Mallya approved Mercedes Honda deal

Formula One's regulations do not allow a car manufacturer to supply engines to more than two teams without the full consent of the FIA. That regulation meant that in theory Mallya could have blocked the moves to share his 2009 engine supplier with another team other than McLaren.

However, speaking at Jerez on Monday, Mallya said he decided not to kick up a fuss because it was in the interests of the sport that Honda Racing were given the chance for survival.

"Well, the FIA rules say that an engine manufacturer can only supply two teams," said Mallya. "As far as Mercedes is concerned, that's McLaren and Force India. I think a special one-year dispensation, I understand, has been granted for Mercedes to supply the ex-Honda team just to keep it on the grid.

"I could have objected but I chose not to because it is good for F1. Nobody likes to see a team disappear. We had unfortunately Super Aguri disappear last year and I don't think it is good for the sport that one more team goes."

Mallya said that the spirit of cooperation shown in this matter was evidence of how well things were working as teams try and shape the future of F1.

"We all have to recognise that we have to sometimes be more positive to keep the sport intact," he said. "I believe in 2010 the costs can be brought down significantly, where it is not unlimited expenditure and a lack of comparison between income and expense.

"If the costs are brought down to a level where one can ably demonstrate, as I believe Max and Bernie want to do, that this is a viable business where the costs are under control then there will be even more teams. There is no reason why we can't have 24 cars and that is good for the sport."