The Hindu Business Line : A-I signs code-share pact with Lufthansa

FOR CODE SHARING: Mr V. Thulasidas, Chairman & Managing Director, Air India, and Mr Wolfgang Mayrhuber, Chairman of the Executive Board of Lufthansa AG, signing the documents of strategic alliance in Mumbai on Tuesday. - Paul Noronha

Mumbai , Aug. 10

EMPLOYING the partnership model to expand their network and capacity, Lufthansa and Air-India on Tuesday signed a memorandum of understanding that will cover strategic areas including the development of the India-US market, code sharing and integration of their respective frequent flyer programmes.

Addressing presspersons here today, the Chairman and Managing Director, A-I, Mr V. Thulasidas, said: "A-I and Lufthansa have signed a document of commercial importance for the two international carriers. The agreement covers vital subjects and strategic areas of co-operation, joint development of the Indian, European, and the US markets, harmonisation of the sales and marketing of the two national carriers, as well as global code-sharing and formation of a joint frequent flyer programme (FFP)."

The MoU formalises a strategic agreement that the two airlines had entered into in August last year.

According to Mr Thulasidas, the tie-up gives A-I a strong and established partner. The global codeshare would enhance the airline's reach in Germany, Europe and across the world, he said.

While Lufthansa has entered into similar alliances with other airlines across the world, according to the CEO, Mr Wolfgang Mayrhuber, what was unique about the current arrangement was the potential growth offered by the Indian market.

Mr Mayrhuber said while India accounted for 17 per cent of the global population, its share in global aviation stood at just 0.02 per cent.

Indian operations account for 20 per cent of Lufthansa's revenues from Asia. The Asian region contributes about 20 per cent of the revenues of Lufthansa worldwide, he said.

Mr Thulasidas added that the US-India sector was a core market for both the airlines, and the two players would serve this market through Frankfurt. Under the joint plan, apart from Mumbai and Delhi, it was proposed to directly link Chennai, Bangalore, Hyderabad and either Kochi or Thiruvananthapuram to Frankfurt.

Under the terms of the alliance, A-I would code-share to four stations in Germany (Berlin, Munich, Dusseldorf, and Stuttgart), four other stations in the rest of Europe (Lyon, Geneva, Zurich, and Amsterdam), besides five stations in the US (Washington, Chicago, Denver, Detroit, and Los Angeles).

The joint frequent flyer programme envisages redemption of accumulated miles on services of both airlines.