for goods, with bilateral trade exceeding 120 billion euros in 2024. Combined, India and the European Union represent nearly 25 per cent of the global Gross Domestic Product. The airlines believe that better aviation links will support these economic relations. The final details of the partnership, including specific routes, will be decided after the companies receive the necessary regulatory and anti-trust approvals. (ANI)
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