The Lufthansa Group and Air India have signed a memorandum of understanding to establish a "joint business agreement," pending regulatory and antitrust approvals, the companies announced Tuesday. The agreement would cover the companies' carriers and subsidiaries, which include Air India, Air India Express, Lufthansa, Austrian Airlines, Brussels Airlines, ITA Airways and Swiss.
The companies currently have a codeshare agreement and are members of the Star Alliance airline program. The new joint venture would enable Lufthansa and Air India to "further coordinate flights schedules and route networks," "joint sales, marketing and distribution initiatives," and "better integrated frequent flyer programs," according to the companies.
The agreement currently focuses on India and Lufthansa's "home market region" of Germany, Austria, Belgium, Italy and Switzerland but proposes to include the remaining European Union countries, according to the companies.
Last February, the companies expanded their codeshare agreement to include Austrian Airlines and additional routes on Air India, Lufthansa and Swiss airlines.