The agreement, signed in 1996 between the two airlines, enabled the carriers to increase frequencies every year. However, the increase in frequency has not come about owing to the bickering between the two flag-carriers.

While British Airways has accused Air India of deliberately resisting an increase in the frequency of flights on the lucrative India-London sector, Air India says that there is overcapacity on the routes as indicated by the recent fare discounts. "As per the terms of the agreement which we signed with Air India in May 1996, our flights were supposed to increase to 18 per week in 1996, 20 in 1997, and 22 in 1998. But weare still operating with just 16 flights every week," British Airways' general manager Kevin Steele said. "The UK-India sector has heavy traffic and desperately needs an increase in flights." Air India has reportedly been opposed to the increase in frequency as it does not have additional aircraft to operate on the routes. On the other hand, British Airways says that Air India's recalcitrant attitude is inconveniencing itenerants.

Reacting to the allegations, an Air India spokesperson said, "BA has to decide on whether there is over-capacity or under-capacity on the India-UK sector. By offering discounts to its passengers in peak season, the British airline has itself shown that supply exceeds demand on these routes." Industry analysts say the two fare discounts -- in January and July this year -- have hit Air India hard and that the national carrier is now extracting its pound of flesh.