Air India and Icelandair have signed a new codeshare agreement aimed at significantly enhancing connectivity between India and Iceland, marking a milestone in travel and trade ties between the two countries.
Announced during the 81st IATA AGM in New Delhi, the partnership enables seamless travel across 15 key routes in India and Europe, with immediate benefits for customers of both airlines.
Under the agreement, Air India passengers will be able to book Icelandair-operated flights to Reykjavik via major European hubs including London Heathrow, London Gatwick, Frankfurt, Paris, Amsterdam, Copenhagen, Milan and Zurich, with the Indian flag carrier’s “AI” designator code added to those services.
In turn, Icelandair will place its “FI” code on Air India-operated flights from Delhi and Mumbai to key European cities, including Amsterdam, Paris, Frankfurt, Copenhagen and London Heathrow. This will offer Icelandair customers smoother access to Air India’s expansive network of destinations across the Indian subcontinent.
The arrangement will offer reciprocal benefits such as coordinated schedules, unified baggage handling, and convenient transit times at European gateways, allowing passengers to enjoy a more streamlined and comfortable travel experience.
“This codeshare partnership with Icelandair unites two airlines committed to connecting the world,” said Campbell Wilson, CEO & Managing Director of Air India. “By combining our strengths, we’re building a seamless bridge between India’s vibrant destinations and Iceland’s extraordinary landscapes. It also reflects Air India’s broader ambition to expand our global reach and elevate customer experience.”
Bogi Nils Bogason, President and CEO of Icelandair, hailed the move as a “significant milestone,” noting that the partnership opens exciting new travel opportunities from North America and Europe to and from India. “This collaboration allows us to introduce Iceland to Air India’s customers, while enabling Icelandair’s passengers to explore India’s rich cultural heritage and diverse landscapes,” he said.
The new partnership comes at a time when both carriers are expanding aggressively. Air India, which returned to Tata Sons’ ownership in 2022 after seven decades as a state-run airline, is undergoing a sweeping five-year transformation under its Vihaan.AI programme. This includes the 2023 order of 470 new aircraft – the largest in aviation history at the time – and the successful mergers of AirAsia India and Vistara into Air India Express and Air India, respectively. The airline is also investing heavily in new training, maintenance and digital infrastructure.
Meanwhile, Icelandair has continued to strengthen its transatlantic presence through an expanding network of codeshare and interline partnerships, with Reykjavik serving as a key connecting hub between Europe and North America.
Subject to regulatory approvals, codeshare flights between the two carriers will be gradually made available for sale via both airlines’ booking channels. Once live, the partnership is expected to offer improved choice, greater flexibility, and better value for customers on both sides of the globe.