ISTANBUL

Germany’s flag carrier Lufthansa Group and India’s Air India signed a memorandum of understanding (MoU) on Tuesday to expand their strategic partnership, setting the framework for a joint business agreement covering flight schedules, route networks, sales activities and loyalty programs.

"The agreement is specifically designed to capitalize on new growth opportunities arising from the recently concluded free trade agreement between India – the world's most populous country – and the European Union (EU). The EU states are India's largest trading partners for goods," the statement said.

The expanded cooperation will focus on coordinating flight schedules and route networks in select markets, allowing passengers to benefit from improved connections and shorter layover times.

The two sides also plan to partially integrate sales and marketing activities, link their loyalty and mileage programs, and streamline airport processes.

The planned cooperation will include Lufthansa, the group’s main brand, as well as its subsidiaries Swiss, Austrian Airlines and ITA Airways.

India is currently the second most important long-haul market for the Lufthansa Group after the US.

Lufthansa Group airlines and Air India already operate 146 routes across 22 countries under code-sharing arrangements, under which flights operated by one airline are marketed by partner carriers using their own flight numbers.

"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," said Lufthansa CEO Carsten Spohr.

Air India CEO Campbell Wilson said this "milestone in our deepening relationship with the Lufthansa Group is great news for travelers and enterprises alike between India and Europe."