India's Jet Airways is considering legal action against a US company of the same name which has accused it of having links to terrorists.
India's airline market is expanding rapidly
US-based Jet Airways Inc has asked American aviation authorities not to register the Indian company to fly to any destination in the US.
The Indian airline hopes to begin flights between India and the US later this month.
Jet Airways said the allegations of terror links were baseless.
Executive Director Saroj Datta said his company was outraged by the comments, adding it was in touch with lawyers in the US to explore ways of taking legal action against the US company.
Mr Datta said the US company existed only on paper and had no planes registered in its name.
India's Jet Airways said in a statement on Sunday: "The primary motivation of Jet Airways (Inc) in filing the objection arises out of a trade name claim made by them that is currently being addressed before the US Patent and Trademark Office."
The Indian firm, which has recently launched international flights to Singapore, Kuala Lumpur and London, is hopeful the American authorities will allow them to fly to the US.
Jet Airways is scheduled to launch its flights to the US from Mumbai (formerly Bombay) via Brussels to New Jersey later this month.
The Port Authority of Newark and New Jersey has "given a clean chit to Jet Airways and informed the transport department it supports the carrier's entry into the US and appreciates its choice of airport," a Jet Airways spokesperson told The Hindustan Times.
But without US Department of Transportation clearance, its plans would be in jeopardy. The Department said in a statement on Monday that: "The carrier's application is under review at DOT (the Department of Transportation)."
Jet Airways, founded 12 years ago after the aviation sector in India was thrown open to private players, is considered one of the most dynamic airlines in India's domestic sector.