Passengers flying with Air India will soon have more travel options as the airline plans to expand its codeshare partnerships with international carriers.
Airlines expand their networks in two main ways: by deploying their own resources or by forming partnerships with other airlines through commercial agreements like interline and codeshare agreements. These partnerships enable airlines to extend their reach, allowing passengers to enjoy a single itinerary, seamless check-in, and the ability to earn frequent flyer miles. For airlines, codeshare agreements offer the potential to increase revenue, as they allow partners to sell tickets across a broader range of fare categories compared to interline agreements. In a codeshare, one airline operates the flight while the other markets it, adding convenience for passengers and profitability for both airlines.
Currently, both Air India and Vistara have separate partnerships with international carriers. However, with the impending merger of Air India and Vistara, new codeshare agreements are expected to emerge. One significant change is Vistara’s agreement with Japan Airlines, which is likely to expire. Meanwhile, Air India is expected to finalize new codeshare partnerships with Air Canada and United Airlines. Prior to its privatization, Air India had a codeshare agreement with Air Canada, and the renewal of this agreement is anticipated. However, a new codeshare with United Airlines would be a first for Air India. This move would increase passenger traffic on Air India’s U.S. routes, which are highly competitive.
Although both Air India and United Airlines are part of the Star Alliance, they have not yet established a codeshare agreement despite operating on the busy India-U.S. route. The new deal would mark a significant development in their relationship.
Air India is also expected to renew its codeshare agreements with Lufthansa and Singapore Airlines. These deals are likely to harmonize and build on the existing arrangements between the airlines. The focus of Air India’s recent strategy has been to develop hubs, such as Delhi and Mumbai, and to maintain equitable partnerships with other airlines.
Over the past few months, Air India has added new routes to its network, aiming to connect more markets via its Delhi hub. Notable new routes include flights to Zurich, which commenced in June, and Kuala Lumpur, which started last month. These new routes have been part of Air India’s broader effort to expand its global reach.
“All codeshare and interline passengers who had tickets booked on Vistara for travel beyond November 12 have been accommodated on the corresponding Air India flights,” an Air India spokesperson said.
“All partner relationships at Vistara have been carefully evaluated to ensure they align with the broader strategy of Air India. Additionally, Air India is strengthening its relationships with Star Alliance partners by emphasizing reciprocity and fairness in partnerships, to provide greater connectivity and convenience for our passengers,” the spokesperson added.
Lufthansa, one of Air India’s long-standing partners, also emphasized its commitment to strengthening ties with the Indian carrier. In a statement, Lufthansa expressed its interest in deepening the partnership, reflecting the strong commercial relationship between the two airlines.
Similarly, Singapore Airlines, which has been codeshare partners with Air India since 2010, reiterated its strategic partnership with the airline. “Both airlines have been codeshare partners since 2010 when Air India first started codesharing on flights operated by Singapore Airlines. Further commercial collaboration opportunities will be discussed at the appropriate time and subject to appropriate competition clearance,” Singapore Airlines said.
United Airlines, however, declined to comment on the potential new codeshare agreement with Air India.
Air Canada, which is expected to renew its codeshare agreement with Air India, highlighted the significance of the Indian market for Canadian passengers. “We have a longstanding relationship with our Star Alliance partner, Air India, and connect many passengers between Canada and India through that relationship. As the Vistara brand sunsets, we continue to explore alternatives for the transition period given the importance of the India market for Canadians,” Air Canada said.
India’s international air travel market has been growing rapidly. In the fiscal year 2024, over 66 million passengers flew on international routes to and from India, representing a 22% increase compared to the previous year. While Indian carriers have expanded their reach, foreign airlines still control 55% of India’s overall international traffic.
For international airlines seeking to strengthen their presence in India, partnership options are limited to Air India and IndiGo. Air India is part of the Star Alliance, while IndiGo remains unaligned, forming partnerships with airlines across the globe. Currently, IndiGo collaborates with Qantas, Qatar Airways, and Turkish Airlines, feeding passengers into their networks. IndiGo has its own growth ambitions, with plans to operate long-haul flights beginning in 2027 when it receives its first widebody Airbus A350 aircraft.
Although IndiGo is charting its own growth, Air India’s improvements in its product and service offerings could make it an attractive partner for foreign airlines looking for collaboration opportunities.
“Any carrier choosing to partner with Air India will look at its entire network, including its no-frills brand, Air India Express,” noted an aviation sector analyst.
As Air India continues to expand its codeshare agreements and develop hubs like Delhi and Mumbai, passengers can look forward to more travel options and seamless connectivity across international routes. With new partnerships on the horizon, Air India’s strategy is set to strengthen its position as a leading international carrier while ensuring greater convenience for passengers flying across the globe.